Equal Housing Lender

Reverse Mortgages

Reverse Mortgages are a great way to preserve your wealth for your family. A reverse mortgage is a loan that is based upon the equity in your home. This loan does not have to be repaid until you either sell your home or permanently leave your primary residence. If you and your spouse are 62 or older, you can qualify for this mortgage. There is no income qualification and no monthly Mortgage payments.

Do I Qualify?

A reverse mortgage is a loan that is based upon the equity in your home. This loan does not have to be repaid until you either sell your home or permanently leave your primary residence.

What You Should Know About Reverse Mortgages

Answers to questions you may have about Reverse Mortgages.



What Is a Reverse Mortgage?

A Reverse Mortgage is a loan made available to seniors (Age 62 and over) that does not require a mortgage payment to be made by the borrower for the entire life of the loan. It is federally insured by FHA and can be used as a great tool for retired homeowners who are on a fixed income. 
How Much Money Will I be Eligible to Receive with a Reverse Mortgage?

    How much you (the borrower) will be eligible for depends primarily upon three factors:
  • The age of the youngest borrower
  • Value of the home
  • Current Interest Rates

How Can I Receive My Money?

  • Cash Lump Sum
  • Monthly Payments (for as long as you live in the home)
  • Line of Credit

What Can I Use The Money For?

    The proceeds from your Reverse Mortgage can be used for whatever you wish. For example:
  • Home Repairs / Maintenance
  • Home Health Care
  • Car Repairs or purchase of new one
  • Pay off credit cards
  • Taxes
  • Pay off existing mortgage
  • Grandchild's Education
  • Travel
  • Down Payment on Second Home

How Safe Are Reverse Mortgages?

    Reverse Mortgages are very safe. Why?
  • FHA(Federal Housing Administration) guarantees the payments that are made to you
  • They also guarantee you can stay in your home as long as you like AND
  • You (the Borrower) will never owe more than your house is worth

Reverse Mortgage Facts

  • You continue to OWN YOUR HOME, reverse mortgages DO NOT transfer ownership to the bank or to the government.
  • There is no repayment of any kind during the life of the loan until the home is sold or you permanently leave the residence
  • The Borrower does not have to income to qualify
  • The proceeds are treated as tax-free income
  • You pay the interest at the time the loan is repaid - not during the loan
  • At the time the loan becomes due the payable, your heirs can either choose to repay the loan and keep the house, or sell the home and repay. Heirs will also receive the remaining equity, if any, after the sale of the home
  • Loan does not become due and payable until the last surviving borrower passes away, sells the home or permanently leaves the residence
  • Homeowner must continue to pay property taxes, homeowner's insurance and maintain proper upkeep of the property. These items may be paid from growing line of credit account within the loan

Common Myths About Reverse MortgagesMyth:

      The lender will own your home.

TRUTH:

      You retain the title to your house. The lender does not take control of the title.


Myth:

      My heirs will be responsible for repayment of the loan.

TRUTH:

    The Reverse Mortgage is a Non- Recourse Loan. This means that the lender can only derive repayment of the loan from the proceeds of the sale of the property. Your heirs, friends or even your spouse will not be responsible for the repayment of the loan.

Reverse Mortgage Interest Rates

    The rate on a Reverse Mortgage may be fixed or adjustable depending on the loan program you choose.Typically, if you choose to receive a lump sum payment at closing, the rate will be fixed. If you choose the home equity line option, the rate will most likely be adjustable. Whichever option you choose, rates are created to benefit the borrower in the best possible way. Call 1-636-898-0888 to get today's rates.

Reverse Mortgage Closing Costs

    You will incur closing costs and fees when you close on your Reverse Mortgage. Almost all of these can be financed in the amount of the loan. Closing costs and fees are established by HUD and FHA. Frontier Mortgage has the lowest allowable closing cost of lenders who are able to originate a reverse mortgage in Missouri or Illinois.

HUD Counseling

      You (the borrower) will be required to attend a HUD (Department of Housing and Urban Development) counseling session during your Reverse Mortgage process. This counseling is also available by phone.


Items Needed

    The Following Information will be Helpful When You are Ready to Apply for a Reverse Mortgage:
  • Drivers License or State Issued Identification Card
  • Social Security Card
  • Birth Certificate (if available)
  • Proof of Homeowners Insurance
  • Deed or Title Policy
  • Living Trust (if applicable)
  • Durable Power of Attorney (if applicable)
  • Recent Statement on Current Mortgage (if applicable)

To request your FREE REVERSE MORTGAGE information package call 636-898-0888 or toll free 877-456-2900, or request by emailing us at reversemortgage@frontierhomemortgage.com. To speak with a reverse mortgage specialist call us now! For more information about Reverse Mortgages, please visit the AARP website: http://www.aarp.org/money/revmort/