Regardless of the need, a Reverse Mortgage will allow you to convert the equity in your property to cash without the need of selling your home or taking on a monthly house payment. The home equity funds will be tax free, you keep title to your home, and there is no repayment is necessary up until you permanently leave the home or conditions of the mortgage loan are not fulfilled.
Frequently, when retirement age comes around, you desire extra cash flow to deal with things that you’ve been delaying. Maybe it is a much-needed vacation? Maybe monthly health related expenses are holding you back from taking that much-needed vacation?
Crown Village, Governors Village, Stonegate Village
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform a percentage of your home equity into tax free proceeds which can be used for just about any purpose, which includes:
Financing housing and upgrades
Erasing an existing mortgage loan
Paying real estate taxes
Covering medical expenses or prescription drug expenses
Handling day-to-day living expenses
Taking vacations
Making specific purchases
A Reverse Mortgage Home Loan Will Also Mean…
You keep ownership. A Shingle Springs Reverse Mortgage Lender enables you to keep ownership and live in your house while benefiting from the equity you have created.
No monthly mortgage payments necessary. Assuming that you adhere to the terms of the Reverse Mortgage Loan, no monthly payments are required.
Flexibility to get money the way you need. You can get cash in a lump sum, in equal installments, as well as as a HELOC that you could draw from when or if you need it.
Straightforward qualifying. There is income and credit history qualifications needed.
Government insurance. A good number of Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They’re called Home Equity Conversion Mortgages (HECM’s).
Built in consumer protection. Every one of the FHA insured Reverse Mortgages offered today include features which keep you and your family members from owing more than the appraisal value of your home – even when the home drops in value.
Absolutely no impact on SS and also other benefits. Reverse Mortgages are not going to affect your Social Security, Medicare, retirement benefits or any other investments.
Reverse Mortgages are ideal for lots of people, but they’re definitely not for everyone.
Could it be good for you? Contact me and let’s see! We could meet whenever and wherever you want (my workplace, your city” home, for your convenience). Virtually all information I can present you with on the phone, also – or by Fed Ex, Email as well. And, once more, there is certainly no-obligation, regardless if we have a face to face meeting!
Picture residing in your property mortgage payment free, or having a tax free cash for a lifetime benefiting from the years you’ve invested in your property. A reverse mortgage is a specific loan developed for seniors sixty-two or older. You benefit from having access to a portion of the equity in your property and also the independence and comfort of your home you’ve known for countless years. It’s your property, it’s easy to allow it work for you.
Reverse mortgage borrowers in city state retain possession and title of their property. It is yours just like it was before, however now you can benefit from the equity which has been building in your home for many years. Additionally, HECM reverse home loans provide the peace of mind of a federal government guaranteed FHA protected loan where you will not ever owe beyond what the property the appraised value. You can get a reverse mortgage on the principal house and no payment is due until the final borrower passes away or permanently leaves the property.
As a safeguard, anyone seeking a reverse mortgage will have to receive HUD counseling from an independent 3rd party) before incurring any expenses associated with the mortgage. While funds from a reverse mortgage are tax free, borrowers should really seek out tax counsel regarding how funds might effect government need based services like Medic-Aide.
Facts
– A Reverse mortgage is a special loan product for seniors 62 and older
– A reverse mortgage enables seniors to access a pecentage of equity inside their home.
– Borrowers retain property and possession of their home.
– Proceeds through a reverse mortgage are tax free however borrowers should get tax advice on how funds could impact government needs-based services like Medic-Aide.
– It’s not a government grant, but a loan which is repaid sometime in the future in the event the last borrower passes away or permanently leaves their residence
– A reverse mortgage is eligible just for the borrower’s principle house
– HUD counseling (from a completely independent 3rd party) is needed prior to the borrower taking on any expenses associated with the mortgage loan
Just How Do I Obtain Access To The Equity In The city Home?
Reverse mortgage payments could be obtained in one of five ways:
Tenure: equal monthly installments
Term: equal monthly installments for the fixed period of months as determined by the
borrower applying for the loan
Line of Credit: proceeds done in installments or at various instances and in sums dictated by the applicant
Modified Tenure: monthly installments along with a credit line
Modified Term: monthly installments during a fixed period of months which includes a credit line
Pluses and minuses
Reverse mortgages offer many advantages for the elderly borrower. This is a easy to digest list of a few:
Tax-free funds will not affect Social Security or Medicare
Frees up an illiquid resource (home equity)
Could allow senior citizen to purchase a new property with no monthly house payment
Could provide you with a source of financial resources while the borrower allows for their investments to recoup from financial market losses
Improves a senior’s everyday life or enables them to live out their goals
Pays off existing mortgage loan, quite often liberating hundreds or thousands in monthly payments or avoiding foreclosure. Forget about monthly mortgage payments
Allows the senior to take care of their self-sufficiency while residing in their own property
May provide cash for in-home health care or health related expenses
Negatives To Reverse Mortgages
Consumes a part of the equity that might be given to the estate or heirs
Growing mortgage balance, decreased equity over time
May affect qualifications for need based programs like Medicaid
For the people itemizing tax deductions, a reverse mortgage eliminates the tax deduction for mortgage interest as no interest is paid out
Settlement costs and mortgage insurance are costly this means the borrowers should intend on residing in the property for quite some time to lessen more costs.
As the U.S. population will continue to get older and life expectations extend, more people will be living for a longer period in retirement and undoubtedly will be needing additional sources of long-term income. The requirement for reverse mortgages will continue to increase. Potential borrowers need to weigh the pros and cons of this type of loan for their particular financial circumstances.
Call me today. I look forward to talking with you and your trusted advisors.