Franklin Funding
147 Wappoo Creek Drive, Suite 105
Charleston, SC 29412

(843) 762-2218 or
(800) 375-0351
(843) 762-1163 (fax)

Consider staying in your home. After all, this is where you are comfortable, where fond memories began – your family lived and your friends gathered. Your home may be your most valuable asset, and a reverse mortgage is a practical way of putting its value to work for you.

A reverse mortgage is a unique way for senior homeowners (62+ years of age) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title or take on a new monthly mortgage payment.

There are no restrictions. Franklin Funding clients have used the money from reverse mortgages for a wide range of needs:

• To supplement monthly income.

• To pay off an existing mortgage or other debts.

• For home repairs or renovations.

• For prescription drugs or other health care expenses.

• For home care/long term care expenses.

• To purchase a car.

• For travel.

The amount of money you can receive is based upon the age of homeowner(s), the appraised value of the home, current interest rates, and the lending limit (if applicable).

You can choose from several options including:

• One lump sum payment

• Monthly payments for as long as you live in your home

• Monthly payments for a fixed number of years

• A line of credit to draw upon as needed

• A combination of these options that best meets your needs

Homeowner(s) must be at least 62 years of age, and the home must be the primary residence.

As in most mortgages, there are costs and fees for a reverse mortgage. Closing costs include:

• Appraisal

• Title insurance

• Origination fee

• Recording fees

Most costs, except for the appraisal fee, can be financed in your loan so you do not have to pay cash for them. Franklin Funding will provide a detailed estimate of closing costs in advance.

There is no obligation to repay a reverse mortgage as long as you live in the home. Repayment occurs when the homeowner(s) sells or permanently leaves the property.

Payments received from a reverse mortgage are considered to be a loan, not income. Therefore, the funds received are NOT subject to income tax and do not affect Social Security Benefits. Borrowers receiving Medicaid or SSI may not be affected if the funds from the reverse mortgage are spent in the month they are received. Consult your own tax or legal advisor for further details.

Approximately 95 percent of reverse mortgages are federally insured, which means that interest rates are capped and fees are regulated. In addition, to ensure that the reverse mortgage is appropriate and before the loan is granted, homeowners are required to receive free counseling from an independent, third party counseling agency. Franklin Funding will provide a list of counseling options.