Let's face it. A Reverse Mortgage isn't for everyone. But for many seniors, a Reverse Mortgage is a perfect fit and can help to enhance your lifestyle. The following questions can help you ascertain if a Reverse Mortgage is right 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?
• Is there a mortgage you would like paid off?
• Are there medical or 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 borrowers have about Reverse Mortgages is concern for their heirs. They want to leave their home to their children or grandchildren, but if no mortgage payment is made on the loan, the loan balance will grow larger. Discuss Reverse Mortgages with your family and trusted advisors. Perhaps there are other options that will work better than a Reverse Mortgage. (Please refer to our REVERSE MORTGAGE FAQ page under the heading: ALTERNATIVES TO REVERSE MORTGAGES.
.jpg/:/)
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". Over the years, we have helped senior homeowners remain in the homes they love with a reverse mortgage in place.
If you are the relative of an incapacitated parent or grandparent, you can help your relative remain at home and age in place with a reverse mortgage. If there is no necessity for assisted living, a reverse mortgage can provide the needed funds to help care for your family at home. If you are Power of Attorney, be sure you have the propert document ready as it will be required for the lender.
Every person has a different reason for considering reverse mortgages. Are you looking to remain in your home and perhaps looking for in-home care but didn't know how you would pay for it? Are you perhaps looking to purchase a second home closer to your children and grandchildren? A reverse mortgage with cash out proceeds can help.
You may be looking to supplement your income, enhance your portfolio, give gifts to your children and grandchildren, or pay off some bills. Whatever the reason, a reverse mortgage may be the solution to what was once an unsolvable dilemma. Hopefully, the information contained in this website will help you make the right decision about your future.
A general power of attorney (POA) is a legal document that authorizes a person of your choosing power to act on your behalf and in your place. It can be used in private affairs, business, medical situations, or other legal matters. The principal or grantor of the power of attorney authorizes an agent who acts on his behalf also referred to as the attorney in fact. A power of attorney may take effect at the time of the signing of the document or at the incapacitation of the principal. In the case of reverse mortgages, the power of attorney must be durable; it must have been initiated prior to any physical or mental incapacitation. For you to obtain a durable power of attorney, you must state 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.
* Am I planning on remaining in my home or moving?
* How would my life change if I could get rid of my mortgage payments?
* What would it be like to have money to do the things I've been wanting to do or to have a fund at my disposal for emergencies?
All these questions are legitimate questions senior borrowers should ask themselves when considering a reverse mortgage. Consult with family and trusted advisors, then call Advisors Mortgage for a free proposal. A free quote will provide you with a comparison of different reverse mortgage products available so you can 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 score 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, but with a reverse mortgage, you can choose a line of credit (if qualified with your home's equity) that grows over time on a portion or all of what is kept in your line of credit.
(d) With a HELOC/Home Equity Line of Credit, there are interest-only payments during the draw period, and then you begin making monthly mortgage payments.
ADVANTAGE OF THE HECM: A GROWTH RATE ON THE REVERSE MORTGAGE LINE OF CREDIT!
With a reverse mortgage line of credit, the unused portion of the HECM line of credit grows over time at the same rate of interest charged on your loan plus an additional 1/2% thereby giving you access to more funds in the future. Having funds available to you for future needs or emergencies is a comforting feeling and enables you to plan for unforeseen events. The line of credit, of course, is tax free as it is based on your equity and is not considered income. At maturity, at the end of your loan, you only pay back what monies you have used.
