If you are at least 62 years young or older, reverse mortgage may be for you. Reverse Mortgages allow homeowners to convert the equity in their home to cash while retaining ownership and not making any house payments as long as you live in the house.
Property taxes and homeowner insurance are still the responsibility of the homeowner, to pay, though.
Hope you enjoy this little video that we can all relate to… and if not now, you will soon be able to relate, trust me!
In order to qualify for a reverse mortgage you must have paid off or have equity in your home. There are limits as to how much money can be drawn out of the equity. You can be paid in a lump sum, in monthly advances or through a line of credit. Maybe even all three.
The money you receive and agree upon can be used for daily living expenses, medical care, repairs on the house and much more.
You make no payments to a lender anymore. There is only one stipulation, you must reside in the house.
Its important to make sure that HUD backs the Reverse Mortgage. You will be referred for counseling to determine if you are eligible. Once you have completed the counseling, you will be issued a certificate as proof that you have completed counseling. This certificate must be presented to a HUD Direct Reverse Mortgage Lender.
You will be asked how or if you would like to receive payments and the Lender will provide you with the total cost of the loan, as required by the Federal Truth in Lending Act. An appraisal of your home must be done in order to determine the value and the physical condition of the property. If there are any significant repairs to be made, you will be required to have a contractor complete the repairs after the Reverse Mortgage closes.
It does cost money to sign and record all of the paperwork, which is what we call closing. However, you can opt to have those costs rolled into the reverse mortgage loan.
What happens is that your remaining loan is paid off and a new lien is placed on your property.
Each month you will receive a statement that shows what the current interest rate is and how your equity has been reduced. It is important to have a good understanding of how Reverse Mortgage works and see if its a good idea for you.
If you are interested in having a quote fill out the form at the link or speak with a HUD Direct Reverse Mortgage Specialists, by calling 1-866-326-2583.
There are plenty of Active Adult communities that are gated if that is of interest to you. Just give me a call and I can make sure to send you homes and condos for sale in retirement communities both in Sacramento, Elk Grove, Folsom, Roseville, Lincoln and El Dorado Hills.
Hope you get a kick out of the video...I know I did!
BORED ... TUBBY .... MILD! What a hoot, and now we know what to put on my headstone when I'm done! LOL Got any green tea, Gena? Obviously I could relate to that video ... loved it. Thanks for a great post ... oh, and the info on reverse mortgages was really good, too. :)
To funny Gena, I almost called you this late afternoon. Has your back improved? BTW, Have you met anyone that has done a reverse mortgage? I wonder what the clause in it says referencing if your home declines in Value. Just ignored in hopes that values will rise again. Just wondered if you know, I don't but it would be interesting if someone had done one of these in the past couple years to discover how it is going.
Gena - loved the video! They're beginning to talk reverse mortgages in our area and I would like to talk to a person who's actually done one. Sometimes they sound too good.
Gena the reverse mortgage is a product that has been around for a while but how many people actually take advantage of them? It makes a lot of sense in many cases but all the tv and radio ads sound so gimicky.
Jan, i too can relate to the video. I absolutely loved it and couldn't resist even though I found it virtually impossible to add nice breaks in the written word. Someday, I will master html without having to think about it.
Thanks for popping in and glad you loved the video and the info on reverse mortgage.
William, thanks for asking...everyday is better and when I'm busy with clients, I don't even think about pain soooo bring on more clients, right?
As far as reverse mortgages, yes a friend of mine did one about 3 years ago and loves it. You have to have about 60% equity and it doesn't matter if values go down. As long as you stay in the home and out of the nursing home, you've got a place to stay.
One of the things I think that we as agents have to keep an eye on is the fraud that I believe will run rampant with reverse mortgages. As long as it's an FHA lender all should be fine. They counsel the senior prior to signing any papers and make sure that they thoroughly understand what they are signing. As long as they have the money to pay the taxes and insurance, it appears to be a very sound program.
Linda, as I told William above a friend of mine did one about 3 years ago and she is thrilled with it. In fact, she took out some of the equity which they allow you to do and she put in a pool. The kicker is that as long as you are able to stay in the house and not in a nursing home, there appears not to be a problem.
The main things you want to make sure of are:
senior is able to pay taxes
senior is able to pay insurance
senior stays out of nursing homes
Reverse Mortgage is done by an FHA Lender
They counsel them and they can take money out for in home care, medications etc.
Looks good to me and my friend loves it. It has given her the freedom to not worry about money in her 80's.
Bill, it really isn't gimmicky as long as the senior works strictly with a FHA Lender. That is the key. As the years continue, I have a strong feeling that there will be those who want to make a quick buck on the back of seniors and will resort to some type of scam. I think it is our duty to start now and educate the Baby Boomer's so that they do not fall victim to a scam.
Hi Gena,
Funny video that I can totally relate to. As one of those aging boomers, I'm the oldest in my fitness class at our commuity center, but I somehow manage to keep up most of the time.
So far, my experience with reverse mortgages is limited however I know we'll be seeing a lot more. I told my own kids it's my retirement plan, and not to plan on an inheritance some day, lol.
Lynda, glad to hear that you could relate. When I first saw this video it had me in stitches so I just had to share it and see if anyone else could relate.
I hear ya with the retirement plan..we may all be there someday!
Fred. based on the population numbers, I think I'm safe in saying that there are more of us who can relate than those that can't. I still laugh when I watch it.
Reverse mortgages are the next best thing to sliced bread as long as you are dealing with an FHA approved Lender. I think we will be seeing quite a few of them.
Glad that I wrote it when it was relevant to you. Thanks for popping over.
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BORED ... TUBBY .... MILD! What a hoot, and now we know what to put on my headstone when I'm done! LOL Got any green tea, Gena? Obviously I could relate to that video ... loved it. Thanks for a great post ... oh, and the info on reverse mortgages was really good, too. :)