RTG Consultants

Reverse Mortgage Overview

Apply: Free Reverse Mortgage Analysis

What is a Reverse Mortgage?
A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments during the term of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity gets smaller.

The loan is not due and payable until the borrower no longer occupies the home as a principal residence, e.g. the last surviving borrower sells, moves out permanently or passes away.

Reverse Mortgage Requirements
You must be at least 62 and own your own home or condominium in order to qualify for a reverse mortgage. There are no income or credit requirements to qualify. Based on the amount of benefit, which you qualify for, you may be eligible for a reverse mortgage even if you still owe money on your first mortgage.

Reverse Mortgage Programs
There are three reverse mortgage loan products available, the FHA, HECM (Home Equity Conversion Mortgage), Fannie Mae HomeKeeper, and the Financial Freedom Cash Account. Another benefit of these reverse mortgage loans is that they are "non recourse" which means that no matter how high the loan balance grows, the borrower or their heirs never owe more than the home's market value.

Reverse Mortgage Proceeds
The proceeds from a reverse mortgage can be used for anything: daily living expenses; home repairs and home improvements; medical bills and prescription drugs; pay-off of existing debts; education; travel; long-term health care; retirement and estate tax planning; and other needs you may have.

The proceeds from a reverse mortgage are available as a lump sum, fixed monthly payments for as long as you live in the property, a line of credit; or a combination of these options.

Amount of Reverse Mortgage
The amount of benefit that you will qualify for, will depend on your age at the time you apply for the loan, the type of reverse mortgage you choose, the value of your home, current interest rates, and for some products, where you live. As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be.

Reverse Mortgage Costs
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a reverse mortgage, all of these costs can be financed as part of the mortgage.

Reverse Mortgage Counseling
You must first meet with an independent reverse mortgage counselor before applying for a reverse mortgage. The counselor's job is to educate you about reverse mortgages, to inform you about other alternative options available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs if you elect to get a reverse mortgage.

RTG Reverse Mortgage
RTG Consultants is licensed and HUD approved reverse mortgage lender, we will answer any questions and assist you through the process.

Free Reverse Mortgage Analysis
We will gladly do a free reverse mortgage analysis for you with no obligation or restrictions. We can be reached via phone or email.
Contact us here.

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