5 things to know about reverse mortgages in retirement

By
Mortgage and Lending with NMLS #384936 NMLS #384936

There is still a lot of confusion about using a reverse mortgage in retirement. However, with new revisions by the FHA to their Home Equity Conversion Mortgage product, also known as a Reverse Mortgage, many people are once again considering as an option to supplement retirement income from other sources. The Home Equity Conversion Mortgage is called a reverse mortgage because instead of paying into a loan, as with a typical mortgage product, it pays you cash out of your home equity. And because of this, it is used as a financial tool by savvy seniors who have discovered the benefits of a reverse mortgage in retirement. There are 5 quick things we think you should know about reverse mortgages.

  1.         There are special qualifications that must be met in order to use a reverse mortgage in retirement.

Certain age restrictions, housing and living restrictions, and mortgage limits apply. Overall, the program was designed to benefit seniors who live in their home and do not want a mortgage payment.

  1.         A reverse mortgage and a home equity loan are different

With a reverse mortgage in retirement, there is no monthly principal and interest payments due, like there are with a home equity loan. In a reverse mortgage, property taxes and insurance premiums are required to still be paid, unlike with a home equity loan.

  1.         With a Reverse Mortgage in Retirement, Your Heirs and Estate Are Safe

If you choose to sell your house, or move out of it, the reverse mortgage needs to be repaid. This is usually repaid when the home is sold, out of the proceeds of the sale. Proceeds beyond the value of the reverse mortgage becomes part of your estate, just like other assets. If the value of the home is less than the value of the reverse mortgage, the debt is forgiven through FHA’s program.

  1.         It is important to talk to a trustworthy Reverse Mortgage professional

There are a lot of unique situations and questions that come up when dealing with a reverse mortgage in retirement. Beyond the qualifications, it is also possible that your funds can effect nursing home costs positively. It is important that you know and understand the value of a reverse mortgage in retirement to make the right decisions for your goals.

  1.         How you receive money and how much you receive is unique to you

One benefit of using a reverse mortgage in retirement is that there are options in how you can receive the money, including as a lump sum or payments. The amount received will depend on age, current interest rate and the appraised value of the home. Other factors include how much of the current mortgage, if any, needs to be paid off and/or if a new home is being purchased with the funds.

Are you interested in using a reverse mortgage in retirement to help supplement your income? Do you have more questions? Give us a call today and we can walk through the process and discuss the best options to meet your goals.

Posted by



We help Colorado clients finance their dream and

get the best rate, program, fees, & payment they qualify for!

 

Kevin Guttman

Certified Reverse Mortgage Planner

Home Finance Advisor

Financing Your Dream

Colorado Springs, CO 80920

877.251.9709

kevin.guttman@gmail.com 

www.ReverseMortgageAdvisorsUSA.com

www.ColoradoHomeLoanTeam.com

www.HomeAndLoanExperts.com

 
 
 

 My FREE  Mobile Mortgage APP                                                                                                                                                                          Go to:http://mtgpro.co/25ygy 

 

 

Description: Description: Description: Description: Description: cid:image008.jpg@01CCE250.15948DE0

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Tags:
reverse mortgage
retirement income

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,993,696
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Good mornig Kevin, one of the best decisions I ever made.    tks for sharing.

Jan 05, 2016 02:26 AM #1
Rainmaker
804,167
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Kevin - In the right situation, a reverse mortgage can really help someone in retirement.

Jan 05, 2016 05:42 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
272,203

Kevin A. Guttman-Author, ReverseMortgageSpecialist

877-251-9709
Ready to Buy? I can help you!
*
*
*
*
Spam prevention

Additional Information