Myths & Realities of a Reverse Mortgage
Americans have wrongly steered clear of reverse mortgages, “Nobel Prize-winning economist Robert Merton said. “This is going to become one of the key means of funding retirement in the future.”
Read Full Article Here
Make home renovations, pay off other debt†, fund in-home care
Get tax-free†† proceeds with no monthly mortgage payments required**
Rest easy knowing your heirs are never personally responsible for the loan
Provide a living inheritance and help pay for children’s homes or grandkid’s college tuition
Reverse mortgages have improved dramatically in the last ten years as a viable retirement planning tool
Use a reverse mortgage to purchase your dream home
If you’ve been turned down for a reverse mortgage in the past, you may be eligible now.
“Now that I have a Reverse Mortgage I don’t have to worry about money, and that is everything to me. A Reverse Mortgages is a very stable place to go, this was my 2nd Reverse Mortgage. John’s team followed up with advice every single step of the way. We never had any doubts, when John said it’s going to happen, it’s going to happen!”
- Jake W.
Myth No. 1: The lender owns the home.
You will retain the title and ownership during the
life of the loan, and you can sell your home at any time. The loan will not become due as long as you continue to meet loan obligations such as living in the home, maintaining the home according to the Federal Housing Administration (FHA) requirements, and paying property taxes and homeowners insurance.
Myth No. 2: The home must be free and clear of any existing mortgages.
Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.*
Myth No. 3: Once loan proceeds are received, you pay taxes on them.
Reverse mortgage loan proceeds are tax-free as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
Myth No. 4: The borrower is restricted on how to use the loan proceeds.
Once any existing mortgage or lien has been paid off, the net loan proceeds from your HECM loan can be used for any reason. Many borrowers use it to supplement their retirement income, delay receiving social security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children. You have worked hard for this asset and prudence along with budgeting should be the proper approach to enjoying proceeds received from your HECM loan.
Myth No. 5: Only poor people need reverse mortgages.
The perception of the reverse mortgage as an assist for the “poor” borrower is changing - many affluent senior borrowers with multi-million dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.
If you’re interested in learning more about reverse mortgages, request a free copy of Wade Pfau’s book “Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement”.
*You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.
**The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. **Not available with FHA HECM financing. Availability applies to HomeSafe financing. The HomeSafe* reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HEM) program. †If you are thinking about debt consolidation, you might want to first consult a non-profit credit Please contact us for a complete list of availability. †† Not tax advice. Consult a tax professional. This is not a commitment to lend. Prices, guidelines and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
Hours
Monday–Friday
8am–6pm
Phone
Office: (818) 874-9900
John’s Cell : (805) 432-2382
Hello@mainstreetloans.com