Before you say NO, please read on and keep an open mind.
A Home Equity Conversion Mortgage, also known as a
reverse mortgage, is a Federal Housing Administration insured
loan which enables you to access a portion of your
home’s equity to obtain tax-free funds without having to
make monthly mortgage payments.
This innovative program helps seniors use the equity from
the sale of their previous house to fund the purchase of their
next home. Reverse mortgages are also used by people who
want to age in place and free up equity so they can enjoy a
comfortable lifestyle.
If you are age 62 or older and have sufficient equity, you may
be able to get cash to:
– Pay off existing mortgages
– Continue to live in your home and retain title
– Pay off medical bills and other debts
– Improve your monthly cash flow
– Fund necessary home repairs
– Build a “safety” net for unplanned expenses
“A reverse mortgage is not for everyone” according to
Paul Reschke of Summit Mortgage. The home must be your
primary residence and you must still pay property taxes and
insurance. If it is an option, you will enjoy the following
benefits:
– You can continue to live in your home and retain title
– Eliminate your existing monthly mortgage payments
– Loan proceeds are tax-free and can be used any way
you choose
– Your heirs inherit any remaining equity after paying
off this loan
Naturally, we highly recommend you seek professional
counsel from someone who’s familiar with this type of loan,
such as your CPA, financial planner, elder law attorney or a
loan officer who specializes in this program.
The best way to determine if a reverse mortgage is “right”
for your unique situation is to investigate. Call us for a
confidential conversation.
