Donna Yates, Move 2 North Georgia.net: Seven Things Seniors Should Know About Reverse Mortgages

Seven Things Seniors Should Know About Reverse Mortgages

Let me begin by saying, I am not a mortgage specialist and I advise you to consult with one for more information. If Home Ownershipyou want to contact me, I'll be happy to refer you to one.  Also, consider speaking with the appropriate experts in the area in which you may have other questions such as, income taxes, property taxes, homeowner's insurance, etc.


So,  What is a Reverse Mortgage?

Allows homeowners age 62 and older to convert part of the equity in their primary residence into cash and have No Monthly Debt.  There is No Income or Credit Score Requirements.  Cash received from a Reverse Mortgage is tax-free and can be used for any purpose.  Homeowners retain ownership and connot be forced to leave their home when all loan terms are being met.  The loan, including accrued fees, is due when the home is vacated due to sale, moving, or death of the owners.  Neither the owners nor their heirs are personally liable for more than the value of the home and a Reverse Mortgage can be used to purchase a primary home.



Seven Things Seniors Should Know About  Reverse Mortgages

1.  How Do I Qualify?

  • be at least 62 years old
  • occupy the property as your primary residence
  • pay off any existing liens from proceeds at settlement
  • attend an informal session with a housing counselor, usually by telephone
2.  Why Would I Want a Reverse Mortgage?
  • pay off existing debt - be free from monthly debt payments
  • cash for medical care, travel, home improvements, education, help family members
  • provide living expenses when savings or social security income are insufficient
  • use the cash in any way you want
  • allows borrowers to remain independent
3.  How is a Reverse Mortgage Repaid?
  • The loan becomes due when you vacate the property due to moving, the sale of the house, or the death of the borrowers
  • you or your heirs may settle the loan by selling the property or refinancing it
4.  How Much Money can I Get?
  • Factors that determine the loan are:
    your age
    the value of your home
    current interest rates for the Reverse Mortgage Program
    current loan principal limits
5.  Will My Heirs be Affected?
  • The debt does not pass to heirs
  • The lender has no claim on assets other than the then current market value of the home upon loan maturity
  • Guaranteed by the federal government or the proprietary lender
6.  How Do I Get the Money?
  • Payment options include:
    lump sum payment
    line of credit - leave in an account for use as you need it
    tenure plan - receive a certain amount monthly throughout your life
    term plan - receive a certain amount over a specified number of years
7.  Will I Ever Have to Leave My Home?
  • With a Reverse Mortgage, you must:
    occupy the home as your primary residence
    pay homeowner's insurance
    pay property taxes
    maintain your home
    If you fulfill these obligations, you can Never be forced from your home.
If you need a referral to a Reverse Mortgage Specialist, contact me today.


Donna Yates
Associate Broker, GRI
706-633-0644 Cell  (Call or Text)
www.move2northgeorgia.net
www.facebook.com/northgeorgiamountains
donna@ellijay.com 

 

Donna Yates
Associate Broker, GRI
706-633-0644 Mobile
Serving North Georgia Mountains and Metro
Metro Brokers - Better Homes and Gardens Real Estate
706-515-7500 Office

MOVE 2 NORTH GEORGIA - HOMES FOR SALE

SEARCH GEORGIA HOMES FOR SALE

 

 

 

 

Comment balloon 4 commentsDonna Yates • April 13 2012 04:29AM

Comments

These are good tips for seniors. You have written it in an easy to understand format. Thanks for the post.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 5 years ago

Gita: I think there are some misconceptions out there and I would actually like to learn more myself. Reverse Mortgage isn't right for everyone so I encourage all seniors to make sure they consult with a trusted expert specializing in this type of financing.  

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 5 years ago

Donna, great way to break down a complex product. I am sure seniors looking for information on Reverse Mortgage will find your post useful.

Posted by Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR, Top Listing Broker (BROKER of Green Realty Properties® - 954-667-7253) over 5 years ago

Patty: Thank you.  I hope seniors will be sure to do their own research and consult with an expert in the respective field.

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 5 years ago

This blog does not allow anonymous comments