Pursuing a Home Equity Conversion Mortgage (HECM, commonly referred to
as a reverse mortgage loan) is a big decision.
7th Level Mortgage, LLC is a trusted provider of mortgage loans, home loans, refinance mortgages, Jumbo loans, FHA Mortgage, VA Mortgage, HARP loans, First Time Home Buyers, Commercial and Business loans as well
as Reverse Mortgage loans.
Texas has the third largest population of older Americans (more than 3 million aged 65 or older) and ranks third in the United States in total Home Equity Conversion Mortgages (HECMs), commonly referred to
as reverse mortgage loans.
As a reverse mortgage loan originator, your first job is to calm the borrower's fears and make her comfortable with the idea of a reverse mortgage.
Pursuing a Home Equity Conversion Mortgage (HECM, commonly referred to
as a reverse mortgage loan) is a big decision.
Not exact matches
Proprietary
reverse mortgages, also known
as jumbo
reverse mortgages, are for borrowers who want a large
loan and own a more expensive property.
(b) The home equity value of one's residence can also be accessed by using the property
as collateral for either a home equity
loan or a
reverse mortgage.
However, if you are confident a
reverse mortgage loan is the best option for you, these counselors can answer your questions and offer unbiased information about the advantages, drawbacks,
loan process, and your responsibilities
as a borrower.
Since a HECM
reverse mortgage is a non-recourse
loan and it is secured by placing a lien on your home, you are protected from having any of your other assets taken
as repayment for the
loan.
If you are looking for a way to pay off your existing
mortgage to free up cash, you may be eligible to get a
reverse mortgage loan to leverage your home's equity and pay off your existing mortgage.2 Reverse mortgages, unlike forward mortgages, do not require monthly mortgage payments for as long as you live in the home as your primary residence, maintain it in accordance with HUD guidelines, and pay your property taxes and homeowner's insu
reverse mortgage loan to leverage your home's equity and pay off your existing
mortgage.2
Reverse mortgages, unlike forward mortgages, do not require monthly mortgage payments for as long as you live in the home as your primary residence, maintain it in accordance with HUD guidelines, and pay your property taxes and homeowner's insu
Reverse mortgages, unlike forward
mortgages, do not require monthly
mortgage payments for
as long
as you live in the home
as your primary residence, maintain it in accordance with HUD guidelines, and pay your property taxes and homeowner's insurance.1
One of the most popular aspects for senior homeowners is that any funds you receive from your
reverse mortgage are recognized
as loan proceeds and not income.
In fact, many borrowers are attracted to
reverse mortgages because the proceeds will pay off any existing
mortgages as part of the
loan.
A
reverse mortgage is one of the very few financial tools that allows senior homeowners to access a portion of their home equity to pay off their existing
mortgage and eliminate their monthly
mortgage payment for
as long
as they live in the home and continue to meet the
loan obligations.1
As a veteran, you may be wondering if a
reverse mortgage loan could be right for you when the time comes.
As with any
loan product, there are pros and cons to consider with a
reverse mortgage.
As we will explore, a
reverse mortgage loan, while different from what you may be used to, is a compelling tool for veterans.
With a
reverse mortgage loan,
as long
as the homeowner continues to meet their
loan obligations (including paying real estate taxes, insurance, and upkeep), they will remain in the home and collect all of the
loan proceeds.
Some
mortgage lenders try to get
reverse mortgage applicants to buy additional, yet unnecessary, products
as part of the
loan package.
A Home Equity Conversion
Mortgage, also known as the HECM reverse mortgage, is a loan that functions as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves t
Mortgage, also known
as the HECM
reverse mortgage, is a loan that functions as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves t
mortgage, is a
loan that functions
as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events
as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves the home.
The FHA
reverse mortgage has many compared to traditional home equity
loans: no payment is necessary until the borrowers no longer use their home
as the primary dwelling, for example, if the home is converted into a rental property or if the borrowers move into an assisted living community.
Reverse mortgage loans are expensive As with any other loan, reverse mortgages also have closing fees and interest charges that vary depending on different f
Reverse mortgage loans are expensive
As with any other
loan,
reverse mortgages also have closing fees and interest charges that vary depending on different f
reverse mortgages also have closing fees and interest charges that vary depending on different factors.
With an FHA
reverse mortgage you will never owe more than the value of your home, and your home is the only asset that can be used
as collateral for the
loan.
With new safeguards in place, these Federal Housing Administration1 (FHA) insured
loans are now recommended by many financial advisors
as a smart tool to use in your retirement portfolio.2 Despite the positive press that
reverse mortgages have received, there are still many misconceptions surrounding them.
• Further explain a
reverse mortgage • Tell you about
reverse mortgage product options • Go over
reverse mortgage costs, such
as the total annual cost • Help you determine your borrower eligibility • Help you determine if you can afford a
reverse mortgage • Help you determine if you can meet all financial obligations such
as maintaining your taxes and insurance • Expose you to alternative options like tax deferral programs, grant money, financial assistance, etc. • Explain how your choice can impact your heirs and estate • Go over
loan comparisons
Reverse mortgages are government insured
loans that allow seniors above the age of 62 to access the equity in their homes and receive it
as cash to use.
You and your estate will never owe more than the fair market value of the home
as determined by a licensed FHA - certified appraiser when the
reverse mortgage loan becomes due and payable.
Using this approach, a
reverse mortgage loan is established at the outset of retirement and drawn upon every year to provide retirement income until exhausted, allowing the retiree's investment portfolio, such
as a 401 (k) plan, more time to grow.
Reverse mortgage home
loans incur interest and
mortgage lender charges
as funds are drawn out.
As a government - insured non-recourse loan, a reverse mortgage will not require repayment of more than the fair - market value of the home as determined by a licensed FHA - certified appraise
As a government - insured non-recourse
loan, a
reverse mortgage will not require repayment of more than the fair - market value of the home
as determined by a licensed FHA - certified appraise
as determined by a licensed FHA - certified appraiser.
The
reverse mortgage loan began
as a way to help seniors use their equity to age in their home.
You can use the funds from a
reverse mortgage loan to pay off other debts, such
as an existing
mortgage or you can use the funds for regular expenses.
While you may want to list just the oldest member of the household
as the borrower on the
loan, the funds from a
reverse mortgage are available only to the borrower.
And because the most common
reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs), are government - insured, these loans may provide you with the peace of mind you need to live a comfortable re
mortgages, also known
as Home Equity Conversion
Mortgages (HECMs), are government - insured, these loans may provide you with the peace of mind you need to live a comfortable re
Mortgages (HECMs), are government - insured, these
loans may provide you with the peace of mind you need to live a comfortable retirement.
Although the FHA's rules and regulations for the
reverse mortgage loan may seem stringent to some, they are designed with the borrower's best interests in mind and are truly beneficial to you
as a borrower.
Other factors including higher health care costs and reductions in income are cited by Commissioner Stevens
as adding to the need for FHA
reverse mortgage loans.
The non-borrowing spouse will inherit the responsibility for the
reverse mortgage loan as well
as the home's ownership.
Borrowers with
reverse mortgage loans are guaranteed the right to remain in their homes
as long
as they wish, and do not have to repay their
mortgage loans unless they vacate the property securing the
reverse mortgage loan.
An FHA
reverse mortgage loan, also known as a Home Equity Conversion Mortgage (HECM), can provide cash for living expenses, home improvements, and othe
mortgage loan, also known
as a Home Equity Conversion
Mortgage (HECM), can provide cash for living expenses, home improvements, and othe
Mortgage (HECM), can provide cash for living expenses, home improvements, and other needs.
An FHA - insured
reverse mortgage loan — known as a Home Equity Conversion Mortgage, or HECM — can offer eligible homeowners financial flex
mortgage loan — known
as a Home Equity Conversion
Mortgage, or HECM — can offer eligible homeowners financial flex
Mortgage, or HECM — can offer eligible homeowners financial flexibility.
These regulations and rules are meant to encourage borrowers to use this great financial tool
as part of an intelligent retirement planning strategy, which in turn solidifies the overall strength of the
reverse mortgage loan product.
When
reverse mortgage lenders calculate the amount of
loan proceeds that borrowers may be eligible to receive (also known
as the Principal Limit), they use what is called the Expected Interest Rate.
For borrowers with an existing
mortgage, the
reverse mortgage loan will first pay that off
as part of the
loan.
Although the HECM
reverse mortgage program is designed so that you don't have to repay the
loan as long
as you remain in your home, the program also requires that you stay current with homeowners insurance and property taxes and keep the property in good repair (to maintain its market value).
Financial planners are discovering that
reverse mortgage loans can also be used
as a strategic financial planning tool.
4 The
reverse mortgage loan balance grows at the same rate
as the available line of credit.
In the meantime, HUD has issued a ruling essentially saying that for
reverse mortgages closed after August 4th of this year, a non-borrowing spouse can remain in the house after the borrowing spouse dies, assuming the couple was married at the time of the
loan closing, occupied and continues to occupy the house
as a primary residence and the non-borrowing spouse is listed on the
loan documents.
For those who financed the purchase of their solar panels
as part of their taxes, such
as through the Home Energy Renovation Opportunity (HERO) program, they will be required to pay off the remaining
loan balance at closing using proceeds obtained from the
reverse mortgage.
The
loan becomes due and payable
as soon
as the borrower moves from the home or passes away, so if you have plans to move in the next few years, you may want to also wait on getting the
reverse mortgage.
Understanding your borrowing power can be tricky, so reach out to a HomeBridge
Mortgage Loan Originator for more reverse mortgage information as it relates to you and your current si
Mortgage Loan Originator for more
reverse mortgage information as it relates to you and your current si
mortgage information
as it relates to you and your current situation.
Reverse mortgage loans work by using the equity in your home and converting a portion of it into cash for you to use
as you wish.