Reverse Mortgages, Financial Tools

Courtesy AmeriState Bank

AmeriState Bank received the prestigious 2009 Rising Star Award from 1st Reverse Mortgage USA®, a division of Cherry Creek Mortgage Company, Inc.

“The Rising Star Award is given to mortgage companies that reach out and provide education to seniors as well as the community. AmeriState Bank has taken this approach, providing seniors with the peace of mind in making a decision that best suits their circumstances,” says Tim Harder, vice president of business development for 1st Reverse Mortgage USA®.

“We are honored to receive the Rising Star Award from 1st Reverse Mortgage USA,” says Jarod Dutton, mortgage officer at AmeriState Bank, “We give seniors all the necessary resources to learn the truth about reverse mortgages, allowing them the opportunity to make an informed decision.”

Reverse mortgages operate like traditional mortgages, only in reverse. Reverse mortgages differ from home equity loans in that reverse mortgages do not require any monthly repayment of principal or interest, as long as the senior homeowner lives in the home as their primary residence, maintains their homeowners insurance and remains current with property taxes.

The reverse mortgage’s benefit is that it allows homeowners who are age 62 and over to continue living in their homes, without forfeiting their title, and to use their equity for whatever purpose they choose. A reverse mortgage might be used to cover the cost of home health care, to pay off an existing mortgage, take care of property taxes, or the upkeep of their homes.

The best payment plan for you will depend on your current and future financial needs and circumstances. For example:

  • If you have a small balance on your existing mortgage and would like to pay it off with the reverse mortgage, a line of credit plan would allow you to draw all the funds at loan closing and pay off the current mortgage
  • If you need a set amount of money every month to supplement your income to help meet monthly expenses, then a tenure or term payment plan might be a suitable option for you
  • If you know you will have some large health care expenses in the near future and want to have funds available when needed, a line of credit may also meet your needs.