Reverse Mortgages are essentially the opposite of a Conventional (Forward) Mortgage. Instead of making a principal and interest payment, there are no requirements to make a principal and interest payment, however, the Payment of Property Taxes, Homeowners Insurance and the Upkeep of the Property remains the homeowner’s responsibility. 10,000 people per day celebrate their 65th Birthday in the U.S. Many of them are still making mortgage payments. If you are 62+ years old, have equity in your home or own it free and clear, let’s find out if a Reverse Mortgage is right for you.
- Reverse Mortgages allow you to access a portion of your home’s equity in the form of tax-free cash. It is not reported to the IRS as income. The ‘Title’ remains in your name.
- If one spouse passes away, the full benefits of the Reverse Mortgage (HECM) remain intact as long as the surviving spouse occupies the home as their primary residence, Pays the Taxes, Homeowners Insurance and maintains the property in good condition.
- Reverse Mortgages will never affect your Social Security or Medicare.
- NON-Recourse: The home is the only asset that may be used to pay off the loan and it can be paid off at any time without penalty. Your estate can never owe more than the value of the home at the time the loan is due.
- If the bank defaults, the Government will step in and provide benefits due to the borrower under the terms of the loan agreement.
- The heirs can never inherit a debt unless they choose to. This would be applicable in situations where the heirs want to keep the home via a refinance.
There are several Reverse Mortgage program options for you to choose from:
HECM – Home Equity Conversion Mortgage: A HECM gives you the power to unlock the equity built up in your home while you continue to live in it. With additional funds freed up, you can lower your expenses, do renovations, take off on a trip or simply have funds available for when you need them. Unlock the potential in your home’s equity. With a HECM Reverse Mortgage you’ll be able to:
- Pay off an existing mortgage
- Stay in your home long-term
- Increase your buying power for purchasing a new home or condo
- Supplement income for regular expenses
- Diversify overall retirement strategy
- Cover medical expenses
- Pay for in-home care
- Renovate your home
- Purchase insurance
- Go on the trip of a lifetime
- Start a new business
- Help your grandchildren pay for college
- Or simply have savings available for the future
• Provides loan amounts higher than a Home Equity Conversion Mortgage, or HECM—up to $3 million
• No monthly mortgage insurance premiums (MIP)
• Competitive interest rates
• Fees that can be rolled into the loan with little to no out-of-pocket costs (except for Purchase)
• The industry’s only Borrower Care program that includes a HomeSafe concierge
Reverse for Purchase
Relocate or right-size to the perfect home with no mortgage payments. This option allows borrowers to increase their buying power when purchasing a new home using a HomeSafe reverse mortgage, giving them the option to save money with no monthly mortgage payments.
Would you like to keep your current First Mortgage in place? A Reverse Mortgage Second is a great option for borrowers looking to access their home equity without having to pay off a low-interest, fixed rate first mortgage. It’s the only second mortgage on the market that doesn’t require monthly mortgage payments. Great for a cash injection while maintaining more equity in your home.
What are the steps?
- The amount of loan proceeds is determined by the age of the borrower and the appraised value of the home.
- Financial Assessment to determine long-term ability to pay taxes and insurance
- Independent counseling
- Formal Appraisal
- Proceeds pay off your current mortgage.
- Cash can be a lump sum and you can get the remainder as installment payments or a line of credit. The unused portion will grow every month providing a significant cushion for the future.
- Continue to pay your taxes and insurance and to uphold the terms of the loan.
- With room in your budget after eliminating mortgage payments, and with cash in hand or a growing line of credit, create a retirement you feel good about.
***#1 Reverse Mortgages ARE NOT designed to only be a loan of last resort.***
***#2 Reverse Mortgages ARE very flexible and an excellent Financial Tool to help you preserve your assets.***
***#3 Reverse Mortgages CAN also be used for Purchasing a Home.***
Reverse Mortgages from Jeff Markell include:
FREE – In-Home Consultation – I’ll come to you (in Southern California)
Seasoned Professional – I’m a Senior
Competitive Pricing – I’ll shop the programs for your best benefit
No “Hollywood Celebrity” Overhead Fees
I’ll be with you from Start to Finish
I love to change Senior’s Lives for the Better!
Call me today at 714.614.4040 for a FREE (No Obligation) Consultation
Jeff Markell – NMLS 224196 – U.S. Air Force Veteran
Empire Home Loans, Inc. – 14081 Yorba St. Tustin, CA 92780
Proudly serving Home Refinance and Home Buyer Clients in California and Washington
Empire Home Loans, Inc., NMLS #1839243 www.nmlsconsumeraccess.org This webpage does not represent a commitment to lend. Contact Jeff Markell 714.614.4040 Mortgage Loan Originator for details. Office location: 14081 Yorba St. Ste. 202 Tustin, CA 92780. Equal Housing Opportunity.
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