Is A Reverse Mortgage Right For Me?
We understand that a Reverse Mortgage Loan won’t be right for everyone but if you have equity in your home and your savings account or income is not providing you enough money to live on, then a Reverse Mortgage may be a possible solution for you.
Is there any risk of losing my home?
If you keep paying your taxes and insurance while abiding by the loan’s terms, there’s no risk of losing your home. If you do fail to pay your taxes or insurance, you may be in violation of the terms of your loan and could be required to refinance or sell. Also, not living in your home as your primary residence, failure to maintain the home, or acquiring more debt against the home could result in foreclosure. Just remember, this is not a typical outcome for a vast majority of Reverse Mortgage loans.
How does a Reverse Mortgage work?
You’ve spent the better part of your life paying for your home and increasing its value. A Reverse Mortgage gives you the freedom to access that equity and to add to your liquid assets in your retirement years while still living in and owning your property.
How much of my equity can I access?
The amount of equity you can access is based upon a lesser of appraised value or the HECM mortgage limit, the age of the youngest borrower or eligible non-borrowing spouse, current rates, and if you have an outstanding loan against your home. To learn more about the formula, give us a call or order our free information kit.
My Credit is BAD, Does that matter?
It's okay. We help a lot of people with credit concerns. We start by reviewing your credit report to confirm your ability to pay your property taxes and insurance. After that, we make sure there are no outstanding tax liens or judgments that you would need to pay off first with your proceeds. Our high approval rate speaks for itself.
Is there Negative Amortization?
Yes, if you chose not to make a minimum monthly payment then the interest charged on the loan goes onto your current balance. You are not obligated to make a monthly mortgage payment. You may elect to pay off your loan in full at any time. The critical distinction between the reverse mortgage and the old “option arm” products is that deferred interest can NEVER result in you owing more to the lender than the value of the property.
Do I have to Payoff my 2nd Mortgage?
Yes, a Reverse Mortgage will not allow any subordinate financing on the property. Any outstanding liens against the property will need to be paid in full with your proceeds from this new loan.
What is a reverse mortgage?
Put simply, it’s a financial product, a loan, that allows you to access the equity in your home, usually during retirement years. The leading Reverse Mortgage loans are insured by the Federal Housing Administration (FHA) and are designed to supplement fixed incomes with tax-free cash*. You’re able to continue owning your home and living in it as long as you wish—all while using its equity with no monthly mortgage payments or obligations. As with any other mortgage loan, you’re responsible for paying property taxes and insurance with a Reverse Mortgage.
Will I still own my home with a Reverse Mortgage?
Absolutely! One of the most common misconceptions about Reverse Mortgages is that the bank or mortgage issuer take ownership of your home. That’s just not true. In fact, as long as you pay your taxes and insurance and otherwise comply with the loan’s terms, you remain the owner of the home and can stay there as long as you wish.
Who qualifies for Reverse Mortgage?
One borrower must be at least 62 years of age, be on the title to your home, and occupy it as your residence to qualify. Reverse Mortgage borrowers must also meet the income and credit requirements established by HUD.
What does HECM stand for?
A Home Equity Conversion Mortgage or HECM is the official name for Reverse Mortgages. These differ from conventional “equity loans” insofar as payments are concerned. Both loans allow homeowners to use the equity in their homes, with the exception that “forward” equity loans—a Home Equity Line of Credit or HELOC, for example—require regular payments of principal and/or interest as the funds are withdrawn. With a Reverse Mortgage or HECM, there is no required monthly mortgage payment due from the homeowner. Generally, repayment of the HECM loan is not required until the last borrower on the title moves out, defaults, refinances, sells the property, or passes away. At that time, the heir/beneficiary may have the opportunity to refinance into a Conventional Mortgage or sell the home to satisfy the Reverse Mortgage.
What is the Application Process like?
We make it simple and stress-free, with 5 easy steps only take about 4 weeks to complete.
Reverse Mortgage Counseling Session
Can I use Proceeds for anything?
Yes! You can invest it or use it to pay bills, travel, purchase items, or check off those things still remaining on your bucket list. The only requirement established upon funding is you must continue to pay your property taxes, insurance, utilities, HOA fees (when applicable), and your regular property maintenance. The rest of the funds are there for you to do as you wish.
*The information provided is not from HUD or FHA and these statements have not been approved by HUD or any Government Agency.
*Not tax advice, consult a tax professional.
CA Bureau of Real Estate - 01299547
NMLS # 1249936