Reverse Mortgages

A Reverse Mortgage (also called the Home Equity Conversion Mortgage, or HECM), enables the homeowner who is 62 or older, to tap into their equity without risk of losing their home.  There are misunderstandings about these loans because of how they were done in the past; however, now the government  has set strict guidelines to make the Reverse Mortgage one of the safest loans on the market.

Let me show you what I mean:

First, the most popular HECM, is fully insured by FHA.  Many lenders offer their own products as well, but this seal of the government gives many people an added measure of confidence.  

Second, it is a "non-recourse" loan. That means the lender can never take the property away from you, even if you outlive your loan. You cannot be forced to sell your home to pay off the loan, even if the loan balance grows to exceed property value.

Likewise, your estate will never owe a penny to the lender. At your death or when you move out of the house for good, the house will be sold, and if there is money leftover after the loan is satisfied, it goes to your heirs. If there's a shortfall, that's the lender's problem--you, or your estate, owe nothing.

Now, who can get one? 

As I said, in order to apply for a Reverse Mortgage, you must be at least 62 years of age, and live in your home as your principal residence.  After that, there are almost no other requirements.  The loan is not dependent on credit score, income, or employment. 

Assuming there is enough equity in your home, the lender will pay you money based on that equity which you've accrued.  You can receive this money in a lump sum, as a monthly payment, in a line of credit, or any combination of the three. 

Reverse mortgages are ideal for homeowners who are retired and need to supplement their income. The money is non-taxable and does not interfere with Social Security or Medicare benefits.  Speak with a financial advisor, though, if you depend on SSI or Medicaid. 

Frequently these days, retirees are doing these loans and using the money to go on their dream vacation, or to buy something they've wanted for a long time. Whatever you do, you will never have another mortgage payment for the rest of your life!  

Our policy is to handle these loans carefully, involving all interested parties to make certain everyone understands the loan.  Every protection is in place to make sure you feel safe and secure about what you are doing.  

If this page has piqued your curiosity, give me a call and we can talk about it.  I have the tools to tell you just exactly how much money you will get from a Reverse Mortgage on your home at today's rates, and you can of course take as long as you want to think about it.