Understanding the Differences Between a Traditional Home Equity Loan and a Reverse Mortgage

When homeowners look to tap into their home equity, two common options often come to mind: a traditional home equity loan and a reverse mortgage. While both can help access funds tied up in your home, they serve different purposes and cater to distinct financial needs.

The key differences to help you determine which loan option might be the right choice for you.

1. Purpose and Eligibility

Traditional Home Equity Loan:

A traditional home equity loan allows homeowners to borrow a lump sum against the equity in their home. It’s often used for major expenses such as home renovations, debt consolidation, or financing a large purchase. Borrowers must typically demonstrate a strong credit history and the ability to make monthly payments.

Reverse Mortgage:
A reverse mortgage, on the other hand, is designed primarily for homeowners aged at least 62 who want to convert part of their home’s equity into cash. The most common type of reverse mortgage is a HCEM (Home Equity Conversion Mortgage) which is insured by the FHA. Unlike a traditional home equity loan, reverse mortgages do not require monthly payments as long as the homeowner lives in the home as their primary residence, pays property taxes, and maintains the home.

2. Payment Structure

Traditional Home Equity Loan:
With a traditional home equity loan, you receive a lump sum upfront and repay it with regular monthly payments over a fixed term. The loan must be repaid in full, with interest, regardless of your age or how long you live in your Greenville SC home. The repayment structure is similar to a regular mortgage.

Reverse Mortgage:
With a reverse mortgage, the lender pays you either in a lump sum, through regular disbursements, or as a line of credit. Instead of making monthly payments to the lender, the loan balance grows over time and is typically repaid when

• the homeowner moves out permanently
• sells the home
• passes away

This unique payment structure makes reverse mortgages appealing to seniors who need additional income but wish to stay in their homes.

3. Ownership and Responsibility

Traditional Home Equity Loan:
You retain full ownership of your home with a traditional home equity loan, but you are required to make regular payments. If you fail to make payments, your home could be at risk of foreclosure, just as it would be with any mortgage.

Reverse Mortgage:
With a reverse mortgage, you continue to own your home and remain responsible for its upkeep, property taxes, and homeowners’ insurance. However, failing to meet these obligations can lead to foreclosure. The key difference is that no monthly loan payments are required, which can relieve financial pressure for homeowners on a fixed income.

4. Loan Amount and Interest Rates

interest rates reverse mortgage

Traditional Home Equity Loan:
The amount you can borrow with a traditional home equity loan typically depends on the percentage of equity you have, your income, and your credit score. Interest rates for traditional home equity loans are often fixed, meaning you have the certainty of consistent monthly payments.

Reverse Mortgage:
The amount available to you in a reverse mortgage is based on several factors, including

• the the home’s value
• age of the youngest borrower
• current interest rates.

Typically, the older the borrower, the larger the portion of home equity that can be accessed. Reverse mortgage interest rates can be either fixed or variable, depending on the chosen payout option.

5. Repayment Obligations

Traditional Home Equity Loan:
You must repay a traditional home equity loan in full, with interest, through scheduled payments. The loan remains active until you’ve paid it off, regardless of any life changes, such as moving or selling your home.

Reverse Mortgage:
A reverse mortgage is only due when the homeowner passes away, sells the home, or permanently moves out. If the home is sold to pay off the loan, any remaining equity belongs to the homeowner or their heirs. Reverse mortgages are non-recourse loans, meaning that if the loan balance exceeds the home’s value, neither the borrower nor their estate is held liable for the difference.

Choosing the Right Mortgage Option for You

Choosing between a traditional home equity loan and a reverse mortgage depends largely on your age, financial situation, and long-term goals:

– A traditional home equity loan is often a good fit for those who need immediate access to a lump sum, have a reliable income stream to cover monthly payments, and wish to maintain their current financial arrangements.

– A reverse mortgage might be the better choice for retirees looking to supplement their income, avoid monthly payments, and age in place without the immediate financial pressures of repaying a loan.

Both traditional home equity loans and reverse mortgages allow homeowners to unlock their home’s value, but each serves a different purpose and comes with its own set of considerations. A traditional home equity loan is a familiar route for those comfortable with monthly payments, while a reverse mortgage can offer retirees a much-needed financial cushion.

If you’re still unsure which is the best option for you, consulting with Reverse Mortgage Specialist David Stacy can help clarify the choice based on your individual needs and financial situation. Give us a call today.

Reverse Mortgage Specialist
Greenville, SC 29607
(843) 491-1436
https://www.reverse-info.com/areas-served/greenville/

Reverse Mortgage: Navigating Retirement with Ease

As you approach retirement, your priorities and living situation may shift significantly. Whether you dream of moving to a warmer climate, relocating closer to family, or simply downsizing to a more manageable home, the idea of a fresh start can be thrilling. However, one major question often lingers: Can I afford this transition? That’s where reverse mortgage comes in.

You might have heard about reverse mortgages. It allow homeowners to tap into their home equity to boost retirement cash flow. But did you know that reverse mortgages can also help you purchase a new home? Let’s dive into how a Home Equity Conversion Mortgage (HECM) for Purchase. How can it facilitate your move while keeping your financial future secure?

Topics Covered in This Article

• The Challenge: Funding Your New Home in Retirement
• The Solution: How a Reverse Mortgage Can Help You Rightsize
• Benefits of a HECM for Purchase
• Reverse Mortgage: Securing Your Financial Future
• Reverse Mortgage: Making Your Move

The Challenge: Funding Your New Home in Retirement

Home is where the heart is, but as we age, our homes can feel less accommodating. The spacious family house that once felt perfect might now seem overwhelming with extra rooms and maintenance tasks.

Instead of thinking your options are limited to downsizing or moving into assisted living, consider “rightsizing”—finding a home that suits your current needs and lifestyle. Yet, with rising housing costs, you may wonder how to afford this new home. How can you do that without straining your finances or dipping into your retirement savings.

If the idea of committing to new monthly mortgage payments feels daunting, you’re certainly not alone. So, how can you achieve your dream home while keeping your financial future secure?

The Solution: How a Reverse Mortgage Can Help You Rightsize

If you’re contemplating a move to a home that aligns with your retirement lifestyle, a HECM for Purchase could be the answer you’ve been seeking. This unique financing option lets you buy a new home using a reverse mortgage, offering you both flexibility and financial freedom.

Here’s how it works: With a HECM for Purchase, you make a one-time down payment—usually funded by the sale of your current home—and the reverse mortgage takes care of the remaining balance. You won’t have to worry about monthly mortgage payments as long as you stay current with your property taxes, insurance, and home maintenance. This means you can use your funds as you wish without the pressure of monthly mortgage bills.

reverse mortgages in Greenville SC

Benefits of a HECM for Purchase

Boost Your Cash Flow: Say goodbye to those monthly principal and interest payments! By keeping more of the proceeds from your home sale, you’ll have extra cash for investments or personal needs, giving you more financial flexibility as you settle into your new home.

Expand Your Options: Have your sights set on a more upscale property or a dream location? A HECM for Purchase in Greenville SC can help make it possible. This option opens doors to homes that may have seemed out of reach, enabling you to find a place that meets all your desires.

Align with Your Lifestyle: Whether you’re moving closer to friends or family, or seeking a community rich in amenities, a HECM for Purchase helps you choose a home that matches your current needs and future plans.

Reverse Mortgage: Securing Your Financial Future

Meanwhile, a HECM for Purchase goes beyond just acquiring a new home; it’s also about protecting your financial health:

Protect Your Savings: You can purchase a new home without dipping into your investment portfolio. It lets your retirement savings to remain intact for future needs.

Cut Down on Initial Costs: Worried about moving expenses? A HECM for Purchase in Greenville SC can enable Interested Party Contributions to cover up to 6% of the sale price for fees, closing costs, and other expenses. It helps make the upfront costs more manageable.

Peace of Mind: With non-recourse protection, you’ll never owe more than your home’s value when sold. If the loan balance exceeds the sale price, neither you nor your heirs will be liable for the difference, providing a safety net against market fluctuations.

Reverse Mortgage: Making Your Move

Affordability doesn’t have to be a barrier to your retirement dreams. A reverse mortgage for purchase offers the financial flexibility you need to transition smoothly, preserving your savings and enhancing your cash flow. Whether you’re looking to simplify your lifestyle or find a place that truly feels like home, a HECM for Purchase can help you achieve your goals without financial strain.

Ready to take the next step toward your retirement dream home? We’re here to help! Reach out today to explore how a HECM for Purchase can work for you. Call Reverse Mortgage Specialist now. 

Reverse Mortgage Specialist

Greenville, SC 29607

(843) 491-1436

https://www.reverse-info.com/greenville/

Understanding Reverse Mortgage and Their Tax Implications

As Tax Day approaches, many individuals find themselves gathering receipts and documents, feeling the weight of complicated tax codes. This time of year can be overwhelming; however, establishing an organizational system can alleviate some of the stress. While it’s wise to consult a tax professional for specific financial inquiries, understanding the implications of a reverse mortgage can help clarify your situation during tax season. So, let’s explore the central question: are reverse mortgage funds considered income?

Topics Covered in This Article

• What Is a Reverse Mortgage?
• Are Reverse Mortgage Funds Taxable Income?
• How Can You Receive Your Funds?
• Practical Uses for Reverse Mortgage Funds
• Tax Considerations for Reverse Mortgages
• Putting It All Together

What Is a Reverse Mortgage?

To start, let’s clarify what a reverse mortgage entails. Essentially, a reverse mortgage, or Home Equity Conversion Mortgage (HECM), is a financial product designed for homeowners aged 62 and older. It allows them to tap into their home equity, converting a portion of their home’s value into cash without requiring monthly mortgage payments. Importantly, the loan only becomes due when the homeowner moves out, sells the home, or passes away.

Typically, borrowers can access approximately 50-70% of their home’s value, depending on various factors. This financial solution is particularly beneficial for seniors adjusting to a fixed income. Consequently, it allows them to continue living in their homes while gaining access to funds for daily expenses or unexpected costs.

Are Reverse Mortgage Funds Taxable Income?

Now, to answer the central question: no, reverse mortgage funds are not considered taxable income. This means that the money you receive from this type of mortgage is income tax-free. This is a significant advantage, especially for retirees looking to maintain their financial stability without increasing their tax burden.

How Can You Receive Your Funds?

There are several ways to receive your funds, making this loan flexible and adaptable to your needs. Here are the primary options:

Lump Sum: This method allows you to receive all your funds in one go. Although the total amount may be lower than other distribution methods, it’s ideal for those needing significant cash upfront for immediate expenses.

Monthly Payments: If you prefer a steady stream of income, monthly payments may be the best option. This method provides consistent cash flow, helping you manage your expenses regularly.

reverse mortgage in Greenville SC

Line of Credit: This option allows you to withdraw funds as needed, giving you flexibility and control over your finances. With this method, you only pay interest on the amount you withdraw, and the unused portion may even grow over time, which can be a valuable safety net for future needs.

Additionally, you can combine these methods to create a customized solution that best fits your financial situation in Greenville SC.

Practical Uses for Reverse Mortgage Funds

One of the most appealing aspects of reverse mortgages is how you can utilize the funds. The short answer is, you can use the money for virtually anything you desire! For instance, here are some popular uses:

Paying Off Debt: Many borrowers choose to consolidate high-interest debts, such as credit card balances or existing mortgages. As a result, this can significantly relieve financial stress.

Everyday Expenses: You can use the funds to cover living expenses like groceries, car payments, and other regular bills, thus helping to manage your cash flow effectively.

Savings for Future Costs: Setting aside funds for healthcare expenses, travel, or educational costs for grandchildren can also be wise. By taking a proactive approach, you can plan for the future while enjoying your retirement.

Tax Considerations for Reverse Mortgages

While the funds themselves are not taxable, there are a few important tax considerations to keep in mind as Tax Day approaches:

Tax-Deductible Costs: Some costs associated with a reverse mortgage in Greenville SC, such as interest payments, origination fees, and broker fees, may be tax-deductible. However, to qualify for these deductions, the funds must be used for significant home improvements or purchasing a new home.

Government Benefits: While reverse mortgage payments do not affect Social Security or Medicare benefits, they may count as an asset for needs-based benefits like Medicaid. Therefore, if you don’t spend the funds promptly, you might risk losing eligibility for such programs.

Capital Gains Taxes: Depending on your loan balance and the sale price of your home, capital gains taxes may apply. However, borrowers or their heirs cannot owe more than the home’s value at sale, which provides some financial protection.

Putting It All Together

As you prepare for tax season, remember that funds are not considered income, making them income-tax free. Nevertheless, it’s crucial to understand the potential tax implications, including deductible costs and how they may impact government benefits. Engaging with trusted tax professionals can simplify the process and alleviate any concerns.

Ultimately, a reverse mortgage can provide financial flexibility and security, allowing you to enjoy your retirement years without the worry of increasing your tax burden. If you’re curious about how to incorporate a reverse mortgage into your financial strategy, don’t hesitate to seek expert advice from Reverse Mortgage Specialist!

If you want to learn more about how a reverse mortgage can fit into your financial plan, reach out for guidance today! Call Reverse Mortgage Specialist now. 

Reverse Mortgage Specialist

Greenville, SC 29607

(843) 491-1436

https://www.reverse-info.com/greenville/

https://reversemortgagespecialistgreenville1.wordpress.com/2024/10/12/understanding-reverse-mortgage-and-their-tax-implications/

Is a Reverse Mortgage Right for You? Key Considerations to Explore

Have you ever thought about whether a reverse mortgage might be a suitable financial tool for your retirement? Over 1.3 million people utilizing this option to enhance their financial flexibility. You’re not alone in seeking answers.

Understanding how to navigate your finances during retirement can seem daunting, especially when transitioning from a steady income to relying on savings, investments, and pensions.

Topics Covered in This Article

• What Is a Reverse Mortgage?
• Key Considerations: Is a Reverse Mortgage Right for You?
• Stay in Your Current Home
• Relocate for Retirement
• Improve Monthly Cash Flow With Reverse Mortgage
• Address Financial Concerns
• Handle Major Expenses
• Help Your Loved Ones
• Pay Off Existing Mortgages
• Create a Financial Safety Net
• Finding the Right Reverse Mortgage Lender

Retirement planning isn’t a one-size-fits-all endeavor anymore. With increased life expectancies, rising healthcare costs, and economic uncertainties, today’s retirees face complex challenges that demand innovative financial management strategies.

For many individuals, relying solely on savings and pensions may not suffice to maintain their desired quality of life. And, this is where a reverse mortgage can offer a solution. It allows you to leverage the equity in your home to supplement your income without needing to sell your property.

What Is a Reverse Mortgage?

Before diving into whether a reverse mortgage is right for you, let’s briefly discuss what it entails. A Home Equity Conversion Mortgage (HECM), commonly referred to as a reverse mortgage, is a government-insured loan designed for homeowners aged 62 and older. This loan allows you to tap into your home equity. And, you don’t have the obligation of monthly mortgage payments. As long as you remain current with property taxes, insurance, and home maintenance, you can live in your home without making monthly payments for the duration of the loan.

To qualify for a reverse mortgage, you must be 62 or older. Additionally, you must reside in the home as your primary residence, and have sufficient equity. Even if you have an existing mortgage, you can still qualify. The funds from the mortgage will be used to pay it off, freeing you from those monthly payments.

Key Considerations: Is a Reverse Mortgage Right for You?

Deciding whether a reverse mortgage in Greenville SC is the right choice can be challenging. So, take the time to understand your financial situation, your retirement goals, and the lifestyle you wish to maintain. Here are some important factors to consider:

Stay in Your Current Home

Furthermore, if you wish to remain in your home for the long term, a reverse mortgage might be a great fit. Many retirees prefer to “age in place” rather than move to assisted living or smaller homes. The funds from a mortgage can help support this goal, allowing you to enjoy your home without the burden of monthly mortgage payments.

reverse-mortgage-in-Greenville-SC

Relocate for Retirement

Conversely, if you envision relocating to a different area, a reverse mortgage can still work in your favor. The “Reverse for Purchase” option allows you to buy a new home using a mortgage. And, this means you can achieve your retirement dreams—whether moving closer to family or finding a more suitable living space—while still benefiting from the advantages of this type of loan.

Improve Monthly Cash Flow With Reverse Mortgage

Meanwhile, many retirees find that this type of mortgage helps improve their monthly cash flow. With no monthly mortgage payments, you can redirect those funds to cover everyday expenses, pay off bills, or enhance your lifestyle. This newfound financial flexibility can be a game-changer during retirement.

Address Financial Concerns

If you’re worried about inadequate savings for retirement, this type of mortgage can provide access to the equity tied up in your home. Many homeowners today find themselves “house rich but cash poor,” with significant equity in their homes but limited cash flow. By utilizing this type of loan, you can convert that equity into usable funds, helping alleviate financial stress.

Handle Major Expenses

Unexpected expenses, such as medical bills or home repairs, can quickly derail your retirement plans. A reverse mortgage can serve as a financial safety net. It lets you to cover these costs without dipping into your savings. Whether you need in-home care or modifications to enhance mobility, this type of loan can offer the financial support you need.

Help Your Loved Ones

If you wish to assist your family financially, a reverse mortgage allows you to use the funds as you see fit. Many retirees choose to help with their grandchildren’s education or their children’s home purchases. The flexibility of a reverse mortgage can make these contributions possible.

Pay Off Existing Mortgages

Also, if you have an existing mortgage, a reverse mortgage will pay it off entirely, freeing up additional cash for you to use. This relief can be significant, especially if you’re struggling to manage monthly payments.

Create a Financial Safety Net

Having a reverse mortgage in Greenville SC can provide peace of mind, acting as a buffer for life’s unexpected costs. Whether dealing with medical emergencies or necessary home repairs, knowing you have access to funds can alleviate stress and help you navigate challenges more smoothly.

Finding the Right Reverse Mortgage Lender

Once you’ve decided that this type of loan may be a good option, the next step is finding a trustworthy lender. Not all lenders are the same, so it’s essential to do your research. Look for companies that prioritize customer service and provide transparent information about the process. Get in touch with Reverse Mortgage Specialist for more details. So,understanding your options is vital. And, seeking guidance from trusted advisors can also help clarify the decision-making process.

Are you ready to explore how a reverse mortgage can enhance your retirement? Take the first step toward financial freedom and discover your options today! Call Reverse Mortgage Specialist now. 

Reverse Mortgage Specialist
Greenville, SC 29607
(843) 491-1436
http://reversemortgagegreenvillesc.com/

Reverse Mortgage: Navigating the Challenges of the Sandwich Generation

Reaching a stage in life where your children have grown and your parents are aging can be a time of pride and newfound freedom. For many, this phase symbolizes the opportunity to focus on personal goals and career aspirations. However, not everyone experiences this transition as a time of relief. Instead, many find themselves in a demanding role known as the “Sandwich Generation,” which involves caring for both their children and aging parents. This is where understanding the benefits of a reverse mortgage can make a significant difference.

Topics Covered in This Article

• The Burden of Dual Caregiving
• Recognising Emotional Strain
• Striking a Balance: Work and Caregiving
• Understanding Financial Pressures
• The Importance of Caregiving Financial Planning
• Exploring Reverse Mortgage Solutions
• Moving Forward Together

The Burden of Dual Caregiving

This unique situation can be overwhelming. Those in the Sandwich Generation juggle the responsibilities of two generations, and the emotional, physical, and financial demands are significant. Family members often rely on these caregivers for emotional support, financial guidance, healthcare advice, and assistance with daily activities. Recognising the weight of these responsibilities is crucial, as it allows caregivers to seek ways to manage the pressures that accompany their roles.

Recognising Emotional Strain

Caring for loved ones can take an emotional toll. Thankfully, there is a growing awareness of mental health, making it easier to discuss feelings of stress and anxiety. Connecting with friends and family about your experiences can provide relief; furthermore, seeking professional support can help you develop effective coping strategies. Additionally, building a network with others in similar situations can offer a valuable support system. Sharing experiences can lighten the emotional load, making it easier to navigate this challenging journey.

Striking a Balance: Work and Caregiving

Time management becomes a complex challenge when balancing work with caregiving. A recent survey indicated that many caregivers struggle to divide their attention between professional obligations and family responsibilities. This balancing act can lead to feelings of inadequacy and frustration.

Reverse mortgages in Myrtle Beach SC

One effective strategy is to delegate responsibilities to family members or friends, which allows for a sharing of the caregiving load. For instance, involving siblings or extended family members in caregiving tasks can create a sense of teamwork and ease some pressure. Planning for busy periods in advance can also alleviate stress. By anticipating high-demand times, caregivers can adapt their schedules accordingly and ensure that both work and family needs are met.

Understanding Financial Pressures

Caregiving often comes with hidden costs. Many caregivers dedicate substantial hours to their roles, translating into significant economic impacts, particularly for those balancing paid employment. A study found that a considerable percentage of caregivers reported having to cut back on their work hours or even decline promotions due to their responsibilities.

In some cases, the pressures of caregiving may force individuals to leave the workforce entirely. This transition can lead to financial strain and the loss of retirement benefits, making long-term financial planning essential. Therefore, exploring options like a reverse mortgage in Myrtle Beach SC is vital to ensure that financial security remains intact while caring for loved ones.

The Importance of Caregiving Financial Planning

Planning for healthcare needs is more critical than ever, especially as lifespans increase. While people may live longer, the quality of those additional years isn’t always guaranteed. For this reason, creating a robust financial plan, including a Myrtle Beach reverse mortgage, to support your own and your loved ones’ healthcare needs is essential.

Consider how to age in place effectively, ensuring your home environment meets changing needs. In fact, a comprehensive healthcare strategy encompasses various factors, helping to ensure a comfortable and secure future. By anticipating future requirements, caregivers can make informed decisions that support their families throughout the aging process.

Exploring Reverse Mortgage Solutions

The financial burdens of supporting multiple generations can be daunting. However, for homeowners in Myrtle Beach SC, accessing home equity through a reverse mortgage may provide a much-needed financial lifeline. This financial tool can convert a portion of home equity into tax-free cash, which can help cover caregiving costs, daily expenses, or even professional care when needed.

Utilising a reverse mortgage allows flexibility in receiving funds. For example, caregivers can structure payments in a way that alleviates immediate pressure while providing long-term support. Importantly, consulting with financial professionals helps clarify how this option might work for individual circumstances. Understanding all available resources, including reverse mortgages, can lead to better decision-making and enhanced stability.

Moving Forward Together

Navigating the complexities of the Sandwich Generation can be challenging. However, it also offers an opportunity to foster closer intergenerational relationships. By planning effectively and utilising available resources, such as a reverse mortgage, caregivers can create a supportive environment that benefits everyone involved. Get in touch with David Stacy Reverse Mortgage Specialist for more details.

If you’re feeling the weight of dual caregiving responsibilities, take a proactive approach to manage your challenges. Reaching out to a financial advisor or mental health professional can provide the guidance needed to navigate this intricate landscape. Call David Stacy Reverse Mortgage Specialist now. 

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

Reverse Mortgage Specialist
Columbia, SC 29205
843-491-1436
https://www.reverse-info.com/areas-served/columbia/

South Carolina Reverse Mortgage Services
Charleston, SC 29401
843-491-1436
https://www.reverse-info.com/

Reverse Mortgage Specialist
Greenville, SC 29607
(843) 491-1436
http://reversemortgagegreenvillesc.com/

Reverse Mortgage Specialist of Hilton Head
Hilton Head Island, SC 29926
(854) 842-2505
https://www.reverse-info.com/

 

Reverse Mortgage Lets You Reverse Your Monthly Mortgage Payment

Homeowners have a lot of questions when it comes to reverse mortgage. One of the most common one is if they can still take out a reverse mortgage if they already have mortgage. Many people believe that the answer to this question is no. But the truth is, reverse mortgage allows its borrower to reverse their existing mortgage payment. The borrower no longer have to make monthly payments because they can use the proceeds from the reverse mortgage to end their mortgage once and for all.

Reverse mortgage loan is federally guaranteed. It is also a regulated program which means there are some restrictions. This type of loan is created to use the equity of the house, but there are restrictions to how much a reverse mortgage could produce and how much of the mortgage could be paid off. One excellent way to find out if a reverse mortgage will perform well for you is to determine if your current mortgage is below 70% of the appraised value of the house. That’s the maximum lending limit for many cases. You don’t have to worry because our reverse mortgage will give you the exact figures of how much you can borrow.

The loan proceeds you get from the reverse mortgage should go towards paying off your existing mortgage. You can use the remaining cash any way you want but only after you’ve paid off your mortgage. This must be the goal of those who wish to take out a reverse mortgage especially if they still have a large home equity loan. One advantage of a reverse mortgage is that it can remove the existing mortgage and the cash that was supposed to be used to pay off the first loan can be used for a different purpose. Another benefit is that reverse mortgage loans won’t require the borrower to make monthly repayments for as long as you live in your house.

Benefits of Reverse Mortgage

Reverse mortgage is a loan product that’s especially useful to get rid of monthly mortgage payments as well as payments for medical bills, medicine, and credit card debts. This type of loan came from Europe. It has been extremely famous financial assistance in other countries like France, Germany, and England for the past 35 years. Even though the United States has perfected the administration and safety of the loan in the past 15 years, its popularity still skyrocketed in the last ten years. It has reached a point where it is now experiencing a 200% growth from every year to the next in the number of retirees or seniors who are signing up for a reverse mortgage program.

Reverse mortgage Greenville is an affordable, safe, and free financial strategy that doesn’t affect any income or government benefits. It also protects the house from default as well as foreclosure and provides relief to seniors who have been feeling stressed over their monthly mortgage payments.

Call David Stacey if you need more information about reverse mortgage.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/

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What Are Reverse Mortgages Commonly Used For?

One of the most common options for senior citizens is a reverse mortgage. Its popularity is attributable to its ability to provide the homeowner the freedom to utilize the money from the loan in whatever way they choose. Since the homeowner is going to have full control as to how he or she will use the loan’s proceeds, there are several different ways wherein these reverse mortgages can be utilized. Provided below are some of the most common purposes of reverse mortgages.

Several senior citizens are discovering themselves to be in a position wherein they need to find new methods to cover for their long-term care because of the increasing cost of healthcare. Several seniors have opted for a reverse mortgage as a strategy to fund the fees for their health care. Generally, they use the money obtained from the loan to pay the premium for their long-term care.

The cash they get from the reverse mortgage loan lets a few senior citizens get the kind of health care they need for as long as required. This is also because of the FHA insurance, which ensures homeowners continue to get monthly payments provided that they continue to reside in the house. They cash you obtain from a reverse mortgage Greenville is also tax exempt. Additionally, based on your financial status, your social security, as well as Medicare benefits, are typically not influenced by the cash you obtain from the reverse mortgage. If you want to be perfectly sure, it is highly recommended to consult a CPA. You may also consult your counselor or perhaps your reverse mortgage broker if you plan to apply for a reverse mortgage loan.

The money obtained from reverse mortgage loans can also be used to pay for emergency or unexpected medical expenses, pay for long-term care insurance costs, or monthly medical bills. A senior citizen can also use a reverse mortgage loan to turn the tables if he or she is facing a foreclosure. Rather than paying on a monthly basis, the bank will be giving the homeowner a monthly “income”.  If you obtain the mortgage, the mortgage for the foreclosure can be settled so that the property will be taken out of the foreclosure process.

A reverse mortgage can also act as a shield. Provided that you continue to live in your house, you can be assured that you will never be asked to surrender your property. All you need to do is make sure that the insurance payments and real estate premiums are up to date.

Seniors can also use the reverse mortgage loan to fund their retirement. With today’s economy, many seniors are finding it harder to keep the lifestyle that they have gotten used to especially with their increasing life expectancy. With the reverse mortgage, you can choose to get your loan in monthly installments from the bank. This can serve as their second income.

Call South Carolina Reverse Mortgage Services and find out if a reverse mortgage loan is the best option for you.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/