Alaska Reverse Mortgage

The Alaska reverse mortgage is a solid financial option for seniors and homeowners who live in Alaska and want to tap into the equity in their homes.  Many retires in the state have used this mortgage program to secure a continuous source of income.  You don’t have to be wealthy to benefit from a reverse mortgage.  You simply need some value in your home.

Reverse Mortgage Alaska Information

A reverse mortgage is a unique and highly specialized loan type that is available exclusively to senior homeowners over the age of 62.  With this mortgage, the lender makes payments to the homeowner on a monthly basis or in a lump sum.  This money comes from the equity stored up in the home.  Reverse mortgages in Alaska are common and used by many retirees who want to gain additional income.

You can use these funds to pay for anything you want.  There are no limitations.  Put the money toward living expenses, medical costs, vacations, gifts for relatives, or other things.  You can even use it to pay off other mortgages or debt obligations or to make a down payment on a new home if you wish to downsize.  Before you decide to pursue this financial option, gather as much reverse mortgage information as you can.  Knowledge is important, and you should ensure that you know what you’re getting yourself into before you apply.

Your lender will provide you money in whatever way best meets your needs and fits with your financial plans.  You can choose to get the funds in any of the following ways.

• A lump sum equal to the full amount of equity in your home.
• Through continued use of a line of credit tied to your equity.
• Monthly payments of a specified amount.
• Any combination of the above options.

As your lender provides you money, he or she gains ownership of more and more of the equity of your home.  Your lender will never officially own your home, however, even once the equity is depleted.  You always retain full ownership rights to your home.

You don’t have to pay back the home when the equity runs out.  Not right away, at least.  You can continue living in the home until the day you pass away, free of charge.  When you die, the home will pass to your heirs.  They will be responsible for paying off the mortgage, which is usually accomplished by selling the home.  If your heirs wish to keep the home, they can refinance the loan and pay it off themselves.

Read through the HUD’s Frequently Asked Questions or contact a lender in our network if you want to find answers to any questions you may have about the reverse mortgage process.

Alaska Reverse Mortgage Lenders

Different lenders offer different rates and terms on the reverse mortgages they provide.  There are multiple lenders available in Alaska who can help you close your new loan.  Any of these lenders can provide you the advice you need to get through the loan process successfully.

It’s not enough to get a mortgage rate quote from just one or two lenders.  If you can, try to get information on the rates that are available to you from at least four or five different lenders in your area.  Look for the lowest rates before you move forward.

Another important thing to consider is the fee that you’ll be charged when taking out your reverse mortgage.  You’ll have to pay several different fees when closing the loan, including an origination fee of several thousand dollars.  These costs differ from lender to lender.  Check out our reverse mortgage checklist for more information about costs and the application process.

About Alaska

In Alaska, the Alaska Commission on Aging (ACOA) has implemented a structured process of improving the services for older Alaskans.  With most Alaskan seniors living in homes of their own, reverse mortgages in the state are common.

Alaska is the largest state in the United States.  There is more natural open space and coastline in this state than in any other state in the nation. The capital of Alaska is Juneau, which is only accessible via sea or air.  This isn’t the primary city in the state, though.  Anchorage, the largest city in Alaska, holds two-fifths of the state's population.  Anchorage is a major international post and processes 95% of all freight coming into Alaska. Tourism is one of the most important factors in the economy for this sprawling metropolitan city due to its proximity to many beautiful natural areas.

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