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Reverse Mortgages Explained
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Added: 04/02/2004
Type: Tip
Viewed: 643 time(s)
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Reverse Mortgages Explained
Go Forward With a Reverse Mortgage. If you are at least 62 years old and have a low or no outstanding mortgage dept, our Reverse Mortgage programs borrow against the equity you’ve built in your home without your repaying the dept for as long as you live there. That’s the “reverse” part of this kind of mortgage loan. Instead of making payments, you can opt to receive them!
Over the years, you worked hard to own your home, and there’s a way to put your home to work for you. Academy Mortgage offers Reverse Mortgage programs that can optimize your cash flow, promote your peace of mind and help you make the most of these years.
A Reverse Mortgage enables you to supplement your retirement income with extra tax-free funds. Use the money for home repairs, buying a car, unexpected expenses- whatever you choose. You’ve got a picture of a contended and secure retirement in your mind. Let us help you bring it to life.
Stay in Your Home With Peace of Mind. There are no income, employment or credit qualifying restrictions. Your maximum loan amount is based on your age, where you live and the value of your home. The amount you owe can never exceed your property value, so your Reverse Mortgage can never cause you to lose your home. The funds you receive during your loan term, plus any accrued interest, become due when you sell or vacate your home.
Common Questions and Answers
Q: Is a Reverse Mortgage different than a home equity loan?
A: With a home equity loan, you must make regular payments to repay the loan as soon as the loan is originated. You must also have a monthly income great enough to make those payments. Failure to make the payments can lead to foreclosure. With a Reverse Mortgage you do not repay the loan as long as the home remains your principal residence. Your income is not considered when qualifying for the loan.
Q: Can I have a lien or mortgage on the home?
A: All prior loans or liens must be paid off to get the loan, but they can be paid off with the proceeds from the Reverse Mortgage.
Q: How do I receive the money?
A: You have a choice of several options including receiving equal monthly payments for as long as you own and occupy the residence, a line of credit that earns interest, or cash settlement.
Q: How will the proceeds affect my Social Security and Medicare Supplement?
A: The payments do not affect your Social Security or Medicare benefits. Also, these are proceeds from a loan and income, so therefore are not taxed.
Q: Will my heirs owe anything to the mortgage lender if I die?
A: Upon your death, the loan balance consisting of principal paid to you or on your behalf, plus any accrued interest, becomes due and payable. Your estate may choose to repay the loan be selling the property or they may want to pay it off by other means so they can keep the home. If the loan balance should exceed the value of the property, your estate will owe no more than the value of the property, mortgage insurance will cover any balance due to the lender. No additional financial claims may be made against your heirs or estate. You will never owe more than your property is worth.
Q: What if I decide to sell my home?
A: If you choose to sell your home, the outstanding balance becomes due and payable to the mortgage lender. Any proceeds left over once the loan is paid belongs to you.
For More information regarding reverse mortgages, please contact Tom Cairns at 239-940-3164 |
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