Isn't it time for you to enjoy peace of mind? The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program, which enables you to access the equity in your home.
Reserve mortgages have changed and folks are using them for many different reasons. Whether or not you have a mortgage, we can discover how a reverse mortgage would work for you.
Our Reverse Mortgage Specialists are ready to get you started!
A Reverse Mortgage can act as a regular mortgage with some extra features. You don't have to make any principle and Interest if you choose, you can use the line of credit for whatever is important to you, leave the line available and allow it to grow, or you can just pay off your old mortgage and eliminate monthly payments. It changes lives.
Remember that a Reverse Mortgage acts just like a regular mortgage. You can pay it off with cash, you can refinance out of it, have a family member buy the home from you, or you can just sell your home if you choose. It acts no different than a regular mortgage
Typical initial availability is about 50% of the appraised value, however, one of the versions is designed to provide more access to the value as time goes on. Any unused balance grows at a rate of .50 over the rate your mortgage is currently at. It is a powerful retirement tool and even more powerful if you set it up at 62 years old and leave it to grow.
A homeowner(s) 62 or better is eligible however we need enough equity in your home to have the best results. About 50% so if you own a home worth $200,000.00, you could potentially have access to $100,000.00 in equity to pay off an existing mortgage or even use those funds to cover all or part of IN-HOME health care! The longer you stay in your home, you are more likely to be happier and healthier. You worked hard for your home. Let it pay you back.
Approximately 50%, however, if you are older than 62 you will have access to your equity. Remember that if you take the reverse mortgage out earlier and limit the line of credit use, the growth in access is a solid part of your financial picture. Of Course, you always need to talk with your financial advisor.
Part of any legacy planning involves your assets and the largest one is usually your home. If you are unlucky and get hit by a bulldozer, your family or significant people in your life can pay the mortgage off, sell the home and use the profits from the sale to have a cruise in your honor or if for whatever reason your home was to lose value and the balance of the loan is higher than the value after all commissions or fees, your heirs can step aside and let the reverse mortgage company deal with the loss. More than likely, they will offer it to the family at a reduced amount because the lender does not want your home under any circumstances.