Displaying items by tag: mortgages
Keep Your Home and have a more Comfortable Retirement
with a Reverse Mortgage
With improved health care, many of us are living longer; longer than we expected. In fact most retired people are outliving their retirement nest egg. Over 50 % of retired people in our country have less the $50,000 in savings! With today’s rising healthcare and prescription medicine costs, rising energy costs and rising property taxes, retired or soon to be retired homeowners should look for financial options that will help them maintain their ability to live independently. While we are living longer, continuing to live at home in a comfortable and familiar environment will be a continuing struggle.
Many Senior homeowners have found that one practical solution is the FHA insured Reverse Mortgage. Through a reverse mortgage, seniors can tap into their home equity that has been built up over the years. What’s more, the borrowers never have to make a payment, or pay the loan off until they permanently move out of their home. A reverse mortgage can be a key financial tool in maintaining homeownership through their retirement years.
To be eligible for a Reverse Mortgage, you must:
Be at least 62 years old (both spouses, if married) Have at least 50% equity in your home (low mortgage balance, or none at all) Live in the property as your primary resident (acceptable properties are single family, 1-4 units, condos, townhomes and manufactured homes.
There are a number of different Reverse Mortgage programs to meet borrower’s individual needs. The different options and benefits can be compared to the senior’s particular circumstance. The Reverse Mortgage program is NOT for everyone. Seniors should speak to trusted advisors, family members or friends about choosing a reverse mortgage. It is an important financial decision, and it is an important financial tool that can help seniors maintain home ownership while enjoying the benefits of the hard earned equity that has built up over the years.
Some of the benefits of a reverse mortgage are:
Eliminates payments if there is an existing mortgage Funds received are tax free There are no income, medical or credit requirements. (even if your home is in foreclosure You always retain ownership of the property There are usually no restrictions on how the funds may be used. Upon the sale of the property, the remaining equity stays with you and your heirs. You can never owe more than the value of your home at the time of repayment, even if the loan balance exceeds the value of the property.
Reverse Mortgages are flexible. You can receive the funds:
in a lump sum, in the case of an existing mortgage payoff or other immediate uses, through a line of credit which you can access whenever the need arises, or regular monthly disbursements to you for as long as you permanently live in the home, or a combination of the above.
A Reverse Mortgage provides access to additional funds through the equity in your home. What’s more, any remaining equity stays with you and your heirs.
The loan works best when the homeowner desires to stay in their home for the foreseeable future. And it is always good policy to seek in-depth information about reverse mortgages from a Reverse Mortgage Specialist who is experienced, someone you can trust, someone willing to meet you personally to provide all the information necessary to make an intelligent decision about this important financial tool.
Mark Newton, CSA
Reverse Mortgage Specialist
