Benefits of a Reverse Mortgage

Deciding how to survive financially during your golden years is one thing, yet, deciding how to truly live and enjoy life is key to your golden happiness. A “New” Reverse Mortgage is a step in a direction towards doing just that. Reverse Mortgages also called Home Equity Conversion Mortgage (HECM) Loans, may seem a bit confusing. That’s why Shaun Russon makes it his duty to educate his clients to ensure that each one makes the right decision about mortgage loan products.

Benefits of a Reverse Mortgage Loan

What is a Reverse Mortgage Loan? In short, it’s a loan where a senior homeowner taps into a substantial amount of the home’s equity. The funds are tax-free, and the borrower never makes a payment the rest of their lifetime.

Here are just five of the many benefits of Reverse Mortgages:

1. Financial Freedom – You get to access your home’s equity and get cash you can use any way you like. Take advantage of the hard work you put into paying down your mortgage or paying off your home by accessing your hard-earned equity. You’ll get to Live the Life You’ve Earned!
2. No Mortgage Payments – You never have to make a single mortgage payment during the course of your life, or your spouse’s. Yes, your spouse, too!
3. Keep Ownership of Your Home – You continue to own your home, not the bank or lender. There is no chance of losing your home because of the new changes. In fact, you heirs will have 12 months to decide what to do with the home.
4. Loan Flexibility – You have the freedom to do what you want with your home… sell it, refinance it, move and rent it out… the same things you can do with any other type of mortgage loan!
5. Grace Period for Heirs – Your heirs gain immediate access to the home’s equity when you’re gone. And, they have a 12-month grace period before having to make a decision about what to do with the estate.

How to Qualify for a Reverse Mortgage Loan

The following are the general qualifications for Reverse Mortgages:

• One borrower must be 62 years or older
• Must own your home (still can have a current loan because that can be paid off through the New Reverse)
• Must occupy the home as your primary residence (at time of application)

When determining how much you qualify for on a Reverse Mortgage Loan, these are the factors lender weigh:

• Appraised Home Value
• Age of Youngest Applicant
• Balance on Any Current Mortgages
• Reverse Mortgage Program (Yes, there is more than one product to fit your specific needs!)

Keep Ownership of Your Home

Many people are under the misconception that you must give up title to your home to qualify for a Reverse Mortgage Loan. This is simply not true. Instead, you retain ownership of your home until you say otherwise. Yourself, your spouse, the Family Trust, and whomever else will always remain on the Deed or Title!

You keep the the Title and ownership at all times. The only instance when the even of losing ownership of the home is unless you fail to pay your home insurance premiums or default on your property taxes. This is currently the exact same as any other loan program out there. Taxes and Insurance always need to be paid. (Paying taxes and aging are the only two things you can guarantee will happen in life!)  You’ll never lose your home due to non-payment on your mortgage loan because there isn’t a payment to be made! And, you get to live in the home for as long as you choose.

Want more information about Reverse Mortgages? Contact Shaun Paul Russon, your Reverse Mortgage Loan expert, today!