Tom MacDonald - Reverse Mortgage Consultant






       Reverse Mortgage Consultant

      Tom MacDonald


       707-265-6385      800-801-5727   Is This The Best Reverse Mortgage Website in the U.S.*

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Reverse Mortgage Consultant- Tom MacDonald BBB Business Review

1 Minute Recap of a Reverse Mortgage

So often, people ask me, "What is a Reverse Mortgage."  My brief answer about how a reverse mortgage works is this:

Someone qualifies for a Reverse Mortgage

  • When they are age 62 or more
  • Own their own home or buying a home
  • It’s their primary residence
  • As of April 27, 2015, HUD has established financial and credit qualifying guidelines.

This is it for the Reverse Mortgage requirements.  They can then take tax-free money out of the home without making monthly payments.

That is sort of the reverse of it; we are paying them rather than them paying us. 


They do pay us back when they

  • Sell
  • Move
  • Or pass away

 Most people choose that last choice; they plan on staying in their home as long as they can. 

They can then take money out of a Reverse Mortgage in three ways.

  • They can take a lump sum; meaning all the money up front.  We use this choice when the borrower has an existing mortgage or equityline.  That has to go away as part of the process. 
  • They can choose a line of credit; sort of like a jumbo credit card that they can draw from as needed but only are charged interest on the part they actually use.
  • Or they can take monthly payments.
  • Or they can take a combination of all three.
  • The exception is to the fixed rate choice (which has only appeared in the last couple years) which requires them to take the maximum allowable (60% of the principle limit or required payments, such as a mortgage, plus 10%) up front and begin interest rate accumulation on the full amount immediately.

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