The Basics
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The Basics: Reverse Mortgage Basics and Benefits

Reverse mortgages can be a simple way for homeowners who are at least 62 years of age to access the equity in their homes. This mortgage product enables you to remain in your home and provides you with an additional source of funds. Rather than paying a monthly mortgage payment to the lender, you will receive funds from the lender. Depending upon the reverse mortgage product you choose, there are different options for how you elect to receive the loan proceeds. Under IRS revenue rulings, the loan proceeds you receive should be tax-free, but we urge you to consult your tax advisor. There are generally no restrictions on how you can use the loan funds.

Key Features of Reverse Mortgages

  • No income or health requirements
  • Minimal credit verification requirements
  • No monthly mortgage payments
  • Loan proceeds do not affect Medicare or Social Security
  • Loan proceeds may be tax-free. Consult your tax advisor.
  • Repayment is not due until the last borrower permanently leaves the home
  • There are no restrictions on how you can use the funds

Perhaps most important, reverse mortgages are "non-recourse," which means that you, your heirs, or your estate will not owe more than the appraised value of the home at the time repayment is due.

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To speak with a Countrywide Reverse Mortgage Solutions Advisor, call 1-800-959-3789.