What is a Reverse Mortgage?
Why would I want to consider a Reverse Mortgage?
If you are like most seniors you have spent years paying a mortgage and building equity in your home. A Reverse Mortgage is a safe, flexible, and simple answer to anyone wanting to remain in his or her home and supplement his or her social security, pension, and/or investment income. There are no limitations on how you choose to use the money.
WHAT IS A REVERSE MORTGAGE?
In 1989 the Federal Housing Administration (FHA) instituted the home equity conversion loan, which was later known as the Reverse Mortgage. This loan has the ability to help seniors who are house rich, but live poor to improve their economic living conditions in their later years. Instead of making monthly payments you can choose to receive them.
Traditionally, you would be required to sell your home, refinance your mortgage or take out a home equity loan in order to access your equity.
However, a reverse mortgage allows you to remove equity (cash) from your home without the burden of monthly payments for as long as the home is your primary residence.
You can receive this cash in the following ways:
A lump sum
A credit line which you withdrawal from
Or any combination of the above
WILL I STILL OWN MY HOME?
YES you will. This is a FHA insured loan and can be repaid at any time. It is not taxable and does not affect social security or Medicare benefits. You always retain title to your home. If you decide to sell your house or move, the reverse mortgage would be paid off with the proceeds and the remaining equity would go to you or your heirs. You are guaranteed by the Federal Government to never owe more than the home is worth.
HOW DO I QUALIFY?
·Applicants MUST be 62 years old.
·Must be applying against a home that is your primary residence.
Please note that the home can be: single family, 2-4 units building, approved condominium or a
qualified manufactured home (if you own the land).
HOW MUCH CAN I QUALIFY FOR?
The amount you can qualify for is dependent on your age, the amount of equity in your home, and interest rates.
For additional information or to schedule a complimentary consultation with one of our reverse mortgage experts, please call The Mortgage Team at 407-339-5222 or 800-865-0001.