Florida Reverse Mortgages
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, Reverse Mortgage borrowers throughout Florida do not have to repay the loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.
You can also use a Reverse Mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the loan proceeds and the sales price plus closing costs for the property you are purchasing.
A Reverse Mortgage is a safe plan that can give older Americans throughout Florida greater financial security. Many seniors from Miami, Palm Beach, Naples and all of Florida use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.
When the home is sold or no longer used as a primary residence, the cash, interest, and other loan finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.
In a “regular” mortgage, you make monthly payments to the lender. In a “reverse” mortgage, you receive money from the lender, and generally don’t have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. The proceeds of a reverse mortgage generally are tax-free, and many reverse mortgages have no income restrictions.
The amount of money a Florida homeowner may receive varies by borrower and depends on the age of the borrower and the amount of equity in the home.