Whatever the need, a Reverse Mortgage allows you to transform the equity in your home to cash flow without the need of selling your home or incurring a monthly house payment. These funds are tax free, you retain title to your house, and there is no repayment is necessary up until you permanently leave the property or requirements of the loan are not fulfilled.
Frequently, when the time to retire arrives, you would like additional cash to manage issues that you have been putting off. Possibly it’s a much needed vacation? Possibly monthly health related costs are holding you back from taking that much needed vacation?
Governors Village, Stonegate Village, Oak Ridge Village
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert a portion of your home equity into tax-free proceeds which you can use for almost any purpose, like:
Financing housing and improvements
Eliminating a current home loan
Continuing to pay property taxes
Paying for health related expenses or medication costs
Dealing with day to day cost of living
Going on vacations
Make specific purchases
A Reverse Mortgage Home Loan Also Means…
You maintain ownership. A Buckeye Reverse Mortgage Lender helps you maintain ownership and reside in your house while taking advantage of the equity you have built.
No monthly mortgage payments required. Provided that you adhere to the conditions of the Reverse Mortgage Loan, no monthly payments are needed.
Flexibility to get funds the way you need. You could receive funds in a lump sum, in equal installments, or as a line of credit which you can pull from when or if you need it.
Easy qualifying. There are cash flow and consumer credit rating qualifications needed.
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).
Built in consumer safety. All of the FHA insured Reverse Mortgages given as of today include features which keep you and your family members from owing more than the appraisal value of your home – regardless if the home drops in value.
Absolutely no affect on Social Security and other benefits. Reverse Mortgages will not affect your Social Security, Medicare insurance, pensions and other investments.
Reverse Mortgages are perfect for plenty of people, but they’re certainly not for everybody.
Is it right for you? Contact me and let’s find out! We could meet whenever and anywhere you desire (my office, your city” home, for your convenience). Nearly all information I am able to supply you with over the phone, too – or by U.P.S., E mail too. And, once more, there’s no-obligation, regardless if we have a face-to-face appointment!
Just imagine living in your house house payment free, or benefiting from a tax-free funds for life making the most of the years you’ve invested in your house. A reverse mortgage is a distinct loan product designed for seniors sixty-two and older. You benefit from having access to a portion of the equity in your home and the freedom and comfort of the home you’ve known for countless years. It is your home, you can now allow it work for you.
Reverse mortgage borrowers in city state retain possession and title on their home. It is yours just as it was prior, but now you are able to enjoy the equity which has been increasing in your property for years. Furthermore, HECM reverse home mortgages provide the peace of mind of a federal government guaranteed FHA insured mortgage where you will not ever owe beyond what the home has been appraised for. You can obtain a reverse mortgage on your primary residence and no repayment is due until the very last borrower passes away or permanently leaves the home.
As a safeguard, anyone seeking a reverse mortgage will have to obtain HUD counseling from an unbiased 3rd party) prior to incurring any costs associated with the loan. Though funds originating from a reverse mortgage are tax-free, borrowers should really seek out tax counsel regarding how funds may effect government needs-based services like Medic-Aide.
Facts
– A Reverse mortgage is a special loan for seniors Sixty two and older
– A reverse mortgage allows seniors to gain access to part of the equity in their property.
– Borrowers maintain property and possession of their home.
– Proceeds with a reverse mortgage are tax-free however borrowers will need to obtain tax advice on how funds might effect government needs based services like Medic-Aide.
– It is not a government program, but a loan that is paid back one day when the last borrower passes away or permanently leaves their residence
– A reverse mortgage is allowed just for the borrower’s principle house
– HUD counseling (from a completely independent 3rd party) is necessary prior to the borrower incurring any costs associated with the mortgage loan
Just How Do I Access The Equity Inside Your city Home?
Reverse mortgage funds can be received in one of five options:
Tenure: equal monthly payments
Term: equal monthly payments for a fixed period of months as chosen by the
borrower
Line of Credit: payments made in installments or at different times and sums determined from the applicant
Modified Tenure: monthly payments which includes a credit line
Modified Term: monthly payments during a predetermined period of months along with a credit line
Pluses and minuses
Reverse mortgages offer several benefits for the elderly borrower. Below is 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 permit senior citizen to purchase a new home with no monthly mortgage payment
Could supply a source of funds while the borrower allows their investments to recoup from market losses
Improves a senior’s quality of life or makes it possible to live out their dreams
Will pay off existing home loan, oftentimes liberating thousands in monthly payments or preventing foreclosure. No more monthly mortgage payments
Allows the senior to help maintain their freedom while living in their own home
May provide funds for in-home health care or health related costs
Disadvantages To Reverse Mortgages
Consumes a portion of equity that could be passed on to the estate or children
Growing mortgage balance, reduced equity over time
May affect eligibility for needs-based programs like Medicaid
For anyone itemizing tax deductions, a reverse mortgage eliminates the deduction for mortgage interest as no interest is paid out
Settlement costs and mortgage insurance can be very expensive this means the borrowers should plan on living in the home for quite some time to help reduce expenses.
As the U.S. population continues to grow older and life expectancies increase, more people are going to be living for a longer time in retirement and undoubtedly will need additional sources of long lasting income source. The need for reverse mortgages will continue to increase. Prospective borrowers need to weigh the advantages and disadvantages of this loan product for their individual financial circumstances.
Call me today. I am looking forward to talking with you and your trusted advisors.