No matter the need, a Reverse Mortgage will allow you to transform the equity in your property to cash without the need of selling your home or taking on a monthly loan payment. The proceeds are tax-free, you retain title of your home, and there is no repayment is needed up until you permanently vacate the home or requirements of the loan are not met.
Many times, when retirement comes around, you need extra money to take care of things that you have been delaying. Possibly it is a much-needed vacation? Maybe monthly medical related obligations are holding you back from taking that much-needed vacation?
El Dorado Hills, Stonegate Village, Governors Village
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert some of your home’s equity into tax free funds which can be used for just about any purpose, which includes:
Paying for home repairs and renovations
Erasing a current house loan
Paying property taxes
Meeting health related expenses or prescription medication expenses
Dealing with day-to-day bills
Being able to take holidays
Making special purchases
A Reverse Mortgage Home Loan Will Also Mean…
You keep title. A Pollock Pines Reverse Mortgage Lender allows you to keep ownership and reside in your house while taking advantage of the equity you have created.
No monthly mortgage payments necessary. As long as you adhere to the conditions of the Reverse Mortgage Loan, no monthly payments are necessary.
Flexibility to get money the way you want. You may get cash in a lump sum, in equal installments, as well as as a credit line that you can pull from when or if you need it.
Simple qualifying. There is income and consumer credit rating requirements needed.
Government insurance. The majority of Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They’re known as Home Equity Conversion Mortgages (HECM’s).
Integrated consumer protection. Every one of the FHA insured Reverse Mortgages offered as of today contain features that keep you and your family from owing more than the value of the home – even when your house drops in value.
Zero affect on Social Security and also other benefits. Reverse Mortgages don’t impact your Social Security, Medicare insurance, pensions or any other investments.
Reverse Mortgages are perfect for a number of people, but they’re definitely not for everybody.
Could it be good for you? Contact me and let us see! We can meet whenever and anywhere you want (my office, your city” home, for your convenience). Virtually all information I can provide you with over the phone, too – or by U.P.S., E mail also. And, once again, there’s no-obligation, even though we have a face to face appointment!
Just imagine staying in your house monthly house payment free, or benefiting from a tax free funds for life taking advantage of the years you have invested in your house. A reverse mortgage is a distinct loan product designed for seniors sixty-two or older. You benefit from access to a portion of the equity in your property along with the independence and comfort of your home you have lived in countless years. It’s your home, it’s easy to allow it work for you.
Reverse mortgage borrowers in city state maintain possession and title of their home. It is yours every bit as it was before, however now you could enjoy the equity which has been growing in your home for many years. Additionally, HECM reverse mortgage loans supply you with the confidence of a government guaranteed FHA backed mortgage loan in which you will not ever owe beyond what the home has been appraised for. You can obtain a reverse mortgage on the principal home and no repayment is due until the very last borrower dies or permanently leaves the home.
As a protection, anyone looking for a reverse mortgage will have to obtain HUD counseling from an impartial 3rd party) prior to incurring any expenses related to the loan. Although proceeds from the reverse mortgage are tax free, borrowers should certainly seek tax advice on how proceeds may effect government needs based services such as Medicaid.
Facts
– A Reverse mortgage is a special loan for seniors Sixty two and older
– A reverse mortgage enables seniors to access a pecentage of equity inside their home.
– Borrowers hold property and possession of their home.
– Proceeds with a reverse mortgage are tax free but borrowers will need to get tax advice on how proceeds might impact government needs-based services like Medicaid.
– It isn’t a government program, but a loan which is repaid in the future when the last borrower dies or permanently leaves their home
– A reverse mortgage is eligible just for the borrower’s primary house
– HUD counseling (from a completely independent 3rd party) is necessary before the borrower taking on any expenses related to the loan
Just How Do I Get Access To The Equity In The city Home?
Reverse mortgage funds will be obtained in one of five ways:
Tenure: equal monthly payments
Term: equal monthly payments over a fixed period of months as determined by the
borrower
Line of Credit: proceeds made in installments or at different times and figures dictated from the borrowers
Modified Tenure: monthly payments with a line of credit
Modified Term: monthly payments during a set period of months which has a line of credit
Pros and Cons
Reverse mortgages provide many benefits for the senior borrower. This is a small list of a few:
Tax-free proceeds do not affect Social Security or Medicare insurance
Frees up an illiquid asset (home equity)
Could allow senior to purchase a new home without any monthly loan payment
Could provide you with 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, in many cases freeing up thousands in monthly payments or preventing foreclosure. Forget about monthly mortgage payments
Makes it possible for the senior to maintain their freedom while staying in their own home
Provides money for in-home health care or medical related costs
Down sides To Reverse Mortgages
Spends a part of the equity that would be given to the estate or children
Growing loan balance, diminished equity with time
May have an affect on qualifications for needs based programs like Medicaid
For those itemizing tax deductions, a reverse mortgage removes the tax deduction for home interest since no interest is paid
Closing costs and mortgage insurance are expensive this means the borrowers should intend on staying in the home for several years to lessen costs.
As the American population continues to get older and life expectancies extend, more people are going to be living for a longer time in retirement and without doubt will be needing other sources of long-term income. The requirement for reverse mortgages will continue to increase. Prospective borrowers should weigh the pros and cons of this loan product for their individual financial circumstances.
Call me right away. I look forward to hearing from you and your family.