• REVERSE MORTGAGE INFO
  • HOW DO I QUALIFY?
  • REVERSE MORTGAGE MYTHS
  • REVERSE PROS AND CONS
  • WHAT ARE THE SAFEGUARDS?
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • WHEN IS IT DUE?
  • HECM COUNSELING
  • HECM FOR PURCHASE PROGRAM
  • JUMBO REVERSE MORTGAGES
  • REVERSE MORTGAGE STEPS
  • ADVISORS MORTGAGE INFO
  • DOCUMENTS-UNDERWRITING
  • MORTGAGE LOAN ORIGINATOR
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • FREE QUOTE!
  • More
    • REVERSE MORTGAGE INFO
    • HOW DO I QUALIFY?
    • REVERSE MORTGAGE MYTHS
    • REVERSE PROS AND CONS
    • WHAT ARE THE SAFEGUARDS?
    • FAQ -QUESTIONS PEOPLE ASK
    • IS IT RIGHT FOR ME?
    • WHEN IS IT DUE?
    • HECM COUNSELING
    • HECM FOR PURCHASE PROGRAM
    • JUMBO REVERSE MORTGAGES
    • REVERSE MORTGAGE STEPS
    • ADVISORS MORTGAGE INFO
    • DOCUMENTS-UNDERWRITING
    • MORTGAGE LOAN ORIGINATOR
    • FIRST-TIME HOMEBUYERS
    • FINDING THE RIGHT LOAN
    • VA HOME LOANS
    • MANUFACTURED HOMES
    • BLEMISHED CREDIT
    • FREE QUOTE!
  • REVERSE MORTGAGE INFO
  • HOW DO I QUALIFY?
  • REVERSE MORTGAGE MYTHS
  • REVERSE PROS AND CONS
  • WHAT ARE THE SAFEGUARDS?
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • WHEN IS IT DUE?
  • HECM COUNSELING
  • HECM FOR PURCHASE PROGRAM
  • JUMBO REVERSE MORTGAGES
  • REVERSE MORTGAGE STEPS
  • ADVISORS MORTGAGE INFO
  • DOCUMENTS-UNDERWRITING
  • MORTGAGE LOAN ORIGINATOR
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • FREE QUOTE!


Reverse Mortgage Pros

How to Decide if the Pros Outweigh the Cons

When you are considering a reverse mortgage, you need to review the reverse mortgage pros and cons. Is there a good reason for me to consider a reverse mortgage? Will I be able to maintain my home and pay my taxes and insurance? Review the following information which can aid you in your decision.

The PROS of Reverse Mortgages:  

• The HECM Line of Credit (LOC) option has many advantages for the senior borrower. First, the line of credit grows over time at the SAME EXACT rate as the interest rate on the loan. If you let the line sit there untouched for say five or ten years, it will be substantially larger at the end and ready for you to use. (See next section.) 


• Tax free income insured by the Federal Government which continues as long as your home is your primary residence. Freedom from stress and worry.

• Change your plan at any time from a line of credit to monthly proceeds or a combination (depending on what remains.)  

• Unlike an equity loan there is no health requirement and no minimum credit score score requirement, although a credit report is required on all loans.

• A great option for seniors wanting to remain in familiar surroundings and in the same community where they've lived for years.

• Moving from one's home can cause emotional turmoil and stress for many senior homeowners. Memories were made in your "home sweet home" and proximity to loved ones may seem a much better option.

• Reverse mortgages can eradicate existing monthly mortgage payments or other debt.  NOTE:  These debts will be transferred to your reverse mortgage and interest will accrue throughout the life of the loan.

• Moving from one's home can cause emotional turmoil and stress for many senior homeowners. Memories were made in your "home sweet home" and proximity to loved ones may seem a much better option.    


• Reverse mortgages can eradicate existing monthly mortgage payments or other debt such as collections or liens which must be paid at closing as the reverse mortgage is the only lien permitted at closing.  NOTE: These debts will be transferred to your reverse mortgage and interest will accrue throughout the life of the loan thereby causing the balance to increase instead of decrease.  


• You can remain in your home as long as you wish no matter what is owed the lender. You can never be forced out of your home as long as your real estate taxes and homeowner's insurance are paid and as long as you maintain your home according to FHA requirements.   


• You can refinance your reverse mortgage as many times as you like as long as there is enough equity in your home to do so and if all the required HUD rules for the HECM refinance indicates a significant benefit to the borrower.  


Please refer to FAQ-Questions People Ask for questions and information about the reverse mortgage program, when it becomes due, etc.

Reverse Mortgage Pros Continued

•  You can never owe more than your home is worth. This is called a non-recourse loan with no deficiency judgment and where the home as the collateral stands for the debt. Upon your passing, the reverse mortgage debt will not pass to your estate, and they will only be required to pay back the debt should they wish to sell or keep the home.


• Further, none of your assets can be attached to repay the reverse mortgage debt.  Whether you have bank accounts or investments, they cannot be used to satisfy the reverse mortgage balance. Again, the house stands for the debt as the home is the ONLY collateral that was used to secure the reverse mortgage as the "security interest" (an enforceable legal claim or lien on collateral that has been pledged).  Your HECM closing documents contained in the Mortgage Note states: "11. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument." So the note clearly states you are not personally responsible for the reverse mortgage debt.   


• Reverse mortgages have safeguards: capped interest rates, a limitation on fees, HUD counseling, asset protection (non-recourse loan), no maturity date (cannot become due during a borrower's lifetime unless a default takes place or all borrowers leave the premises as their primary home for longer than 12 consecutive months). 


Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044 

WHAT ARE THE SAFEGUARDS-CLICK HERE

HECM Line of Credit - The Advantage of Growing Your Money

Having an Advantage That Works

Not having to pay any monthly mortgage payments on the HECM is a great advantage. But what's even better is the LOC, Line of Credit feature. You can draw on your credit line whenever the need arises whether to enjoy life more or just to pay some bills. Here are some of the advantages of the HECM line of credit as compared to a HELOC/Home Equity Line of Credit:


Both the reverse mortgage line of credit and the conventional HELOC only accrue interest on monies drawn. But only the reverse mortgage line of credit has a growth rate on the unused portion of funds. The unused HECM line of credit grows over time at the compounding interest rate charged on the loan plus 1/2%. This gives borrowers greater borrowing power as the amount of money available for future access grows larger year after year. So, for example, if you took out the HECM line of credit at age 62 or 65 and left it untouched for 10 or 15 years, your money would have grown considerably. At that point, you can withdraw all or part of your remaining line of credit. (On the FHA HECM, the second draw of funds from the line of credit would occur 365 days after the funding of your loan).


Another advantage to the program is that the HECM line of credit stays open and cannot be closed at the lender's discretion.  The line of credit stays open so the funds are there when you need them.

Maximizing Your Portfolio With a HECM

Market Swings Can Be Offset by the HECM

Market Swings Can Be Offset by the HECM

Market Swings Can Be Offset by the HECM

Financial planners used to give reverse mortgages a bad rap, but since the HECM safeguards have been enhanced from what they were before, this is no longer true. Reverse mortgages can be a valuable financial planning tool which can help retirees cover many of their lifestyle expenses  and also enhance their retirement portfolios. Speak with your financial planner and advisor about the reverse mortgage and get their professional inion.

Sooner Than Later - the HECM Advantage

Market Swings Can Be Offset by the HECM

Market Swings Can Be Offset by the HECM

Rather than obtaining your reverse mortgage out of sheer need or waiting till you are older, some financial planners suggest taking it out earlier to avoid future financial difficulties.  Additionally, taking out the HECM sooner than later maximizes the growth of the HECM line of credit for those with significant equity.  After a 5 to 10 year growth rate on your line of credit, the amount available in the line would be larger, therefore, the line of credit is a great option for those not needing the money right away.

Your Retirement Income Plan - Line of Credit

Your Retirement Income Plan - Line of Credit

Your Retirement Income Plan - Line of Credit

HUD has designed the reverse mortgage to ensure borrowers have all the resources they need to fulfill all the requirements of the loan as it progresses throughout their lifetime. Many financial planners who study income plans now see the benefits of a reverse mortgage and the advantages of using the home's equity for retirement income. Be sure to discuss your options with your family and financial advisor.



Free Quote - No Obligation

Your Retirement Income Plan - Line of Credit

Your Retirement Income Plan - Line of Credit

Advisors Mortgage will provide you with a free HECM or proprietary jumbo proposal, and since this loan can be tailored to YOUR financial needs, we will work up different scenarios so you can choose which one works best for you.  Advisors Mortgage is here to a answer your questions and concerns. Be among the many who enhanced their lifestyle and retirement portfolio with a reverse mortgage.

Reverse Mortgage Cons

HECM = Higher Closing Costs

Can Reduce Heirs' Inheritance

Can Reduce Heirs' Inheritance

  • A Reverse Mortgage has all the typical closing costs one finds with a typical FHA mortgage, but FHA HECM mortgage insurance premium fees are higher. The HECM has FHA mortgage insurance added at the outset of the loan and ongoing throughout the life of the loan. These are not out of pocket expenses. Instead, they are rolled up into the loan, but it's still a cost.   

Can Reduce Heirs' Inheritance

Can Reduce Heirs' Inheritance

Can Reduce Heirs' Inheritance

  • A Reverse mortgage can reduce your children's and grandchildren's inheritance because a reverse mortgage is a rising debt loan since no monthly mortgage payments are required, and the balance increases over time. Since there are no mortgage payments required, it is the opposite of a typical mortgage where equity increases as mortgage payments are made.    

Tenants Will Have to Vacate

Can Reduce Heirs' Inheritance

Short-Term Reverses Don't Work

  • If you have tenants or a relative or friend living with you who depends on you for their living arrangements and you pass away, they will have to vacate the premises unless they are over 62 years of age, named in the will, and want to obtain a loan or a reverse mortgage. When considering situations such as this, and depending on your relationships, a reverse mortgage might not be the best option..

Short-Term Reverses Don't Work

Your Home Must Be Your Primary

Short-Term Reverses Don't Work

  • Selling your home can provide a greater return on your investment than a Reverse Mortgage. • Moving from your residence in less than five years makes a Reverse Mortgage impractical. It does not make good sense to use a Reverse Mortgage short term due to the closing costs which you have paid.  

You COULD Lose Your Home!

Your Home Must Be Your Primary

Your Home Must Be Your Primary

  • If you fail to pay your real estate taxes or homeowner's insurance or neglect to maintain your home, you could lose your home. You and the lender will ascertain if setting up a LESA, Life Expectancy Set Aside at the outset for taxes and insurance will be in your best interest. You will not have to worry about paying these; the lender, from the set aside, will pay them for you 

Your Home Must Be Your Primary

Your Home Must Be Your Primary

Your Home Must Be Your Primary

  • Borrowers are required to live in the home as their primary residence at least 6 months of the year.  Also, if all borrowers leave the primary residence for a period exceeding 12 consecutive months, the reverse mortgage will become due and a demand for payment will be made by your lender. (Nursing home, assisted living, mental health facility, passing away.)  

Selling the Home=Better Proceeds For You

Your Heirs May Want to Keep Your Home - BUT

Your Heirs May Want to Keep Your Home - BUT

  • Selling your home can usually provide a greater return on your investment than a Reverse Mortgage by taking advantage of more of the home's equity that the reverse mortgage limits. You could sell your home to your children or sell the house outright and downsize to a more affordable home. Many senior homeowners rent after selling and find they have more spendable cash without having a mortgage ( if one was in place before).

Your Heirs May Want to Keep Your Home - BUT

Your Heirs May Want to Keep Your Home - BUT

Your Heirs May Want to Keep Your Home - BUT

 

  • If your heirs wish to benefit from your home after your passing, they can sell the property and keep the remaining equity or they can get their own mortgage on the home. If your heirs wish to keep the property, they can repay the amount that is owed or 95% of the current value, whichever is less.   In selling, the lender will accept the proceeds from the sale, and FHA will cover the remaining loan balance.  

Medicaid Eligibility May Be Affected

Your Heirs May Want to Keep Your Home - BUT

Medicaid Eligibility May Be Affected

 

  • Medicaid and other financial assistance programs may be affected, and you may not qualify for benefits unless you spend down your Reverse Mortgage proceeds each and every month. Your reverse mortgage is not considered income but can be viewed as assets.  (Check with your attorney and Medicaid to discuss Medicaid's parameters). ..

Another alternative for borrowers who only need a little cash for renovation or home improvements:


  • To help the seniors, the government offers home improvement grants for seniors. These grants are useful to help the seniors to pay the fees for home improvement. By using those grants, it is possible for you to reduce the overall cost of the repair. Contact your local municipality or community assistance organization to find programs for doing repairs on your home that may not be required to be paid till you move out of the home, refinance, or pass away. The National Council on Aging can help or your local office for the aging. 

When Not to Get a Reverse Mortgage

Things to Consider

• An equity loan (if you qualify) may be a cheaper way of getting cash out of

your home as closing costs will be lower.


• If your primary goal is fixing up your home and a community loan can provide

adequate funds, a Reverse Mortgage is not your best option.


• If you are ill or disabled and assisted living or a nursing home is imminent, do

not choose a Reverse Mortgage. If you leave your premises for 12 consecutive month, the loan will be called and will need to be repaid.


• If your financial situation will preclude you from paying real estate taxes,

insurance, and maintaining your home, forego a Reverse Mortgage. You don't want to get into trouble. If possible, opt for a LESA, a Life Expectancy Set Aside so the lender will take care of paying them for you throughout your loan. (Refer to FAQ-Questions People Ask for more info.)


• If your children invite you to live in their home and spend your remaining years with them.  Many seniors find themselves able to move in with their children and also benefit their heirs in doing so.


HECM COUNSELING IS REQUIRED. Your counselor will aid you in determining how well a reverse mortgage will work for you and go over alternatives.  The reverse mortgage cannot proceed without this important HUD-required safeguard.



Everything in life deserves thought.

Whether it's a mortgage or another important matter that requires a decision, thinking deeply has to be part of the equation. Thoroughly comparing the advantages and disadvantages of something will usually produce a good decision.  What is good for one person may not be good for someone else. It all has to do with YOUR perspective, the way you look at things, and what best works for you. We all see the world differently.  We weigh our circumstances and consider our options. Consider the reverse mortgage.  It might not be for you, then again, it just might work to your benefit.


Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044  

IS IT RIGHT FOR ME?-CLICK HERE

Asking the Right Questions

Asking the right questions can help you determine if a Reverse Mortgage is the right vehicle for you. After all, a Reverse Mortgage is not for everyone. 


* Am I going to stay in my home for the foreseeable future?  

* Am I wanting to leave my home to my children and grand children?  is a reverse mortgage a good idea?

* Do I understand the expenses of getting a reverse mortgage?

* Am I concerned for a relative or friend whose living arrangements will change when I pass away?

* Am I able to maintain my home in an adequate fashion and pay my taxes and insurance or would I run into trouble? Do I understand that I could lose my home if I fail to pay my taxes and my property insurance?

* Have I considered other options besides a reverse mortgage?

* How would my life change if I could get rid of my mortgage payments or have money left over each month to do the things I've been wanting to do? Will the reverse mortgage change my life enough to warrant getting a reverse mortgage?


All these questions are legitimate questions senior borrowers might consider.  Consult with family and trusted advisors.  A free quote will give you the numbers and figures so you will see firsthand how much money is available to you. 



CARING, PROFESSIONAL, PRIVATE. SERVICE AFTER YOU CLOSE.

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3330 Park Avenue, Suite 1, Wantagh, New York 11793, United States

We can help answer ALL your mortgage questions!


  • REVERSE MORTGAGE INFO
  • HOW DO I QUALIFY?
  • REVERSE MORTGAGE MYTHS
  • REVERSE PROS AND CONS
  • WHAT ARE THE SAFEGUARDS?
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • WHEN IS IT DUE?
  • HECM COUNSELING
  • HECM FOR PURCHASE PROGRAM
  • REVERSE MORTGAGE STEPS
  • ADVISORS MORTGAGE INFO
  • DOCUMENTS-UNDERWRITING
  • MORTGAGE LOAN ORIGINATOR
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • FREE QUOTE!

  •  ADVISORS MORTGAGE GROUP, LLC.,  WE TAILOR LOANS TO MEET YOUR NEEDS -- Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793 - Phone:  888-843-9797 or direct: 631-804-9044  -  Licensed by the New York State Department of Financial Services, Licensed Mortgage Banker. Licensed by the New Jersey Dept of Banking and Insurance, Licensed by the Florida Office of Financial Regulation, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. , Licensed by Texas Dept. of Savings and Mortgage Lending,   IMPORTANT NOTE: FOR CONCERNS OR COMPLAINTS, PLEASE CONTACT: ADVISORS MORTGAGE GROUP, LLC.,  800-778-9044


 

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