All About Reverse Mortgages

If you are 62 years of age or older and own your home, you may be eligible to receive cash with a Reverse Mortgage from Colonial. A Reverse Mortgage can be a valuable financial tool that allows seniors 62 or older to borrow against the value of their home to be used as you see fit. Pay off large expenses like credit cards or medical bills, postpone drawing down retirement assets or increase your monthly cash flow, the choice is yours to do as you wish. Below we answer a few of the most frequently asked questions about reverse mortgages.

What is a Reverse Mortgage?

A reverse mortgage is a home loan that allows seniors over the age of 62 to borrow funds against the value of their home. Unlike a traditional home loan, a reverse mortgage does not require the borrower to make regular mortgage payments on your principal and interest, although borrowers are still responsible for paying home insurance, property taxes and homeowners association (HOA) fees if applicable.

What Options Do I Have to Receive Funds?

Colonial offers three options for Reverse Mortgage customers:

Lump Sum

All of the money is given to you at closing. Typically, customers who request to receive a lump sum have a specific plan in mind to use the large amount of funds.

Line of Credit

You may decide not to use all of your money right away. The money that you do not use will be placed in a line of credit and will be available for future use. Best of all, the money in the line of credit does not accumulate interest until you decided to use it.

Monthly Payments

Those who select this option are typically in need of increased monthly income. You will receive a specified amount of money each month.

Do I Still Own My Home with a Reverse Mortgage?

Absolutely! You retain 100% ownership of your property. When the last remaining spouse passes on, the estate typically goes to the heirs or beneficiaries who may then sell or refinance the property to repay the lender. All proceeds from the sale are theirs to keep. If the property were to sell for less than what is owed on the loan, there would be no judgment against you or your heirs.

How Can I Apply?

Applying is a snap! Visit for more information, or contact Colonial’s Reverse Mortgage Specialist, Senior Loan Officer Andy Berry, for a no-obligation consultation. Call him toll free at (866) 408-6889. Equal housing lender. NMLS 445479.

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