The Home Equity Conversion Mortgage (HECM), better known as the Reverse Mortgage Loan, is a government insured and regulated mortgage that helps people 62 and over live a better retirement.
“I want to leave my house to my kids and cant if I do the Reverse Mortgage Loan.”
You are able to leave your home to your heirs, but the reverse mortgage loan secured by the home will have to be paid off. Your heirs can pay off the loan with other funds, or refinance. Or, the house can be sold and, after the loan is paid in full, any remaining proceeds of the sale belong to your heirs.
“I heard that I lose my home when I do the Reverse Mortgage Loan.”
“What happens to the house later, since I’m selling it to you?”
You are not selling your home or giving it away, it’s still yours for life, AND your kids or heirs still inherit the property upon death. You do not lose the home. You remain on title. If you want to sell, you can sell. If you want to refinance, you can refinance. When the home is sold, the mortgage is repaid including all interest and fees, and the equity or profits go to homeowner(s) or the heirs. This is just like any other mortgage in that sense. However be aware that while you cannot lose your home under normal circumstances, foreclosure may occur if you do not pay your taxes and insurance and otherwise comply with the loan terms.
“How much money can I get?”
It’s impossible to give an answer on this without the following information; age, your home value, how much you owe, the current interest rates, location of your home, and the lender and program you choose. If you fill in the information on the calculator page, then we can get back to you with details for your specific situation. Or feel free to call us at (888)845-6630.
“I’m better off selling my house because I get more money.”
We have had many clients who feel the same way, but upon going over the numbers in depth they have found that after a few years you are left with less money if you sell. This isn’t always the case, but we would be happy to do this for your particular situation.
“I don’t have a mortgage, so I don’t need a Reverse Mortgage Loan.”
Many prominent Financial Advisors are doing studies on the various uses of the Reverse Mortgage. They have found that the HECM Saver Line of Credit option has many excellent retirement advantages. This is a great option for those who own their homes free and clear, since the Line of Credit grows on the unused portion, guaranteed. It’s like having fire insurance, you hope you never have to use it, but if you do at least you have it!
HOW DO I QUALIFY?
1) You must be 62 years of age or older
2) Own your home and live in it (primary residence only no second or investment homes)
3) Have enough equity, which we can help you determine using today’s values
4) Meet minimal income and credit requirements
HUD and FHA require that each borrower go through a third party Reverse Mortgage Counseling. We encourage this, and provide you with a list of local and national counselors to choose from.
The Reverse Mortgage is a “NON-RECOURSE LOAN”, which means you can never owe more than the value, and the lender can never come after your heirs or estate for any loses. This is covered under FHA’s Mortgage Insurance Premium, or MIP.
There is also NO Prepayment Penalty, so you can make money, yearly, balloon, or any type of payment desired or no payment at all, which is the point of the Reverse Mortgage. It gives you the flexibility to live a better retirement!
NO TAXES; this is a loan, not income, so there is no tax on the money you draw (disclaimer; please consult your tax and/or financial advisor as we are not tax or financial consultants).
Please contact us with any questions you have about Reverse Mortgage Loans. We have experts on hand to give you an in depth explanation and help you decide if a Reverse Mortgage Loan is the right fit. Just call: (888)845-6630 or (305) 791-4874