Everybody’s Talkin’ about Reverse Mortgages!
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In these uncertain times, more retirees are turning to reverse mortgages as part their retirement strategy. Investments and 401K's are not performing as anticipated, home values are declining, bank loans are harder to get and even selling your home is more difficult. Retirement strategies are long term and have to be sustainable. Reverse mortgages fit because they are designed to give the greatest value over the longest time. They are sustainable because payments aren't required. They also deliver the greatest benefit to those who set them up earliest. Reverse mortgages enable retirees to access their largest asset, home equity. This increases both financial security and control. So, what is a reverse mortgage and how does it work?
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It’s Simple . . .
- All home owners must be least 62 and the older you are, the more money you get. Credit history and income don’t matter.
- Payments on the loan are not required.
- You don’t have to pay back the loan as long as you live in your home.
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It’s Safe . . .
- Counseling is required. FHA-approved counselors help retirees explore all possible options so you can make an informed choice as to whether or not a reverse mortgage is right in your situation.
- You still own your home and benefit from future appreciation. Your heirs still inherit.
- You can never owe more than the amount your home sells for.
- You can pay the reverse mortgage off, sell your home, or refinance it at any time without penalty.
- HECM reverse mortgages are insured by the federal government through the Federal Housing Administration (FHA).
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Best of all . . .
- The money is available as a line of credit, lump sum, monthly payment, or a combination of those and you can change the arrangement at any time.
- If all the funds are taken at closing, there is a fixed rate option available.
- The credit line compounds and can increase available funds, helping you keep up with expenses in the future.
- The money isn’t taxable and doesn’t impact Social Security or Medicaid under current law.
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Be sure it’s a HECM, Home Equity Conversion Mortgage, that is insured by FHA.
Questions? Call Scott Funk toll free 866-342-2035 or e-mail.
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