- REVERSE MORTGAGE INFO
- JUMBO REVERSE MORTGAGES
- HOW DO I QUALIFY?
- FAQ -QUESTIONS PEOPLE ASK
- WHAT ARE THE SAFEGUARDS?
- IS IT RIGHT FOR ME?
- REVERSE PROS AND CONS
- WHEN IS IT DUE?
- HECM COUNSELING
- HECM FOR PURCHASE PROGRAM
- REVERSE MORTGAGE STEPS
- ADVISORS MORTGAGE INFO
- FIRST TIME HOMEBUYERS
- FINDING THE RIGHT LOAN
- VA HOME LOANS
- MANUFACTURED HOMES
- BLEMISHED CREDIT
We help borrowers understand Mortgages.
Help For Mortgages is designed to help all types of borrowers. We cover Reverse Mortgages, First Time Homebuyers, Manufactured Homes, VA Loans, Construction Loans, and other types of mortgages. Click the links above and click MORE for other mortgage products. We are here to help, so give Advisors Mortgage a call!
It's All About Lifestyle
Everyone is different so the needs will be different.
LIFESTYLE and WORKING PAST RETIREMENT
When we speak with senior homeowners about their current financial situation, we like to speak with them about lifestyle. Now, lifestyle and what that means from one person to the next can vary greatly. Lifestyle is your typical way of life. For one person it can mean buying a new car every few years, for another it could mean traveling, for another it can mean enjoying a quiet day alone, and yet to another it's the ability to visit the kids and grandkids halfway across the country whenever you wish.
Being able to enjoy your retirement in the manner you are accustomed to is everyone's desire. But if you've been depending on social security or a pension and find you are still short at the end of the month or won't have enough to retire, a reverse mortgage may provide some options.
What Is a Reverse Mortgage?
Converting Your Home Equity = Financial Freedom
A Reverse Mortgage is a special type of loan for homeowners 62 years of age and above who want to convert part of the equity in their home into tax free cash without having to sell the home, give up title, or take on a new monthly mortgage payment.
A Reverse Mortgage will not affect Social Security or Medicare, and there are no health or minimum credit score requirements. A reverse mortgage can provide peace of mind in your retirement years, and if you are considering moving, you can take out a reverse mortgage purchase on another home (as long as one of your homes is your primary residence).
A Reverse Mortgage frees up the equity in your home that has been sitting there virtually untapped and converts it into tax free cash. This can mean financial freedom and financial stability.
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 checks to support your household bills or accessing your taxable funds, consider the reverse mortgage. After all, your retirement fund is sitting underneath your roof, waiting to be used!
Changing Your Financial Picture
What Would More Money Do For You?
Ever dream of having more cash on hand to enjoy the finer things in life?
Perhaps you just want to rid yourself of that mortgage payment that seems to never go away. Is a reverse mortgage right for you? Maybe it is. It's time your biggest investment, your house, began to pay you back. It just makes sense. Here are a few things you can do with a reverse mortgage:
- Supplement your income
- Refinance an existing mortgage or home equity loan
- Pay off high interest rate credit cards
- Be more financially prepared
- Pay for healthcare
- Cover the cost of in-home care
- Make home improvements or modifications
- Spruce up the house
- Go on vacation or buy a new car
- Pay off credit cards
- Set up a college fund
We have helped senior homeowners who qualified pay off their mortgages, get out of bankruptcy, or renovate their homes. Some have used the funds for in-home care or to purchase a second home. Every need is different, and the choices made are specific to each senior homeowner. We recommend you discuss all your options with your family and your trusted advisors so you can make an informed decision.
Reverse Mortgage Parameters, Options, and Benefits
Here are some of the parameters of the Reverse Mortgage program:
• No monthly mortgage payments
* You continue to pay taxes /homeowners insurance & maintain your home.
• Tax free proceeds - does not affect income tax
• Insured by the Federal Housing Administration (FHA)
• Retain ownership of your home
• No health requirements
• No impact on Medicare or Social Security
Reverse Mortgage Plans:
* Monthly Payment (tenure)
* Cash Out disbursed over 2 years (cash at closing and the remainder 365 days after funding your loan)
* Line of Credit (grows over time)
* Combination of all three
You alone decide how you would like to receive your money.. After you close, you can change how your funds are disbursed. And if you wish, you can make payments on your reverse mortgage though NOT required.
Currently, the lending limit or Maximum Claim amount on the HECM Reverse Mortgage by HUD is $765,600 and will be increasing in 2021 to $822,375. Now, that doesn't mean you receive that ENTIRE amount. It's all dependent on age, interest rates, and the appraised value of your home. However, the older you are, the more money you receive. The best way to determine your proceeds is to receive a no-obligation proposal from Advisors Mortgage.
Reverse Mortgages Questions and Answers - Advisors Mortgage
Why is it called a HECM? What does HECM mean?
Why is it called a HECM? What does HECM mean?
Why is it called a HECM? What does HECM mean?
The name HECM means Home Equity Conversion Mortgage. A reverse mortgage is the conversion of your home's equity and is the reverse of a traditional mortgage. There are no monthly mortgage payments required. Traditional mortgages are paid monthly thereby reducing your debt to the lender.
What if I have a mortgage balance?
Why is it called a HECM? What does HECM mean?
Why is it called a HECM? What does HECM mean?
As long as there is enough equity in your home, you should be able to qualify for a reverse mortgage even if you currently have a mortgage balance. A free proposal from a Reverse Mortgage Specialist with Advisors Mortgage will provide you with helpful information and the options available to you so you can make an informed decision.
Why do I have to complete HECM counseling?
Why is it called a HECM? What does HECM mean?
Can my spouse remain in our home after my passing?
HECM counseling is a required and very important safeguard to the reverse mortgage program. HECM counseling by a HUD approved counselor will provide you with a HECM counseling certificate so your loan can go forward. There is a fee for this service set by HUD. Call Advisors Mortgage to receive a list of HECM counselors in your area.
Can my spouse remain in our home after my passing?
Can my spouse remain in our home after my passing?
Can my spouse remain in our home after my passing?
Whether your spouse is on the reverse mortgage or not, they will be able to remain in the home after your passing. (See your specialist for more details). If you should permanently move to an assisted living facility, they will still be able to remain in the home.
What can I do with my Reverse Mortgage proceeds?
Can my spouse remain in our home after my passing?
What can I do with my Reverse Mortgage proceeds?
It's your equity from your home to use 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.
How do I receive a free consultation?
Can my spouse remain in our home after my passing?
What can I do with my Reverse Mortgage proceeds?
You are entitled to a free reverse mortgage proposal by a Reverse Mortgage Specialist. Request an in-person consultation or a phone consultation to determine how much money you qualify to receive. There is never any obligation.
It's as easy as breaking the piggy bank.
Use Your Own Equity and Enjoy Your Life
Your home's equity is waiting for you to use for your benefit. Why not let your home pay for your retirement? Why not let your home work for you? We have spoken with many senior homeowners who just didn't have enough money for retirement and were thrilled to use their equity for a variety of things. Using a reverse mortgage as a retirement planning tool can change the way you look at retiring. You don't do a reverse mortgage out of desperation, you do it because you realize there is untapped cash under your roof that you can use to enjoy life even more. Reverse mortgages aren't for everyone; study the PROS and CONS. Talk to family and friends. Make sure it's right for you.
Safeguards to Protect You
Here are some of the safeguards to the reverse mortgage program:
No pre-payment penalty, reverse mortgage counseling, government insured and regulated by HUD, FHA mortgage insurance to protect you, 60% cap on proceeds for the first year, non-recourse loan-- you can never owe more than the home is worth, protection for non-borrowing spouses and underage spouses, 3 Day Right of Rescission (cancellation period from day of closing in case you change your mind and wish to cancel.)
A Program That Changes Lives
Borrowers have been able to pay off current mortgages, travel, buy another home, or do a host of things with the money they receive. You can supplement your income and find the time freedom you have longed for. Many homeowners have been helped out of bankruptcy and even foreclosure by a reverse mortgage. Others have postponed collecting social security until a later date thereby increasing the amount of their future social security.
Non Recourse Loan
An important feature of the HECM program is something called "non-recourse." What is non-recourse? Simply put, the house alone stands for the debt. A non recourse debt is a type of loan secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. So this means none of your assets can be used to satisfy the loan whether it's investments, bank accounts, etc. No matter how much money you have in the bank or possess in assets. these can never be used to satisfy your Reverse Mortgage balance.
Additionally, you can never owe more than the house is worth. A reverse mortgage is a loan in which the lender may look only to the property for repayment even IF the loan balance goes beyond the value of the home. If you sell the home or if all the borrowers pass away, you (or your heirs) will never owe more than the balance of the reverse mortgage or the value of the property, whichever is less. And again, the house ALONE stands for the debt. Your heirs are also not responsible for the debt as they are not the borrower who took out the Reverse Mortgage.
Selling: If you should sell your home for less than what is owed to the lender, FHA mortgage insurance will cover the difference. You will not be responsible for paying that difference nor will your heirs. But where is this found in my mortgage documents? The portion of your application as well as the closing document entitled HOME EQUITY CONVERSION MORTGAGE DEED OF TRUST states in 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."
Pay What You Want or Pay Nothing!
With a reverse mortgage, you are not required to make any monthly mortgage payments. However, if you so desire, you can opt to pay any amount you choose thereby protecting some of the equity in your home. You can pay all or part of your HECM loan any time you please as there is no pre-payment penalty on this loan.
NOTE: A Reverse Mortgage is not for everyone. Please refer to our Pros and Cons page and Frequently Asked Questions for more information.
Jumbo Reverse Mortgages - Purchase or Refinance
Additional Information
If you are looking for information on JUMBO Reverse Mortgages, click link to the right. Note: New York Reverse Mortgages JUMBOS are now available! The JUMBO minimum home value is $500,000 with a maximum loan amount of $4,000,000 and maximum appraised value of $10,000,000. One to four family homes are eligible for this program. Closing costs are amazingly low, and you can use the JUMBO program to refinance or purchase a home (as long as it's your primary residence.) Click the JUMBO REVERSE MORTGAGES link at the right to learn more. (All Jumbo Reverse Mortgages are arranged through third party providers.)
Jumbo Reverse Mortgages
With the proprietary Jumbo reverse mortgage, you can upgrade to a new home with the purchase program or refinance your current home. You have options!