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Reverse Mortgages

Reverse mortgages can be a good idea for seniors who need more monthly income but still want to live in their homes. We can help people achieve the retirement life they dream of in Mission Viejo, Orange County, and throughout California.

 

  • You can BUY a home with a reverse mortgage.
  • With a reverse mortgage, you can MAKE the monthly payment or DEFER the monthly mortgage payment as you choose. This decision can be made monthly throughout the life of the loan. You must continue to meet your obligations to pay your property taxes and homeowner's insurance and maintain the property.
  • Even when you own your home “free and clear”, consider a reverse “Line of Credit” option for access to cash. Unlike a bank home equity line, you qualify and apply ONE TIME as opposed to every 5-10 years.
  • Payoff your existing home loan with a reverse mortgage.
  • You continue to live in your home and retain title to it. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, maintenance, and any homeowners association fees.
  • The funds from your reverse mortgage loan can be used to pay off the existing mortgage on your home.
  • While there will still be a mortgage on your home for the outstanding amount of the reverse mortgage, you are not required to make monthly principal and interest payments on the reverse mortgage, but can if you choose to. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, and maintenance.
  • Loan proceeds are generally not considered taxable income. (Not tax advice; consult a tax professional.)
  • The loan balance increases over time when you defer the payment. If you choose to make the monthly interest payment the principal will not increase.
  • Fees may be higher than with a traditional mortgage.
  • Eligibility for needs-based government programs, such as Medicaid or Supplemental Security Income (SSI), may be affected. Consult a benefits specialist.
  • A reverse mortgage loan becomes due and must be repaid when a “maturity event” occurs, such as the last surviving borrower (or non-borrowing spouse meeting certain conditions) passes away, the home is no longer the borrower’s principal residence, or the borrower vacates the property for more than 12 months for a medical reason or 6 months for non-medical reasons (see CFPB guidance.) The loan will also become due if the homeowner fails to meet other loan obligations, which include paying their property taxes, insurance, homeowners association fees, and maintaining the property.
  • Generally, a reverse mortgage loan will not affect Social Security or Medicare benefits. However, you may wish to consult a financial professional to determine the potential financial implications of obtaining a reverse mortgage loan.
  • A reverse mortgage loan is a non-recourse loan. This means that neither you nor your heirs are personally liable for any amount of the mortgage that exceeds the value of your home when the loan is repaid.
  • After the loan is repaid, any remaining equity belongs to you or your heirs.

For those people that think the only way they can retire in the manner they desire is to find an inexpensive retirement location in another country, call LamCap first about a Reverse Mortgage. Have questions...use the form below to send them to us!

 

These materials are not from HUD or FHA and were not approved by HUD or a government agency.