Is a Reverse Mortgage the Right Choice?

Real Estate Agent with Todays Realty & Loan Solutions - One Stop and You Are Home

Is a Reverse Mortgage the Right Choice?


Are you thinking about getting a reverse mortgage?  Just exactly is a reverse mortgage, and when is it a good choice?


photo by Kathi ClineA reverse mortgage (HECM)  is a way to draw on the equity in your home when you meet certain  criteria.  You can use it to pay off an existing mortgage on the home, or you can receive monthly payments, a lump sum, a combination of the two, or use it as a credit line for emergencies This program can also be used to purchase a primary residence, along with cash on hand to pay the difference between the loan proceeds and the sales amount plus closing costs.


Income and credit scores are not considered for this type of loan. The proceeds are not taxable.  The loan does not need to be paid off until the home is sold, or inherited.  The heirs will never be personally liable for more that the home is sold for.


photo by Kathi ClineThere are fees involved in obtaining a reverse mortgage.  The largest are the FHA mortgage insurance and the origination fees. Typically, the only fee that is paid out of pocket is for the mandatory counseling. The loan balance will increase as time goes on, and the value of the estate may decrease.


Because this program is not understood very well by many people, independent reverse mortgage counseling is required.  By utilizing this service, you will be able to determine if a reverse mortgage is right for you in your circumstances.


Photo by Kathi ClineThe youngest homeowner must be at least 62 years old, and there must be sufficient equity in the home to be eligible. Generally, the health of the homeowners and any discharged bankruptcy will not affect eligibility. The home must be the primary residence.


Because the borrowers do not make payments on this type of loan, they will never be forced out of the home due to non-payment. The homeowner is responsible for keeping the property insurance and taxes current and maintaining the home in good condition.


To speak with one of our NMLS licensed loan specialists, please call 760-346-5999 now, or contact us online.

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Remember, with Todays Realty Group and Loan Solutions, One stop and You are home!


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