Washington Trust Mortgage Company

Is a Reverse Mortgage Right for You?

If you're a homeowner age 62 or older, a reverse mortgage allows you to access the equity in your home to supplement your retirement income, finance home renovations, or pay for long-term health care coverage.

"The lender will take my home."

False - You are not required to repay the loan as long as one of the borrowers remains in the property and pays the taxes and insurance.

"I can owe more than my home is worth."

False - All reverse mortgages are non-recourse loans, which means that you can never owe more than what your home is worth regardless of the loan balance.

"A reverse mortgage is for someone who is poor."

False - Forward-thinking senior homeowners are choosing reverse mortgages to eliminate a monthly mortgage payment and convert the equity in their home into income. A reverse mortgage is a way for seniors to stay in their home and receive cash for any purpose - whether it's day-to-day living expenses, paying off existing debt, purchasing a second home, or traveling the world. Best of all, you retain the title to your home and remain living independently.

"I can use the money I receive from my reverse mortgage for any purpose."

True - Funds are tax-free and can be used for any purpose. And, you can decide on a payment that is right for you. You can receive payments as a lump sum, line of credit, or monthly payment for a specific term or for life.

"My children will be against the loan."

False - Based on the individuals we've already helped, children of seniors are usually in favor of this type of loan. The reverse mortgage provides the homeowner with financial independence, resulting in peace of mind for their children.

"My Social Security or Medicare will be lost."

False - A reverse mortgage is considered a loan and therefore is not included as income to determine eligibility for Medicare and Social Security.

For more information, contact Brian L. Mahone, Vice President and Regional Manager, NMLS #8982.