As an additional service to qualified members and their parents, CalSTRS now offers a reverse mortgage through Countrywide Bank.

A reverse mortgage is different from a typical home mortgage or other types of home equity loans. The homeowner doesn't have to pay back a reverse mortgage by making monthly payments, and the loan does not come due until the last borrower dies, sells the home or permanently moves out.

Why a reverse mortgage?
Reverse mortgages may provide a financial solution for many seniors who want to remain living in their homes, while supplementing their income. The reverse mortgage can be used to cover health care costs, pay off existing mortgages or other financial obligations, make home repairs or modifications, or simply provide peace of mind.

How does it work?
The homeowner continues to live in the home and take responsibility for property taxes, insurance and repairs. Borrowers can choose to receive their reverse mortgage funds in monthly payments, a lump sum, a line of credit the borrower may access as needed or a combination of these options.

How does it affect other income?
Since the proceeds from reverse mortgages are not considered income, they are typically tax-free and do not affect Social Security, Medicare or pension benefits. It's always a good idea to consult your financial advisor for more information.

How do I learn more?
For more information about the CalSTRS reverse mortgage program through Countrywide Bank, call 866-384-4457 or visit www.CalSTRS.com/HomeLoanProgram and click FAQs.