Learn About Reverse Mortgages
What is a reverse mortgage anyway? A Reverse Mortgage is a sophisticated financial tool. At Legacy Reverse Mortgage, we are always available to sit down and speak with you in person about the details and benefits of your Reverse Mortgage. Below we explain the basics to help get you started and weigh some pros and cons that we hope you will find useful. If you would like more specific information, feel free to ask us by using our Live On-line Chat or simply call us at 1-800-991-4613. Request a free quote to find out the possibilities.
What is a Reverse Mortgage?
An introduction to reverse mortgages
A Reverse Mortgage allows seniors age 62 or older to convert the equity in their home into cash without ever having to make a monthly mortgage payment. It’s called a Reverse Mortgage because it amortizes in reverse. That is, its balance grows over time because you don’t make any payments. This means that when you no longer live in the home or otherwise choose to payoff the mortgage, you’ll owe whatever you borrowed plus interest and predetermined fees.
It works the same way as a regular mortgage, however you will never be asked to make a monthly payment. You still own title to the home, you still pay taxes and insurance on your residence, and when you pass away you still leave your home to your heirs. And like a regular mortgage, if you convey title, for instance by passing away or selling, you have to payoff the mortgage.
Today’s Reverse Mortgage is known as the Home
Equity Conversion Mortgage, or HECM, and it’s insured by the Federal Housing Administration, a division of HUD (the U.S. Department of Housing and Urban Development). It was authorized under HUD by the Housing and Community Development Act of 1987 and signed into law by President Ronald Reagan. Since then, hundreds of thousands of people have benefitted from a Reverse Mortgage.
To get a Reverse Mortgage, you need to be age 62 or older and you must own a home, condominium, or manufactured home. The purpose behind this program is to let seniors stay their home, therefore full time residency is required. And because you don’t make a payment, there are no income or credit qualifications!
The primary benefit of a Reverse Mortgage is that you do not make a monthly mortgage payment. However, to keep your Reverse Mortgage you must live in the home as your primary residence, maintain your home in good repair, and pay your property taxes and homeowner’s insurance.
You get to decide how you want to take the tax-free money provided by your reverse mortgage. You can take the funds as a lump sum upfront, keep it in a line of credit, or take a monthly payment paid to you for as long as you live in your home. Once you have your Reverse Mortgage you can use the money however you want!
We would love the opportunity to give you a quote. Request a free quote now or just use our free reverse mortgage calculator to get a quick idea of what you are eligible for. We are extremely knowledgable in reverse mortgages and are happy to share the wealth of knowledge we have about these programs. If you would prefer to talk over the phone, just give us a call at 1-800-991-4613.
Reverse Mortgages Pros & Cons
Weighing the postitives and negatives
No out-of pocket expenses (with the possibile exception of a small payment to a 3rd party counseling service)
There are costs with obtaining a reverse mortgage. These costs will be clear and disclosed
We will work with you to reduce costs and will not charge any hidden or last minute fees. Oh, and the fees are a lot less than what you would pay to sell your home!
Live in your home for life without monthly mortgage payments
There’s a possibility heirs receive little or nothing from the home. (This is certainly not the case in most instances!)
This is another very individual decision you need to make to determine if the costs are worth benefit. We understand you have a legacy to leave. We are here to educate you on the best possible way to retain the most equity in your home so you can maximize the value to your heirs.
Access your home’s equity on your terms without monthly loan payments
Lowers the Equity in your home
With today’s increasing costs, seniors living on a fixed income may need more money. A reverse mortgage allows you to access your home’s equity without any monthly loan payments. Only you can determine if that benefit is worth the cost of equity. We are here to explain everything, request a quote now or give us a call at 1-800-991-4613