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Reverse Mortgages

With our nation facing more debt and less income many home owners are tapping into their home’s equity to make their financial future better, particularly as many face retirement.   Planning for the future is important especially if you have the option of putting your finances in order before retirement.  Many face retirement with uncertainty and a fixed income.  Now with the current economic crisis many retirees have seen a significant decline in their retirement accounts.  So how are they going to continue to afford their mortgage payments, medical bills, credit card bills, car payments, and everyday living expenses?  Many Seniors are considering a Reverse Mortgage.  With all Mortgage products, it is important to know the facts in order for you to make a wise financial decision.  It is equally important for you to work with a Mortgage Professional that will review all your options from FHA Government Sponsored Mortgage, Conventional Mortgage Financing and Reverse Mortgage options.   

We have all seen the commercials on Reverse Mortgages, but what really is a Reverse Mortgage, and how does it work?  This article is to give you the details behind the Reverse Mortgage Products, and how they work.  Either the borrower or the co-borrower needs to be at least 62 years of age.  The amount of equity available in the home determines the products availability and the qualification of each Reverse Mortgage product.  During the life of the Reverse Mortgage the borrowers will make NO monthly Mortgage payments.  There are NO credit requirements for a Reverse Mortgage.  There are NO income requirements.  So no matter how bad your credit is, you can qualify for this type of Mortgage, even if you have missed some mortgage payments or are currently late on your mortgage.   

When getting a Reverse Mortgage you decide how to spend the money, however there are several disbursement options available:  

Term -receive equal monthly payments for a period of months as selected by the borrower. 

Tenure -equal monthly payments as long as you live in the home. 

Line of Credit-a line of credit that is drawn on the loan proceeds in the amount and the time the borrower chooses until all monies are used. 

Lump Sum-receive a large sum of monies from a Line of Credit equal to or less than the available amount of the loan proceeds.  

You cannot outlive the Reverse Mortgage. As long as you are able to live in the home and maintain the taxes and insurance you do not have to repay the Mortgage. The best part is that you will never owe more than your home’s value.   

Reverse Mortgage Products require the borrowers to live in the home as their primary residence.  Once the homeowner is no longer able to either live in the home or dies, their heirs have the right to sell the home and pay off the Reverse Mortgage or purchase the home from the Reverse Mortgage Lender.   

The terms and conditions of each Reverse Mortgage product will be discussed in detail during the qualification process.  The Reverse Mortgage loan is a unique type of loan that allows the borrowers to use their equity in their homes as cash, without the monthly obligation normally associated with a traditional Mortgage. As all Mortgage products on the market today, it is vitally important to understand and know the terms and conditions of the Mortgage Loan.  Seek the advice of a Certified Mortgage Professional that will be able to give you the facts necessary to make the best financial decision based on your own personal financial situation.   

A Reverse Mortgage can give you the independence and financial freedom that you deserve and have worked your whole life to achieve.  Call me today if you have questions or want to learn more about the Reverse Mortgage options.  

If you have questions or comments please email them to [email protected]  

Call Andrew today at 573-302-0600.    

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