Reverse Mortgages

Finally there’s a solution to supplementing income in our senior years – the Reverse Mortgage.  More and more seniors are finding comfort in knowing that the Reverse Mortgage is designed to protect their financial best interest through HUD guidelines and AARP endorsements.  The AARP states that 89% of seniors list the ability to stay in their homes as their top priority when planning for retirement… and the Reverse Mortgage can be the perfect solution.

How does a Reverse Mortgage work?  Basically it is called Reverse Mortgage because the flow of payment is “reversed” from the bank back to you. There are a few criteria that must be met to qualify for a Reverse Mortgage; basically you must be 62 years old or older and you must own a home with little or no mortgage.  As long as you remain in the home, there is no repayment required.  The payment is due when the home is sold (or is no longer your primary residence) and any remaining equity goes to you or your heirs. If you remain in the home so long that the loan is larger than the value, HUD will pay the lender any shortfall.  There are no credit requirements and you do not have to give up the title of your home to qualify.  Like any loan – there are closing costs involved in taking out a Reverse Mortgage; however the benefits of a program like this can far outweigh this expense.  

The amount you can get is determined by your age, the type of Reverse Mortgage, the appraised value of you home, current interest rates, and the location of your property. The payment methods can be in one lump sum, fixed monthly payments, a line of credit, or any combination of the aforementioned.   

Some of the most attractive benefits to the Reverse Mortgage include:
•    The money is tax-free income
•    The older you are, the less you owe on your home - the more money you will get
•    The amount owed will never exceed the value of your home
•    No payments are due as long as you remain in your home
•    Remaining equity goes to you or your heirs
•    Payment methods can be designed to met your individual needs
•    The loan is regulated by HUD and AARP endorsed
•    A fully insured loan through HUD

The Reverse Mortgage gives you the opportunity to use the real estate you own to your advantage when you may need the funds the most.  A Reverse Mortgage offers you the ability to live freely - in comfort and security.