There's much to learn regarding the Reverse Mortgage program. The HECM, Home Equity Conversion Mortgage, is a wonderful tool for senior borrowers. So learn all there is to know about Reverse Mortgages. Take a moment and give Advisors Mortgage a call with any questions you may have. We're here to help.
That phrase, while it may apply to some situations in life, does not apply here. The HECM (Home Equity Conversion Mortgage) regulated by HUD (Housing and Urban Development) and insured by the FHA (Federal Housing Administration) is good and for all the right reasons. It is a program designed to help senior homeowners age in place, age in their home. For the right person, a reverse mortgage can be a life changing experience and change your financial picture for the better.
In 1988, the FHA extended its FHA insurance coverage to include reverse mortgage loans, establishing its HECM program. FHA HECMs are non-recourse loans, meaning the property is the only collateral that can be taken to pay back the Reverse Mortgage loan. Through its varied history, FHA has sought to help new homeowners obtain a home, and now with the HECM, Home Equity Conversion Mortgage, they insure homes through their Reverse Mortgage programs.
For information about FHA, click here: https://www.hud.gov/program_offices/housing/fhahistory
Everyone has questions. There are qualifying factors with any mortgage, and Reverse Mortgages are no different. Answers to your questions about Reverse Mortgages can be found at our various link pages throughout this website. If you have further questions, please give Advisors Mortgage a call.
Call Advisors Mortgage for free info - 888-843-9797 or 631-804-9044
LIFESTYLE and WORKING PAST RETIREMENT
When we speak with senior homeowners about their current financial situation, we like to speak with them about lifestyle. Now, lifestyle and what that means from one person to the next can vary greatly. Lifestyle is your typical way of life. For one person it can mean traveling, for another it can mean enjoying a quiet day alone, to another it's the ability to visit the kids and grand kids halfway across the country whenever you wish.
Working past retirement is not an unusual occurrence these days. They say working past retirement isn't all that bad! It does have its advantages. But if you've been depending on social security or a pension and find you are still short at the end of the month or really want to retire, a Reverse Mortgage may provide some options.
A Reverse Mortgage is a special type of loan for homeowners 62 years of age and above who want 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 or minimum credit score requirements. A Reverse Mortgage can provide peace of mind in your retirement years, and if you are considering moving, you can take out a Reverse Mortgage purchase on another home (as long as one of your homes is your primary residence). There will be NO monthly mortgage payments required.
A Reverse Mortgage frees up the equity in your home that has been sitting there virtually untapped and converts it into tax free cash. This can mean financial freedom and financial stability.
If you don’t have a savings cushion, if you don’t have a diverse portfolio of assets, if you are relying on social security checks to support your household bills or accessing your taxable funds, consider the Reverse Mortgage. After all, your retirement fund is sitting underneath your roof, waiting to be used!
Ever dream of having more cash on hand to enjoy the finer things in life?
Perhaps you just want to rid yourself of that mortgage payment that seems to never go away. Is a Reverse Mortgage right for you? Maybe it is. It's time your biggest investment, your house, began to pay you back. It just makes sense. Here are a few things you can do with a Reverse Mortgage:
Here are some of the parameters of the Reverse Mortgage program:
• No monthly mortgage payments
* You continue to pay taxes /homeowners insurance & maintain your home.
• Tax free proceeds - does not affect income tax
• Insured by the Federal Housing Administration (FHA)
• Retain ownership of your home
• No health requirements
• No impact on Medicare or Social Security
Reverse Mortgage Plans:
* Monthly Payment (tenure)
* Cash Out disbursed over 2 years (cash at closing and the remainder 365 days after funding your loan)
* Line of Credit (grows over time)
* Combination of all three
You alone decide how you would like to receive your money.. After you close, you can change how your funds are disbursed. And if you wish, you can make payments on your Reverse Mortgage though NOT required.
Currently, the lending limit or Maximum Claim amount on the HECM Reverse Mortgage by HUD is $765,600. Now, that doesn't mean you receive that ENTIRE amount. It's all dependent on age, interest rates and the appraised value of your home. However, the older you are, the more funds you receive. The best way to determine your proceeds is to receive a no-obligation proposal from Advisors Mortgage.
The name HECM means Home Equity Conversion Mortgage. A Reverse Mortgage is the conversion of your home's equity and is the reverse of a traditional mortgage. There are no monthly mortgage payments required. Traditional mortgages are paid monthly thereby reducing your debt to the lender.
As long as there is enough equity in your home, you should be able to qualify for a Reverse Mortgage even if you have a mortgage balance. A free proposal from a Reverse Mortgage Specialist with Advisors Mortgage will provide you with helpful information and all the options available to you so you can make an informed decision.
HECM counseling is a required and very important safeguard to the Reverse Mortgage program. HECM counseling by a HUD approved counselor will provide you with a HECM counseling certificate so your loan can go forward. There is a fee for this service set by HUD. Call Advisors Mortgage to receive a list of HECM counselors in your area.
Whether your spouse is on the Reverse Mortgage or not, they will be able to remain in the home after your passing. (See your specialist for more details). If you should permanently move to an assisted living facility, they will still be able to remain in the home.
It's your equity from your home to use however you see fit. Buy a new car, take the kids and grandkids on vacation, or just enjoy your retirement. A Reverse Mortgage is designed to make life better while giving you the freedom to do the things you've been wanting to do.
You are entitled to a free reverse mortgage proposal by a Reverse Mortgage Specialist. Ask for an in-person consultation or a phone consultation to determine how much money you qualify to receive. Call Advisors Mortgage to see how much you qualify to receive.
Although these are some answers to important questions that we get from borrowers every day, our Frequently Asked Questions page has even more answers to your questions about Reverse Mortgages. And if your questions are not answered, just give us a call! Advisors Mortgage has over 20 years of experience in the mortgage industry!
Your home's equity is waiting for you to use it for your benefit. Why not let your home pay for your retirement? We have spoken with many senior homeowners who just didn't have enough money for retirement and were thrilled to use their equity for a variety of things. Using a reverse mortgage as a retirement planning tool can change the way you look at retiring. You don't do a reverse mortgage out of desperation, you do it because you realize there is untapped cash under your roof that you can use to enjoy life even more. PROS and CONS, click here for answers. Reverse Mortgages aren't for everyone; study the PROS and CONS. Talk to family and friends. Make sure it's right for you.
No pre-payment penalty, reverse mortgage counseling, government insured and regulated by HUD, FHA mortgage insurance to protect you, 60% cap on proceeds for the first year, non-recourse loan-- you can never owe more than the home is worth, protection for non-borrowing spouses and underage spouses, 3 Day Right of Rescission (cancellation period from day of closing in case you change your mind and wish to cancel.)
Borrowers have been able to pay off current mortgages, travel, buy another home, or do a host of things with the money they receive. You can supplement your income and find the time freedom you have longed for. Many homeowners have been helped out of bankruptcy and even foreclosure by a Reverse Mortgage. Others have postponed collecting social security until a later date thereby increasing the amount of their future social security.
An important feature of the HECM program is something called "non-recourse." What is non-recourse? Simply put, the house alone stands for the debt. A non recourse debt is a type of loan secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. So this means none of your assets can be used to satisfy the loan whether it's investments, bank accounts, etc. No matter how much money you have in the bank or possess in assets. these can never be used to satisfy your Reverse Mortgage balance.
Additionally, you can never owe more than the house is worth. A reverse mortgage is a loan in which the lender may look only to the property for repayment even IF the loan balance goes beyond the value of the home. If you sell the home or if all the borrowers pass away, you (or your heirs) will never owe more than the balance of the reverse mortgage or the value of the property, whichever is less. And again, the house ALONE stands for the debt. Your heirs are also not responsible for the debt as they are not the borrower who took out the Reverse Mortgage.
Selling: If you should sell your home for less than what is owed to the lender, FHA mortgage insurance will cover the difference. You will not be responsible for paying that difference nor will your heirs. But where is this found in my mortgage documents? The portion of your application as well as the closing document entitled HOME EQUITY CONVERSION MORTGAGE DEED OF TRUST states in section 11:
11. "No Deficiency Judgment. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Commissioner upon demand by the Commissioner, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment."
Pay What You Want or Pay Nothing!
With a Reverse Mortgage, you are not required to make any monthly mortgage payments. However, if you so desire, you can opt to pay any amount you choose thereby protecting some of the equity in your home. You can pay all or part of your HECM loan any time you please as there is no pre-payment penalty on this loan.
NOTE: A Reverse Mortgage is not for everyone. Please refer to our Pros and Cons page.
If you are looking for information on JUMBO Reverse Mortgages, click link to the right. Note: New York Reverse Mortgages JUMBOS are now available! The JUMBO minimum home value is $500,000 with a maximum loan amount of $4,000,000 and maximum appraised value of $10,000,000. One to four family homes are eligible for this program. Closing costs are amazingly low, and you can use the JUMBO program to refinance or purchase a home (as long as it's your primary residence.) Click the JUMBO REVERSE MORTGAGES link at the right to learn more. (All Jumbo Reverse Mortgages are arranged through third party providers.)
With the proprietary Jumbo reverse mortgage, you can upgrade to a new home with the purchase program or refinance your current home. You have options!
3330 Park Avenue, Suite 1, Wantagh, New York 11793
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ADVISORS MORTGAGE GROUP, LLC Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793 Licensed Mortgage Banker. Licensed by the New York State Department of Financial Services, Licensed by the New Jersey Dept of Banking and Insurance
FOR CONCERNS OR COMPLAINTS, CONTACT: ADVISORS MORTGAGE 800-778-9044
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.