What is a reverse Morgage and how does it lead to financial freedom?
A reverse mortgage is simply a home loan that doesn’t require a monthly payment, its secured by the equity in your home and the amount you can borrow is based on the youngest person on the application, the amount of equity you have in your home (value less any liens against the property) and current interest rates. A reverse mortgage is available to those seniors that have reached 62 (one of those on the application). The purpose of a HECM is to enable seniors to experience financial stability while they enjoy their retirement
The recurring payments you can receive with a reverse mortgage can supplement your retirement earnings, making it easier to afford the cost of living and handle unexpected expenses.
Have better control over your finances with a reverse mortgage
Choose what works best for you
When approved for a reverse mortgage loan, you have complete control over how and when you’ll receive your funds. From receiving the cash in a lump sum, to getting monthly payments or establishing a line of credit. You can decide which method works best for you based on your financial needs.
When approved for a reverse mortgage loan, you have complete control over how and when you’ll receive your funds. From receiving the cash in a lump sum, to getting monthly payments or establishing a line of credit. You can decide which method works best for you based on your financial needs.
how does reverse mortgage lending work?
Before your reverse mortgage is approved, you must meet specific requirements. These requirements include having substantial equity in your property, at least one of you being at least 62 years old, and complete some counseling provided by a 3rd party service. If you meet these three requirements, a reverse mortgage can benefit you by enabling you to access funds based on your home’s equity.
The reverse mortgage allows you to have access to cash on demand without making payments each month. As long as you’re living in the home and handling your agreed-upon obligations, such as paying your property taxes, homeowner’s insurance and maintaining your home your account will remain in good standing.
The Process: What to expect
Obtaining a reverse mortgage starts with a consultation, where you can learn more about the lending opportunity and how it can help you achieve financial stability. If it sounds like something you’d like to do, Rich will help you complete your application to get things started. After the file is reviewed, along with the documents you’ll be asked to provide, an appraiser will be assigned to visit your home to determine its value. Once the appraisal is received your reverse mortgage will be submitted to an underwriting team who is responsible for carefully reviewing the details and approving the loan. When your loan is approved, you’ll sign off on the final documents, choose how you want to receive your funds, and receive the cash you need.
The benefits of a reverse mortgage
The advantages of obtaining a reverse mortgage loan are tremendous. Not sure if this is the right move to make? Check out some of these incredible benefits!
- Have access to money when you need it
- Quickly boost and supplement your income.
- Experience the financial freedom you deserve during your retirement.
- Cover the cost of any unpaid medical bills.
- Afford the cost of home repairs needed to keep your property in excellent condition.
- Continue to live in the home you love.
*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. Consumers remain responsible for property taxes, homeowner’s insurance, and home maintenance.
Have questions about the pros and potential cons of reverse mortgage lending?
Reach out today to schedule your consultation!
