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Important Note:

June through November our agency may become prohibited from binding coverage should a “Tropical Disturbance” enter the Gulf of Mexico or Caribbean Sea.

In these cases we may be unable to bind new coverage quoted in open proposals until the storm leaves our area and our binding authority has been restored.

Please arrange your coverage protection early to avoid this type of delay. While we regret any inconvenience, the carriers impose these restrictions on all agencies.

Reverse Mortgage: What You Should Know

Reverse Mortgage: What You Should Know

A reverse mortgage is exactly what it sounds like – your mortgage company pays you every month you occupy your house, at least in one common scenario. It sounds too good to be true, but can be a viable way to increase cash flow for people over 62 years of age who need to increase their cash flow.

How Do I Qualify?

To qualify for a reverse mortgage, you will need to meet certain conditions. Besides being 62 or older, you’ll need to own your home outright or have such a low existing balance that you’ll be able to pay it off with the money you receive from the reverse mortgage. You also must live in the home and agree to accept consumer counseling before you proceed.

You do not have to live in a conventional home to qualify for a reverse mortgage. Multi-plexes with up to four units qualify, as long as you live in one of the units. Condominiums and manufactured homes also qualify if they have been HUD-approved.

How Much Can I Borrow?

The amount you can borrow primarily has to do with the worth of your home. Other factors that come into play include the age of the youngest borrower, the current interest rate and your Initial Mortgage Insurance Premium.  In short, you will receive more money if interest rates are low, your age is high and your home is worth a significant amount of money.

What Are the Drawbacks?

Reverse mortgages are ideal for people who need extra cash flow and who do not want to sell their homes to meet that goal. If you are fantasizing about taking an extended RV trip or spending your winters on the Mexican Rivera, however, a reverse mortgage is not for you. You need to occupy the house to qualify for your reverse mortgage payments, so if extended travel or a move is on your agenda, consider other avenues to meet your financial needs.

If you have always intended on leaving your home as an inheritance, keep in mind that a reverse mortgage will need to be paid back. In many cases, this necessitates the heirs placing the house up for sale so they can pay balance of the mortgage and keep any remaining equity. The good news is that your heirs won’t be saddled with debt from this type of loan.