• HOW CAN A REVERSE MORTGAGE

Help me?

We have received numerous requests asking us to explain how reverse mortgages work. We suggest you bookmark this webpage for future reference. As "baby-boomers" reach retirement, these products have increasingly become a logical component of a well-balanced retirement plan.

What People are Saying

ABOUT THIER REVERSE MORTGAGE

"No longer do I have to tell myself I can't have something... once again, I am able to relax and enjoy the life I've created with my freinds and family. No problem meeting the expenses for my medications, which is a significant cost to cover my current medical conditions. I am happy, enjoying living, playing bridge and keeping my mind active."

"We have a CAREgiver that assists us 3-4 hours, five days a week... we needed financial assistance to help pay for this. "

 

Reverse Mortgage fast facts

  • All borrowers must be 62 years or older
  • No repayment is made until the home is sold or the owner permanently moves out or passes away
  • You will never owe more than the current market value of your home at the time the loan becomes due
  • NO Income Qualification
  • Interest is paid at the time the loan is repaid
  • When the loan is due, your heirs have choices: they can repay the loan and keep the house, or sell the home and repay the loan
  • Social Security benefits and Medicare are generally not affected by a reverse mortgage-**consult appropriate government agencies**
  • YOU OWN your home - the lender does not take control of the title
  • Closing costs and fees incurred can be financed as part of the loan !!!

 

Reverse Mortgage costs.....
Allmost all costs of a reverse mortgage can be financed from the proceeds of the loan and include:
  • Origination fee
  • Closing Costs
  • Service Fee
  • Mortgage Insurance Premium

....And Benefits
  • Borrower retains title and occupancy of home
  • Easy access to equity
  • Tax-free equity release-consult tax advisor
  • No monthly mortgage payments
  • Interest is tax-deductible-consult tax advisor
  • Lender has no claim on borrower's income or assets other than the current market value of the home

 The Opposite of a Traditional Mortgage....

A Reverse Mortgage Pays You Money

Taking a loan to buy a home means borrowing a large sum from a bank and paying down that debt to increas the equity and wealth in the home. With a reverse mortgage, the opposite is true. Instead of making payments, a reverse mortgage borrower uses equity to gain income. Throughout the life of the loan, the balance gets larger while the equity gets smaller.

MAKING A REVERSE MORTGAGE

Work for You. 

We make it as easy as possible for you to obtain the reverse mortgage that's right for you. We're with you every step of the way, helping to customize a loan that meets your unique needs. And because we know these decisions can sometimes be challenging, we encourage you to seek the advice and counsel of those you trust most- your family, friends, attorney, and accountant.

1. Getting Started

 If you want to learn how a reverse mortgage will work for you, a loan advisor will visit you in your home and explain the benefits, features, income options, and costs.

2. Releasing Equity in Your Home

The amount of funds available is generated based upon the following:

  • Appraised value of home or maximum lending limit
  • Borrowers age
  • Current interest rate

 3. Taking Action

When you are ready to move forward, we will assist you in completing an application request and schedule a counseling session with an approved counselor. In many cases home repairs needed may be paid out of benefits.

4. Gaining Independence and Remaining in Control

A lien is recorded against the home, but the borrower will retain title to the property and remain in control of the home. The borrower continues to have the responsibility for maintaining the home in reasonable condition and paying property taxes and insurance premiums.

5. Reaping the Rewards of a Reverse Mortgage

Borrowers have many specific reasons for electing a reverse mortgage. Some are needs-driven, others enhance quality-of-life choices. Possible uses of a reverse mortgage are nearly endless, as the money the borrowers receive belongs to them. It is theirs to do with as they wish.

 

 

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