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For many retirees, a big question is "how am I going to supplement my retirement income"? After all, retirement is the beginning of a new era and your work income is replaced by other sources such as social security, pensions, etc. With about 50% of retirees' net worth invested in home equity, a Reverse Mortgage Loan can be a powerful financial planning tool to help supplement your income. At TNBANK, We are dedicated to informing seniors, their adult children and caregivers about how a Reverse Mortgage Loan can enhance their lives during retirement and help them age in place.

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A Home Equity Conversion Mortgage (HECM), also known as a Reverse Mortgage Loan, is a government-insured loan for those aged 62 and older, with no monthly loan payments required for as long as the borrower lives in the home, continues to pay property taxes and home owner’s insurance, maintains their home, and otherwise complies with the loan terms.

  • You must be age 62 or older (a non-borrowing spouse may be under age 62)

  • You must own, or be purchasing the home, as your primary residence

  • You must complete a counseling session by phone with a HUD-approved counseling agency so that you clearly understand the loan program and its benefits

  • You must meet the financial assessment requirements of the HECM program (income and credit review)

FEATURES:

  • You retain ownership of the home – subject to a lien by the lender, the same as with any other mortgage.

  • Your heirs can still inherit the home upon death, and have the option to sell the home or refinance the lien and keep the home.  Just like any other inherited property that has a lien. 

  • A Home Equity Conversion Mortgage (HECM) Reverse Mortgage Loan is backed by the Federal Housing Authority (FHA)

  • You cannot lose your home as long as you continue to stay current with your property taxes and home owner's insurance and comply with all loan terms

  • There are non-borrowing spouse protections (someone not yet 62 years old when the loan is taken out).

  • Simply put, a Reverse Mortgage Loan accrues interest over time and doesn’t require a monthly payment. Therefore, the loan balance grows and uses the homes equity.  It’s the reverse of a regular mortgage loan.

  • You can eliminate monthly payments * - pay off a first mortgage or installment loan; pay off a home equity loan, high interest credit card balance or medical bills with no monthly payment required. However, if you want to make a payment or pay the loan off at anytime during your lifetime, you can do that too.  You have options based on your needs.

  • HECMs, also knowns as Reverse Mortgage Loan, are considered non-recourse loans. Neither you nor your heirs will ever owe more than the loan balance or the value of the property, whichever is less, and no assets other than the home’s equity will ever be required to repay the debt*

*If you qualify and your loan is approved, a HECM Reverse Mortgage Loan must pay off your existing mortgage(s). With a HECM Reverse Mortgage Loan, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner's insurance (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must also occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan becomes due and payable when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, or defaults on taxes and insurance payments, or does not comply with loan terms. Call 865-483-9444 to learn more. A Reverse Mortgage Loan increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). These materials are not from HUD or FHA and have not been approved by HUD or a government agency. TNBANK NMLS#402935

A Reverse Mortgage Loan is secured only by the home. If the loan balance eventually exceeds the home value, the lender cannot go after other assets. 

**Please consult with your tax advisor. Loans are not taxable because they are not considered income. Social security benefits estimator available at www.ssa.gov/estimator

  • Eliminate monthly mortgage payments or other debt payments, as long as you live in the home and otherwise comply with loan terms

  • Fund repairs or retrofit for disability projects (ramps, elevators, lift systems) without using cash, credit card, or opening a new installment loan.

  • Pay for age in place services to avoid moving to assisted living or a nursing home thereby enabling improved quality of life and care

  • Access to a standby Reverse Mortgage Loan growing line of credit, which can be set up in advance, before care is needed – ready to help pay for unplanned expenses

  • Provides supplemental income for travel or anything else you’ve dreamed of doing

  • Pay everyday bills

  • Provides tax-free proceeds**

**Please consult with your tax advisor. Loans are not taxable because they are not considered income. Social security benefits estimator available at www.ssa.gov/estimator

What happens to the family home?

Borrower(s) retain title and ownership to the home.  The home is subject to a first mortgage lien just like a regular mortgage and is still part of the estate.

How do we repay the loan?

As long as all loan terms are complied with, the borrower(s) is not required to make monthly payments on the loan.  However, they can if they want too.  The loan is subject to full repayment upon the death of all borrowers; borrowers vacate the property for more than 12 months or loan terms are not complied with.  At that time, the home can be sold and the loan balance (including interest and fees) is repaid.  Any remaining equity goes to the borrower or the borrower’s estate.  If the estate chooses to keep the home, they can refinance it into their name and pay off the existing loan, just like any real estate that is passed to an estate that contains a lien. 

How much will we owe?

Neither you nor your heirs will ever owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home are required to be used to repay the debt unless you so choose.

What happens if our parents leave their home before receiving their full Reverse Mortgage Loan? (i.e. all available line of credit funds)

If your loved on leaves the home for more than 12 months, any part of the loan that hasn’t yet been disbursed remains as equity in the home and becomes part of the estate, just like any other Line of Credit that isn’t fully drawn.

At TNBANK, rest assured, we are dedicated to helping you understand how a Reverse Mortgage Loan works and how it may benefit you and your family.  We are a proud member of the National Reverse Mortgage Lenders Association and adhere to their code of ethics and standards. 

We have two local Reverse Mortgage Loan Specialists (no 1-800 numbers) that are available to help:

 

Reverse Mortgage Specialists

Bert Burgett

Bert Burgett 

NMLS ID# 1606430

A resident of East Tennessee and the Knoxville area for over 33 years, I am a Reverse Mortgage Specialist in TNBANK’s Mortgage Division. You might see me at networking events, gatherings of seniors, sporting events, taking group exercise classes at National Fitness Center, or enjoying time at Dollywood or on the lake with my grandchildren or with girlfriend Beth, who lives in Bristol TN.  With prior experience in financial planning, domestic and international credit, IT, and sales, I have talked with and served customers in almost every country around the globe and in all 50 States. Now, I help seniors make smart financial decisions for their retirement, whether they are in their 60s, 70s, or later years. TNBANK reverse mortgage products use home equity to pay off an existing debt (mortgage or credit card debt), repair or remodel your home, afford medical or in-home care, supplement other income, provide a credit line for potential emergencies, or even purchase a new home. I’ve helped people with homes valued from less than $100,000 to over $800,000.  What concerns do you have about current or future cash needs? My direct line is 865-298-1609 and email is bburgett@tnbank.net.


Ken Wieland

Ken Wieland

NMLS ID# 162727

Ken recently became the only Certified Reverse Mortgage Professional in Tennessee and one of a handful in the nation!  Ken is empathetic to the unique needs of Seniors and passionate about helping them achieve their financial goals. Along with making the Senior homeowner knowledgeable of all policies, procedures, and underwriting requirements of a Reverse Mortgage, Ken makes sure they have a thorough understanding of this unique retirement tool. Ken hosts seminars and educational workshops all across East Tennessee to help Seniors make informed decisions about the resources available to them.  Ken was raised in Gatlinburg, TN. And in 1969 and while in high school, he earned a private pilot’s license. Ken attended Walters State Community College and The University of Tennessee while working at the local airport and acquiring all of the licenses and ratings necessary to work as a corporate pilot and finished the Airline Transport Rating required to be a Captain of a Commercial airliner. Before being hired in 1978 by Piedmont Airlines / US Airways, he flew for several major companies in the Knoxville area. His last position was as a Deputy United States Marshall, which requires an extensive background check, and allowed Ken to fly chartered aircraft for the government.

Email: kwieland@tnbank.net
Cell #: 865-924-0807

Steve Vasgaard, Financial Planner, Wealth with Wisdom

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Dawn Steimer, Master Remodelers, Romodeling Knoxville

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Joy Wilson, Owner, Right at Home In Home Care & Assistance

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Farragut West Knox Chamber of Commerce

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Rusty Kefauver, Financial Planner, Kefauver Financial Planning & Wealth Management

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*If you qualify and your loan is approved, a HECM Reverse Mortgage Loan must pay off your existing mortgage(s). With a HECM Reverse Mortgage Loan, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner's insurance (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must also occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan becomes due and payable when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, or defaults on taxes and insurance payments, or does not comply with loan terms. Call 865-483-9444 to learn more. A Reverse Mortgage Loan increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). These materials are not from HUD or FHA and have not been approved by HUD or a government agency. TNBANK NMLS#402935

A Reverse Mortgage Loan is secured only by the home. If the loan balance eventually exceeds the home value, the lender cannot go after other assets.

**Please consult with your tax advisor. Loans are not taxable because they are not considered income. Social security benefits estimator available at www.ssa.gov/estimator

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