So you are looking for a few extra dollars to fill the gaps, take an extra vacation, or fix up the house. The solution might be beneath your feet…
A Reverse Mortgage may be the perfect financial option if you are a senior homeowner seeking additional cash for retirement. After you have had a chance to take stock of your situation and assess your goals, schedule a meeting with your Reverse Mortgage loan professional, to discuss how we can help you fulfill your wishes for a financially independent, enjoyable, and worry-free retirement.
A federally insured “Home Equity Conversion Mortgages” (HECMs) is a safe, secure loan that lets you access your home’s equity to get cash for your retirement funding needs. So how do you get one? The steps to obtaining a Reverse Mortgage are easy and often include:
1. Examine Your Financial Situation
2. Complete a Reverse Mortgage Application
3. Speak with a HUD Counselor
4. Home Appraisal
5. Loan Processing and Underwriting
6. Loan Closing
7. Receive Your Money
Don and Shirley Leighton want to supplement their retirement income. Shirley is the youngest borrower at 67 years of age. The current interest rate is 5%. With the money from their Reverse Mortgage, the Leightons were able to remodel their kitchen, pay off several credit cards, take a belated honeymoon, and set up a savings account for emergencies. They are now mortgage payment-free, and enjoying the peace of mind of having money in the bank.
Current Home Value $300,000
Available Loan Amount $180,000
Less Loan and Closing Costs ($9,000)
Net Loan Amount $171,000
Less Current Mortgage ($35,000)
Net Proceeds (Cash) $136,000
Qualifying for a Loan
The amount you receive is based on current interest rates, the age of the youngest borrower, and the appraised value of your home (up to certain limits). In general, the older you are, the more valuable your home, and the lower your loan balance, the more money you can expect from a Reverse Mortgage.
Getting Your Money
You can get your money in a lump sum, fixed monthly payments, a line of credit that you can draw upon as needed, or a combination of these options.
As you can see there is so much to talk about with Reverse Mortgages. So do your research, talk to your loved ones, and talk to a qualified Reverse Mortgage consultant to answer all your questions!