Regardless of the need, a Reverse Mortgage will allow you to transform the equity in your home to cash flow without the need of selling your home or incurring a monthly house payment. The proceeds are tax free, you retain title to the house, and there is no repayment is necessary unless you permanently vacate the home or conditions of the mortgage loan are not fulfilled.
All too often, when retirement arrives, you desire additional cash to manage stuff that you’ve been putting off. Maybe it’s a much-needed vacation? Perhaps monthly health care obligations are stopping you from taking that much-needed vacation?
Quartz Point Mobile Home Park, Buckeye, Newtown
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert a portion of your home’s equity into tax free cash that you can use for just about any purpose, which include:
Financing home repairs and remodels
Getting rid of an existing house loan
Paying for real estate taxes
Meeting health related expenses or prescription drug costs
Managing day to day bills
Being able to go on excursions
Making specific purchases
A Reverse Mortgage Home Loan Will Also Mean…
You keep title. A Tahoma Reverse Mortgage Lender makes it possible to keep ownership and live in your house while benefiting from the equity you have created.
No monthly mortgage payments required. As long as you maintain the provisions of the Reverse Mortgage Loan, no monthly payments are required.
Flexibility to obtain money the way you want. You can receive cash in a lump sum payment, in equal installments, and also as a credit line that you can draw from when or if you need it.
Easy qualifying. There are cash flow and credit rating qualifications required.
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).
Built in consumer safeguards. All of FHA insured Reverse Mortgages given today have features which prevent you and your family from owing more than the appraisal value of the home – even if the house decreased in value.
Zero impact on Social Security benefits along with other benefits. Reverse Mortgages don’t have an impact on your Social Security, Medicare insurance, retirement benefits or any other investments.
Reverse Mortgages are good for plenty of people, however they are certainly not for everyone.
Is it good for you? Contact me and let’s see! We could meet whenever and anywhere you would like (my office, your city” home, for your convenience). Most information I could give you over the phone, too – or by U.P.S., Email as well. And, yet again, there’s no-obligation, even if we have a face to face meeting!
Imagine residing in your property monthly mortgage payment free, or benefiting from a tax free cash for life making use of the years you have invested in your property. A reverse mortgage is a unique loan developed for seniors sixty two and older. You take advantage of having access to a portion of the equity in your home as well as the freedom and comfort of the home you have lived in so many years. It’s your home, it’s easy to let it work for you.
Reverse mortgage borrowers in city state maintain ownership and title of their home. It is yours just as it was prior, however now you’ll be able to enjoy the equity which was building in your home for years. Additionally, HECM reverse mortgage loans provide you with the secure feeling of a government guaranteed FHA protected mortgage in which you can never owe more than the home is valued at. You can obtain a reverse mortgage on your principal residence and no repayment is due until the very last borrower passes away or permanently leaves the home.
As a protection, anyone looking for a reverse mortgage are required to get HUD counseling from an unbiased third party) prior to incurring any expenses associated with the mortgage. Though funds from the reverse mortgage are tax free, borrowers should certainly seek tax advice about how funds might effect government need based services such as Medicaid.
Facts
– A Reverse mortgage is a special loan for senior citizens Sixty two and older
– A reverse mortgage enables senior citizens to gain access to part of the equity in their home.
– Borrowers maintain property and ownership of their home.
– Proceeds with a reverse mortgage are tax free however borrowers should obtain tax guidance on how funds might effect government needs-based services such as Medicaid.
– It’s not a government grant, but a loan which is paid back in the future once the last borrower dies or permanently leaves their property
– A reverse mortgage is allowed only for the borrower’s primary or principle residence
– HUD counseling (from an unbiased third party) is required prior to the borrower incurring any expenses associated with the mortgage loan
Exactly How Do You Gain Access To The Equity In The city Home?
Reverse mortgage payments could be obtained in one of five ways:
Tenure: equal monthly payments
Term: equal monthly payments for the predetermined period of months as chosen by the
borrower applying for the loan
Line of Credit: payments done in installments or at various times and figures determined from the applicant
Modified Tenure: monthly payments along with a line of credit
Modified Term: monthly payments for a fixed period of months which has a line of credit
Advantages and Negatives To Obtaining A Reverse Mortgage In city state
Reverse mortgages supply many advantages for the senior borrower. Here’s a easy to digest list of a few:
Tax-free funds will not affect Social Security or Medicare insurance
Frees up an illiquid resource (home equity)
Can permit senior to buy a different home without a monthly mortgage payment
Can supply you with a source of financial resources while the loan applicant allows for their investments to recoup from market losses
Increases a senior’s standard of living or enables them to live out their goals
Will pay off current mortgage, oftentimes liberating hundreds or even thousands in monthly obligations or avoiding foreclosure. No more monthly mortgage payments
Allows the senior to take care of their self-sufficiency while residing in their own home
Provides cash for in-home medical care or health care expenditures
Down sides To Reverse Mortgages
Consumes part of the equity that could be given to the estate or children
Growing mortgage balance, reduced equity with time
May affect qualifications for need based programs such as Medicaid
For those itemizing tax write offs, a reverse mortgage eliminates the deduction for mortgage interest as no interest is paid
Settlement costs and mortgage insurance are expensive meaning the borrowers should plan on residing in the home for quite some time to reduce more costs.
As the American population continues to grow older and life expectations extend, more people will be living for a longer period in retirement and without doubt will be needing some other sources of long-term income source. The demand for reverse mortgages will continue to increase. Prospective borrowers need to weigh the advantages and disadvantages of this lending product for their individual financial situation.
Call me right now. I look forward to talking with you.