Introduction to 

Reverse Mortgages

WHAT IS A REVERSE MORTGAGE?

A Reverse Mortgage is exactly what its name implies. Think of a typical mortgage and now, reverse the payment structure. Instead of borrowing money from the bank against a portion of your home and paying it back on a monthly basis, the lender pays you on a monthly basis, or in the manner you choose, for the portion of the home you have built equity in.

In the 1980’s, the Federal Housing Administration approved a new, government-insured Reverse Mortgage home equity loan product called a Home Equity Conversion Mortgage (HECM). This product was exclusively designed to meet the needs of those 62 years of age and older. A Reverse Mortgage may provide them the ability to access some of the equity in their home.

A HECM utilizes the equity in your current home and converts that equity into usable dollars that you may draw upon. You may either receive this money in a lump sum, in tenure payments or you may establish a Line of Credit (LOC) and access the monies when you need to.

 

As with traditional mortgages, Reverse Mortgages have either fixed (FRM) or adjustable (ARM) rates of interest. Your selection will determine if the interest rate on the mortgage remains the same throughout the life of the loan or adjusts on a monthly or yearly basis.

With a broad spectrum of options available in today’s marketplace for borrowers who are financially able to pay the annual tax and insurance payments on their homes, Reverse Mortgages can provide the means to fuel their futures.

United Northern Mortgage Bankers, Ltd. and our team of Senior Security Advisors are here to help you navigate the industry and find a Reverse Mortgage to meet your needs. Find out how much you may qualify for by using our easy to use reverse mortgage calculator.

“It’s been a blessing. It’s been so nice to work with not just a professional team, but also people who cared. They cared about something that was important to me and my future.”

Dorothy M. – New York

HOW DOES A REVERSE MORTGAGE WORK?

Today’s reverse mortgage may be a key piece of your retirement planning, knowing the basics is important! Remember you remain the owner of your home and you can sell the home or pay off the loan with no prepayment required. You can never owe more than the value of your home because reverse mortgages are a non-recourse loan. Thus, if your home sells for less than you owe, FHA insurance covers the difference.  You can receive the money in a lump sum, monthly payments, a line of credit, or any combination of the three. The reverse mortgage process takes on average about 60 days from application, it will vary on a case-by-case basis. To learn more we have created a helpful booklet:  2018 Reverse Mortgage Guide that is available to download or one of our Licensed Reverse Mortgage Loan Originator at Senior Security Advisors can send you a physical version.

REVERSE MORTGAGE ELIGIBILITY

Knowing the basics of eligibility is the place to assess your opportunity. At least one homeowner must be 62 or older (unless property is located in Texas, then both homeowners must be 62 or older). You must own the home for which you are inquiring about a reverse mortgage and your home can be paid off or have an existing mortgage balance. There is no credit check, but you must be able to meet the financial obligations of the loan.

 

TOP USES FOR A REVERSE MORTGAGE

There are many uses for a reverse mortgage, each of us has our own individual needs and wants, below we have listed some of the most popular uses according to our Senior Security clients! 

PAYING OFF YOUR CURRENT MORTGAGE

PAYING OFF YOUR CURRENT MORTGAGE

TRAVEL AND LEISURE ACTIVITIES

TRAVEL AND LEISURE ACTIVITIES

MAKING HOME IMPROVEMENTS OR REPAIRS

MAKING HOME IMPROVEMENTS OR REPAIRS

HELPING FAMILY AND FRIENDS WITH THEIR GOALS

HELPING FAMILY AND FRIENDS WITH THEIR GOALS

RETIREMENT OR FINANCIAL PLANNING

RETIREMENT OR FINANCIAL PLANNING

EDUCATONAL AND PERSONAL GROWTH

EDUCATONAL AND PERSONAL GROWTH

RAINY DAY/EMERGENCY FUNDS

RAINY DAY/EMERGENCY FUNDS

BUYING A SECOND HOME

BUYING A SECOND HOME

Talk to a Reverse Mortgage Expert Today!

We’re here to answer any questions or concerns you may have about a Reverse Mortgage.