Here are some possible reasons and benefits for taking advantage of the reverse mortgage program.

• Maintain your independence by not relying on family and friends for your financial needs.
• Improve your standard of living by receiving extra monthly income.
• Pay off your existing mortgage and eliminate those monthly mortgage payments.
• Make needed repairs or improvements to your home.
• Use extra money to receive necessary home health care or medical treatment.
• Pay off medical and utility bills, debts, property taxes, etc.
• Splurge on yourself by buying a new car, taking a vacation, or visiting family or friends.
• Set up a line of credit now for future emergencies and unexpected expenses.
• Make a wise investment.
• You pay no taxes on the money you receive through the reverse mortgage loan as it is not considered income

No payment due on a loan for as long as you continue to live in your home, provided the taxes and insurance are kept current and you continue to maintain your home in reasonable repair.

Normally your loan will be repaid from the proceeds of the sale of your home after you no longer reside in it.

You may choose from one of the following payment options:

• Tenure Option: Fixed monthly payments for as long as you continue to live in your home.
• Term Option: Fixed monthly payments for a term of months which you select.
• Line of Credit Option: Payments at times and in amounts which you select.

Unlike a traditional mortgage that you pay back each month, a reverse mortgage makes payments to you. You can get these payments in a lump sum to cover an unexpected bill. You can get them as a regular supplement to your monthly income. Or, you can get them at intervals and amounts that are best for you.

You can be offered reverse mortgage loans that require no repayment as long as your home is your principal residence and you fulfill the borrower's obligations, such as continuing to maintain the property and pay your property taxes and hazard insurance. You pay the money back plus interest and other charges when you sell or permanently move out of your home.

If you pass away, the loan is due, but the amount due will always be the lesser of your loan balance or the market value of your home. Even if the amount you borrowed eventually exceeds the value of your home, you or your heirs will never owe more than the value of your home. All proceeds in excess of what you owe belong to your estate, which means the remaining equity in your home can be passed on to your heirs.

Unlike the loan balance of a conventional mortgage, which becomes smaller with each monthly payment, the loan balance of a reverse mortgage grows larger over time.

As you receive your payments, the amount of cash you have left after selling and paying off the loan – your equity-- generally grows smaller. But with a reverse mortgage you can never owe more than your home's value at the time the loan is repaid.

If you own your home free and clear or if you have very little mortgage principal outstanding, a reverse mortgage may be a good option for you. We offer a variety of reverse mortgage products which provide an excellent vehicle for seniors to enjoy extra security and financial support.

Many seniors find reverse mortgages to be a valuable tool for overall financial planning. At Data Mortgage we may also offers a reverse mortgage product that provides some of the funds for your purchase of a new home.