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What are the Benefits of a reverse mortgage loan ?

What are the Benefits of a reverse mortgage loan ?

§  keep ownership of the property

§  never have another mortgage payment

§  income is tax free (proceeds/funds you receive are tax free)

§  select how you want to receive your income (monthly, lump sum, both)

§  you can sell home at any time

§  you can leave home for heirs

§  you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)

In addition, the home itself must be of a type that qualifies for the reverse mortgage program. The vast majority of single family homes qualify, as do most condominiums, townhomes, 2-4 unit owner-occupied dwellings and manufactured homes. Your income and credit levels, however, do NOT matter.

To go through the process of getting a reverse mortgage you will need to speak with a reverse mortgage originator or provider. This person will guide you through the preliminary steps, including counseling, home appraisals, inspections, and choice of loan specifics. It is very important to feel comfortable with your lender. Feel free to speak with as many people as you need in order to gain information and feel comfortable. Click here for Reverse Mortgage Rates.

Videos

Reverse Mortgage


What is a HECM Reverse Mortgage and How does it work!


Is my home eligible for a Reverse Mortgage


Reverse Mortgage appraisal


Who qualifies for a Reverse Mortgage


Reverse Mortgage is tax free and does not affect social security or Medicare


Reverse Mortgage fees and closing costs


Reverse Mortgage heirs

How does Reverse Mortgage Works?

What is a Reverse Mortgage you ask?

Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age.

Homeowners with sizeable equity in their homes can borrow against the equity and use that loan money for any purpose! Homeowners are not subject to any specific income or credit requirements to qualify to receive reverse mortgage loans because the loans are secured by the equity in the homes. Unlike conventional mortgages, reverse mortgage borrowers do not make monthly payments to repay the loan.

The Reverse Mortgage Loan amount a borrower can get depends on a number of factors, including the amount of equity in the home, the borrower's ages and current interest rates. Seniors who take out reverse mortgages retain ownership of their homes; lenders do not take title to the homes (Reverse Mortgage for Seniors).

To be eligible for a Reverse Mortgage loan, some key requirements are:

• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes

You must also meet the following conditions:

• Attend a HUD-approved counseling session (HUD Reverse Mortgage)
• Continue to pay property taxes and homeowners insurance

If you want to learn more about it, check this: Reverse Mortgage Information

What is Reverse Mortgage you ask me?

What is a Reverse Mortgage you ask?

Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age.

Homeowners with sizeable equity in their homes can borrow against the equity and use that loan money for any purpose! Homeowners are not subject to any specific income or credit requirements to qualify to receive reverse mortgage loans because the loans are secured by the equity in the homes. Unlike conventional mortgages, reverse mortgage borrowers do not make monthly payments to repay the loan.

The loan amount a borrower can get depends on a number of factors, including the amount of equity in the home, the borrower's ages and current interest rates. Seniors who take out reverse mortgages retain ownership of their homes; lenders do not take title to the homes.

To be eligible for a Reverse Mortgage loan, some key requirements are:

• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes

You must also meet the following conditions:

• Attend a HUD-approved counseling session
• Continue to pay property taxes and homeowners insurance

If you want to learn more about it, check this: Reverse Mortgage Information

Pros and Cons!

Reverse Mortgage Pros and Cons

The upsides of reverse mortgages

• You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.
• Income from reverse mortgage generally does not affect Social Security or Medicare benefits.
• If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.
• Loan advances are generally not taxable.
• Most loans do not have income requirements.
• Homeowner retains title to home.
• No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence.
• HECM Reverse Mortgage programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.
• After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.

The downsides of reverse mortgages

• Reverse mortgage proceeds could impact Medicaid eligibility.
• Borrowers must be at least 62 years old to qualify.
• Lenders generally charge origination fees and other closing costs.
• Lenders require free debt counseling prior to loan application.
• Lenders may charge servicing fees during term of the mortgage.
• Debt increases over time as interest is charged to outstanding balance of loan.
• Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available.
• As home equity is used up, fewer assets are available to leave to heirs.
• Interest is not tax deductible until the loan is paid off.
• Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.

Reverse Mortgage? How they work?

Reverse mortgages, how they work?

Introduction to Reverse Mortgages

What is a reverse mortgage - a government insured home mortgage loan specifically designed for seniors who want/need to release equity from their home.

Who Can Qualify For a Reverse Mortgage

• must be at least 62 or older
• own a home ( primary residence )
• have equity in the home
• never have defaulted on government debt

What are the Benefits of a reverse mortgage loan ?

• keep ownership of the property
• never have another mortgage payment
• income is tax free ( proceeds/funds you receive are tax free)
• select how you want to receive your income ( monthly, lump sum, both)
• you can sell home at any time
• you can leave home for heirs
• you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)

“Now that you have been introduced to the HECM reverse mortgage definition, qualification process, we can cover how does a reverse mortgage work!”

Reverse Mortgage Disadvantages

This is a loan, therefore when both borrowers pass away or move homes they will pay the loan back, also there are closing costs associated with this mortgage, but by using our free service to compare multiple lenders this wont be a disadvantage.

How reverse mortgages work?

Rhe reverse mortgage allows you to tap into your homes equity, this money is tax free and you can spend it as you wish. This is the only mortgage which is senior friendly as it does not require you to have income or credit scores.

To find out how much you can receive visit: Reverse Mortgage Calculator

To find out more visit Reverse Mortgage Information