How Can a Reverse Mortgage Help Me?
How Can A Reverse Mortgage Help Me?
Nearly 150,000 seniors 62 or older have benefited from a reverse mortgage. These products are rapidly becoming a logical component of a well-balanced retirement plan. A reverse mortgage can help seniors continue living in the home where they are comfortable by turning a portion the equity they have in their home into extra cash or tax-free monthly income.
A reverse mortgages is a loan that allows seniors to use the equity they have accumulated in their homes over the years to improve the quality of their lives and knock down the financial barriers to independent living. By converting equity into income, a reverse mortgage is a way to continue living at home and use cash for any purpose-whether it is day-to-day living expenses, home remodeling or repairs, paying taxes and insurance, or help with home healthcare. With a reverse mortgage, seniors continue to own their home and all funds received are tax-free.
Making A Reverse Mortgage Work For You
Companies like Financial Freedom work hard to make it as easy as possible for you to obtain the reverse mortgage that is right for you. We are with you every step of the way, helping customize a loan that meets your unique needs. And because we know that these decisions can be daunting, we encourage you to seek the advice and counsel of those you trust the most-your family, friends, attorney, or accountant.
Benefits of a reverse mortgage include: n Borrower retains title of his or her home n Easy access to released equity with no payments required on amount borrowed. n Equity is released tax-free n No income requirement n Lender has no claim on borrower’ income or assets other than value of the home even if loan exceeds home’s value
Getting Started With A Reverse Mortgage
1. A reverse mortgage specialist will visit you and explain the benefits, features, income options, and costs associated with the loan. 2. When you are ready to move forward and apply for a reverse mortgage, your reverse mortgage specialist will assist you in completing an application and the loan process 3. When you close on your loan, you have access to your released equity, either in a credit line, monthly payment, lump sum withdrawal, or any combination you choose. 4. Homeowners can use their funds any way they choose. Some of the most common uses include: n Additional monthly income n Home repairs and renovations n Long-term healthcare and assistance in the home n Reduction of bills and pay-off of mortgage n Payment of taxes and insurance n Grandchildren’s education n Travel n Purchase of a car or even second home
...AMOST ANYTHING YOU NEED OR WANT
Fast Facts On A Reverse Mortgage
l All borrowers must be 62 or older l You continue to own your home. The lender does not control title on your home. l No repayment is made until the home is sold or the last borrower permanently leaves the home or dies l You or your heirs will never owe more than the value of the home l Interest on the loan is paid at the time the loan is repaid l When the loan is due, your heirs have choices: they can either repay the loan and keep the house, or sell the home, repay the loan and keep remaining proceeds from the sale l Social Security benefits and Medicare are generally not affected by a reverse mortgage. For additional information on benefits, consult appropriate governmental agencies. l Interest rates on the amount borrowed are adjustable and change periodically; however, these changes do not affect the amount of funds you will receive l All closing costs and fees incurred with the loan can be financed a part of the loan.
About the Author
Joan Hillman has specialized in reverse mortgages with Financial Freedom Senior Funding Corporation for four years. She serves on the following boards: Beaufort County Senior Services, Low Country Community Development Corporation, Inc and Low Country Initiative for the Elderly (LIFE). Ms. Hillman earned an M.B.A. from the University of South Carolina.