Regardless of the need, a Reverse Mortgage enables you to convert the equity in your home to cash flow without selling your home or incurring a monthly mortgage payment. The funds are tax-free, you keep title of your property, and there is no repayment is necessary unless you permanently leave the property or guidelines of the mortgage loan are not fulfilled.
Many times, when retirement age arrives, you desire more cash flow to manage things that you’ve been delaying. Maybe it is a much-needed vacation? Perhaps monthly health care costs are holding you back from taking that much-needed vacation?
El Dorado Hills, Stonegate Village, Crown Village
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform part of your home’s equity into tax free proceeds which can be used for any purpose, such as:
Financing house and renovations
Eliminating a current mortgage loan
Continuing to pay property taxes
Covering health related expenses or prescription drug costs
Dealing with day-to-day bills
Taking vacations
Planning specific purchases
A Reverse Mortgage Home Loan Will Also Mean…
You maintain title. A El Dorado Hills Reverse Mortgage Lender enables you to maintain ownership and live in your house while taking advantage of the equity you have built.
No monthly mortgage payments necessary. Providing you follow the provisions of the Reverse Mortgage Loan, no monthly payments are necessary.
Flexibility to obtain money in the manner you would like. You can receive cash in a lump sum, in monthly installments, and also as a home equity line of credt which you can pull from when or if you need it.
Simple qualifying. There are income and credit requirements required.
Government insurance. A good number of Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They’re referred to as Home Equity Conversion Mortgages (HECM’s).
Integrated consumer safety. All of FHA insured Reverse Mortgages given today have features that keep you and your family members from owing more than the appraised value of your home – even when your house decreased in value.
Zero affect on SS and also other benefits. Reverse Mortgages won’t impact your Social Security, Medicare, pensions or other investments.
Reverse Mortgages are great for some people, but they are not necessarily for everybody.
Is it good for you? Contact me and let’s find out! We can meet anytime and wherever you desire (my office, your city” home, for your convenience). Virtually all information I could present you with on the telephone, as well – or by U.P.S., Email also. And, once again, there’s no-obligation, regardless if we have a face to face appointment!
Imagine living in your house monthly mortgage payment free, or experiencing a tax free funds for a lifetime making the most of the years you’ve invested in your house. A reverse mortgage is a distinct loan developed for seniors sixty two or older. You take advantage of access to a portion of the equity in your home as well as the independence and comfort of the property you’ve known for countless years. It is your home, it’s easy to put it to work for you.
Reverse mortgage borrowers in city state retain possession and title on their home. It is yours just as it was prior, however now you can benefit from the equity that has been increasing in your property for many years. In addition, HECM reverse mortgage loans provide the peace of mind of a government guaranteed FHA insured mortgage in which you will never owe beyond what the home the appraised value. You can get a reverse mortgage on your principal home and no repayment is due until the final borrower passes away or permanently leaves the property.
As a safeguard, anyone seeking a reverse mortgage have to receive HUD counseling from an unbiased third party) before incurring any expenses related to the mortgage. While proceeds originating from a reverse mortgage are tax free, borrowers should seek out tax advice regarding how proceeds may effect government needs-based programs such as Medic-Aide.
Facts
– A Reverse mortgage is a specialized loan for seniors 62 and older
– A reverse mortgage allows for seniors to gain access to a portion of the equity inside their property.
– Borrowers retain title and possession of their property.
– Proceeds from a reverse mortgage are tax free but borrowers will need to obtain tax advice on how proceeds might effect government needs-based programs like Medic-Aide.
– It is not a government program, but a loan that is repaid in the future in the event the last borrower dies or permanently leaves their property
– A reverse mortgage is allowed just for the borrower’s primary or principle residence
– HUD counseling (from an independent third party) is needed before the borrower incurring any expenses related to the mortgage loan
How Do You Access The Equity Inside Your city Home?
Reverse mortgage payments will be obtained in one of five options:
Tenure: equal monthly payments
Term: equal monthly payments for a set period of months as chosen by the
borrower
Line of Credit: payments done in installments or at different times and in amounts determined by the borrower
Modified Tenure: monthly payments with a line of credit
Modified Term: monthly payments over a predetermined period of months along with a line of credit
Positives and negatives
Reverse mortgages provide several advantages for the senior borrower. Here’s a small list of just a few:
Tax-free proceeds do not affect Social Security or Medicare
Frees up an illiquid resource (home equity)
Can allow senior citizen to buy a new home without any monthly mortgage payment
Can provide you with a source of funds while the loan applicant allows for their investment funds to recover from market losses
Enhances a senior’s everyday life or allows them to live out their hopes and dreams
Will pay off current mortgage loan, many times freeing up hundreds or thousands in monthly mortgage payments or protecting against foreclosure. Forget about monthly mortgage payments
Helps the senior to help maintain their freedom while living in their own home
Provides money for in home medical care or health care expenses
Drawbacks To Reverse Mortgages
Consumes a part of the equity that might be passed on to the estate or children
Growing mortgage balance, diminished equity over time
May affect eligibility for needs-based programs like Medicaid
For those itemizing tax write offs, a reverse mortgage takes away the write-off for home loan interest since no interest is paid out
Closing costs and mortgage insurance are expensive this means the borrowers should intend on living in the home for many years to help reduce costs.
As the American population will continue to grow older and life expectations extend, many people are going to be living longer in retirement and without doubt will require other sources of long term source of income. The requirement for reverse mortgages will increase. Prospective borrowers need to weigh the pros and cons of this loan product for their specific financial circumstances.
Give me a call right now. I look forward to talking with you and your family.