Top 10 Features of a Reverse Mortgage

The Top 10 Features of Reverse Mortgages we’ve identified are listed below. We hope the list provides a helpful perspective for borrowers considering a reverse mortgage loan.

1. It's Income Inclusive

The HECM reverse mortgage loan may be utilized by borrowers of various income levels.

2. It's Ownership Respectful

HECM loans are respectful of borrowers desire to maintain title and ownership of their homes. The bank does not own the home as long as the loan conditions are being met.

3. It’s Retirement Strategic

HECM Reverse Mortgages may be integrated with your Retirement Plan to produce results that more closely align to your overall long-term goals.

4. It's Location Flexible

The HECM for Purchase is a member of the HECM Reverse family product. It’s specifically designed to facilitate the sale of  your current home and the purchase of a new home, allowing borrowers to relocate to a home that better meets their needs. Including moving closer to family or downsizing to a smaller home.

5. It's Asset Freeing

By Eliminating your monthly Principal and Interest mortgage loan payments, the assets used to pay for them, become free to be used on other priorities of your choice. (This loan does not eliminate property tax, insurance or HOA payments)

6. It's Growth Equitable

A HECM Reverse allows the refinance of your current mortgage loan or HELOC (Home Equity Line Of Credit) and as the equity in your home increases, options exist that allow for the refinance of your reverse to get more money.

7. It's Circumstance Accessible

As we age we may find that our circumstance warrent a smaller or larger home. The Reverse for Purchase loan offers access to qualified homeowners who prefer to rightsize their home while taking advantage of the HECM features.

8. It's Choice Optional

You have choices when it comes to how you receive your money:

  • Receive monthly tax free payments – This payment can be for the rest of your life or customized for a certain period of time you prefer
  • Setting up a Line of Credit which grows over time – You can draw funds from this line at any time and for any reason
  • Receive all available funds in one lump sum, giving you complete control over access and use of your money
  • You also have the option to receive your funds as a combination of cash, plus monthly payments, plus credit line
9. It's Non Penalizing

There is no recourse to Owners or Heirs ( if the loan amount exceeds the home’s value, the lender cannot go after the rest of the estate or the heirs’ other assets for payment – You could lose your home to foreclosure if you fail to pay property taxes, homeowners insurance, HOA fees or maintain your home in accordance with the required guidelines)

10. It's Use Discretionary

The borrower has the discression to use the proceeds for what they want or need

Find out how much you may qualify for by completing the calculator form 

or call us at (800) 779-1020

Important Disclosure

  1. The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and
  2. Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
  3. The loan balance grows over time and interest is charged on the outstanding balance
  4. At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
  5. Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.

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5 Important Things To Understand As You Consider A HECM Reverse Mortgage Loan

1

At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.

 

2

Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.

 

 

 

3

The loan balance grows over time and interest is charged on the outstanding balance.

 

 

 

4

The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home;

 

 

 

5

Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.