WHAT IS A REVERSE MORTGAGE?

A Reverse Mortgage is a loan for homeowners age 62 or older who need access to cash and their equity in their primary residence is their main asset.  HLM Mortgage Company, based in Decatur, GA can originate Reverse Mortgages not only throughout the Metro Atlanta area, but also in neighboring states.  A Reverse Mortgage allows homeowners to keep their home at a time when they might otherwise have to sell it to cover health care, home repairs, other debts, or to supplement their income.

The main differences between a traditional mortgage and a reverse mortgage are: 

• No monthly mortgage payments are required.
• Money is made available to you based on the disbursement method you choose.
• The most common type of reverse mortgage is a line of credit.  The line of credit allows you the ability to only accrue interest on the amount of money that you have actually borrowed.

How much money can be made available to me if I take out a Reverse Mortgage?

This depends on the age of the youngest borrower, the value of your home, and the expected interest rate. 

Please click here to access the AARP website where you can see how much you may have access to.  Reverse Calculator

What interest rate can I expect?

The interest rate on our home equity line of credit product has averaged approximately 5.50% over the past 15 years, however current rates are much less than this.  We offer both fixed and variable rate Reverse Mortgages, however the variable rate option has proven to be extremely attractive for our clients over time. 

 

How (and when) does my loan get paid back?

The loan becomes due and payable when:

• The home is no longer the borrower's residence
• The borrower does not occupy the property for 12 consecutive months (health reasons, etc...)
• Violation of the mortgage covenants (including failure to maintain the home or failure to pay taxes and homeowner's insurance
• When the last borrower on the loan passes away

What happens to my future cash flow if my Reverse Mortgage company goes out of business?

Reverse mortgages are originated by mortgage companies and are insured by the US Department of Housing and Urban Development (HUD).  This is important because your future cash flow is guaranteed regardless of what may happen to the initial originator of your loan. 

Please call HLM Mortgage Company today at 404-836-1120 to find out if a Reverse Mortgage is right for you.  We are more than happy to make an appointment with you (and anyone whom you may wish to include) at any time to discuss your options.