Reverse Mortgages are completely opposite from standard mortgage loans as there are no monthly payment obligations. Repayment normally occurs in the future when the home is sold or at the death of the surviving owner. As with any loan, you must pay closing fees and finance charges imposed by the terms of the Reverse Mortgage Agreement. It is important that you understand the upfront costs, the credit limit, finance charges, and your obligations under the Reverse Mortgage Agreement including your responsibility to maintain the home in good repair ,and pay taxes and insurance.
You must be 62 to qualify for Reverse Mortgage, and it is not required that you first mortgage be paid off. Proceeds from the Reverse Mortgage can pay off your first mortgage relieving you of monthly loan payments. The credit limit is based on you age, the equity in your home, and the mortgage interest rate. Reverse mortgages have been used to supplement retirement income, pay for home health care, eliminate monthly payment on a first mortgage, and fund estate planning to minimize federal estate taxes. Several governmental sites provides excellent information on reverse mortgage. You can go to www.fanniemae.gov or www.hud.gov and then type Reverse Mortgage in site "Search" to find more information on Reverse Mortgages.
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MEMBERS Trust Company non-deposit investment products referenced in this site or any page hereof are not credit union or bank deposits or obligations of, or guaranteed or endorsed or otherwise supported by, MEMBERS Trust Company , any credit union or any affiliate, are not federally insured or guaranteed by the United States Government, National Credit Union Administration , Federal Deposit Insurance Corporation, Federal Reserve Board or any other governmental agency, and are subject to investment risks, including possible loss of the principal amount invested.
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