need, a Reverse Mortgage allows you to convert the equity in your home to cash flow without the need of selling your home or taking on a monthly mortgage payment. These funds will be tax free, you retain title to the property, and there is no repayment required up until you permanently vacate the property or guidelines of the home loan are not met.
Often times, when retirement age comes around, you desire extra cash flow to take care of issues that you have been postponing. Perhaps it’s a much-needed vacation? Maybe monthly health related expenses 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’s equity into tax free proceeds which can be used for any purpose, like:
Financing housing and home improvements
Eliminating an existing mortgage
Continuing to pay real estate taxes
Paying for medical expenses or prescription drug costs
Handling day to day bills
Taking holidays
Planning specific purchases
A Reverse Mortgage Home Loan Will Also Mean…
You maintain ownership. A Placerville Reverse Mortgage Lender allows you to maintain ownership and stay in your home while using the equity you have built.
No monthly mortgage payments necessary. As long as you maintain the terms of the Reverse Mortgage Loan, no monthly payments will be required.
Flexibility to get cash the way you want. You can receive cash in a lump sum payment, in equal installments, and also as a line of credit that you could tap into when or if you need it.
Easy qualifying. There is cash flow and credit rating requirements required.
Government insurance. Most Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They’re known as Home Equity Conversion Mortgages (HECM’s).
Integrated consumer safeguards. Every one of the FHA insured Reverse Mortgages available today include features that prevent you and your heirs from owing more than the value of your home – regardless if your house declines in value.
No impact on SS and also other benefits. Reverse Mortgages don’t affect your Social Security, Medicare insurance, retirement benefits or other investments.
Reverse Mortgages are great for many people, but they’re definitely not for everybody.
Is it right for you? Contact me and let’s find out! We can meet whenever and anywhere you would like (my workplace, your city” home, for your convenience). Nearly all information I’m able to give you on the telephone, also – or by Fed-Ex, E mail too. And, once more, there is certainly no-obligation, even though we have a face-to-face appointment!
Visualize residing in your house mortgage payment free, or experiencing a tax free source of funds for a lifetime making use of the years you have invested in your house. A reverse mortgage is a extraordinary loan developed for seniors sixty two or older. You benefit from having access to a portion of the equity in your home along with the freedom and comfort of the property you have lived in so many years. It’s your home, it’s easy to put it to work for you.
Reverse mortgage borrowers in city state maintain possession and title to their home. It’s yours just like it was before, however now you could benefit from the equity which was building in your property for many years. Furthermore, HECM reverse home loans provide the peace of mind of a government guaranteed FHA backed loan in which you can never owe more than the home the appraised value. You can obtain a reverse mortgage on your principal home and no repayment is due until the very last borrower dies or permanently leaves the property.
As a protection, all those seeking a reverse mortgage have to receive HUD counseling from an independent 3rd party) prior to incurring any expenses related to the mortgage loan. Although funds from the reverse mortgage are tax free, consumers really should seek out tax guidance on how funds may effect government needs based services particularly Medicaid.
Facts
– A Reverse mortgage is a special mortgage for senior citizens 62 and older
– A reverse mortgage allows senior citizens to gain access to a pecentage of equity inside their property.
– Borrowers hold title and possession of their house.
– Funds from the reverse mortgage are tax free however borrowers should get tax advice on how funds could effect government need based services such as Medicaid.
– It isn’t a government grant, but a loan which is paid back sometime in the future in the event the last borrower passes away or permanently leaves their property
– A reverse mortgage is eligible just for the borrower’s primary house
– HUD counseling (from an impartial 3rd party) is needed prior to the borrower taking on any expenses related to the mortgage loan
Tips On How To Get Access To The Equity In The city Home?
Reverse mortgage funds could be received in one of five ways:
Tenure: equal monthly payments
Term: equal monthly payments for the 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 in amounts dictated by the borrower
Modified Tenure: monthly payments along with a line of credit
Modified Term: monthly payments for a predetermined period of months which includes a line of credit
Benefits and Downsides To Receiving A Reverse Mortgage In city state
Reverse mortgages deliver many advantages for the senior borrower. Here’s a small list of just a few:
Tax free funds do not affect Social Security or Medicare insurance
Frees up an illiquid resource (home equity)
Could make it possible for a senior citizen to purchase a new home without a monthly mortgage payment
Could supply a source of funds while the borrower allows for their investments to recoup from financial market losses
Improves a senior’s quality of life or makes it possible to live out their dreams
Will pay off existing home loan, in many cases freeing up hundreds or thousands in monthly payments or preventing foreclosure. Eliminate monthly mortgage payments
Makes it possible for the senior to help keep their self-sufficiency while residing in their own home
Provides funds for in-home medical care or health related costs
Drawbacks To Reverse Mortgages
Spends a portion of equity that might be given to the estate or heirs
Increasing mortgage balance, decreased equity over time
May affect qualifications for needs based programs such as Medicaid
For those itemizing tax write offs, a reverse mortgage eliminates the write-off for home interest because no interest is paid out
Settlement costs and mortgage insurance are costly this means the borrowers should plan on residing in the home for many years to lessen more costs.
As the U.S. population continues to grow older and life expectations lengthen, more and more people will be living for a longer time in retirement and undoubtedly will be needing other sources of long-term income. The need for reverse mortgages will increase. Prospective borrowers should weigh the pros and cons of this lending product for their specific financial situation.
Give me a call today. I am looking forward to talking with you and your family.