Title *
First Name *
Last Name *
Email Address *
Street Address *
City *
State *
Zip *
Phone Number *
Optional:
Yes, periodically email me reverse mortgage news updates, but only if the news can affect me positively or negatively

Your information is strictly confidential and will notlock photo
be sold or offered to any other individual or company.

Register Here
to Get Your
Reverse Mortgage
Guide Sent
Immediately
to your Email








What is a Reverse Mortgage?

The first and easiest way to think of a reverse mortgage is to NOT separate it from any other mortgage that exists. It is not a "whole different animal". The truth is reverse mortgages are very similar in structure to forward mortgages.
The difference though lie in these three considerations:

  1. Reverse mortgages are open ended, meaning they have no set end date. In determining this end date, here are the basic rules:

    A. Last surviving borrower dies.
    B. Borrower(s) sell property
    C. Borrower(s) leave property for 12 consecutive months

    Heirs or borrower(s) above have up to 12 months to pay lender back, (re-finance), or sell home.

  2. Borrower has no obligation to make monthly or periodic payments to the lender. Instead of the mortgage company receiving a monthly interest payment (forward mortgage), a reverse mortgage lender receives interest on the note after the loan ends as described in #1 above.
  3. A reverse mortgage loan amount is based upon three different factors all combined into one mathematic formula:
    A. Appraised value of the property
    B. Interest rate
    C. Age of the youngest borrower

Unlike a typical forward mortgage, the reverse mortgage lender has no care about credit scores, income, debt load or anything else related to the borrower's propensity to pay back the loan. It is really all about how much equity the property will have at the supposed end of the mortgage. Remember, equity is the only thing that secures the lender's investment in the reverse mortgage since the borrower likely will not be making monthly or periodic payments.


More...

Pacific International Mortgage
703 North Concord • Santa Ana, CA 92701 • Tel: 888.557.1636
DRE License #: 00976720  NMLS Approval Number: 272116

Please note that any information provided will be deemed confidential & shall not be reproduced or sold to a third party company. By sending any information, you grant an unrestricted, irrevocable license to use the information to accommodate your requests. State Approved CA-1176627, HUD Authorized ID 7770700414. Privacy Policy

HUD Reverse Mortgages are Guaranteed by the Department of Housing and Urban Development and Insured by FHA
equal-housing-logo

©2010 Pacific International Mortgage