Reverse Mortgage Loans can be the solution to retirement, allowing you to live in your property, receive tax free income, and use the money freely with no restrictions. HECM reverse mortgages loans are becoming very popular, since there are so many benefits involved, and since it is specifically designed to help homeowners over the age of 62.
Why is the HECM loan so popular among seniors:
- no other program is designed for seniors such as the HECM ( specifically for seniors who want to release equity from their homes)
- with HECM rates at all time lows the program costs are reduced dramatically
- no fee reverse mortgage
- never make a monthly mortgage payment ( only pay for homeowners insurance & taxes )
- keep ownership of the home
- allows your heirs to keep the home when you pass & you can sell at any time
- many programs to choose from all government insured
Who Qualifies for a HECM reverse mortgage?
- Be at least 62 years old ( 60 days from your 62nd birthday )
- Own the property
- must be your primary residence
- Have equity ( difference between what your home is worth to the debt/mortgages )
- Never have defaulted on government debt
Many lenders will soon be implementing tougher income and credit score requirements for the HECM program, seniors who do not have great credit scores or can show enough income should start looking in this option now while they can still qualify.
If you are currently in the market for a reverse mortgage loan we can assist you in finding one with the lowest cost and without having your income or credit score factoring into the loan.
Questions, Concerns With Reverse Mortgage Loans
We receive many potential customers who have a few similar concerns about reverse mortgage home loans, we will go over these questions below, so there is no confusion as to how a reverse loan works.
Q.) Does The Bank Keep The Home Or Own The Home ?
The Bank does not own or keep the property if you decided to take a reverse mortgage. Reverse home loans are federally backed which should create trust in consumers since there is no chance that our federal goverment will default on its responsibilities. Just like a traditional mortgage you own the home, you keep title to the home, and you can sell at any time.
Q.) What Happens Once the Loan Comes Due ?
Reverse mortgages only come due after both borrowers move out for more than 12 months. Also there are no payments to be made with a reverse mortgage, instead you receive income from the bank.
Q.) How Much Money Can I Get , Does Your Site Have a Reverse Mortgage Calculator?
The money you receive depends mainly on the youngest borrowers age, and also on the property’s equity. We have a reverse mortgage calculator which gives you estimated figures ( pretty accurate ), for more exact figures please call 877 700 0534 or fill out form above.
How Do Reverse Mortgages Loans Differ From Home Equity Lines of Credit & HELOC’s
Reverse mortgages can not compare to home equity line of credit since reverse mortgages have no payments required on a monthly basis. With a home equity line of credit the borrower receives a certain amount upfront in a lump sum, and then they are obligated to pay every month a payment, like a traditional mortgage. With a HELOC the borrower receives a credit line, but as they take out chunks they have to make repayment on the funds – while this is not the case with a HECM loan.
With a reverse mortgage you are able to qualify based solely on age and equity in home, while the home equity line of credit loan requires you to prove income and have a good credit score.
The most important distinction and potential worry for seniors who are planning on taking out regular mortgages is that if you default on your payments the bank can foreclose on your property, where this is not a worry with reverse mortgage loans since there are no payments. Taking into consideration some of the pros and cons compared to these other programs it is clear that this program makes sense for many seniors in or near retirement.
HECM loans are unique – no other program is designed to release equity from the home without having to make repayment – seniors nationwide are already using the program for multiple reasons including but not limited too.
- increasing cash flow ( new lifetime monthly income )
- paying off first mortgages
- consolidating debt
- receiving a credit line or lump sum
to learn more visit:
reverse mortgages how they work
how does a reverse mortgage work
what is a reverse mortgage
reverse mortgage rates
REVERSE MORTGAGE LOAN | REVERSE MORTGAGE LOANS 2012 By Paul Galante – Add me to your circles
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