Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender. Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.
You Have Options.
There are several different types of reverse mortgage products. These products offer you flexibility to customize a reverse mortgage specific to your financial objectives. Your Loan Advisor will help you asses your individual situation and recommend a product that best meets your needs.
Three quality products to provide the flexibility to meet your individual needs:
· HUD/FHA Home Equity Conversion Mortgage (HECM) Suite:
This suite of government insured program is subject to HUD/FHA lending limits and provides available funds in a lump sum, line of credit, or monthly income for a fixed term or as long as you live in your home. The flexibility of this product allows for fixed and variable rate plans.
· Fannie Mae Home Keeper:
Government Sponsored Enterprise Program provides cash, line of credit or monthly income subject to Fannie Mae lending limit for as long as you live in your home.
· Financial Freedom Cash Account Advantage:
Proprietary Program provides cash options or lines of credit with emphasis on higher-value homes or for seniors with substantial home equity.
