STAY IN YOUR HOME, OWN YOUR HOME AND GET RID OF MONTHLY MORTGAGE PAYMENTS!
Reverse Mortgages enable homeowners age 62 and over to borrow against the equity in their homes without having to sell the home, give up the title or assume a new monthly mortgage payment. The name “reverse mortgage” is appropriate because the payment flow is reversed: instead of you making monthly payments to a lender (like a regular mortgage), the lender makes payments to you.
What is a Reverse Mortgage?
Reverse Mortgages were created for those who want a secure way to supplement their retirement income. They enable homeowners age 62 and over to borrow against the equity in their homes without having to sell their home, give up the title to it or assume a new monthly mortgage payment. The most basic definition for a reverse mortgage is “a mortgage that allows for deferred repayment.
WHO THEY'RE FOR:
- Homeowners at least 62 or older with built-up home equity
- Senior homeowners in need of cash flow to cover other expenses
- Senior homeowners who want to eliminate mortgage payments
- Borrowers who want to have improved quality of life
WHAT ARE THE BENEFITS?
- No more mortgage payments for life
- Supplement retirement income
- Make home improvements or repairs
- Pay property taxes
- Cover or pay off medical expenses
- Ability to travel
There are 2 basic types of reverse mortgages to consider:
- Home Equity Conversion Mortgage, known as HECM, are what make up the majority of Reverse Mortgages in today’s market. These are insured by the Federal Housing Administration (FHA) and are regulated by Housing and Urban Development (HUD). The HECM can typically offer more flexibility to the borrower by offering Lump Sum, Monthly Payments or a Line of Credit depending on what the client needs or wants.
- Private or Proprietary products have recently become more popular and are designed to fit clients with homes that are higher in value than the average home. We have found this product starts to work best for homes over $900,000.
The property can be a single-family or a two-to-four unit dwelling. This includes detached homes, townhomes, condominium units, planned unit developments (PUDs) as well as most manufactured homes built after June 1976. The property must be the borrower’s primary residence and meet HUD minimum property standards (in some cases, home repairs can be made after the closing of the HECM).
Yes: In this case we simply use the reverse mortgage proceeds to pay off and replace the existing mortgage as well as any other liens on the property. This scenario is very typical of how to utilize the reverse mortgage loan.
There are no monthly payments due on a Reverse Mortgage as long as it remains outstanding. The loan is due and payable only when you no longer occupy the property as your principal residence or fail to comply with the loan agreement. There is no requirement that the property be sold, only that the loan be repaid. If the home is sold and proceeds from that sale exceed the amount owed on the Reverse Mortgage, that excess money goes to you or your estate.
There are no restrictions on how it can be used because the money is 100% yours. You can use the proceeds any way you want, including to pay off existing bills and credit cards, remodel your home, buy a car, take a vacation or simply to retire in comfort.
For additional information or to schedule a complimentary consultation on the benefits of a Reverse Mortgage, simply complete the form below and then click the Submit button, or call us now at 503.636.6000 for more information. We look forward to partnering with you to achieve your goals!
No! You retain 100% ownership of your home. You can sell it, remodel, refinance and pass it along to heirs if you choose.
You can choose to receive the money in a one-time lump sum payment or as a series of monthly payments. There is also the option of a line of credit that allows you to take funds only when you need them.
One of the most common uses for a reverse mortgage is to replace current mortgages on the property so that clients no longer have to make a monthly mortgage payment.