Whatever the need, a Reverse Mortgage enables you to convert the equity in your property to cash flow without the need of selling your home or incurring a monthly mortgage payment. These funds will be tax free, you retain title to the home, and no repayment is necessary unless you permanently leave the property or guidelines of the loan are not met.
Frequently, when retirement comes around, you desire more money to deal with issues that you’ve been putting off. Possibly it is a much-needed vacation? Perhaps monthly medical costs are holding you back from taking that much-needed vacation?
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert a portion of your home equity into tax free funds that can be used for virtually any purpose, which includes:
Paying for housing and improvements
Wiping out a current house loan
Continuing to pay real estate taxes
Meeting medical expenses or prescription medication expenses
Managing daily living expenses
Being able to take holidays
Make special purchases
A Reverse Mortgage Home Loan Will Also Mean…
You retain ownership. A Georgetown Reverse Mortgage Lender allows you to retain ownership and stay in your home while benefiting from the equity you have built.
No monthly home loan payments necessary. As long as you maintain the provisions of the Reverse Mortgage Loan, no monthly payments are needed.
Flexibility to obtain cash in the manner you need. You could get cash in a lump sum payment, in monthly installments, as well as as a HELOC that you can tap into when or if you need it.
Easy qualifying. There is cash flow and credit history requirements required.
Government insurance. Many Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They are referred to as Home Equity Conversion Mortgages (HECM’s).
Built in consumer safeguards. All FHA insured Reverse Mortgages you can get today include features which keep you and your family from owing more than the appraised value of the home – even if the home drops in value.
Absolutely no affect on SS and other benefits. Reverse Mortgages won’t impact your Social Security, Medicare insurance, pensions or any other investments.
Reverse Mortgages are good for lots of people, but they’re not for everybody.
Could it be right for you? Call me and let’s find out! We could meet anytime and wherever you’d like (my workplace, your city” home, for your convenience). Virtually all information I can provide you with on the telephone, too – or by U.P.S., Email too. And, once again, there certainly is no-obligation, regardless if we have a face to face appointment!
Imagine staying in your property mortgage payment free, or experiencing a tax free source of funds for life benefiting from the years you have invested in your property. A reverse mortgage is a extraordinary loan product specifically for seniors 62 or older. You enjoy access to a portion of the equity in your property along with the independence and comfort of the home you have known for numerous years. It is your home, it’s easy to put it to work for you.
Reverse mortgage borrowers in city state continue to keep possession and title on their home. It is yours every bit as it was prior, but now you’re able to benefit from the equity that has been growing in your property for years. Additionally, HECM reverse home mortgages give you the confidence of a government guaranteed FHA backed loan where you will never owe beyond what the home has been appraised for. You can get a reverse mortgage on the principal home and no payment is due until the final borrower passes away or permanently departs the home.
As a safeguard, anyone looking for a reverse mortgage have to get HUD counseling from an independent third party) before incurring any expenses related to the loan. Though funds from a reverse mortgage are tax free, consumers should certainly seek tax advice on how funds might effect government needs-based programs such as Medicaid.
Facts
– A Reverse mortgage is a specialized mortgage for seniors Sixty two and older
– A reverse mortgage makes it possible for seniors to gain access to a pecentage of equity inside their property.
– Borrowers hold title and possession of their house.
– Funds from a reverse mortgage are tax free however borrowers should obtain tax advice on how funds could effect government needs-based programs like Medicaid.
– It isn’t a government program, but a loan that is repaid in the future once the last borrower dies or permanently departs their residence
– A reverse mortgage is allowed only for the borrower’s primary or principle house
– HUD counseling (from a completely independent third party) is necessary before the borrower incurring any expenses related to the loan
Just How Do I Gain Access To The Equity Inside Your city Home?
Reverse mortgage payments could be received in one of five options:
Tenure: equal monthly installments
Term: equal monthly installments for the set period of months as chosen by the
borrower
Line of Credit: payments made in installments or at different periods along with sums dictated by the borrower(s)
Modified Tenure: monthly installments along with a line of credit
Modified Term: monthly installments during a set period of months with a line of credit
Positives and negatives
Reverse mortgages supply many advantages for the senior borrower. Here’s a small list of a few:
Tax free funds don’t affect Social Security or Medicare insurance
Frees up an illiquid resource (home equity)
Could allow senior citizen to purchase a different home with no monthly loan payment
Could supply you with a source of financial resources while the applicant allows for their investments to recoup from financial market losses
Improves a senior’s quality of life or allows them to live out their hopes and dreams
Will pay off current mortgage, quite often liberating thousands in monthly payments or protecting against foreclosure. No more monthly home loan payments
Makes it possible for the senior to maintain their self-sufficiency while staying in their own home
Provides funds for in-home health care or medical expenditures
Negatives To Reverse Mortgages
Consumes part of the equity that might be given to the estate or heirs
Increasing loan balance, lowered equity with time
May have an affect on qualification for needs-based programs like Medicaid
For the people itemizing tax deductions, a reverse mortgage takes away the write-off for home interest since no interest is paid
Closing costs and mortgage insurance can be very expensive which means the borrowers should intend on staying in the home for several years to minimize costs.
As the U.S. population will continue to get older and life expectancies increase, many people are going to be living for a longer time in retirement and without doubt will require additional sources of long-term income. The demand for reverse mortgages will increase. Prospective borrowers should weigh the advantages and disadvantages of this loan product for their individual financial situation.
Call me today. I look forward to hearing from you.