Stay in Your Home and Improve Your Immediate Finances:

The strongest benefit to a Reverse Mortgage/Home Equity Conversion Mortgage (HECM) it that it allows you to live in your home for as long as you want with absolutely no monthly mortgage payments (borrowers must remain current on their property taxes, homeowner’s insurance, and HOA dues) and, in a lot of cases,  you can also get access to money to use for any purpose.

A reverse mortgage is a type of home equity loan that allows you to convert some of the existing equity in your home into cash while you retain ownership of the property. Equity is the current cash value of a home minus the current loan balance.

One reason people like a Reverse Mortgage or Home Equity Conversion Mortgage (HECM) is that they can eliminate traditional mortgage payments and/or access your home equity while still owning and living in your home. These loans can be a great option to increase your spending power and financial security in retirement. At Journey Home Lending we understand that a Reverse Mortgage is no different than any other loan. There are pros and cons. The important thing is to understand how these loans would meet your needs compared to other options. That’s why we always offer a safe-distancing ZOOM video conference call to provide you with a comparison of the options that might best meet your needs and goals.

A  reverse mortgage works much like a traditional mortgage, except in reverse. Instead of the homeowner paying the lender each month, the lender pays the homeowner. As long as the homeowner continues to live in the home, no repayment of principal, interest, or servicing fees are required. The funds received from a reverse mortgage may be used for anything, including housing expenses, taxes, insurance, fuel, or maintenance costs.

To qualify for a reverse mortgage, you must own your home. You may choose to receive the reverse mortgage funds in a lump sum, monthly advances, as a line-of-credit, or a combination of the three, depending on the reverse mortgage type and the lender. The amount of money you are eligible to borrow depends on your age, the amount of equity in your home, and the interest rate set by the lender.

Depending on the plan selected, a reverse mortgage is due with interest either when the homeowner permanently moves, sells the home, dies, or the end of a pre-selected loan term is reached. If the homeowner dies, the lender does not take ownership of the home. Instead, the heirs must pay off the loan, typically by refinancing the loan into a forward mortgage (if the heirs meet eligibility requirements) or by using the proceeds generated by the sale of the home.

If you are interested in discussing a Reverse Mortgage or Home Equity Conversion Mortgage (HECM) here are the 10 positive factors we should be discussing:

1.  Approval Is Not Solely Based on Credit Score or Income
2. It’s a Very Flexible Product
3. There Is A Very Low Risk Of Default
4. Tax-Free Income
5. There Are No Restrictions On How You Use The Money
6. You Have Several Options On How to Receive Your Loan Proceeds To Best Meet Your Needs
7. You Retain Home Ownership and Have A Guaranteed Place To Live
8. These Are Federally Insured Loans
9. You Can Preserve Your Wealth
10. The Value Of Your Home Equity Can Be Preserved Or Even Increase

To learn more about Reverse Mortgages in Parker, Castle Rock, and Lone Tree, reach out to Journey Home Lending Today on our Contact Us page or call 303-660-4210.

*This material is not from HUD or FHA and has not been approved by HUD or a government agency.