(678) 530-0511
Reverse Mortgage
Financial Independence with a Reverse Mortgage
Stop for a moment and imagine what it would be like to be able to live in your home and never have to make any more monthly mortgage payments. Or imagine further, what it would feel like to know that your home can be a ready-made nest egg for your present and future financial needs. These are not just some wish-upon-a-star dreams. This can be a reality for you – no gimmicks or misleading information. You’ve worked hard to build equity in your Georgia home. Now, let it pay you back when you need it the most! This is possible because the U.S. Congress passed legislation which created the Home Equity Conversion Mortgage Program, better known as the FHA-insured Reverse Mortgage. More than 95% of all reverse mortgages done in Georgia today are the result of the passage of this legislation. The examples above are just two of the many reasons why seniors today owe it to themselves to explore the possibilities of a Reverse Mortgage. Underlying all of them is economic independence.
How does A Reverse Mortgage work?
To qualify, a borrower must be at least 62 years of age and be an owner/occupant of a home, townhome, or HUD-approved condo or manufactured housing. Every situation is unique. But, generally, if the borrower(s) have built at least a 50% equity position in the home, they can access a portion of the home’s appraised value and streamline those funds into tax-free income. Even if you owe your mortgage company more than what the reverse mortgage can pay out, sometimes lenders will agree to a short-pay in this current economic environment instead of going through the expense, hassle, and bad press of foreclosing on yet another Georgia homeowner. In essence, your house can either pay cash directly to you or pay off any existing mortgage liens, tax liens, or judgments against the property which would be required. Funds from a fixed rate reverse mortgage must be taken just after the closing. Adjustable rate reverse mortgages may be taken as a lump sum, monthly income, a line of credit, or any combination of the three. This income does not affect regular Social Security benefits and there are no income, medical or credit score requirements to meet - a very important consideration for many seniors. The date of birth of the youngest borrower on title, the FHA appraised value of the home and the interest rate are the three driving factors that determine the total amount of funds that can be received.
When must the loan be repaid?
No repayment is required on a reverse mortgage until the last remaining borrower on title permanently leaves the home. Because there are no monthly mortgage payments required with this unique loan program, the interest accrues over the life of the loan and generally isn’t paid until the last remaining borrower finally leaves the home for good. At this point there are two options:
1. The home can be sold and the loan repaid with the proceeds.
2. The loan can be repaid with personal funds within the family or through some type of refinance by you or your heirs.
As one of the many built-in safety nets, Georgia borrowers are protected and can never owe more than the fair market value of the house. All remaining equity after satisfying the loan can go back to your estate. In the rare event that a reverse mortgage balance outgrows the value of the house, FHA steps in to cover any shortfall there might be on the borrower’s behalf as long as the sale of the property is an arm’s length transaction. In other words you may not sell your house to another family member at fifty cents on the dollar and then expect FHA to pay the shortage.
Aging can be very costly!
Today’s high costs of living and increased life expectancy have made it very difficult for seniors in Georgia to save enough for their retirement years, especially if they elect early retirement or are forced into it. Aging is becoming more expensive every year. No matter how good of a saver someone has been throughout his/her life; few budgets can handle the types of aging expenses many of us will face without it greatly impacting financial security. A reverse mortgage is an option that can reduce or eliminate the financial burden on you and your loved ones. More and more, the adult children of the senior population are being called upon to fill the financial gaps that these aging expenses are creating. Now, situations such as these are making reverse mortgages a more mainstream financial planning tool to assist Georgia seniors in solidifying their own financial independence more than ever before. Because this program offers unique benefits, a telephone or in-person counseling session with an FHA-approved housing counselor is a requirement. The counselor ensures that prospective senior borrowers and their families fully understand the reverse mortgage program and can advise the families which alternative currently available is the best one for them. Upon completion of your counseling, you will actually receive a certificate of completion that is good for 6 months.
What are the most common uses of a Reverse Mortgage?
ü pay off an existing mortgage on the home
ü supplement monthly income for more of a “cushion”
ü have funds available to make needed home repairs or
home modifications because of impaired health and mobility
ü consolidate various debts without having to qualify to the extent you would for a traditional mortgage
ü help pay for medical or personal assistance expenses
ü have a ready-made nest egg for unanticipated expenses
ü purchase a new home better suited for senior living
For your own personal FREE, no-risk Reverse Mortgage proposal- call (678) 530-0511 today.
georgiareverseloans.com
Georgia Licensed Reverse Mortgage Specialist
GA License #29757
Reverse Mortgage…Forward Thinking
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