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What is a Reverse Mortgage ?
Mortgages in Reverse “You have worked hard for your home. Now, have your home work for you” If you are 62 or older and own your own home, you can continue to live in the comfort of that home and enjoy it’s full appreciation while receiving monthly cash advances and long term financial security. Our Home Equity Conversion Mortgage gives you a simple way to unlock the equity in your home without selling, pulling up your roots to move or taking out a traditional home equity loan. The Home Equity Conversion Mortgage (HECM) is a special type of home loan called a reverse mortgage. The HECM is backed by the Federal Housing Administration (FHA). A HECM loan enables you to tap the equity in your home and unlike traditional home loans, which require a monthly payment, a HECM actually pays you. Best of all, HECM’s require no repayment of monies received as long as you occupy your home as a primary residence. Chances are your home has significantly appreciated since you purchased it, making it one of your most valuable assets. With a HECM loan there are no risks – just safe, secure retirement income that is determined by your age, where you live and the value of your home. There are 5 payment options to choose from. You make the determination, which plan to use, whether it’s a monthly credit or a combination of both. If your financial needs change, you are permitted to change payment plans at any time for a nominal fee. You may change your payment plans as often as you like. Upon leaving your home, for whatever reason, the loan balance plus accrued interest becomes due and payable. That repayment may be made from the proceeds of selling your home or by other means so that the home may be kept. If the loan exceeds the value of your property, you owe and your heirs owe no more than the value of your property. Any amount in excess of the home’s value will be forgiven. You will never owe more than the value of your home or the amount you have borrowed under the terms of the loan, whichever is less. If you receive more in payments than your home is worth at the time, it will be forgiven. Any questions contact me Bob Baerenbach |
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