The Benefits of a Reverse Mortgage

How You Can Use The Money You Receive:

The money you get from a reverse mortgage is actually money you already had, money that was in a sense sitting unused in your home. If you think of it that way, it's easy to understand why you can use the money you get for almost anything. Here are some of the most popular uses for reverse mortgages:

Pay off existing debts, anything from credit cards to home equity lines of credit to car loans.
Please review all loan agreements.

Paying off an existing mortgage.
You can use the money to pay off your first mortgage and completely eliminate the need to make monthly mortgage payments, giving you more disposable income each month.

Adding to your monthly income.
You can take the money from a reverse mortgage as a monthly payment to supplement your existing income, or you may choose a line of credit or a lump sum.

Paying for home maintenance or repair.
Your home is probably your most valuable asset and you can use the money to get to maintain, or possibly increase its value.

Creating a cash reserve for emergencies.
Many people like the feeling of security they get from having a financial “cushion”.

Providing funds for long-term care insurance or other financial tools.
Freeing up cash with a reverse mortgage can help you afford components of a financial plan.

Helping family members of loves ones financially.
Pay for tuition or establish an education fund for grandkids, help a child buy a new house or just give gifts to the people you care about. The choice is yours.

Being able to afford special things you’ve always wanted to do, such as travel or hobbies.
Don’t let lack of money keep you from doing the things you’ve always dream of doing

 

 

For The Families of Seniors:

A reverse mortgage could be an ideal way for your parents to benefit from the wise investment they made in real estate perhaps decades ago. If you are the son or daughter of a senior who is age 62 or older, you should understand the facts about reverse mortgages. Please take a moment to look at our frequently asked questions.

Get money without moving.
A reverse mortgage can help your parent(s) create a new source of tax-free* money without having to sell their home. In fact, they can stay in the home they love as long as they’d like.

Financial independence.
A reverse mortgage allows seniors to tap into money they’ve earned in the form of home equity, and avoid having to depend on relatives for financial assistance.

Keep title to the house.
Your parents retain full title to their home and have no risk of losing the home to the lender. And no matter what happens to the housing market, your parents can never owe more than the value of their home when it is sold.

Proven Safe.
Hundreds of thousands of Americans have already benefited from reverse mortgages. The fact is that HECM reverse mortgages are government-protected loans and many safeguards are in place to protect seniors from unethical lending practices.

Repayment Options.
If your last-remaining parent passes away while living in the home, you, as the heir(s), simply pay off the reverse mortgage principal plus accrued interest. If you, or a sibling, or other relative want to keep the home in the family, you can take out a new traditional mortgage or use other assets to pay for it. If no one in the family is interested in keeping the home, it can be sold to repay the loan. Any money left over goes to the estate to be shared according to your parent’s last wishes.

* Consult Tax Advisor

 

For The Advisors of Seniors:

If you are a trusted advisor of a senior homeowner who is age 62 or older, there are several things you should know about reverse mortgages and how they can help seniors to live more comfortably and securely.

A safe, proven choice.
HECM reverse mortgages are government-protected financial tools that have helped hundreds of thousands of seniors enjoy better lives. Many safeguards are built into the program to protect seniors from predatory lending practices.

The best of both worlds.
A reverse mortgage can be the right choice for senior homeowners who need additional income without having to sell their homes to raise the cash. With a reverse mortgage, the homeowner can choose to get a monthly income check, a line of credit, or a lump sum distribution all without having to move or give up title to the home.

Ideal liquidity tool.
A reverse mortgage is an ideal way to create liquidity from a real estate asset. This liquidity can enable seniors to pay bills, make home repairs, retire an existing mortgage, or to purchase such health-related services as long-term care insurance.

Tax-free* money.
A reverse mortgage creates benefit for the senior by tapping into the existing equity in their home. The benefits you receive are considered loan proceeds. Loan proceeds are not taxable.

* Consult Tax-Advisor