by: Gaye Jones ~ AnnieMac Home Mortgage

A reverse mortgage is a mortgage loan, that enables a borrower age 62 or older to access the unencumbered value of their property. In its basic form, the HECM (Reverse) mirrors a Home.

Equity Line of Credit (HELOC) without the required monthly mortgage payments or the acceleration clause that is customarily attached to a forward HELOC.

Some misconceptions about the HECM program are that the home needs to be debt free. This could not be more inaccurate. If there is enough equity, the HECM can payoff any existing liens and create a zero-mortgage payment for the homeowner.

Another misconception is when the reverse mortgage comes due the bank sells your home. Again, this is untrue. When the last borrower leaves the premises, the homeowner/estate has the option to sell the home and keep the proceeds or turn it back to HUD.
The worse myth is that your heirs incur the debt when you are gone. Not true. Your heirs never sign any documents that obligate them for repayment of the mortgage!

A Reverse loan is not for everyone, but under the right circumstances it could be a perfect solution for a senior homeowner.

Gaye Jones has more than 33 years of experience in real estate. Before switching to the home financing side of the business, Gaye was a licensed real estate agent and broker. She sold more than 1,000 homes during her tenure in sales. Gaye enjoys educating her customers from application to closing. She works to find a mortgage package that meets each customer’s unique financial needs. Active in the community, Gaye is president of Artbreakers (Artists in the Fight Against Cancer), a local charity that raises funds to help support the under-insured and uninsured cancer patients. Gaye lives in St. Augustine, Florida.