Reverse Mortgages

Unlocking the equity in your home can be a valuable tool to budget for your retirement.  Talk to me about what a reverse mortgage financially looks like for your individual situation.  Prior to mortgage lending regulation laws in 2008 Reverse mortgages were known as predatory and "bad" .  There are many laws in place to make this a safe and fair lending product now and the consumer is protected..

• 62 years / 55 years -minimum age qualifications

• Works only if your heirs understand that you want to use part of the equity in your home to live on vs them inheriting all of the equity when you die.   It works if your heirs do not want to inherit and live in the family home.

• Do not have to have a paid in full home!   You can have your new reverse mortgage pay off existing mortgage balance.

• Can do a reverse purchase if you do not want to pull all of your $$ to buy a house in cash

• The family will be able to sell the property and inherit any remaining equity after paying off the reverse mortgage balance.

• The family will never owe more if the house is in a negative equity position- Non recourse loan!

• CAN make mortgage payments if you want to to offset negative amotorization and keep payoff amount lower.  No pre-payment penalties.

• Multiple payment methods possible (lump sum, monthly payments, line of credit, etc.) Interest does not get charged unless you draw from the line of credit and have a mortgage balance.

• CAN set up as monthly income

• NON TAXABLE income.  Stop paying taxes on draws from retirement account

*** A reverse mortgage generally does not affect Social Security or Medicare benefits, as these programs are not based on income or assets. However, a reverse mortgage can impact needs-based programs like Medicaid or SSI, as unused proceeds (remaining line of credit)  can be considered assets. The more equity you have, the more assets you have according to these programs***

 This is an example of approx cash to close you would need on a Reverse purchase.  Exact terms will be disclosed for your property and loan: