Regardless of the need, a Reverse Mortgage helps you transform the equity in your home to cash without the need of selling your home or incurring a monthly house payment. These proceeds will be tax-free, you keep title of your home, and no repayment required unless you permanently leave the home or conditions of the reverse loan are not fulfilled.
Often, when retirement comes around, you desire more cash money to deal with issues that you’ve been delaying. Perhaps it is a much needed vacation? Maybe monthly medical obligations are stopping you from taking that much needed vacation?
Saint Andrews Village, Governors Village, El Dorado Hills
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform a portion of your home’s equity into tax free funds which you can use for any purpose, including:
Paying for house and renovations
Erasing an existing mortgage
Paying for real estate property taxes
Meeting medical expenses or prescription medication expenses
Dealing with day to day living expenses
Being able to go on holidays
Planning special purchases
A Reverse Mortgage Home Loan Also Means…
You retain title. A South Lake Tahoe Reverse Mortgage Lender helps you retain ownership and live in your house while benefiting from the equity you have built.
No monthly home loan payments necessary. Assuming that you follow the terms of the Reverse Mortgage Loan, no monthly payments will be required.
Flexibility to obtain cash the way you want. You can receive cash in a lump sum payment, in equal mornth installments, and also as a line of credit which you can draw from when or if you need it.
Straightforward qualifying. There is income and credit history qualifications required.
Government insurance. Most Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They’re called Home Equity Conversion Mortgages (HECM’s).
Integrated consumer safeguards. All FHA insured Reverse Mortgages given right now include features that prevent you and your family members from owing more than the appraised value of your home – even when the home decreased in value.
Absolutely no impact on Social Security benefits and also other benefits. Reverse Mortgages will not have an effect on your Social Security, Medicare insurance, retirement benefits and other investments.
Reverse Mortgages are perfect for plenty of people, but they’re not necessarily for everybody.
Is it right for you? Call me and let us see! We can meet anytime and wherever you want (my office, your city” home, for your convenience). Almost all information I’m able to provide you with over the phone, also – or by Fed-Ex, Email too. And, once again, there is certainly no obligation from you, even though we have a face-to-face appointment!
Imagine residing in your house mortgage payment free, or having a tax free source of funds for a lifetime making use of the years you’ve invested in your house. A reverse mortgage is a specific tool designed for seniors sixty-two and older. You take advantage of having access to a portion of the equity in your home as well as the independence and comfort of your home you’ve lived in so many years. It is your house, you can now allow it work for you.
Reverse mortgage borrowers in city state maintain ownership and title of their house. It’s yours every bit as it was before, however now you are able to take advantage of the equity which has been increasing in your home for many years. In addition, HECM reverse mortgage loans provide the confidence of a federal government guaranteed FHA backed mortgage where you will not ever owe more than the house is worth. You can get a reverse mortgage on your primary house and no repayment is due until the last borrower dies or permanently departs the property.
As a safeguard, all those wanting a reverse mortgage have to receive HUD counseling from an impartial 3rd party) prior to incurring any expenses associated with the mortgage loan. Although funds from a reverse mortgage are tax free, borrowers really should seek out tax counsel regarding how funds might effect government needs based services particularly Medic-Aide.
Facts
– A Reverse mortgage is a special mortgage for senior citizens Sixty two and older
– A reverse mortgage allows senior citizens to access part of the equity in their home.
– Borrowers hold property and ownership of their home.
– Proceeds coming from a reverse mortgage are tax free but borrowers will need to obtain tax guidance on how funds might effect government needs based services such as Medic-Aide.
– It isn’t a government program, but a loan that’s paid back in the future when the last borrower passes away or permanently departs their residence
– A reverse mortgage is eligible only for the borrower’s primary residence
– HUD counseling (from an impartial 3rd party) is necessary prior to the borrower incurring any expenses associated with the mortgage loan
Tips On How To Obtain Access To The Equity Inside Your city Home?
Reverse mortgage funds could be obtained in one of five options:
Tenure: equal monthly payments
Term: equal monthly payments during a predetermined period of months as chosen by the
borrower applying for the loan
Line of Credit: payments done in installments or at different times along with figures dictated by the applicant
Modified Tenure: monthly payments which includes a credit line
Modified Term: monthly payments for a fixed period of months with a credit line
Pros and Cons
Reverse mortgages offer many benefits for the senior borrower. Here is a small list of only 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 to purchase a different house without a monthly mortgage payment
Could provide a source of financial resources while the potential borrower allows their investments to recoup from market losses
Enhances a senior’s standard of living or makes it possible to live out their dreams
Will pay off current mortgage, in many cases liberating thousands in monthly obligations or avoiding foreclosure. Forget about monthly home loan payments
Helps the senior to help keep their freedom while residing in their own house
May provide money for in-home health care or medical expenses
Down sides To Reverse Mortgages
Consumes a part of the equity that would be passed on to the estate or children
Growing loan balance, lowered equity over time
May affect qualifications for needs based programs such as Medicaid
For those itemizing tax deductions, a reverse mortgage takes away the tax deduction for home interest as no interest is paid
Closing costs and mortgage insurance can be very expensive this means the borrowers should plan on residing in the house for many years to reduce overall costs.
As the U.S. population will continue to grow older and life expectations increase, more and more people will be living for a longer period in retirement and without any doubt will need other sources of long term source of income. The requirement for reverse mortgages will increase. Potential borrowers need to weigh the pros and cons of this type of loan for their specific financial situation.
Call me today. I look forward to hearing from you.