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/

Reverse Mortgages Are Starting To Gain More Approval

Reverse mortgages have always been controversial. But, it’s starting to get more approval from financial planners as retirement crisis continue to haunt seniors. Although some planners are still sceptical, others are starting to consider home equity as a good way for their clients who have found it difficult to save or add on to their retirement income.

Reverse mortgages were once considered as the Wild West of the mortgage sector, they have observed their reputation improve as the Federal Housing Administration tightened their lending standards. More experts are now saying that reverse mortgages could be a wonderful tool for retirees.  

Gaining Acceptance

When they were first introduced, reverse mortgages got a negative publicity because of their brokers who were overly aggressive. Many of them gained a lot of commissions on loans on seniors who are not financially sophisticated.

The lowest point came after the Great Recession wherein 10% of all reverse mortgage loans fell into default.

The Federal Housing Administration is responsible for insuring reverse mortgages. It responded by tightening up the requirements for homeowners who are looking to make the most out of the Home Equity Conversion Mortgage program.

The reforms restricted the amount of home equity that a homeowner could take out during the first year to 60%, getting rid of the temptation of a sudden and single windfall.

The FHA made the credit standards tighter. Homeowners with finances weren’t up to par could be needed to put cash aside in their escrow account in order to cover their future expenses.

To qualify for a reverse mortgage loan, you have to be at least 62 years old and have significant home equity, and the ability to cover the home repair, taxes, and insurance costs.

Reverse mortgages could offer extra retirement income, which is a much more affordable replacement for long term care insurance. It will also help seniors put off spending their social security, so they could get a higher payment every month by delaying retirement.

For individuals who for some reason were unable to save enough for their retirement, tapping into their biggest home equity could be a live saver.

Together with the lump sum, other reverse mortgage options involve taking out a line of credit or receiving monthly annuity, an option that received the most approval from financial planners.

Some planners are optimistic in a reverse mortgage line of credit, which could grow as much as 3% to 4% annually.

Obviously, if you use the line of credit, the money you get will not grow anymore and will just begin to accrue interest.

However, whether it is via a reverse mortgage lump sum or credit line, it could be very helpful to get another income source to draw upon, according to some planners.

Taking out reverse mortgage loan, can greatly help. Say for example you’ve made investments, you have cash, and you have home equity, you can tap into any of them depending on the market conditions.

Call Reverse Mortgage Specialist if you would like to know more about reverse mortgage.

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

What Are The Pros and Cons of Reverse Mortgage?

By now you’ve probably heard about reverse mortgages. The idea behind it is quite simple. Instead of getting a home loan and paying the lender, the lender will be the one who’ll make payments to you. Such payments could be in the form of a lump sum or a regular monthly payment. Whatever option you choose, you won’t be required to repay the mortgage until you die or decide to move out of your home.

Even if this seems like a good deal for you, the truth remains that reverse mortgage loans are controversial. Some say that this type of loan should be part of one’s retirement plan. Seniors who are in need of extra money can tap into the home equity, which will be their most valuable asset.

But critics say that reverse mortgages are associated with substantial fees and the balance on the loan increase as time goes by. Plus, reverse mortgages that were not made via an FHA program don’t have enough consumer protection, which could leave you or your estates on the hook in case the house loses value.

Before you make a decision, here are a few things you need to know about the pros and cons of reverse mortgages.

The Pros of Reverse Mortgage 

-       May receive regular income provided that you live in the house as your primary residence.

-       Payments you get from a reverse mortgage are not taxable

-       FHA reverse mortgage loans are considered as non-recourse loans and that means you cannot owe much more than the existing value of your house.

-       Payments do not need to be made on the loan until you decide to move, sell the house, or you die.

The Cons of Reverse Mortgage

-       You should be at least 62 years old to get a reverse mortgage loan via the FHA program

-       There are many costs to obtaining this kind of loan including but not limited to mortgage insurance.

-       Your estates might not be able to retain the house in case they can’t afford to repay your debt.

-       In case you can’t stay in the house because of your long-term needs then the reverse mortgage loan will become due.

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Always remember that even if you are not required to make repayments for your reverse mortgage Greenville, you will still be held responsible for covering other fees like the maintenance costs, homeowners insurance, and property taxes.

If you fail to meet these requirements, your house may be foreclosed on. It is crucial to make sure that you have money available to cover these expenses because if you don’t, you may run the risk of losing your home. Some lenders would set up a set aside account so you can deal with the aforementioned costs, moving a portion of the loan into the account. But this set aside account will not guarantee that you will always have the cash to cover these expenses. So be sure to pay close attention and that you are updated.

If you want to understand how reverse mortgages work, then you should call Reverse Mortgage Specialist now.

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