Regardless of the need, a Reverse Mortgage enables you to convert the equity in your home to cash flow without selling your home or taking on a monthly mortgage payment. The home equity funds will be tax free, you keep title of your home, and there is no repayment is needed unless you permanently leave the home or conditions of the home loan are not met.
Many times, when retirement comes around, you’d like extra cash flow to deal with issues that you’ve been delaying. Perhaps it’s a much needed vacation? Possibly monthly health related obligations are holding you back from taking that much needed vacation?
Quartz Point Mobile Home Park, Silverthorn, Buckeye
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert part of your home equity into tax-free funds which can be used for virtually any purpose, which include:
Paying for home repairs and home improvements
Erasing an existing mortgage loan
Continuing to pay property taxes
Meeting medical expenses or prescription medication expenses
Dealing with daily cost of living
Going on vacations
Make special purchases
A Reverse Mortgage Home Loan Also Means…
You retain ownership. A Pollock Pines Reverse Mortgage Lender will allow you to retain ownership and live in your home while taking advantage of the equity you have created.
No monthly home loan payments necessary. Providing you adhere to the conditions of the Reverse Mortgage Loan, no monthly payments are needed.
Flexibility to receive money how you want. You may receive funds in a lump sum payment, in equal installments, as well as as a HELOC that you could draw from when or if you need it.
Easy qualifying. There is income and credit standing qualifications required.
Government insurance. A good number of Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They are called Home Equity Conversion Mortgages (HECM’s).
Integrated consumer protection. All FHA insured Reverse Mortgages offered today contain features that prevent you and your heirs from owing more than the appraisal value of your home – regardless if the home drops in value.
No affect on Social Security benefits and other benefits. Reverse Mortgages won’t affect your Social Security, Medicare, pensions or any other investments.
Reverse Mortgages are ideal for some people, but they are certainly not for everybody.
Is it right for you? Contact me and let us find out! We could meet anytime and anywhere you would like (my office, your city” home, for your convenience). Almost all information I am able to give you over the phone, also – or by Fed Ex, E-mail also. And, yet again, there is certainly no personal obligation, regardless if we have a face-to-face appointment!
Just imagine residing in your house monthly house payment free, or having a tax-free source of funds for a lifetime taking advantage of the years you’ve invested in your house. A reverse mortgage is a unique tool designed for seniors sixty-two or older. You enjoy having access to part of the equity in your home as well as the freedom and comfort of the property you’ve lived in countless years. It’s your house, now you can allow it work for you.
Reverse mortgage borrowers in city state maintain ownership and title of their house. It is yours every bit as it was before, but now you are able to enjoy the equity which was growing in your home for years. Additionally, HECM reverse mortgages provide the confidence of a government guaranteed FHA protected mortgage loan in which you can never owe more than the house is worth. You can get a reverse mortgage on the primary residence and no payment is due until the very last borrower passes away or permanently departs the property.
As a protection, all those seeking a reverse mortgage will have to get HUD counseling from an independent 3rd party) prior to incurring any expenses related to the mortgage loan. While proceeds from a reverse mortgage are tax-free, consumers really should get tax counsel about how proceeds might effect government needs-based programs particularly Medicaid.
Facts
– A Reverse mortgage is a special loan product for senior citizens 62 and older
– A reverse mortgage enables senior citizens to access a pecentage of equity in their home.
– Borrowers retain title and ownership of their property.
– Funds with a reverse mortgage are tax-free however borrowers should get tax guidance on how proceeds might impact government needs based programs such as Medicaid.
– It’s not a government grant, but a loan that’s repaid sometime in the future when the last borrower dies or permanently departs their residence
– A reverse mortgage is allowed only for the borrower’s primary or principle home
– HUD counseling (from an impartial 3rd party) is needed before the borrower taking on any expenses related to the mortgage loan
How Do You Obtain Access To The Equity In The city Home?
Reverse mortgage funds could be received in one of five options:
Tenure: equal monthly payments
Term: equal monthly payments for the predetermined period of months as chosen by the
person getting the loan
Line of Credit: proceeds made in installments or at various instances along with amounts dictated from the borrowers
Modified Tenure: monthly payments which includes a credit line
Modified Term: monthly payments over a set period of months which has a credit line
Pluses and minuses
Reverse mortgages offer many advantages for the elderly borrower. Below is a small list of only a few:
Tax free proceeds don’t affect Social Security or Medicare
Frees up an illiquid resource (home equity)
Can enable senior citizen to purchase a different house without having any monthly house payment
Can supply a source of financial resources while the applicant allows their investment funds to recover from market losses
Improves a senior’s quality of life or enables them to live out their goals
Pays off current mortgage loan, quite often liberating hundreds or thousands in monthly obligations or stopping foreclosure. No more monthly home loan payments
Makes it possible for the senior to help keep their independence while residing in their own house
Can provide cash for in-home health care or health related expenses
Down sides To Reverse Mortgages
Consumes a part of the equity that could be given to the estate or children
Growing loan balance, diminished equity with time
May have an effect on eligibility for needs-based programs such as Medicaid
For those itemizing tax write offs, a reverse mortgage removes the write-off for home interest as no interest is paid
Settlement costs and mortgage insurance are costly this means the borrowers should intend on residing in the house for quite some time to lessen costs.
As the American population will continue to get older and life expectancies lengthen, many people will be living longer in retirement and undoubtedly will need additional sources of long lasting income. The requirement for reverse mortgages will continue to increase. Potential borrowers need to weigh the advantages and disadvantages of this type of loan for their particular financial circumstances.
Give me a call right away. I look forward to talking with you and your trusted advisors.