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Why Get a Reverse Mortgage?
Homeowners who are retired or are considering retirement may
wish to increase their monthly income. Seniors who live on a
fixed income may be
concerned that their retirement savings and Social Security
income may not be enough to keep up with the rate of
inflation. Catastrophes and other unexpected events create
unexpected expenses.
 With
a Reverse Mortgage you will
- Receive
Tax-Free Income
- Retain
Title to Your Home
- Eliminate
Mortgage Payments
- Reduce
Stress and Anxiety
- Maintain
Your Independence
- Ease
Financial Burden
- Enhance
Your Quality of Life
The income received through a
reverse mortgage can be used for a variety of purposes (just
like a regular refinance) and you are not restricted in how
to use the funds. Examples of potential uses for funds
received through a reverse mortgage include:
- Supplement
retirement income
- Cover
medical expenses
- Make home
repairs or improvements
- Pay
property taxes
- Pay for in
home care or health needs
- Invest in
CDs, annuities, long term care insurance
- And
more...
Contact a reverse mortgage specialist
to see if you qualify
Reverse Mortgage vs. Traditional Mortgages or Home Equity
Loans
A reverse mortgage is the opposite of a traditional
mortgage. With a traditional mortgage or home equity loan,
you borrow a large amount of money and make monthly
payments. You must also have a sufficient debt to income
ratio to qualify and make monthly mortgage payments.
A reverse mortgage pays you and is available regardless of
your current income or debt to income ratio. With a reverse
mortgage you receive either regular monthly payments, a lump
sum, or “on demand” through a line of credit. Re-payment is
only required at the end of the loan, typically when you no
longer occupy the home as your principal residence.
Important Facts about Reverse Mortgages
The U.S. Department of Housing and Urban Development, or
HUD, established reverse mortgages to help seniors who are
homeowners pay for their living expenses and rising medical
costs.
To qualify for a HUD reverse mortgage you must be at least
62 and either own your home outright or have only a small
balance left on your current mortgage.
A reverse mortgage allows qualified homeowners to borrow
money against their home's equity.
Qualified homeowners can take out a reverse mortgage to get
a lump sum of money, receive a monthly income or access
money, similar to a line of credit.
Reverse Mortgage Advice
As long as a borrower lives in his or her home, HUD does not
require repayment of the money borrowed through a reverse
mortgage. If the homeowner sells the home or is deceased,
the lender will recover the loan and the interest at the
time the home is sold. Any additional value acquired from
the sale of the home would be passed onto the surviving
legal recipients. If you take out a reverse mortgage, HUD
requires you to have mortgage insurance. If proceeds from
the sale of the home are less than what the homeowner owes
for the reverse mortgage loan, then HUD will pay the
remaining balance of the loan, which is covered by the
mortgage insurance.
There is no minimum income or amount of assets required to
qualify for a reverse mortgage. As long as you own a home
and are of qualifying age, you can receive a HUD reverse
mortgage. If you owe money on your home mortgage, you must
pay off this debt with money from the reverse mortgage. A
reverse mortgage must be the first and primary lien on the
property. Like a traditional mortgage, there are closing
costs and financing fees associated with a reverse mortgage.
You may finance these costs into the mortgage loan.
The Department of Housing and Urban Development (HUD)
is another good source of information. HUD can provide you
with the information necessary to determine if a reverse
mortgage is right for you.
You’ve worked hard your whole life now let your house work
hard for you
Additional Benefits
- Pay-off
existing lines on your home
- Supplement
Social Security or pension payments to help meet
everyday expenses
- Make home
improvements or repairs
- Meet
unexpected medical expenses
- Provide
for in-home health care
- Pay off
loans or credit cards
- Purchase
long-term care insurance
- Help
financially support family members in need
Contact an FHA MORTGAGE
SPECIALIST for an REVERSE MORTGAGE TODAY!
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