ABOUT REVERSE MORTGAGES

How Can I Qualify For A Reverse Mortgage?

Here are some of the key distinctives about a HECM reverse mortgage:
A HECM reverse mortgage is a deed restricted loan based on age.
The minimum age for at least one of the borrowers in the home is 62 years of age or older.
So even if you’re 50 years old and you own your home free and clear, you don’t qualify for a HECM reverse mortgage.
The second key distinctive is your home title. This is the biggest misconception about a reverse mortgage. In a reverse mortgage the borrowers
remain on title, they continue to own the property , NOT the lender.
Any real equity and any real appreciation above what you have in the reverse mortgage is still your equity.
The third distinctive is about prepayment. There is no prepayment penalty on a HECM reverse mortgage.
If you don’t think you’re going to be in your home for at least 2 years I would recommend not doing the reverse mortgage. This is because there are
upfront costs that need to be paid.
But the fact is is you can prepay this mortgage off at any time. If you had to sell after two or three or five years there’s no penalty whatsoever.
fourth thing payments
The 4th distinctive is there’s no monthly mortgage payments. We do this loan to create more cash flow. Cash flow is especially important when you’re retired or semi-retired and you want to have fun, spend more time with your kids and/or your grandkids. You want to go on more vacations. Or you just want to help pay for medical expenses.
A reverse mortgage, when properly executed, creates financial freedom.

If you have any questions or you need more information about this powerful financial planning tool, give me a call!