Reverse
Mortgage
What is a
Reverse Mortgage?
The reverse mortgage enables older homeowners to
convert part of the equity in their homes into income without having to
sell, give up title or maintain monthly payments.
Instead of making payments to a lender, the lender makes payments
to you.
How much money
can I take out?
The amount is determined by the age of the youngest
homeowner, the value of the home and the current interest rates.
How do I
receive the money?
There are many options; scheduled monthly payments,
lump sum payment, line of credit or any combination.
How safe are
Reverse Mortgages?
The Reverse Mortgage is guaranteed by FNMA, the
largest lender in the country, and/or insured by FHA through the
Department of Housing and Urban Development.
You are simply required to maintain the property and live in the
property as your primary residence.
How difficult
is the process?
Not hard at all.
I’ll take care of everything for you.
There are no time-consuming applications to fill out nor hard to
understand forms to read. With
the assistance of a FNMA/HUD approved counselor, everything will be
explained and disclosed to you AND your family at your convenience.
How do I get
started?
Simply call or e-mail
and we will discuss your individual situation.
Reverse
Mortgage Misconceptions
I
could
lose
my home.
With a reverse mortgage you retain ownership of your home and control of
the title. You can remain in your home as long as you wish and cannot be
evicted or forced to sell.
The
lender will own my home.
The fact is that you
retain
title and ownership to your home, and can choose to sell your home anytime
you wish. The lender cannot force you from your home or foreclose on you
as long as you
maintain your home and pay your property taxes and homeowners insurance.
My
children or heirs will be responsible for the repayment of the loan.
A reverse mortgage is a non-recourse loan, which means that your house
stands alone for the debt. The lender can only derive repayment of the
loan from the sale or refinance proceeds of the home. You or your estate
can never owe more than the home's value at. the time the loan
is repaid.
I
must own my home free and clear in order to qualify.
Not true. If you have a balance on a mortgage or home equity loan, a
portion of the proceeds from the reverse mortgage will be used to pay off
your existing loan, thereby eliminating your current house payment. You
are then free to do whatever you wish with the remaining funds available
to you from the reverse mortgage.
I
must have good credit and income to qualify for a reverse mortgage.
Your credit or income is not even a consideration when applying for a
reverse
mortgage.
Only
the “cash poor” or desperate seniors that failed to
plan
for retirement get reverse mortgages.
Although some seniors may have a greater need than others for the cash or
monthly income, reverse mortgages have become a popular financial planning
and estate-planning tool. Long term health care insurance and in home
health care are popular uses for reverse mortgage. proceeds. A growing
number of people who have no immediate need are taking out these loans so
that they have a financial cushion for future expenses.
The
reverse mortgage will
increase
my taxes.
Not
true. Proceeds from a reverse mortgage are tax-free.
When
a reverse mortgage comes due, the bank sells my home.
Not
true. At
the
time
the
last
borrower
permanently
leaves the
home
the loan
must be repaid. At that time, you or your heirs can either pay the balance
due on the reverse mortgage, through a traditional refinance or from
other assets and keep
the home,
or sell the home and use the proceeds to
pay off the reverse mortgage. Any remaining equity goes to the heirs.
The
Reverse Mortgage will impact my Social Security or Medicare.
Not
true. Reverse mortgage proceeds do NOT affect any other benefits except
perhaps Medical. However, if the payout options are structured properly,
even Medical will not be affected.
A
Reverse Mortgage is expensive:
While
a reverse mortgage generally costs more than a conventional loan, it is much
less expensive than selling your home,
relocating and assuming new monthly
expenses. Fees are financed, so no out-of-pocket expenses are incurred.
Over time, the appreciation of the home will more than offset the fees.
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