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REVERSE MORTGAGE
Let are experts answer your questions.
Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.
Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.
Basics of Reverse Mortgages
76,802 American seniors received an FHA/HUD reverse mortgage in 2006. They decided it was the best way to increase their peace of mind and enjoy better quality of life without selling their homes. Even so, you should carefully study this site and use the online tools to learn if a reverse mortgage is right for you.
1. Benefits
You retrieve the equity you have in your home as a lump sum of cash, monthly payments,or a line or credit.To have a senior analyst at FirstTrust determine exactly how much,call 816-363-3105. You never need to repay the reverse mortgage as long as you live in the home.
Your existing mortgage (if you have one) will be fully paid off. The disbursements are tax-free and can be spent however you like with no impact on Social Security or Medicare benefits.
2. Eligibility
In order to qualify, all homeowners must be age 62 or older. Furthermore, we recommend that you have paid off 40% or more of your mortgage. Finally, you should be planning to stay in your home for at least several years. There are no income or credit requirements.
3. Cost
The cost of an FHA HUD reverse mortgage (HECM) is considerably lower than buying and moving to a new home.
Interest rates are usually lower than the best rates on a traditional mortgage. All costs are packaged into the reverse mortgage so you never have out-of-pocket expenses. Call for detailed figures.
4. Liability of estate
Your heirs are never personally liable for the reverse mortgage since it is secured solely by the equity in your home. Your heirs inherit the property and have the option to sell it or refinance with a traditional mortgage.
5. Repayment
You owe nothing as long as one homeowner lives in your home. Also, the FHA mortgage insurance ensures that you can never owe more than the sale-price of your home, even if the home depreciates.
When you move out of the home, your estate has up to 12 months to repay the loan (usually by selling). If the home sells for more than the loan balance, the remaining equity passes to your heirs.
Here's the short version
Now, you can let your Home take care of you.
Retain your personal and financial independence.
Take out some cash and pay off the existing mortgage.
No payments as long as you live in your home.
No income, credit, or employment requirements.
Doesn’t affect Social Security, pensions, or Medicare.
You can choose a cash flow plan tailored to your needs.
Your home can “send” you money while you maintain ownership, live in and enjoy what you have worked years to achieve.
You make no monthly payments! Your house pays you.
A Reverse Mortgage is repaid when you sell, transfer your interest, or no longer occupy the home as your primary residence.
The heirs can keep the home once the Reverse Mortgage is repaid.
If you have any questions call us at 816-363-3105. FirstTrust Financial,LLC earning your trust one step at a time.
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