Reverse Mortgage Frequently Asked Questions

What is a reverse mortgage?

A reverse mortgage is similar to a home equity loan—you can borrow against the value of your house, but you don't have to repay it as long as you live there.¹ This way you can manage living expenses, medical bills, home repair costs, property taxes and other expenses without selling your home.
 

How can I use the funds?

There are practically no limits to how you can use the funds from a reverse mortgage. Some of the most popular uses include:

• Travel
• Make home improvements
• Purchase an RV
• Cover education for yourself or family
• Pay off debts or taxes
• Cover healthcare expenses

How do I know if a reverse mortgage is right for me?

If you meet these criteria, then a reverse mortgage may be the solution you need:

• You have plenty of equity in your house, but you don’t want a home equity loan because you’d have to make monthly payments.
• You’re on a fixed income.
• You’re looking for a way to attain some financial security.

What are reverse mortgage requirements?

You must have equity in your home, be at least 62 years old and live in the house.
 

How do you receive the money?

With a reverse mortgage from Mountain America Credit Union, you can get your money in any number of ways:

• A lump sum
• Regular monthly payments
• A line of credit
• A combination of the three options

What happens at the end of the reverse mortgage?

When you're ready to move, you can pay off the reverse mortgage with the proceeds from the sale and keep the difference. If you pass away, your heirs can choose to keep the house and pay off the mortgage or sell the house, pay off the balance of the mortgage and keep the difference—it's entirely their decision.

For more information about reverse mortgages, and how you can stay in your home and make ends meet, meet with one of our mortgage experts today. Schedule an appoinment with your nearest mortgage officer now.

¹ Foreclosure may occur if the consumer lives somewhere other than the home longer than allowed by the loan agreement or does not pay property taxes or insurance premiums. Consumers must make payments for taxes and insurance during the term of the reverse mortgage. Reverse mortgage costs may vary and less expensive options may be available. A reverse mortgage may affect eligibility for some government programs, including Supplemental Security Income (SSI) and Medicaid. In order to retain the home when the reverse mortgage becomes due, the consumer or the consumer’s heirs or estate must pay the entire loan balance and, the balance may be greater than the value of the consumer’s home. Sale of the home by the borrower may cause payments or access to a line of credit to end or consumers would be required to repay a reverse mortgage during their life. A reverse mortgage is a loan that must be repaid. Actual APR based on credit worthiness. On approved credit. Membership required – based on eligibility.