The Answer is YES!
I can access my equity without making a mortgage payment or selling my home?
I can create a new income source in retirement (lump sum, credit line, monthly income from my equity)?
HECM interest rates are still at all time low’s?
I will not pay taxes on this new income (income never taxed)?
I can retire and eliminate my current mortgage payment?
I can use the reverse mortgage loan to pay off other debts (no fund restrictions)?
I can use the HECM loan to avoid Bankruptcy?
I will keep ownership of the home/property not the bank?
Will I be able to leave my home to my kids/heirs?
I wont run the risk of foreclosure as long as I pay for property taxes/insurance?
I will be able to decide whether I want an adjustable or fixed interest rate?
There are lenders who will not charge me an origination fee?
I can avoid high upfront mortgage insurance premium with the HECM Saver?
I can sell my home or refinance at any time?
I will not loose any other social benefit such as medicare eligibility?
I can still qualify for the HECM loan without income or credit scores?
I can take out more equity in the future if I have equity?
Reverse Mortgage (HECM – home equity conversion mortgage) - a safe government insured mortgage retirement program which is designed for seniors (62+) who are in or near retirement, own a home with equity available, and would like to release a portion of the equity without having to make monthly mortgage payments, without selling to sell, or loose home ownership to the lender.
Reverse mortgages have become very popular over the last few years, just last year alone some 100,000 reverse mortgage loans were taken out by seniors just like you.
Top lenders have implemented income & credit scores requirements -we are able to get you a reverse mortgage without income or credit scores requirement, not to mention no origination or mortgage insurance fees.
How Does a Reverse Mortgage Work in 2012
In simple terms the equity in your home can be yours without you have to make any mortgage payments or without selling your house. With a forward mortgage you make payments and are given a sum of money to buy or refinance your loan – thus every month the balance goes down little by little – with the HECM reverse mortgage you can pay off your loan ( think of a refinance ) or take our equity in the form of a loan – except no payments are due – but they interest accrues to the back end of the loan ( but you dont make payments – and as your home increases in value this offset your costs.)
Some 600,000 seniors have taken a reverse mortgage in retirement over the last 22 years, the main reason will be to improve the quality of their retirement; whether through paying off existing mortgage debt ( any debt you want to pay off), allowing seniors to increase cash flow, or simply giving seniors new access to a lump sum of money without restrictions or income taxes.
Receiving your tax free reverse mortgage income/funds
With a home equity conversion mortgage loan you have flexibility as to how you receive the proceeds – and if your needs can you can easily change how you receive the funds.
- lump sum – receive a lump sum which can be up to 70-75% of homes appraised value – the interest rates are fixed on the HECM lump sum
- lifetime monthly income – depending on your age and available equity you will receive a lifetime source of equal monthly proceeds/income – rates are adjustable
- credit line – the bank/lender qualifies you for a certain amount which you can access as you wish and pay interest only on portion you have borrowed – interest rates are adjustable
Choose from 4 different reverse mortgage types ( all government insured HECM’s )
1.) Fixed Rate Standard – this is the option to receive the lump sum – as the name suggest the interest rate is fixed, this is the best program for long term and in 2012 it makes alot of sense since the fees are now reduce also current interest rates are low.
2.) Fixed Rate Saver – for those who dont need the maximum lump sum income/funds upfront and are comfortable with an adjustable rate – this program has reduce feed from the mortgage insurance premium, but a smaller percentage of equity is available.
3.) Adjustable Rate Standard – you can select between the credit line, or monthly income for life – the amont you can borrow is the maximum amount ( same as Standard fixed rate ) really for those looking to take advantage of low adjustable rates over the short term.
4.) Adjustable Rate Saver – you wont receive the max funds, but you will pay less in mortgage insurance premium, rates are historically low for the adjustable rate programs.
HECM Mortgage amount based on
- Age of the youngest co-borrower ( the older you are the more equity you can receive )
- Current interest rate in the market
- Lesser of appraised home value or the FHA HECM mortgage limit
- since HUD has approved financial underwriting your own personal financial position will also impact the amount borrowed ( your payment history can come into play, including but not limited to your income/credit scores as well) with some lenders.)
- also depends the program you choose – since the saver has less fees the banks/lenders extend less of your credit to you
Loan requirements
No income or credit qualifications are required of the borrower(s)- No repayment as long as the property is the principal residence
- Closing costs may be financed in the mortgage
*** Income, credit scores, mortgage/taxes/insurance payment history can all affect the reverse mortgage loan and whether or not you will be able to receive one. HUD approved financial underwriting and lenders have started to implement changes reflecting financial underwriting ability. In 2012 we are still able to lend without reviewing the above making the process easy, most lenders cannot state this. ***
How can a reverse mortgage proceeds be used for ( remember not restricted)?
The proceeds from a reverse mortgage can be used for almost anything:
- Pay for medical costs or save for future medical expenses.
- Pay off existing any existing mortgages/liens on home
- Pay credit card or other bills.
- Home repair and improvement.
- Property taxes and home insurance.
- Increase monthly cash flow.
- Travel.
- Gifts.
Reverse Mortgages How They Work - with the current reverse rates at all time lows seniors should now consider accessing their equity, avoiding future tougher restrictions, and improve their quality of retirement ( no more mortgage payments, pay off debts) seniors should budget for insurance & taxes.
HECM Reverse Mortgage Lenders
Retirement portfolios have seen dramatic losses, so have property values, stock markets have not performed to well either, this is really the perfect financial storm, and those on fixed incomes trying to retire are now facing extremely volatile times. A reverse mortgage has helped seniors just like you regain your financial freedom by securing your retirement income while allowing you to keep ownership of your home ( 100,000 seniors last year took a HECM loan). It is now more important than ever to compare multiple offer and to make sure you are getting the most amount of equity from your home through a reverse loan. There are more than 2500+ reverse mortgage providers in the US, making it nearly impossible for you to compare all these lenders. We work with top reverse mortgage lenders who are committed to providing you with the best interest rates, the most amount of equity/money, all at the lowest costs.
Quick Guide to a Reverse Mortgage
- Flexible Income Plan ( you can select how you want to receive you income: either on a monthly basis, lump sum, credit line, or you can mix and match).
- You keep ownership the home and title. Your heirs will have the chance to own the home, if there is equity they can sell and keep the profits once you pass away.
- You wont have any repayments while you live in the home, if the home’s value increases you can get more equity or sell if you so desire.
Reverse Mortgage Lenders Direct
Our goal is to be the smartest solution for homeowners over the age 62 who are considering a reverse mortgage. Our website is built to help you learn everything there is about this program, and to also here for you to compare multiple reverse mortgages easily. By using our free service you will receive up to 4 competitive quotes from top reverse mortgage lenders. Our exclusive partnerships and network means you can easily with one click or call compare multiple lenders, who are eager to compete for you business, while receiving the tools/education needed to make a smart decision for your retirement.
REVERSE MORTGAGE LENDERS | HECM LENDERS COMPETE YOU WIN By Paul Galante – Add me to your circles
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