WHAT IS A REVERSE MORTGAGE?
A reverse Mortgage is a mortgage where you NEVER have to make payments, the interest just accrues until you sell the home.
You only have to continue to pay the annual taxes and homeowner’s insurance
Sometimes a reverse mortgage is a perfect match for an easy retirement!
You can buy a home for around 60% down, and NEVER have to make anymore payments.
Or you can borrow from your home equity, and not have a monthly payment, the interest just builds up as the years go by, but your balance owedwill NEVER exceed the market value of your home
Reverse mortgages can be confusing, so let’s clarify what’s involved:
First and foremost, a Reverse Mortgage is JUST A MORTGAGE!
While it is certainly a unique lending product, a reverse mortgage is simply a mortgage loan type that is available to homeowners who are 62 years or older that allows them to convert the equity in their home into one of the following or a combination of the three:
– A lump sum payment
– Monthly income
– Line of credit
ALL WITHOUT HAVING A MONTHLY MORTGAGE PAYMENT…EVER!
A Reverse Mortgage helps people that want to buy a home with one large down payment, or tap into the equity in their homes and use the money as they want to use it.
This loan is called a reverse mortgage because it is the opposite of a traditional mortgage.
Instead of making monthly payments to a lender, you can purchase a home with one large down payment,
OR the lender gives you a lump sum and a line of credit to you as the borrower on your existing home.
Interest and appreciation accrue over time; as long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your property taxes, homeowner’s association dues and insurance.
Generally speaking, cash you access from the existing housing wealth of your home is TAX-FREE and you are free to use it as you see fit: debt consolidation, supplemental income, health emergencies, helping loved ones, or perhaps most popular, eliminating an existing mortgage payment that is bogging down a potential retirement.
A Reverse Mortgage puts the power and choice into your hands as the homeowner to craft a solution that works for your situation, allowing you to take control of your retirement.
If you would like more info on Reverse mortgages, we have a designated Reverse Mortgage specialist, Michael O’Driscoll (our resident Irishman),
he can be reached at :
Ph: (908)229-5275 or email at WMOD0105@gmail.com
Pick up the phone and reach out to him, he’ll go over everything and see if a reverse mortgage is right for you and discuss your situation.
Give him a call anytime, we’ll gladly discuss your retirement in a confidential manner, and answer any questions you may have.
No pressure, we promise!