|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Or Call Now to
Speak with Our Experts
1-800-733-9532
|
|
|
|
|
|
|
|
|
|
If you are a homeowner who is 62 or older, a reverse mortgage may provide you with money for retirement without the minimum credit and income qualifications generally required for other types of loans. A reverse mortgage can give you access to the cash tied up in your home's equity with no monthly payments. For many people, a reverse mortgage offers a viable solution for a better retirement
|
|
|
|
|
|
|
Imagine...
- Peace of mind. Pay off your mortgage, eliminating the current payment and covering your monthly expenses.
- Financial independence. Rely on yourself for financial support, instead of your loved ones.
- Keeping your home. Live in your home and maintain the ownership and title.
- Emergency relief. Fill in financial gaps and set aside funds for an emergency.
|
|
|
|
To be eligible for a reverse mortgage, you must be a homeowner age 62 or older, own your home outright (or have a mortgage balance that can be paid off at the time of closing with the proceeds from the reverse loan) and live in the home as your primary residence.
The reverse mortgage funds may be paid to you in a lump sum, in monthly advances, through a line of credit, or in a combination of the three, depending on the type of reverse mortgage and the lender. The amount you are eligible to borrow generally is based on your age, the equity in your home and the interest rate the lender is charging. You retain title to your home with a reverse mortgage.
You remain responsible for taxes, repairs, and maintenance. When you move, sell the home or die, the loan is repaid by refinancing it into a forward mortgage or by using the proceeds from the sale of your home. Your estate will keep all of the money in excess of the amount owed on the loan.
|
|
|
|
Reverse mortgages offer the following advantages for those who qualify.
- Tax-free funds with no restrictions
- Convenient choice of payout options
- No income or asset qualifications
- No credit qualifications
- Flexible repayment alternatives
|
|
|
|
Reverse mortgages look particularly attractive right now due to low interest rates, reluctance to cash out nest egg stocks at a loss, or the anxiety of becoming financially dependent upon children or government services. Here are 8 questions you need to ask yourself before determining whether a reverse mortgage is right for you.
1. How much home equity do you have?
You need a significant amount of equity before a reverse mortgage makes sense — partly because the fees and charges are included in the amount borrowed. Also, you can’t borrow all of your equity. Click here to go to the Quote page to get personalized charts and graphs to see what happens to your home equity.
Currently, FHA-insured Home Equity Conversion Mortgages / Reverse Mortgages are the most common. The program bases your loan amount on a maximum home value dictated by the FHA. You’ll get a portion of that amount, based on your age and current interest rates when you apply. The older you are the more money you can access.
2. How old are you?
You have to be at least 62 to qualify — the amount you can borrow is a factor of the age of the youngest borrower. The older you are, the more money you can access.
3. Do your children want your house?
Your heirs will only have to decide to refinance the debt if they wish to keep the home or sell it in order to pay the balance. Actually, a reverse mortgage allows a 'reasonable time' (usually at least 6 months) for your heirs to settle the estate and decide what to do. This is a greater amount of time than traditional mortgages provide and there is no period of default during this time.
|
|
|
4. What do you need the money for?
You have four options to choose from when deciding on a payout plan.
- An immediate, lump-sum payout of the whole amount available
- A line of credit, which is a lump sum that you don’t tap until you need it
- Monthly payments for life
- Some combination of these three other options.
|
|
|
|
|
The right choice for you will depend on your needs. Whether you simply want to augment your monthly income or wish to use the proceeds for investments and estate planning, a reverse mortgage specialist will be happy to explain each option and help determine which one is right for you.
5. How stressful are your financial problems?
Be wary if you’re not absolutely sure that the funds you’re getting from the reverse mortgage will be sufficient to solve your current economic woes. Reverse mortgages are perfect for people who are house-rich and cash-poor — but not so cash-poor that the reverse mortgage can’t resolve the problem. If your problems aren’t as easily solved, you might need another option. A reverse mortgage is going to give you access to just a portion of your equity. If you need it all, you might be better off selling and finding cheaper housing.
6. Responsibility after the reverse mortgage.
With a reverse mortgage you will retain title to your home and continue to be responsible for paying the property taxes, insurance, and for the general upkeep of the property. You have to make sure that you can afford to live in the house after the reverse mortgage. You still have to pay the taxes, keep the house insured, and keep the house maintained.
7. Eligibility.
Depending on how you plan to manage the proceeds from a reverse mortgage, it may affect your continued eligibility for need-based government benefits programs such as Supplemental Social Security (SSI) and Medicaid. You should contact your benefits provider to ask how a reverse mortgage may affect your eligibility, but generally, choosing a line of credit versus a lump sum avoids these issues. It is crucial in considering a reverse mortgage that you understand the impact of the different payout options on the availability of other benefits.
8. When do I pay back a reverse Mortgage?
No payments are due on a reverse mortgage while it is outstanding. The loan becomes due and payable when you cease to occupy your home as a principal residence, fail to make necessary home repairs, fail to maintain homeowners insurance, or do not pay your property taxes. This can occur if you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out. So, you can pay it back at anytime, but are not required to until you move out, sell the house, or the last borrower passes away.
|
|
|
|
|
[ TOP ]
|
|
|
|
|
[ PRIVACY POLICY ] [ TERMS OF USE ]
|
|
|
The Money Source, Inc., 6522 Basile Rowe, East Syracuse New York is the owner and operator of this web site, SeniorsRetirement.com, and is licensed as follows:
Federal License:
FHA Licensed Correspondent Lender; All Loans Arranged through Third Party Lenders. Mortgage Broker Only, Not a Mortgage Lender.
State Licenses:
Connecticut: Licensed First Mortgage Correspondent Lender/Broker & Second Mortgage Correspondent by CT Banking Department-MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER All Loans Arranged Through Third Party Lenders. Mortgage Broker Only, Not a Mortgage Lender.
Florida: Florida Correspondent Lender All Loans Arranged Through Third Party Lenders. Mortgage Broker Only, Not a Mortgage Lender.
New York: NYS Registered Mortgage Broker-NYS Banking Department All Loans Arranged Through Third Party Lenders. Mortgage Broker Only, Not a Mortgage Lender.
Pennsylvania: Licensed as a First Mortgage Broker by the Pennsylvania Banking Department; Licensed as a Second Mortgage Broker in Pennsylvania pursuant to the Secondary Mortgage Loan Act. All Loans Arranged Through Third Party Lenders. Mortgage Broker Only, Not a Mortgage Lender. FHA Licensed Correspondent Lender.
New Jersey: Licensed Mortgage Broker, by the New Jersey Department of Banking and Insurance.
NMLS# 20823
|
|
|
SITE DESIGN BY DESTINED STUDIOS, INC.; COPYRIGHT © 2009 DESTINED STUDIOS.
|
|
|
|
