Regardless of the need, a Reverse Mortgage enables you to convert the equity in your property to cash without selling your home or incurring a monthly house payment. The funds will be tax free, you retain title to the property, and there is no repayment required until you permanently leave the home or guidelines of the home loan are not met.
Frequently, when the time to retire arrives, you’d like more cash flow to take care of issues that you’ve been postponing. Possibly it is a much needed vacation? Perhaps monthly medical costs are holding you back from taking that much needed vacation?
Buckeye, Quartz Point Mobile Home Park, Silverthorn
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Transform a portion of your home equity into tax free cash which can be used for any purpose, like:
Paying for house and upgrades
Wiping out an existing home loan
Paying real estate property taxes
Paying for health related expenses or prescription drug costs
Managing day-to-day bills
Going on excursions
Being able to make special purchases
A Reverse Mortgage Home Loan Also Means…
You maintain ownership. A Diamond Springs Reverse Mortgage Lender allows you to maintain ownership and live in your house while using the equity you have created.
No monthly mortgage payments required. Providing you adhere to the terms of the Reverse Mortgage Loan, no monthly payments are needed.
Flexibility to get funds how you need. You can get cash in a lump sum, in monthly installments, as well as as a home equity line of credt that you can pull from when or if you need it.
Easy qualifying. There is cash flow and credit rating requirements needed.
Government insurance. Many Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They are known as Home Equity Conversion Mortgages (HECM’s).
Integrated consumer safeguards. All of FHA insured Reverse Mortgages offered right now contain features that prevent you and your heirs from owing more than the appraised value of the home – even when your house declines in value.
Zero affect on SS and also other benefits. Reverse Mortgages won’t have an effect on your Social Security, Medicare insurance, retirement benefits or other investments.
Reverse Mortgages are ideal for plenty of people, but they are not for everybody.
Is it right 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 phone, also – or by Fed Ex, E-mail too. And, again, there’s definitely no obligation from you, even when we have a face to face meeting!
Imagine residing in your property monthly mortgage payment free, or having a tax free source of funds for a lifetime making the most of the years you have invested in your property. A reverse mortgage is a unique tool developed for seniors 62 or older. You benefit from access to part of the equity in your property and also the independence and comfort of the home you have lived in so many years. It’s your property, now you can allow it work for you.
Reverse mortgage borrowers in city state maintain possession and title on their property. It’s yours every bit as it was prior, but now you can benefit from the equity that has been growing in your home for years. In addition, HECM reverse mortgage loans supply you with the secure feeling of a government guaranteed FHA protected mortgage where you can never owe more than the property is worth. You can obtain a reverse mortgage on the primary home and no payment is due until the last borrower dies or permanently departs the property.
As a safeguard, anyone looking for a reverse mortgage are required to receive HUD counseling from an unbiased 3rd party) before incurring any costs associated with the mortgage. Though funds originating from a reverse mortgage are tax free, borrowers really should seek out tax guidance about how funds might effect government needs-based programs such as Medicaid.
Facts
– A Reverse mortgage is a special loan for senior citizens Sixty two and older
– A reverse mortgage makes it possible for senior citizens to gain access to a portion of the equity in their home.
– Borrowers maintain title and possession of their house.
– Proceeds with a reverse mortgage are tax free but borrowers will need to get tax advice on how funds might effect government needs-based programs such as Medicaid.
– It isn’t a government program, but a loan that is repaid one day once the last borrower passes away or permanently departs their residence
– A reverse mortgage is eligible just for the borrower’s primary home
– HUD counseling (from an independent 3rd party) is required prior to the borrower incurring any costs associated with the loan
Tips On How To Obtain Access To The Equity In Your city Home?
Reverse mortgage payments could be obtained in one of five ways:
Tenure: equal monthly payments
Term: equal monthly payments during a set period of months as determined by the
person getting the loan
Line of Credit: proceeds made in installments or at different times and in figures determined from the borrowers
Modified Tenure: monthly payments which includes a line of credit
Modified Term: monthly payments during a fixed period of months with a line of credit
Positives and negatives
Reverse mortgages supply several benefits for the elderly borrower. Here’s a small list of just a couple:
Tax-free funds do not affect Social Security or Medicare insurance
Frees up an illiquid asset (home equity)
Can make it possible for a senior to buy a new property without a monthly mortgage payment
Can provide a source of financial resources while the borrower allows for their investment funds to recoup from financial market losses
Improves a senior’s everyday life or enables them to live out their dreams
Will pay off existing mortgage loan, oftentimes liberating thousands in monthly mortgage payments or preventing foreclosure. Forget about monthly mortgage payments
Enables the senior to help maintain their freedom while residing in their own property
May provide funds for in home health care or medical costs
Drawbacks To Reverse Mortgages
Spends a portion of equity that would be given to the estate or heirs
Increasing mortgage balance, reduced equity with time
May affect eligibility for needs-based programs such as Medicaid
For anyone itemizing tax deductions, a reverse mortgage removes the write-off for home interest because no interest is paid
Settlement costs and mortgage insurance are expensive meaning the borrowers should plan on residing in the property for quite some time to minimize costs.
As the American population continues to get older and life expectancies increase, more and more people will be living longer in retirement and without doubt will need other sources of long term source of income. The need for reverse mortgages will continue to increase. Potential borrowers need to weigh the advantages and disadvantages of this lending product for their particular financial circumstances.
Give me a call today. I am looking forward to hearing from you and your family.