Reverse Mortgages from
Castle & Cooke Mortgage

If you're looking to supplement your retirement income, cover medical expenses, or simply enjoy a more comfortable lifestyle, a reverse mortgage may be the solution you've been seeking. Read on to discover the benefits and features of reverse mortgages!

What is a Reverse Mortgage?

A reverse mortgage is a unique type of home loan that allows homeowners who are 62 years or older to convert a portion of their home equity into tax-free cash without selling their home, giving up title, or taking on additional monthly mortgage payments. Unlike traditional mortgages, where borrowers make monthly payments to a lender, reverse mortgages enable homeowners to receive payments from the lender instead.

Benefits of Reverse Mortgages:

Supplement Your Income: Whether you’re retired or still working, Reverse mortgages provide a reliable source of income, allowing you to maintain your standard of living or fulfill your financial goals without depleting your savings. The funds can be received as a lump sum, monthly payments, or a line of credit, giving you flexibility in how you use the money.

Stay in Your Home: One of the most significant advantages of a reverse mortgage is that you retain ownership and can continue to live in your home. Whether it's the house you've built memories in or a place that holds sentimental value, a reverse mortgage allows you to access funds without the need to downsize or move elsewhere.

No Monthly Mortgage Payments: With a reverse mortgage, you're not required to make monthly payments towards the loan balance. The loan becomes due when the last borrower permanently leaves the home, providing you with a payment-free period during the loan term.

Flexible Repayment Options: When the loan becomes due, you or your heirs have multiple options to repay it. You can sell the home and use the proceeds to settle the loan, refinance the loan into a traditional mortgage, or pay it off using other available assets. Importantly, you or your heirs will never owe more than the appraised value of the home.

Non-Recourse Loan: A reverse mortgage is a non-recourse loan, which means that neither you nor your heirs will be personally liable for any amount that exceeds the appraised value of the home when the loan is due. This feature provides peace of mind and ensures that your other assets are protected.

Government Insured: The majority of reverse mortgages are insured by the Federal Housing Administration (FHA) through the Home Equity Conversion Mortgage (HECM) program. This government insurance safeguards borrowers, offering additional security and oversight.

Is a Reverse Mortgage Right for You?

While reverse mortgages offer numerous benefits, it's essential to assess your specific financial situation and goals to determine if this financial option is suitable for you. Consulting with one of our experienced Reverse Mortgage Specialists will help you determine if a Reverse Mortgage is right for you. If you're interested in exploring the benefits of a reverse mortgage further, we're here to assist you. Contact us today to learn more!

Reverse Mortgages may not be right for everyone. Borrowers must be at least 62 years of age or older*, and the home must be their primary residence.  Homeowners must complete counseling with a government certified counselor before applying.  Costs and risks vary per loan and borrower.  Homeowners must continue to pay property taxes, insurance, and homeowners association dues.  The loan amount is based on various factors including the equity in your home, age of the youngest borrower, as well as other factors.  The proceeds are available in either a lump sum or in regularly scheduled payments.  Proceeds may or may not affect Social Security or Medicare Benefits. Consult a tax professional for tax consequences.  The reverse mortgage loan is payable when any of the following occurs: (a) you stop living in the house as your principal place of residence, (b) you fail to maintain homeowner’s insurance, (c) you fail to pay all real estate taxes and applicable HOA fees, and (d) you fail to maintain the good condition of the home. Contact legal counsel regarding the ability for the estate/heirs to retain the home after the death of the borrower. *Certain states and/or products will allow borrowers 55 years of age and older.