What is a Reverse Mortgage?
The reverse mortgage is a national program available to homeowners age 62 and older providing you access your home's equity without having to make a monthly mortgage repayment. You must continue occupying your home as your primary residence and continue paying your property taxes and homeowners insurance. The most popular reverse mortgage program is called the HECM which stands for Home Equity Conversion Mortgage and is insured by the FHA (Federal Housing Administration).
How much can you qualify for?
The amount of funds available through a reverse mortgage loan is based on the youngest spouses age and the appraised value of your home. As a rule of thumb the loan to value (LTV) offered on a reverse mortgage is 40-70% of your appraised value, depending on your age. For a detailed estimate access our free online calculator.
Does the bank take title to my home?
No, you retain the same ownership and title that you have today. The reverse mortgage is just a loan like any other type of mortgage but with the extra ability to defer the interest charges rather than making mandatory monthly repayments. At any time you may repay the interest, refinance or sell your home without penalty. You will always receive a monthly statement that will outline your interest charges and available line of credit activity. At the end of the day FHA is the entity who is insuring your loan for your lifetime. Because of the national MIP fund you are guaranteed that if a lender should go out of business in the future your loan will be transferred to another servicer and honored for your lifetime. Your line of credit will always he made available to you and you can stay in your home providing that you continue maintaining your property tax and insurance, regardless of how long you live or what your home value appreciates.
Retired and need monthly cash without having a mortgage payment? If you're 62 or older, MyPrimeHomeLoan.Com can help you obtain a Reverse Mortgage Loan or a Reverse Mortgage Loan Purchase. These programs can convert the equity in your home into cash flow for you, without selling your home or needing to make monthly payments.
Call us today & see if you can benefit from a Reverse Mortgage Loan! (800)600-MPHL ext. 102
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Do I need to own my house free and clear, or can I get a reverse mortgage if I already have a loan on my house?
You do not need to own your home free and clear to get a reverse mortgage. The proceeds can be used for any purpose, but any existing liens on the property must be paid off at closing. If the reverse mortgage is not large enough to cover your existing loan, you can still get the reverse mortgage by bringing in the additional funds from another account and still never have to make another house payment!
Will my heirs still receive an inheritance?
Often yes, after the balance of your reverse mortgage is paid off, all remaining equity will go to your heirs. One of the forms we provide you with before you close your loan is an amortization schedule so you will always know the principal balance of your loan, year by year. How much equity will remain will Depend on such variables as how much money you draw, how long you stay in your home, home appreciation your home experiences and interest rates (if you have a variable interest rate loan).
What is Purchase Reverse Mortgage?
A Reverse Mortgage for Purchase allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the HECM (Home Equity Conversion Mortgage). The Purchase Reverse Mortgage program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction by eliminating the need for a second closing. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc.
What property types are eligible?
Existing one-to-four unit properties where construction has been completed and the property is habitable.
Can a Purchase Reverse Mortgage be used to satisfy outstanding payment obligations associated with a land contract?
Yes, if the property will be used as collateral for the HECM and the mortgage will be held in fee simple, or on a leasehold under a lease for not less than 99 years which is renewable, or under a lease having the remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest mortgagor.