REVERSE MORTGAGES
WHAT IS A REVERSE MORTGAGE?
A Reverse Mortgage is a loan against the equity in your home. It provides tax-free cash advances and requires no payment during the term of the loan.
WHO QUALIFIES FOR A REVERSE MORTGAGE?
¨ You must be at least 62 years of age
¨ You must own your home or condominium
¨ You must live in the home or condominium as your primary residence.
¨ There are NO credit or income requirements for this type of loan.
WHAT CAN YOU DO WITH THE CASH YOU RECEIVE?
The cash you receive can be used for whatever purpose you want. Pay off your car, make needed car repairs, home improvements, home modifications, cover medical expenses not covered by your insurance, the cost of in-home health care, the purchase of a new home if you choose to downsize your home. The Reverse Mortgage offers you an opportunity to continue your American Dream. It is YOUR money to do whatever you please with.
SOME FACTS ABOUT A REVERSE MORTGAGE
¨ A Reverse Mortgage does not affect Social Security, Medicare or Pension benefits.
¨ All fees are financed into the loan.
¨ The title to the property remains in YOUR name. The Reverse Mortgage is a loan against the equity of the property.
SOME COMMON MISCONCEPTIONS ABOUT REVERSE MORTGAGES
♦ MISCONCEPTION # 1
"I will lose my home."
FACT: The title remains in YOUR name! You do not have to make any payments on your loan as long as you or your spouse live in your home as your primary residence. The life of the loan is between 60-69 years.
♦ MISCONCEPTION #2
"My Social Security or Medicare will be affected."
FACT: Typically, your Social Security and Medicare will not be affected by the proceeds from a Reverse Mortgage! This is TAX FREE money to spend however you choose to. If, however, you are receiving SSI or Medicaid, be sure to check with a representative of those agencies to be sure that the funds you receive won't have an adverse affect on your current benefits.
♦ MISCONCEPTION #3
"My children are concerned about their inheritance."
FACT: Most homes continue to appreciate over time. A high percentage of homes still have enough equity that can be passed on to your heirs. With an estimate of funds for your specific situation, we provide you with an Amortization Schedule that shows the equity in the home over the years. We suggest that you consult your legal advisor regarding the documents that are available that you can use to protect your heirs. For example: A Beneficiary Deed is an effective tool to transfer your home to your heirs.
♦ MISCONCEPTION #4
"What happens if I owe more than my home is worth?"
FACT: The Reverse Mortgage is known as a "Non-Recourse" loan. This means that you or your heirs will never owe more than the property is worth.
♦ MISCONCEPTION #5
"I shouldn't have to pay mortgage insurance."
FACT: This is a fee assigned by the Federal Housing Authority, (FHA). It plays a major role in the loan being a Non-Recourse loan as we discussed earlier.
HERE IS ANOTHER FACT FOR YOUR CONSIDERATION:
FACT: Although the costs of a Reverse Mortgage seem very high, the fees involved are basically the same as a purchase. The biggest difference in these fees, is that with a Reverse Mortgage, these fees MUST be disclosed up front. When you purchase a home, these fees are not disclosed until closing.
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5960 Howdershell Rd. Suite 206 | St. Louis, MO 63042
314.731.2211 | 888.560.2211 toll free
carterlending@carterlending.com