A Reverse Mortgage Can Be an Effective Tool for Enhancing Your Retirement Years
Benefits & Facts
Reverse mortgages are a great and safe way to get financial relief in your autumn years.
If you are 62 or older and you own a house you can take advantage of these benefits. Let’s get started!
Your tax-free lifetime income could:
01 — Pay Off Your Existing Mortgage(s)
No monthly payments or repayment required. You maintain ownership of your property, get money based on the value of your home, and you stop making your mortgage payment.
02 — Repair/Remodel Your Home
Helps seniors remain in their homes that they have worked so hard to pay for throughout their lives. Unlike a traditional mortgage or home equity loan, the interest due accrues instead of declining over time since the borrower is not making payments to pay back the loan.
03 — Cover Expenses, Pay Off Debts, or Medical Emergencies
Use payments for whatever you want, including home renovations, consolidating debt, paying for medical expenses and insurance costs, and traveling and other leisure activities.
04 — Pass on Property to Heirs
It is a “non-recourse” loan, meaning the debt cannot exceed the market value of the property. Your heirs can keep the house and refinance the loan, or sell the house to settle the loan and keep the remaining money. If the house isn’t worth enough to cover the loan, no debt will pass to them. In this case, The Federal Housing Administration covers it.
05 — Help Purchase a New Home
Reverse mortgages provide a tool that allows seniors to tap into the equity they have in their homes. In today’s tightening credit markets, reverse mortgage products may be one of the best solutions available to most retired homeowners.
Make it yours.
Everything in life has pros and cons. The question of whether or not a reverse mortgage is right for you depends solely on your personal situation.
The amount that can be borrowed is a function of your age (minimum age 62) and the amount of equity in your home.
Social Security benefits are not affected by reverse mortgages.
Your loan is FHA guaranteed and includes a provision that your line of credit can never be frozen, reduced, or changed in any way. It stays in place for a lifetime whether your property value increases or decreases.
Your heirs have a full year to make disposition of the loan balance without the need of making a monthly payment.
Make it shine.
Reverse mortgages can be used in a number of ways. Below are a few scenarios in which Cynthia has helped client’s add to their financial freedom:
Added an additional “tax-free” monthly income source.
Eliminated mortgage payment, all credit card debts, and provided a line of credit to draw from in case of emergencies.
Removed the worry of ever having to sell or leave their forever home.
Retired early, allowing for more time spent with family and loved ones.
Downsized to a managable new home with less maintenance.
A REVERSE MORTGAGE FOR PURCHASE COULD HELP YOU FINANCE A NEW HOME
Case Study
How does reverse-for-purchase actually work?
Here's a hypothetical scenario:
Senior lists and sells their current home for $650,000.
Senior nets $300,000 after mortgage payoff, fees, etc.
Senior only uses $250,000 of the $300,000 for down payment towards the “downsized” home.
We fund a Reverse for Purchase loan for $300,000.
Senior profits $50,000 from previous home sale to invest.
Lifetime free of mortgage payments.
Limited income is okay for qualification.
Use to increase purchase power.
Plan a More Rewarding Retirement.
Arrange a complimentary, individualized review to find out how a Reverse Mortgage could benefit you.
PHONE: 707-812-2102 EMAIL: Cynthia126@mac.com