A reverse mortgage allows you to refinance your mortgage and never have to make a payment again for as long as you live. If you do not currently have a mortgage, or have enough equity in your home, you are able to take cash out. You can receive a lump sum at closing, get a line of credit, or receive a monthly term payment.
The more equity you have in your home, the more money you can potentially qualify for through a reverse mortgage.
While a reverse mortgage is a loan, it does not come due until a maturity event occurs. An example would be when the final borrower on the loan passes away.
Reveres mortgage are considered “non-recourse” loans meaning you can never owe more than the home is worth. When the maturity even occurs, the home is sold and any remaining equity goes to the home owner’s estate. If more money is owed than the home is worth the deficit is written off (it is insured and paid for by the Federal Housing Administration) and NOT held against any other assets in the estate. If a family member wants to purchase the home they can do so for 95% of the current home value, as indicated by a current appraisal.
Stay in your home and never have to make a payment again.
You get to use the reverse mortgage to finance any purchases you wish and the cash out proceeds are typically tax free, but be sure to consult your CPA or tax adviser.
While there are no restrictions at all on how you spend or save the money you receive, here are a few ideas for what you can do once you have more cash in your budget from a reverse mortgage:
You probably already know exactly how you would use the money from a reverse mortgage based on your own needs and goals. Once your application is approved, there will be nothing holding you back.
How do you know if your application for a reverse mortgage is likely to be approved? Following are the basic guidelines for qualification:
It’s time to stop imagining what you could do with more money in your monthly budget, and actually make it happen. To apply now for a reverse mortgage, please call (949) 202-5332. Soon, you could finally be living your retirement dreams to their fullest in the financial comfort and security that you deserve.
Grand Avenue Realty & Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.