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Have you ever thought about using the equity of your home as a source of income?  That’s exactly what a Reverse Mortgage does!  Although the Reverse Mortgage may not be for everybody, many seniors are finding it as a perfect opportunity for their financial situation.  Contact us and we will be happy to sit down with you to discuss your options and answer your questions about this unique program.     

Reverse Mortgages

Finally there’s a solution to supplementing income in our senior years – the Reverse Mortgage.  More and more seniors are finding comfort in knowing that the Reverse Mortgage is designed to protect their financial best interest through HUD guidelines and AARP endorsements.  The AARP states that 89% of seniors list the ability to stay in their homes as their top priority when planning for retirement… and the Reverse Mortgage can be the perfect solution.

How does a Reverse Mortgage work?  Basically it is called Reverse Mortgage because the flow of payment is “reversed” from the bank back to you. There are a few criteria that must be met to qualify for a Reverse Mortgage; basically you must be 62 years old or older and you must own a home with little or no mortgage.  As long as you remain in the home, there is no repayment required.  The payment is due when the home is sold (or is no longer your primary residence) and any remaining equity goes to you or your heirs. If you remain in the home so long that the loan is larger than the value, HUD will pay the lender any shortfall.  There are no credit requirements and you do not have to give up the title of your home to qualify.  Like any loan – there are closing costs involved in taking out a Reverse Mortgage; however the benefits of a program like this can far outweigh this expense.  

The amount you can get is determined by your age, the type of Reverse Mortgage, the appraised value of you home, current interest rates, and the location of your property. The payment methods can be in one lump sum, fixed monthly payments, a line of credit, or any combination of the aforementioned.   

Some of the most attractive benefits to the Reverse Mortgage include:
•    The money is tax-free income
•    The older you are, the less you owe on your home - the more money you will get
•    The amount owed will never exceed the value of your home
•    No payments are due as long as you remain in your home
•    Remaining equity goes to you or your heirs
•    Payment methods can be designed to met your individual needs
•    The loan is regulated by HUD and AARP endorsed
•    A fully insured loan through HUD

The Reverse Mortgage gives you the opportunity to use the real estate you own to your advantage when you may need the funds the most.  A Reverse Mortgage offers you the ability to live freely - in comfort and security. 

F.A.Q.

How does a Reverse Mortgage work?

Basically it is a tax-free way to use the equity in your home as a source of income.  The flow of money is “reversed” from the bank back to you.

How do I know if I qualify for a Reverse Mortgage?

The general requirements for a Reverse Mortgage dictate that you be at least 62 years old or older and that you own your home – having little or no mortgage.  The older you are, the more your home is worth, and the less you owe on your home – the more money you will get.  

What payment method does the bank use?

You can choose whatever method best suits your needs!  Choose from one lump sum, fixed monthly payments, a line of credit, or any combination of those methods.  

Are there any expenses involved with taking out a Reverse Mortgage?

As with any loan, there are closing costs.  Closing costs will vary from situation to situation.  

Why do I need mandatory counseling to take out a Reverse Mortgage?

HUD requires everyone to consult with them before taking out a Reverse Mortgage.  This is done to protect you and to insure that a Reverse Mortgage is in your best financial interest.  After a counseling session is complete you will receive a certificate which allows you to move ahead with your Reverse Mortgage.

How do I pay back a Reverse Mortgage loan?

No payments are due as long as you are living in your home.  The funds are paid back when you move out, pass away or sell the home.  Any extra equity goes to you or your heirs.  The amount of the loan will never exceed the value of the home.

Will I have to sell my home or give up my title?

Absolutely not.  Your home is yours and will remain so when you take out a Reverse Mortgage.  

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