Regardless of the need, a Reverse Mortgage will allow you to convert the equity in your home to cash flow without the need of selling your home or incurring a monthly house payment. The funds will be tax free, you keep title to the home, and there is no repayment is necessary until you permanently vacate the property or conditions of the loan are not fulfilled.
Frequently, when retirement age comes around, you desire extra cash flow to take care of stuff that you have been delaying. Maybe it’s a much-needed vacation? Maybe monthly medical related obligations are holding you back from taking that much-needed vacation?
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform part of your home equity into tax free funds which you can use for virtually any purpose, which include:
Paying for housing and renovations
Eliminating a current house loan
Paying for real estate property taxes
Paying for health related expenses or medication costs
Dealing with daily living expenses
Taking holidays
Making special purchases
A Reverse Mortgage Home Loan Means…
You maintain ownership. A Georgetown Reverse Mortgage Lender enables you to maintain ownership and stay in your house while using the equity you have built.
No monthly home loan payments required. Providing you follow the provisions of the Reverse Mortgage Loan, no monthly payments are necessary.
Flexibility to receive money how you would like. You may get funds in a lump sum, in equal mornth installments, and also as a credit line that you could draw from when or if you need it.
Easy qualifying. There are cash flow and credit rating requirements needed.
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).
Built in consumer safeguards. Every one of the FHA insured Reverse Mortgages given as of today contain features that prevent you and your family members from owing more than the appraisal value of your home – even if your property decreased in value.
No effect on SS along with other benefits. Reverse Mortgages are not going to affect your Social Security, Medicare insurance, retirement benefits or any other investments.
Reverse Mortgages are ideal for some people, however they are not necessarily for everybody.
Is it good for you? Call me and let us see! We could meet anytime and anywhere you would like (my workplace, your city” home, for your convenience). Most information I am able to provide you with on the telephone, also – or by Fed Ex, Email also. And, yet again, there’s definitely no-obligation, even though we have a face-to-face meeting!
Imagine living in your house house payment free, or having a tax free cash for life making the most of the years you’ve invested in your house. A reverse mortgage is a unique loan product specifically for seniors 62 and older. You benefit from having 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’s your house, now you can put it to work for you.
Reverse mortgage borrowers in city state retain ownership and title of their house. It’s yours just like it was prior, but now you’re able to take advantage of the equity which has been increasing in your property for years. Additionally, HECM reverse home mortgages give you the confidence of a government guaranteed FHA protected mortgage in which you will never owe beyond what the house is worth. You can get a reverse mortgage on the principal residence and no repayment is due until the last borrower dies or permanently leaves the home.
As a protection, anyone seeking a reverse mortgage have to receive HUD counseling from an unbiased third party) prior to incurring any costs associated with the mortgage loan. Though funds from a reverse mortgage are tax free, borrowers really should get tax advice on how funds may effect government needs based services as an example Medic-Aide.
Facts
– A Reverse mortgage is a special loan product for senior citizens 62 and older
– A reverse mortgage allows senior citizens to access a pecentage of equity in their property.
– Borrowers retain title and ownership of their home.
– Proceeds coming from a reverse mortgage are tax free however borrowers should obtain tax guidance on how funds may impact government needs based services like Medic-Aide.
– It’s not a government grant, but a loan which is paid back one day when the last borrower dies or permanently leaves their home
– A reverse mortgage is eligible only for the borrower’s primary house
– HUD counseling (from a completely independent third party) is needed before the borrower incurring any costs associated with the loan
Tips On How To Gain Access To The Equity Inside Your city Home?
Reverse mortgage payments could be received in one of five ways:
Tenure: equal monthly installments
Term: equal monthly installments for a fixed period of months as chosen by the
person getting the loan
Line of Credit: proceeds made in installments or at various instances along with sums determined from the borrowers
Modified Tenure: monthly installments that have a credit line
Modified Term: monthly installments over a fixed period of months along with a credit line
Positives and negatives
Reverse mortgages offer several benefits for the senior borrower. Here’s a small list of a few:
Tax free funds will not affect Social Security or Medicare insurance
Frees up an illiquid resource (home equity)
Could make it possible for a senior citizen to purchase a different house without any monthly loan payment
Could supply you with a source of funds while the applicant allows their investments to recover from financial market losses
Improves a senior’s standard of living or enables them to live out their dreams
Will pay off existing mortgage, in many cases freeing up thousands in monthly obligations or preventing foreclosure. Eliminate monthly home loan payments
Allows the senior to help keep their independence while living in their own house
May provide cash for in home health care or medical related costs
Drawbacks To Reverse Mortgages
Consumes a part of the equity that could be passed on to the estate or heirs
Growing mortgage balance, lowered equity over time
May affect eligibility for needs based programs like Medicaid
For the people itemizing tax write offs, a reverse mortgage eliminates the tax deduction for home loan interest as no interest is paid out
Closing costs and mortgage insurance are expensive which means the borrowers should plan on living in the house for many years to reduce more costs.
As the U.S. population continues to grow older and life expectations extend, many people will be living longer in retirement and without doubt will need some other sources of long term source of income. The requirement for reverse mortgages will increase. Prospective borrowers should weigh the pros and cons of this loan product for their particular financial situation.
Call me right away. I look forward to talking with you and your family.