Help For Mortgages provides helpful information for all types of mortgages. Advisors Mortgage, a 23- year old mortgage banker, offers Reverse Mortgages, VA Loans, FHA Loans, Construction Loans, Conventional, and other types of mortgages. We begin with a focus on Reverse Mortgages.
LIFESTYLE and WORKING PAST RETIREMENT
Many seniors are continuing to work past retirement age these days. Lifestyle is defined as your typical way of life, but lifestyle and what that means from one person to the next can vary greatly. If you've been depending on social security or a pension and won't have enough money for a comfortable retirement, a reverse mortgage may offer some options. If you are financially comfortable but want to leverage the equity in your home rather that exhausting your investment portfolio, a reverse mortgage is worth your consideration.
A Reverse Mortgage is a special type of loan for homeowners age 62 years and above who want to convert part of the equity in their home into tax-free cash without having to sell the home or take on a new monthly mortgage payment. The correct name of the program is HECM, Home Equity Conversion Mortgage. And you can refinance or purchase a home with a reverse mortgage.
HUD Regulates the HECM and FHA Insures Them - HUD, Housing and Urban Development, oversees reverse mortgages and FHA, Federal Housing Administration, insures them as all FHA loans are insured by the federal government.
There are no monthly mortgage payments required with a reverse mortgage.
However, you have the option of making mortgage payments any time you like in order to protect some of the equity in your home. Pre-payment penalties are also not a feature of reverse mortgages!
You retain ownership of your home, and you remain on title. It is a myth that you lose title to your home if you obtain a reverse mortgage.
A Reverse Mortgage will not affect Social Security or Medicare.
Reverse mortgage proceeds are not considered income, but there are certain parameters of which you must be aware regarding financial assistance programs.
With a Reverse Mortgage, the older you are, the more money you receive. At present, the maximum FHA lending limit is $1,089,300. The cash out on a Reverse Mortgage depends on a few factors:
1. age of the youngest borrower
2, appraised value of your home
3. current interest rates
4. balances on current liens and mortgages
NOTE: Your eligibility for certain government programs such as Medicaid, Supplemental Security Income (SSI), or community assistance programs may be affected by having a reverse mortgage. If your loan proceeds are sitting in your bank account, they could be counted as assets and affect your Medicaid eligibility. (Consult with your financial advisor and Medicaid).
Non-borrowing spouses (under age 62) can remain in the home after your passing. If your spouse is underage and you pass away, your spouse can continue to live in the home as their primary residence.
A Reverse Mortgage frees up the equity in your home that has been sitting there untapped and converts it into tax-free cash. If you don’t have a savings cushion, if you don’t have a diverse portfolio of assets, if you are relying on social security or accessing your taxable investment funds, consider the reverse mortgage.
FOR HOW TO QUALIFY FOR A REVERSE MORTGAGE, CLICK BELOW.
Ever dream of having more cash on hand to enjoy the finer things in life?
Reverse Mortgage Options :
* Monthly Proceeds for life (tenure)
* Cash Out - disbursed over 2 years (first draw at closing and the remainder 365 days after funding)
* Line of Credit with a growth rate on the unused portion of monies at the current rate PLUS 1/2%
(Only offered on the adjustable rate)
* Combination of all three plans
NOTE: Fixed Rate HECM's do not offer a line of credit.
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Because the HECM loan does not require any monthly mortgage payments, it is called a rising debt loan or a rising balance loan, the opposite of a typical mortgage where you make monthly mortgage payments and the balance does down. For this reason, the reverse mortgage balance can potentially end up higher than the value of your home. However, written into the HECM transaction and jumbo reverse is an important safeguard called "non-recourse." Simply put, the house stands for the debt. You can never owe more than the home is worth no matter the balance.
You are NOT personally responsible for the reverse mortgage debt nor are your heirs.
Non-recourse debt is a type of loan secured by collateral which is usually real property. In the case of mortgages, the collateral is your home. A reverse mortgage is a loan in which the lender may look only to the property for repayment of the debt even IF what is owed the lender is more than what the home is worth. None of your assets can be used to satisfy the reverse mortgage debt. The reverse mortgage closing documents state clearly that the borrower has no personal liability for the reverse mortgage debt: THE HOME STANDS FOR THE DEBT. THE HOME IS THE ONLY COLLATERAL.
HOME EQUITY CONVERSION MORTGAGE DEED OF TRUST - Section 11:
"No Deficiency Judgment. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Commissioner upon demand by the Commissioner, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment."
The name HECM means Home Equity Conversion Mortgage. A reverse mortgage is the conversion of your home equity into usable tax-free proceeds and is the reverse of a traditional mortgage. There are no monthly mortgage payments required with a reverse mortgage, and the proceeds are tax free. (SEE FAQ-QUESTIONS PEOPLE ASK)
Yes and no. It all depends on how much you owe in mortgages and liens and if there is enough equity left for a reverse mortgage. Qualifying takes into consideration how much equity remains. A free proposal from a Reverse Mortgage Specialist with Advisors Mortgage provides helpful information so you can make an informed decision.
Reverse mortgage counseling is a requirement of the reverse mortgage program. Whether HECM or Jumbo Reverse, counseling by an independent HUD-approved counselor will provide you with information and a counseling certificate so your loan can move forward. Call Advisors Mortgage to receive a list of counselors along with their fees.
If your spouse is underage (62 years of age), they are considered a non-borrowing spouse and will be able to remain in the home as their primary after your passing. If you should permanently move to an assisted living or mental health facility, they will still be able to remain in the home. (See your mortgage specialist for more details and our FAQ page).
You can use your proceeds any way you choose. It's your equity from your home that you are borrowing so you can use it however you see fit. Buy a new car, take the kids and grandkids on vacation or just enjoy your retirement. A reverse mortgage is designed to make life easier while giving you the freedom to do the things you've been wanting to do.
You are entitled to a free reverse mortgage proposal from an Advisors Mortgage loan specialist. Call or fill out our form to request a free, no-obligation consultation so you can determine how much money you qualify to receive. Without seeing numbers, how can you tell if a reverse mortgage is right for you?
We hear the phrase, "It's too good to be true" all the time. Although the reverse mortgage is not the perfect vehicle for every senior homeowner, it is a wonderful product for the right borrower. The reverse mortgage is good and for all the right reasons. It's a program designed for senior homeowners whose goal is to remain in their homes and also improve their quality of life. The only federally insured reverse mortgage is the FHA HECM, Home Equity Conversion Mortgage, insured by the FHA (Federal Housing Administration) and regulated by HUD (Housing and Urban Development).
When did the FHA-INSURED HECM Start?
The reverse mortgage is not new, but the FHA HECM had its inception in 1987 when the 100th Congress passed the Housing and Community Development Act. The act was signed into law by President Ronald Reagan in February 1988. The law gave the Department of Housing and Urban Development the authority to extend FHA insurance coverage to also include reverse mortgages. FHA mortgage insurance has given the HECM program credibility. The federally insured reverse mortgage should inspire confidence from all those considering a reverse mortgage for their home.
Reverse mortgages have helped over 1 million seniors to have confidence in their future. The reverse mortgage can be a channel to financial independence and provide peace of mind in your retirement years. If you are at least 62 years of ago, own your own home, and have equity in your home, we'd like to send you a free proposal.
Naturally, not everyone can benefit from reverse mortgages in the same way, and there is a cost to getting a reverse mortgage. There are qualifying factors with all mortgages, and reverse mortgages are no different. But they are viable, and they do work in many situations. Reverse mortgages have saved the lives of countless seniors facing foreclosure and put a spring in the steps of many seniors who didn't know where to turn for some needed cash. For the right person, a reverse mortgage can be life-changing.
Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044
Home Equity = Your Retirement Plan
Piggy banks serve one purpose, to give back what we have saved over time. Did you ever think of your home as a piggy bank? Well, it is. It is your home's equity that you have "saved" over time which is available to you as your retirement plan". Why not use your home as your personal retirement plan and let your home work for you? Whatever your reason for examining reverse mortgages, your retirement plan might be wrapped up in your home. You decide.
Proprietary or jumbo reverse mortgages may be used for purchasing or refinancing a home with a minimum home value of $500,000 and a maximum home value of $10,000,000. Maximum loan amounts are $4,000,000. One to four family homes are eligible for this program along with qualified condominiums. For jumbo reverse info, click here: JUMBO REVERSE MORTGAGES . (All Jumbo Reverse Mortgages are arranged through third party providers.)
With the proprietary reverse mortgage, you can refinance your current home, purchase a new home or downsize to a lower-cost home.
3265 Merrick Road, Wantagh, NY 11793
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