What Is a Reverse Mortgage?
If you’re 62 or older and live in the Las Vegas area, a reverse mortgage can help reduce monthly expenses while giving access to additional funds. It allows you to leverage your home’s equity to cover medical bills, home improvements, or supplement your income. Unlike traditional mortgages, the loan balance grows over time as the bank pays out funds.

 

How Is It Repaid?
Reverse mortgages are typically repaid when you sell your home, move out, or pass away. The lender recoups the balance from the home’s sale proceeds. If the home sells for more than the loan balance, any remaining equity goes to you or your heirs. Regular upkeep and property taxes must be maintained to keep the loan in good standing.

 

Selling a Home with a Reverse Mortgage
Because the loan balance can grow over time, selling a home with a reverse mortgage requires a Realtor experienced in the process. An expert agent can help highlight factors that preserve or enhance home value, ensuring a smooth sale even when the mortgage balance is high.

 

What If the Home Has Lost Value?
If your home’s market value is lower than the loan balance, a short sale may be required. Reverse mortgages are nonrecourse loans, so the lender cannot pursue you or your heirs for the difference between the loan and the sale price. The lender may request an appraisal before approving the sale, but the process is designed to protect you and your family.

 

If you’re considering a reverse mortgage or planning to sell your home, I can provide guidance every step of the way. Contact Me to discuss your options.