Regardless of the need, a Reverse Mortgage helps you convert the equity in your home to cash flow without the need of selling your home or taking on a monthly mortgage payment. The proceeds are tax free, you keep title to your house, and there is no repayment is needed unless you permanently leave the property or conditions of the loan are not fulfilled.
Often times, when retirement age comes around, you desire more money to take care of issues that you’ve been postponing. Perhaps it is a much-needed vacation? Maybe monthly health related costs are holding you back from taking that much-needed vacation?
Governors Village, El Dorado Hills, Oak Ridge Village
Getting A Reverse Mortgage Loan Means Tax-Free Cash
Convert a percentage of your home’s equity into tax-free cash that you can use for virtually any purpose, which includes:
Financing housing and upgrades
Wiping out a current house loan
Paying property taxes
Paying for health care expenses or medication expenses
Dealing with day-to-day living expenses
Being able to take excursions
Planning specific purchases
A Reverse Mortgage Home Loan Means…
You maintain title. A Diamond Springs Reverse Mortgage Lender will allow you to maintain ownership and reside in your house while benefiting from the equity you have built.
No monthly home loan payments necessary. Providing you adhere to the terms of the Reverse Mortgage Loan, no monthly payments are needed.
Flexibility to obtain cash the way you want. You may get funds in a lump sum, in monthly installments, and also as a credit line that you can pull from when or if you need it.
Easy qualifying. There is cash flow and credit history qualifications needed.
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).
Built in consumer safety. All of FHA insured Reverse Mortgages offered as of today have features which prevent you and your heirs from owing more than the appraised value of your home – even when your house decreased in value.
No impact on Social Security benefits and also other benefits. Reverse Mortgages won’t affect your Social Security, Medicare, retirement benefits and other investments.
Reverse Mortgages are perfect for some people, but they are definitely not for everybody.
Could it be good for you? Call me and let us see! We can meet whenever and wherever you’d like (my workplace, your city” home, for your convenience). Almost all information I can supply you with on the phone, also – or by Fed-Ex, E mail too. And, once more, there is certainly no personal obligation, even though we have a face-to-face meeting!
Visualize residing in your home house payment free, or having a tax-free funds for life taking advantage of the years you’ve invested in your home. A reverse mortgage is a unique loan developed for seniors sixty two and older. You benefit from having access to part of the equity in your home and the independence and comfort of the property you’ve known for numerous years. It is your house, now you can put it to work for you.
Reverse mortgage borrowers in city state retain possession and title of their house. It’s yours just as it was prior, however now you’re able to take advantage of the equity which has been increasing in your property for many years. Additionally, HECM reverse home loans provide the peace of mind of a government guaranteed FHA backed loan where you can never owe more than the house is worth. You can get a reverse mortgage on the principal residence and no repayment is due until the last borrower passes away or permanently leaves the home.
As a protection, all those looking for a reverse mortgage are required to obtain HUD counseling from an unbiased third party) prior to incurring any expenses related to the mortgage loan. Although proceeds originating from a reverse mortgage are tax-free, consumers really should seek tax guidance on how proceeds might effect government need based services particularly Medicaid.
Facts
– A Reverse mortgage is a specialized mortgage for seniors 62 and older
– A reverse mortgage enables seniors to access a pecentage of equity in their property.
– Borrowers hold title and possession of their house.
– Proceeds from the reverse mortgage are tax-free however borrowers will need to get tax advice on how proceeds might effect government needs based services like Medicaid.
– It is not a government grant, but a loan which is paid back sometime in the future when the last borrower passes away or permanently leaves their property
– A reverse mortgage is allowed just for the borrower’s primary or principle home
– HUD counseling (from an independent third party) is needed prior to the borrower taking on any expenses related to the mortgage loan
Tips On How To Gain Access To The Equity In The city Home?
Reverse mortgage proceeds could be received in one of five options:
Tenure: equal monthly installments
Term: equal monthly installments during a set period of months as decided by the
borrower
Line of Credit: proceeds made in installments or at various times along with sums determined from the applicant
Modified Tenure: monthly installments along with a line of credit
Modified Term: monthly installments over a predetermined period of months which also has a line of credit
Benefits and Downsides To Obtaining A Reverse Mortgage In city state
Reverse mortgages supply several benefits for the senior borrower. This is a small list of just a couple:
Tax free proceeds will not affect Social Security or Medicare
Frees up an illiquid resource (home equity)
Can permit senior citizen to buy a different house with no monthly loan payment
Can provide a source of funds while the borrower makes it possible for their investments to recoup from financial market losses
Improves a senior’s quality of life or enables them to live out their goals
Will pay off existing mortgage, oftentimes liberating thousands in monthly mortgage payments or protecting against foreclosure. Forget about monthly home loan payments
Allows the senior to help maintain their freedom while residing in their own house
Can provide funds for in home medical care or health related expenditures
Down sides To Reverse Mortgages
Consumes a part of the equity that would be given to the estate or children
Increasing loan balance, reduced equity with time
May have an effect on eligibility for need based programs like Medicaid
For those itemizing tax write offs, a reverse mortgage removes the tax deduction for house interest as no interest is paid out
Settlement costs and mortgage insurance are costly meaning the borrowers should plan on residing in the house for quite some time to lessen expenses.
As the American population continues to age and life expectations lengthen, more people will be living longer in retirement and undoubtedly will need additional sources of long-term income source. The demand for reverse mortgages will continue to increase. Prospective borrowers should weigh the advantages and disadvantages of this type of loan for their particular financial circumstances.
Call me today. I am looking forward to hearing from you and your family.