Need extra cash? If you are a homeowner 62 years of age or older, a Reverse Mortgage may be the answer!

What is a Reverse Mortgage?


This is a special type of mortgage designed specifically for people who are sixty-two (62) years of age or older and own their own home. It lets you tap into the equity you've built in your home without having to repay the debt for as long as you live there. That's why this is referred to as a "reverse" mortgage: Instead of making monthly payments, you can receive them!

Reverse Mortgage vs. Traditional Mortgages

Generally, a traditional mortgage loan is one where the homeowner borrows a large amount of money and makes monthly payments back to the lender. As payments are made, the loan balance decreases and the equity in the home increases.

With a Reverse Mortgage, the homeowner borrows a percentage of the home's value, which can be disbursed all at once, or monthly, or as needed through a line of credit. As additional funds are disbursed to the homeowner, the loan balance gets larger and the equity in the home decreases. Payment back to the lender is required only once, at the end of the loan, which in most cases is when the homeowner dies (or the last remaining homeowner in the case of co-owners), sells or no longer uses the home as the primary residence. Repayment is also required if the homeowner does not comply with the terms of the Reverse Mortgage.

Qualifications

		You must be at least 62 years of age and live in the home as your primary residence. In the case of co-owners, all co-owners must be at least 62 years of age.
		You must own the home; any existing mortgage must be paid off with proceeds from the Reverse Mortgage.
		You must attend pre-application Reverse Mortgage counseling.
		There are no income, employment or credit qualifying restrictions.

Reverse Mortgage Benefits

		No payments are required as long as you live in your home.
		Income received from your Reverse Mortgage is usually tax-exempt (consult your tax advisor) and does not affect regular Social Security or Medicare benefits, but may affect eligibility for other types of government assistance.
		You retain ownership of your home.
		You can use the proceeds to pay off an existing mortgage and eliminate your monthly mortgage payments.
		Reverse Mortgages are insured by the Federal Housing Authority (FHA) or backed by Fannie Mae.
		Reverse Mortgages provide you with a source of income that can be used to improve your standard of living and maintain your independence.

Loan Amount

The loan amount is based on your age, the appraised value of your home and current interest rates, or the FHA/Fannie Mae mortgage limits established for your area of residence, whichever is less.

Use of Loan Proceeds

If there is an existing mortgage on your home, it must be paid in full from the proceeds of your Reverse Mortgage. After that, you can use the money for whatever you need, such as:

		Travel
		Debt Consolidation
		Home repairs or improvements
		Assisting family members
		Investments
		Medical Bills
		Emergency cash reserves

Payment Options

With a Reverse Mortgage, the choice is yours! Choose from:

		Lump Sum Payment - draw out the maximum amount available.
		Monthly Payments - guaranteed equal monthly payments to you, the borrower. This option continues for a specified term or until the death of the borrower or the borrower no longer uses the home as a primary residence.
		Line of Credit - you can request disbursements from the bank on an as-needed basis. No interest accrues until the money is advanced.
		Combination - a combination of monthly payments and a line of credit.

Payment Options can be changed at anytime over the life of the Reverse Mortgage. We know that circumstances change and so we're here to accommodate your individual needs!

Are Reverse Mortgages Safe?

Absolutely! Reverse Mortgages are FHA insured or backed by Fannie Mae. And as long as you continue to live in the house as your primary residence, keep the real-estate taxes and insurance(s) current, and comply with the terms of the loan, you do not have to repay the loan. In the event of your death, or if you decide to sell the home or no longer use it as your primary residence, you or your estate will then be required to repay the cash you received from the Reverse Mortgage, plus any accrued interest and fees. The amount you are legally obligated to pay can be no more than the value of your home at the time you leave the property. You will never owe more than the loan balance (including accrued interest) or the value of your home at the time you leave the property, whichever is less. Any remaining equity in your home belongs to you or your heirs! None of your other assets will be affected by this loan.

How To Apply

To apply for a Reverse Mortgage or to discuss your personal situation, please contact our Reverse Mortgage Specialist at (504) 599-2140 or (800) 347-7272, ext. 2140. Whitney National Bank currently offers Reverse Mortgages in Louisiana, Mississippi, Baldwin County, Alabama and Escambia County, Florida only.