Is a Reverse Mortgage RIGHT for you or YOUR family - 5 simple questions

Take this quick, five-question quiz to access whether or not a reverse mortgage is right for you.

1. Are you (and your spouse, if applicable) 62 or older?

The federally-insured reverse mortgage program requires borrowers to be age 62 or older.  In order to take out a reverse mortgage and remain on the home title, you and your spouse, if you have one, must both meet the age qualification guidelines.

2. Do you own your home outright, or have a small mortgage balance?

The amount you receive from a reverse mortgage depends on your age, your home's appraised value and the amount of equity you've built up in your home along with current interest rates.

If you owe a large mortgage there will be less equity to tap into.  So you will have less equity to tap into.

3.  If you still have a mortgage, do you need to pay it off?

A large number of seniors are now retiring with a mortgage debt.  This is sometimes challenging on a fixed income.  There are about 80% of people aged 65 and older that own homes, however since 2011 at least 30% of them carry a mortgage.  Among homeowners age 75 and older more than 21% still have mortgages.

Few people realize that a reverse mortgage can pay off their existing mortgage and eliminate those monthly payments?  The HECM program requires a borrower to pay off any existing debt, but reverse loans are not due and payable until you leave the home permanently by death or disability.

4.  Are you planning on "Aging in Place", and do you want to make any home modification to achieve this goal?

A staggering 90% of people age 65 and older have indicated a desire to stay in their current home for as long as possible, according to AARP.  If that describes you, a reverse mortgage could help you achieve your goal.  Reverse mortgages can be used for funds to carry out certain home modifications to enable aging in place.  

Remodeling to create a safer living environment could range from installing grab bars in a strategic location to creating low or no-threshold entries or even widening hallways and doorways.

5.  Will you be  able to live comfortably in your home in the future?

Like most financial products, reverse mortgages come with some upfront fees and costs.  For many borrowers, the expenses associated with taking out a reverse mortgage are well worth it down the road. However, if you're only planning on remaining in your home for a couple more years, or you think you may need to move soon because of health issues, then a reverse mortgage may not be the right fit for you.


IF YOU ANSWERED MOSTLY "YES" to the questions above, you may be a great candidate for a reverse mortgage.

If you have any further questions, give Diane, the Reverse Mortgage Expert a call at 314-220-3918 or email fourquits@aol.com.

New HECM reverse to purchase program

Many seniors find themselves living in a home that was suitable for raising a family and to large or ill equipped to meet their current needs. Perhaps some would rather relocate to be near children, grandchildren or warmer climates. Moving to a smaller updated home that requires less maintenance and repairs would certainly enhance their retirement years.
This new program will be providing opportunities for people over 62 to purchase homes. This new financial tool can be used to purchase a primary residence while allowing the senior to obtain the same result as paying cash for the home. The outstanding balance owed is only due and payable once both borrowers permanently live the home, by sale, disability or passing away.
There are also no credit or income requirements for this loan. There are no payments on the outstanding owed balance no matter how old they may become for as long as they occupy the home.
Advantages of the REVERSE TO PURCHASE PROGRAM
* Employment or income not necessary to qualify
*Considered a non-recourse loan a reverse mortgage can never go into foreclosure as long as one of the qualified borrowers is living in the home.
*Good credit or credit score not necessary
*No monthly mortgage payment on the outstanding balance
*It can be paid like a regular mortgage for a tax deduction or to the limit the amount added to what is owed
*Title of the property ALWAYS remains in the homeowners name, never changing ownership
*The home can be sold at any time without pre-payment penalty.
The amount needed for a down payment is based on the borrowers age and current interest rates. The older a person, the less money is needed to purchase the home. The current rate for the fixed rate program is 5.5%.
HUD counseling is required for this loan just like any other reverse mortgage program. This HUD counseling educates the borrower about the program. The counseling can be done in person or over the phone. The counselor protects the best interest of the borrower(s).
A reverse mortgage on a borrowers current residence can be used to purchase a second home. This will allow the homeowner to own a second home with no monthly mortgage payments.
For further information you can visit my website at www.dianequitmeyer.com or call 314-220-3198.