No matter the need, a Reverse Mortgage makes it possible to convert the equity in your home to cash without selling your home or taking on a monthly house payment. The funds are tax free, you keep title to the home, and there is no repayment required unless you permanently leave the property or guidelines of the home loan are not met.
Many times, when retirement age arrives, you desire extra cash flow to address issues that you’ve been postponing. Perhaps it is a much-needed vacation? Perhaps monthly health care costs are holding you back from taking that much-needed vacation?
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Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform part of your home’s equity into tax-free funds that can be used for almost any purpose, which includes:
Paying for house and renovations
Getting rid of a current house loan
Paying for property taxes
Paying for medical expenses or prescription medication costs
Managing daily living expenses
Being able to go on holidays
Making specific purchases
A Reverse Mortgage Home Loan Also Means…
You keep ownership. A Shingle Springs Reverse Mortgage Lender allows you to keep ownership and live in your home while benefiting from the equity you have built.
No monthly home loan payments required. Providing you follow the provisions of the Reverse Mortgage Loan, no monthly payments are necessary.
Flexibility to obtain funds the way you would like. You may get cash in a lump sum payment, in equal installments, as well as as a line of credit that you could draw from when or if you need it.
Straightforward qualifying. There are cash flow and credit rating qualifications needed.
Government insurance. Many Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They are called Home Equity Conversion Mortgages (HECM’s).
Built in consumer safeguards. Every one of the FHA insured Reverse Mortgages given as of today contain features that prevent you and your family members from owing more than the appraisal value of your home – even if the home declines in value.
No effect on Social Security along with other benefits. Reverse Mortgages will not impact your Social Security, Medicare, pensions and other investments.
Reverse Mortgages are great for a number of people, but they’re definitely not for everybody.
Could it be right for you? Contact me and let’s find out! We can meet whenever and anywhere you would like (my office, your city” home, for your convenience). Nearly all information I can supply you with on the telephone, as well – or by U.P.S., Email also. And, once more, there certainly is no-obligation, even if we have a face-to-face appointment!
Picture staying in your home house payment free, or benefiting from a tax-free cash for a lifetime making the most of the years you’ve invested in your home. A reverse mortgage is a distinct loan product developed for seniors sixty-two or older. You take advantage of access to part of the equity in your home and the independence and comfort of your home you’ve lived in so many years. It is your home, you can now let it work for you.
Reverse mortgage borrowers in city state continue to keep ownership and title to their home. It is yours just like it was before, however now you’ll be able to enjoy the equity which has been growing in your property for years. Additionally, HECM reverse mortgage loans supply you with the secure feeling of a government guaranteed FHA protected home loan in which you will never owe more than the home is appraised for. You can get a reverse mortgage on the primary residence and no repayment is due until the final borrower passes away or permanently departs the home.
As a protection, all those seeking a reverse mortgage have to get HUD counseling from an unbiased 3rd party) before incurring any expenses associated with the mortgage. While proceeds from a reverse mortgage are tax-free, borrowers really should seek tax counsel regarding how proceeds might effect government needs based programs as an example Medic-Aide.
Facts
– A Reverse mortgage is a special loan product for seniors Sixty two and older
– A reverse mortgage makes it possible for seniors to gain access to part of the equity in their property.
– Borrowers retain title and ownership of their house.
– Proceeds from the reverse mortgage are tax-free but borrowers will need to obtain tax advice on how proceeds may effect government need based programs such as Medic-Aide.
– It isn’t a government program, but a loan that is paid back in the future in the event the last borrower passes away or permanently departs their residence
– A reverse mortgage is eligible only for the borrower’s primary house
– HUD counseling (from a completely independent 3rd party) is needed prior to the borrower taking on any expenses associated with the mortgage loan
Exactly How Do You Access The Equity In The city Home?
Reverse mortgage proceeds can be received in one of five ways:
Tenure: equal monthly installments
Term: equal monthly installments during a set period of months as chosen by the
borrower applying for the loan
Line of Credit: payments done in installments or at different instances and figures determined by the borrower
Modified Tenure: monthly installments that have a credit line
Modified Term: monthly installments over a fixed period of months along with a credit line
Benefits and Drawbacks To Obtaining Reverse Mortgage In city state
Reverse mortgages provide many advantages for the elderly borrower. Here is a short list of a few:
Tax-free proceeds don’t affect Social Security or Medicare
Frees up an illiquid asset (home equity)
Could permit senior to purchase a new home without having any monthly house payment
Could supply you with a source of financial resources while the applicant allows their investments to recoup from market losses
Increases a senior’s standard of living or enables them to live out their dreams
Pays off current mortgage loan, many times freeing up thousands in monthly payments or avoiding foreclosure. Eliminate monthly home loan payments
Enables the senior to help maintain their self-sufficiency while staying in their own home
May provide cash for in home health care or health care costs
Negatives To Reverse Mortgages
Spends part of the equity that might be passed on to the estate or children
Increasing mortgage balance, lowered equity over time
May affect eligibility for needs based programs such as Medicaid
For anyone itemizing tax deductions, a reverse mortgage eliminates the write off for home loan interest since no interest is paid
Settlement costs and mortgage insurance are costly this means the borrowers should plan on staying in the home for quite some time to help reduce more costs.
As the American population will continue to age and life expectations lengthen, more people are going to be living longer in retirement and without doubt will need other sources of long lasting income. The need for reverse mortgages will continue to increase. Potential borrowers need to weigh the pros and cons of this type of loan for their specific financial situation.
Call me right away. I am looking forward to hearing from you.