Reverse mortgage helps seniors remain in home

Mortgage adviser: Dominique Stevens Property type: Singlefamily home in San Jose. Loan amount: $575,000 at 7.75 percent.

Loan terms: Reverse amortization.

Backstory: A local financial planner contacted Dominique Stevens to help his retired clients who were carrying a substantial mortgage.

The couple wished to use a reverse mortgage to pay off their current loan. Without a mortgage payment, they will no longer need to draw on their retirement accounts, preserving those funds for the future.

With the new loan, they were able to receive cash out as well to plan for home upgrades and to hire a part-time helper.

The homeowners did not want to sell their home and move out of the area. By reorganizing their finances, they could remain in their home and enjoy spending time with friends and family who live nearby.

Because Mayfair Mortgage carries a variety of reverse mortgage lenders, Stevens has many programs at her fingertips to find the right solution for every circumstance.

A reverse mortgage allows adults 62 years of age and older to halt mortgage payments forever. The program requires that the home be the primary residence, and that the homeowner stay current on property taxes and hazard insurance.

As non-taxable income, it does not affect Medicare, social security or pensions. Whatever equity is left after the reverse loan is paid off, goes to heirs tax free.