Let's face it. A reverse mortgage isn't for everyone. But for many seniors, they're a perfect fit. The following questions can help you ascertain if a Reverse Mortgage is for you:
• Do you have equity built up in your home?
• Are you looking to stay in your home for the foreseeable future?
• Would extra money enable you to do the things you want to do?
• Are there medical or cost of home care situations you face where a reverse mortgage would make life easier for you?
If you answered "Yes" to the above questions,perhaps a reverse mortgage might be an option worth considering. One of the common worries about reverse mortgages is concern for your heirs. Discuss Reverse Mortgages with your family and trusted advisors. Perhaps there are other options that will work better than a Reverse Mortgage.
According to an AARP study, 89% of senior citizens want to remain in their homes as they age. This has been termed "aging in place". I have found this to be true over the years as I have helped senior homeowners to remain in their home with a reverse mortgage in place.
In 2012, I was called to the home of an 86 year old gentleman who wanted to pay for his in home care and do a few things with a reverse mortgage. His nurse had found my website online, and she contacted me. After he obtained HECM counseling, he got his reverse mortgage. This sweet man, who I knew for five years until he passed away, was able to get $2,500 per month directly deposited into his account as well as a brand new kitchen with his cash out. As time went on, he needed more in home care. His reverse mortgage continued to pay $2,500 into his checking account per month, and we purchased a special bed for his needs. He got new televisions, and he enjoyed his Bose stereo with his CD's.
Whatever your situation, a reverse mortgage may be just what you've been looking for. You may be looking to supplement your income, enhance your portfolio, give gifts to children and grandchildren, or pay off some bills. And if you have a power of attorney or a life estate or a guardianship, it can all work with a reverse mortgage in place.
If you have a Power of Attorney, it must be durable, meaning it has to have been instituted prior to you becoming incapacitated. A power of attorney is a legal document that gives someone you choose the power to act in your place. In case you ever become mentally incapacitated, you need a "durable" power of attorney for medical care and finances. A durable power of attorney does not end when a person becomes ill but continues and is durable. To obtain a durable power of attorney, you must show in the document your intention that the powers will continue despite incapacity. See your attorney for more information.
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? If you are planning to move in a few years, it's not the best option for you.
*How would my life change if I could get rid of my mortgage payments? For many seniors, getting rid of a mortgage payment is life changing.
* What would it be like to have money to do the things I've been wanting to do and to have my home work for me?
*How long has it been since I was able to go on a vacation, buy a new car, or have surplus of money for emergencies?
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.
REVERSE MORTGAGES AND EQUITY LOANS, SIMILAR BUT DIFFERENT
Although a Reverse Mortgage is a lot like an Equity Loan, there are some significant differences.
(a) With a Reverse Mortgage, your credit number is not a determining factor.
(b) Unlike an equity loan, you make no monthly mortgage payments.
(c) With an Equity loan, if you are looking for more money, you would have to refinance. With a Reverse Mortgage, your unused line of credit increases year after year with a growth rate applied to your line of credit equal to the interest rate applied on the loan plus 0.05% thereby giving you access to more funds without the need to refinance. Having future funds available to you is a comforting feeling. If the line of credit remains unused, you do not owe the lender. You only pay back what you used.
Not having to pay any monthly mortgage payments on the HECM is a great advantage. Of course, you are free to make payments any time you like, but they are not required. But what's even better is the Line of Credit. You can draw on your credit line whenever you need. Whether to enjoy life a little more or to pay some bills, it's at your disposal. The HECM line of credit stays open so the funds are there when you need them. The unused portion of the HECM line of credit grows over time at the same rate of interest charged on your loan. So, for example, if you took out the HECM line of credit at age 62 or 65 and left it there untouched for say 10 or 15 years, just think of how much your money would have grown.
Now, the money comes tax free; you don't pay any interest on your HECM line of credit even as it grows. If you put the same money in a savings account, you would pay interest on that money and receive minimal growth. Borrowing power is an important tool of the HECM Reverse Mortgage line of credit, and this is a great advantage.
Request Kathie's free Reverse Mortgage booklet and receive a free Reverse Mortgage quote. We hope we have answered many of your questions. Feel free to contact Kathie with any concerns you may have.
ADVISORS MORTGAGE GROUP, LLC Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793
Licensed by the New York State Department of Financial Services, Licensed Mortgage Banker.
Licensed by the New Jersey Dept of Banking and Insurance
KATHLEEN ADLER, Mortgage Loan Originator, NMLS Identifier 65780, Licensed by the New York State Department of Financial Services, Licensed by the New Jersey Dept of Banking and Insurance. This Website maintained by Go Daddy, Copyright 2014 - Website domain name obtained 2008. All Rights reserved.
NOTE: Website authorization by New York State Dept of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site.