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Reverse Mortgage: What is it?

Reverse Mortgage: What is it?

A reverse mortgage is a type of residential mortgage loan that allows you to convert some of your home equity into cash, while you retain ownership of your home. Your equity is the current value of your home minus the balance owed on the property.


A reverse mortgage is similar to a traditional mortgage, except that NO MONTHLY MORTGAGE PAYMENTS are required for as long as you live in the home, maintain the property, pay the property taxes when due and keep the home insured.

The funds received from a Reverse Mortgage are generally tax free and DO NOT affect Social Security or Medicare income.


Qualifications for a Reverse Mortgage are very simple: You must own or are buying your primary residence. Reverse Mortgages are only available for your primary residence. The amount you can receive from a Reverse Mortgage depends on your age, the amount of equity in your home and the interest rate chosen for your Reverse Mortgage. You Can purchase a home with a Reverse Mortgage.

No monthly mortgage payments are required for as long as you occupy the home as your primary residence.


A Reverse Mortgage allows you and your spouse (if applicable) to live in the home with no monthly mortgage payments required for as long as you live. The balance on the mortgage is repaid after the last surviving spouse permanently moves out, sells the home or pass away. If the homeowner(s) die, the lender does NOT take ownership of the home. Generally, the heirs will pay off the Reverse Mortgage by refinancing the loan into their name, using a traditional refinance mortgage or sell the home and use some of the proceeds to pay off the Reverse Mortgage. Reverse Mortgages are “NON-RECOURSE” loans. The only collateral the lender has is the home. The heirs and the estate are never responsible for more than the current appraised value of the home or the balance owed (whichever is less), even if the loan balance exceeds the value of the home.


If the loan balance exceeds the value of the home, the heirs can simply notify the lender that they are walking away and turning over the keys.

27651 La Paz Road #200 Laguna Niguel #200

(949) 861-0911 www.RainmakerReverse.com

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Rainmaker Reverse

25152 Windwood Lane

Lake Forest, CA 92630