Living on a fixed income can put a strain on a happy home life for many seniors – but it doesn’t have to be that way! With a reverse mortgage you never have to worry about making any more mortgage payments and can receive either a lump sum cash payment, or a monthly payment for as long as you live in your home. If you’re 62 years or older with equity in your home, you may qualify for this federally insured reverse mortgage.
What is a Reverse Mortgage?
It’s called a reverse mortgage because instead of paying the lender, the lender pays you. A reverse mortgage is a loan where the loan amount is based on your home’s equity with no monthly payments due. The loan does not have to be paid back for as long as you live in your home. The loan allows you to convert a good portion of the equity you’ve built up in your home over the years into tax-free income without giving up title (ownership rights).
Types of Reverse Mortgages:
- HECM Saver
- HECM Standard
On October 10, 2011, the Federal Housing Administration (FHA) launched a new reverse mortgage called the HECM Saver. This new program drastically lowers upfront fees and is insured by the FHA. This program effectively eliminates the upfront mortgage premium.
The HECM Standard is also backed by the FHA. The HECM Standard allows you to access more of your homes equity. Because you’re allowed to borrower more of your equity than the HECM Saver, you’ll be required by FHA to include the upfront mortgage insurance premium.
Based on your individual financial needs, confidently choose which type of reverse loan suits you best. We’re here to assist you in determining the best alternative and to provide you with the most competitive pricing in the marketplace.
For more information call us today at (800) 837-0575 and we will promptly answer any questions you have. We look forward to speaking with you!