Reverse Mortgages
The Basics
A reverse mortgage is a loan against the equity in your home. This mortgage product, designed for homeowners who are 62 years of age or older, enables you to remain in your home and provides you with an additional source of income. Rather than paying a monthly mortgage to a lender, you will receive funds from the lender. Depending on the reverse loan product you choose, there are different ways you can elect to receive the loan proceeds. Under IRS revenue rulings, the loan proceeds you receive should be tax-free, but we encourage you to consult your tax advisor on this issue. There are generally no restrictions on the way you choose to use the funds.
Key Features of a Reverse Mortgage
- A federally insured program
- No income or health requirements for approval
- Minimal credit verification requirements
- Loan proceeds may be tax free. (Consult your tax advisor)
- Repayment is not due until the last borrower permanently leaves the residence
- There are no restrictions on the way you use the funds
At Rockland Trust we believe in building relationships. That’s why our senior loan officers make a commitment to understanding each unique situation and then offering their knowledge and guidance as you ultimately decide if a Reverse Mortgage is right for you.
We invite you and your family to learn more about a Reverse Mortgage with Rockland Trust. Click here to locate a Reverse Mortgage Specialist in your area. Call or email us today to set up an appointment.
Frequently Asked Questions
What is the age qualification for a reverse mortgage?
Reverse mortgages are for homeowners, age 62 years and older.
Is it possible to get a reverse mortgage if there is already an existing mortgage on the home?
Yes, but any existing mortgage must be paid off when the reverse mortgage closes. The funds from the reverse mortgage can be used for that purpose.
Does the lender take the title of the home?
A reverse mortgage is only a lien against the property; therefore, the title will stay in your name.
If there are no monthly mortgage payments, am I responsible for any other expenses related to the home?
You are required to pay property taxes, homeowners and flood insurance (if required) and other expenses necessary to maintain the home.
When does the loan need to be repaid?
Loan repayment is triggered when the home is sold or is no longer occupied as your primary residence. In a case of more than one borrower, repayment is triggered when the last borrower permanently moves out.
Will my heirs have to sell the property to repay the loan?
No, the loan can be repaid by refinancing the existing reverse mortgage with a standard mortgage loan or with other funds.
Can I owe more than my home is worth?
A reverse mortgage is a "non-recourse" loan, which means that you, your heirs, or your estate cannot be required to repay more than the appraised market value of the home at the maturity of the loan. If the loan balance exceeds the value of the home, you, your heirs, or your estate will only be obligated to repay an amount up to the current appraised value of the property.
What are the costs associated with a reverse mortgage?
Depending on the reverse mortgage program you choose, you may pay an origination fee, a mortgage insurance fee and actual closing costs, including charges by the title and/or escrow companies. All of these costs can be financed as part of the initial loan advance.
Is the reverse mortgage application process difficult?
No, our experienced Reverse Mortgage Senior Loan Officer will make it as easy as possible. We will provide a personalized consultation to you and your family, including a review of your financial situation, guidance as you apply and information that will help you determine if a reverse mortgage is right for you.