Reverse Mortgages - CLS Financial
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Reverse Mortgages

A reverse mortgage provides the opportunity to convert your home equity into cash, if you own your own home and are at least 62 years of age. This type of loan allows you to take a loan against the equity in your home, which you don’t have to repay during your lifetime as long as you are living in the home and haven’t sold it. Available as an adjustable rate mortgage.


A Retirement Tool through your Home Equity

If you own your own home and are 62 or older, a reverse mortgage gives you an opportunity to convert your home equity into cash. This loan program is designed to help qualifying borrowers get access to their equity, stay in their home, and rid themselves of a monthly mortgage payment; in addition, increasing the amount of money available to fund their retirement.*

You can access the equity that has accrued over the years through your down payment, appreciation and principal payments – Tax Free. With this income-generating loan, a lender makes payments to you based on a percentage of the value in your home. You can use these payments to fund your retirement, travel, pay medical bills, make home repairs or enhance your investment portfolio. Anything you want. You are also able to choose how you receive your equity in a one lump sum, monthly payments or as a line of credit to access as needed.

With a reverse mortgage, you stop making monthly payments on your existing mortgage and becomes a lien on the property. Any equity that you choose to have paid to you is added to that lien amount, with any interest accrued. At the end of the reverse mortgage period, when you no longer occupy the home, the amount owed is either the mortgage balance or the value of the home, whichever is lesser. The homeowner or heirs can sell the home to pay off the loan, refinance, or allow the lender to sell the home to settle the loan balance.

This mortgage option is not for everyone, for instance if you want to pay your mortgage off faster, then a reverse mortgage is not for you. However, if you have built equity up over the years and you want to get cash from your home, then a reverse mortgage is an excellent program to consider.

At CLS Financial, our Close Loan Specialists get to know our clients by carefully listening to where they have been and where they want to go. Then we provide the right solutions and options to meet your needs. We can help you understand the loan process and if a reverse mortgage is the right loan program option for you.

*Borrowers will still be responsible for tax, insurance and maintenance of the property. Must be borrower’s primary residence. All Borrowers must be 62 or older.