Unlock Your Home's Equity with Reverse Mortgages in Pennsylvania

BMC Keystone Home Mortgage can assist you and your loved ones in navigating the world of reverse mortgages in Pennsylvania. If you're interested in leveraging your home's equity without selling or moving, a reverse mortgage could be the solution.

What is a Reverse Mortgage?

Unlike traditional mortgages where the borrower makes monthly payments to the lender, in a reverse mortgage, the lender makes payments to the homeowner. A reverse mortgage is still a loan, and it needs to be repaid with interest when the home is ultimately sold or when the last surviving borrower is no longer living in the home. At that time, if the home's market value exceeds the balance due, the remaining equity is returned to the homeowner or it goes to their heirs if the last remaining borrower has passed.

In the event that the last borrower leaves the home, and the home's market value is less than the balance due on the reverse mortgage loan, the borrower or their heirs typically do not have to pay the difference. Reverse mortgages are designed as non-recourse loans, which means that the borrower (or their estate) is not personally responsible for repaying more than the home's appraised value at the time of repayment.

Financial Flexibility

Access the equity you've built up in your home to supplement retirement income or cover unexpected expenses. Use the funds as you see fit – whether for home improvements, medical expenses, or travel.

No Monthly Mortgage Payments

Unlike traditional mortgages, with a reverse mortgage, you typically won't make monthly payments. Repayment is typically deferred until you sell the home or no longer live in it as your primary residence.

Stay in Your Home

No need to worry about moving or selling – a reverse mortgage allows you to age in place. Retain ownership of your home and continue to live in it as long as it remains your primary residence.

Tax-Free Proceeds

Once approved, the borrower receives the funds in a lump sum, monthly installments, or as a line of credit, depending on preference.

Generally, the funds received from a reverse mortgage are considered loan proceeds and are not subject to federal income tax. Consult with a tax professional for personalized advice.

No Repayment Until You Leave the Home

Repayment is typically triggered when the last remaining borrower permanently leaves the home. This allows you to live comfortably in your home without the stress of immediate repayment.

Is a Reverse Mortgage Right for You?

A reverse mortgage is not for everyone, but for certain situations, this type of loan has provided comfort to some of our clients.

Consider a reverse mortgage if:

• You're a home  owner age 62+
• You own your home outright or have a significant amount of equity in it
• You want to remain in your home without selling it
• You want to tap into the equity that you've built

Schedule a Call or Free Consultation

Like any mortgage loan, reverse mortgages have specific eligibility requirements and associated risks. Schedule a consultation to discuss your individual circumstances and explore your options.