What Are the Benefits of a Reverse Mortgage?
There are many benefits of getting a reverse mortgage. A reverse mortgage allows you to tap into the equity you have built up in your home so that you can have a more secure, more comfortable lifestyle as you age.
Tax-free Proceeds: The money you obtain through a reverse mortgage can be used without restriction and is not considered “income” for tax purposes.
Flexible Receipt Options: You can receive your reverse mortgage funds as a lump sum, a lifetime monthly payment, or a line of credit that grows over time. You can also choose a combination of these proceed options.
Retirement Security: If you need to supplement your retirement income, or you need funds for an unexpected expense, your home’s equity may be able to give you the extra money you need without taking on a larger monthly expense to get it.
You Own Your Home: With a reverse mortgage, you will continue to live in and retain ownership of your home, and you can still leave the home to your heirs. *
* The loan is subject to foreclosure for failure to pay taxes and insurance to maintain the property and insurance and to comply with the terms of the loan.
* El préstamo está sujeto a ejecución hipotecaria por falta de pago de impuestos y prima de seguro para mantener la propiedad y el seguro y para cumplir con los términos del préstamo.
No Payments: There are never any mortgage payments with a reverse mortgage. The loan balance isn’t due until the last borrower permanently leaves the home.
Eliminate Mortgage Payments:
Consumers remain responsible for property taxes, homeowner’s insurance, and home maintenance.
Los consumidores siguen siendo responsables de pagar los impuestos a la propiedad, el seguro de la casa y de los pago por el mantenimiento del hogar.
Here’s how you can use Reverse Mortgage Benefits:
Pay off your Existing Mortgage and Access Funds:
Many individuals use their reverse mortgage funds to pay off the home mortgage where they currently live, so that they never have to make another mortgage payment in their lifetime.
| REFINANCE | |
|---|---|
| HOME VALUE | $525,000.00 |
| – ALLOWABLE LOAN AMOUNT * | $302,000.00 |
| – CLOSING COSTS | $5,000.00 |
| – CURRENT MORTGAGE | $80,000.00 |
| = AVAILABLE PROCEEDS ** |
$217,000.00 |
* Allowable Loan Amount: Varies based on Youngest Borrower’s age.
** Available Proceeds: Can be accessed in various ways over time.
Help Purchase a Home:
Many individuals take advantage of a reverse mortgage to help purchase a new home at a substantially higher price than what would be possible in an all cash offer. By combining their available funds with a reverse mortgage, they can increase their purchasing power, and never have to make a mortgage payment.
| PURCHASE | |
|---|---|
| HOME PRICE | $525,000.00 |
| + CLOSING COSTS | $4,000.00 |
| – ALLOWABLE LOAN AMOUNT * | $287,000.00 |
| = REQUIRED DOWN PAYMENT | $242,000.00 |
* ALLOWABLE LOAN AMOUNT:Varies based on Youngest Borrower’s age.
As a Line of Credit:
A reverse mortgage can be used as a line of credit to remodel a home, make a special purchase, or pay unexpected expenses, such as medical bills. Reverse mortgage funds can also be received as monthly advances, either for a set period of time or as long as you live in your home. A reverse mortgage can provide the extra peace of mind a family in retirement needs.
Do you have questions about the benefits of a reverse mortgage? Get the information you need by calling Lincoln Chris – Reverse Mortgage Loan Officer, for a complimentary consultation.
Call (415) 547-0116
Lincoln Chris
(415) 547-0116
Lincoln Chris, a local Bay Area resident, is available to take your call days, evenings, and weekends