Your senior years should be a worry-free
time when you can relax and do the things you’ve always
wanted to do. From traveling to doing that home
renovation you’ve
been dreaming of for years to simply ensuring that you’ve
got the in-home or health care you need to make sure you don’t
become a burden on your loved ones, having available cash can
help to make your life everything you’ve been looking forward
to.
A Reverse Mortgage can provide the cash you need for the life
you’ve been dreaming of, or for that added bit of financial
security to help make your senior years worry free.
Working with an experienced mortgage
professional to secure
a Reverse Mortgage can be one of the best financial
moves you can make. With over 20 years experience in the lending
industry, Theresa Springer, Certified Graduate Associate and
Senior Mortgage Banker with Directors Mortgage has the
knowledge and answers you need to set up your Reverse Mortgage
with the peace of mind that comes from knowing that it’s
been done the right way.
Here are answers to some of the most common questions about
Reverse Mortgages…
What is a reverse mortgage?
A reverse mortgage is a non-recourse home loan that enables
seniors to convert a portion of their equity into tax-free* income.
The borrower remains in the comfort of their own home without
having to sell, give up title, or make monthly payments. The
loan becomes due when the borrower permanently vacates the property.**
*always consult your tax advisor
**Homeowner must continue to pay insurance, taxes, and basic
maintenance of home to keep loan in good standing
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How much cash can I get?
The amount you can borrow depends on several factors, including
your age, the type of product you choose, interest rates, the
appraised value of your home, the amount of equity you have in
your home, and the FHA’s lending limits in your county
of residence.
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How can I receive the loan proceeds from my reverse mortgage?
Reverse mortgages offer a number of payout options. Depending
on the type of product you choose, proceeds can be taken as a
lump-sum, monthly payment, a line of credit from which you can
draw upon, or any combination of the three.
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Will the bank own my house?
No. You retain full homeownership and can sell the home at anytime;
the reverse mortgage lender is extending a loan to you. Your
only obligation is to continue to pay property taxes, insurance,
and proper maintenance of the home. Once you permanently vacate
the property, the loan then becomes due.
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Will my income affect my chances of obtaining a reverse mortgage?
No. Because you don’t have to make monthly repayments,
there are no income requirements.
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What’s the difference between
a reverse mortgage and a home equity line of credit (HELOC)?
One of the biggest advantages of a reverse mortgage over that
of a HELOC is there are no monthly repayments because you’re
drawing upon your home equity.
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Can a lender take my home away if I outlive the loan?
No. And if you outlive the loan, you don’t have to repay
it either. The loan is not due as long as you or another borrower
continues to live in your house as your primary residence. The
loan becomes due when you permanently vacate the property because
of relocation or death.
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What will a reverse mortgage cost?
You may be able to obtain a reverse mortgage with minimal upfront
costs. While closing costs vary based upon the type and size
of the loan, you can structure your loan with these costs included
in the total loan amount; they’re simply added to the principal
and paid with interest when the loan becomes due.
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Can I refinance a reverse mortgage, as I can with a traditional
forward mortgage?
Yes. Refinancing is a sensible option if your home increases
in value, interest rates drop, or if HUD increases your county
lending limit.
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Are there any monthly payments?
No. The borrower is only responsible for paying property taxes
and insurance, and providing proper maintenance of their home.
The loan becomes due when the borrower permanently vacates the
premises.
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What if I still owe on my first mortgage?
You may qualify for a reverse mortgage even if you still owe
on your first mortgage. A portion of your reverse mortgage will
first be used to pay-off any existing liens.
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How can I spend the loan proceeds?
The proceeds from your reverse mortgage may be used for almost
any purpose. In addition to simply providing supplemental income,
here are a few ideas on using your reverse mortgage:
- Home
improvements
- Long-term care insurance
- In-home care
- Family caregiver expenses
- Treatment
- Medication
- Healthcare
- Travel
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What types of reverse mortgage products are there?
There are several types of reverse mortgage products, so it’s
always important to consult with your reverse mortgage advisor.
Federally-insured reverse mortgages, known as Home Equity Conversion
Mortgages (HECMs), are backed by the U.S. Department of Housing
and Urban Development (HUD). Theresa Springer also offers a Fixed-rate
loan, also Government-insured, for borrowers who want one rate
for the life of the loan.
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What does “U.S. Government-Insured” mean?
It means the product has the security of being backed by the
federal government and you will never owe more than your house
is worth. The HECM product was created by senior advocates for
America’s seniors, and the Federal Housing Authority (FHA)
has taken great strides to insure reverse mortgages and their
payouts. There also are many safeguards in place to guarantee
the borrower’s protection so that seniors and their families
can be confident that the financing against their home is secure.
To be certain you understand all aspects of a reverse mortgage,
the Government also requires an independent, unbiased counseling
session with a U.S. Housing and Urban Development (HUD) approved
counselor. This can be done in person or over the phone. (Some
states require face-to-face.)
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Experience extraordinary...
Call Theresa Springer today at 360-210-7984 to
see the difference that working with an experienced home
loan professional can make for you. |
