We Help Borrowers Understand All Types of Mortgages.
Help For Mortgages provides helpful information for all types of mortgages. Advisors Mortgage, a 23- year old mortgage banker, offers mortgages for first time homebuyers, Reverse Mortgages, VA Loans, FHA Loans, Construction Loans, Conventional Loans. We begin first with a focus on Reverse Mortgages. Be sure to CLICK links above for other mortgage info.
The Reverse Mortgage Program: A reverse mortgage is a way to glean equity from your home using your home as collateral and turning it into tax-free cash! This is done without having to pay monthly mortgage payments or give up title on your home! The "reverse mortgage" is the popularized name of a mortgage program for senior homeowners who want to remain in their home.
The only reverse mortgage insured by the FHA, Federal Housing Administration, is the Home Equity Conversion Mortgage (HECM) and is only available through an FHA-approved lender such as Advisors Mortgage. The HECM is a flexible program offering various options for your proceeds.
Over the past fifty years, ever since the very first FHA-insured reverse mortgage closed in 1988, reverse mortgages have been enhanced to provide all the safeguards you'd want in a mortgage:
* Independent, HUD required reverse mortgage counseling
* Caps on interest rates
* Clauses in the closing documents to protect borrowers from ever owing more than the home is worth
* Keeping borrowers on title as owners of their own property
According to the National Council on Aging, one third of senior households have no extra cushion at the end of the month and may even be in debt after meeting essential monthly expenses. It's often referred to as "more month left at the end of the money". This is hardly the retirement many seniors dreamed about.
"Why not let your home pay you back?" Perhaps, this is a concept you've never considered. You've cared for your home over the years, yet your home has never paid you back. Tapping into the equity in your home can mean a more comfortable retirement. Paying off credit card debt or a mortgage are all possible if there is sufficient equity in your home. A reverse mortgage can be a helpful financial tool to enhance your lifestyle for the better.
The Reverse Mortgage Explained
A reverse mortgage is a special type of loan which enables homeowners age 62 and above 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 qualifications or stipulations on the use of the proceeds. And although no monthly mortgage payments are required, you are free to make mortgage payments at any time throughout the year. The best part is that if there is sufficient equity in your home, you can rid yourself of mortgage payments forever and even buy a home with a reverse mortgage!
Currently, the federally insured reverse mortgage or Home Equity Conversion Mortgage (HECM) is managed by the Department of Housing and Urban Development (HUD) and insured by the FHA. Here are the qualifications:
* Be at least 62 years of age at closing and own your own home
* Reside in a single family home as your primary residence
* Home Type: 1-4 unit properties (you must live in one of the units), FHA-approved condos, PUDs, manufactured homes, some mixed-use
* New home type for New York: reverse mortgages are now approved for NY on COOPERATIVES (coops).
(These are proprietary reverse mortgage products, not FHA.)
* Reverse mortgage counseling is required
* You cannot be delinquent on any federal debt
If your home is valued at over $500,000, there is a proprietary reverse mortgage available. A reverse mortgage comparison will outline which program is best for you whether FHA HECM or a proprietary reverse jumbo (SEE BELOW - JUMBO REVERSE MORTGAGES).
As long as there is enough equity in your home, you may be able to pay off credit card debt and even your current mortgage. Your reverse mortgage proceeds are your money to use as you wish. It's your equity. Ask yourself if having more spendable cash would change your life for the better.
Have you been putting off traveling, buying a new car or traveling? A reverse mortgage can change your financial situation with either cash out or a monthly stipend. You can also establish a line of credit or you can choose a combination of all three options.
Senior borrowers often renovate their homes with their reverse mortgage proceeds while others help their grandchildren with college expenses. In-home care can also be paid with your reverse mortgage proceeds. There is never any stipulation on how you can spend your proceeds.
You're thinking about a reverse mortgage, but you've got more questions than answers. You have come to the right place. Advisors Mortgage has helped senior homeowners to achieve many of their financial goals. Whether a reverse mortgage or a conventional mortgage, we'll help you find the right loan.
People say lots of things about reverse mortgages and many get it all wrong. Erroneous information, however well intentioned isn't the BEST way to ascertain if a reverse mortgage is right for you. Get the facts from a Reverse Mortgage Specialist. A free proposal will provide the best info.
Your retirement plan is sitting under your roof just waiting to be used and is one way your home can pay you back. There are no restrictions on how your reverse mortgage proceeds can be spent, after all, it's YOUR equity
Why Reverse Mortgages Work
A lot of seniors today are dependent on Social Security and their pensions but have no further resources to fall back on. Many borrowers simply wish to supplement their income so they are free to enjoy their retirement to the fullest. In a word, a reverse mortgage is freedom, freedom to do what you want with the equity in your home.
MAXIMUM BORROWING AMOUNT
The Maximum Claim Amount (maximum amount you can borrow with a HECM) is currently $1,089,300. The amount you receive is called the Principal Limit and is based on the age of the youngest borrower, the appraised value, and current interest rates.
Jumbo Reverse Mortgages are a viable option for higher value homes. These are proprietary mortgages provided by various lenders and are not called a HECM. Home values go from $500,000 to a max value of $10,000 and a maximum loan amount of $4,000,000. One to four family homes and condos are eligible for this program. Closing costs are lower than with the FHA HECM, but rates are higher. Reverse mortgage counseling is also required. You can refinance or purchase a home with a JUMBO Reverse Mortgage just as with the HECM.
Jumbo reverse mortgages are arranged through third party providers. Call 631-804-9044 with any questions you may have or to receive a free proposal.
