A few facts on Reverse Mortgages

When you say that word people often get scared… Why because there is a lot of misconceptions on this type of mortgage. People usually associate it with your heirs not being able to keep the property after you pass, or the bank owns the property. But that’s not the case. Your heirs do keep the property after you pass and are able to refinance it out of the reverse mortgage. You always are the owner of the home. You also do not pay back the mortgage until you sell, move away or your heirs inherit it. There are so many people who could benefit from this type of mortgage. If you have always paid your mortgage isn’t it time for your house to pay you. You can get one lump sum, monthly payments to you, or a line of credit for you to use how and when you need. I have helped people over my 25 years in lending with this type of mortgage. Let me help dispel the myths of this loan and see if this works for you.

All over California

I used to sit at my desk and now I go all over California. I have been in the lending industry since I was 17 years and have probably helped over thousands of clients. Now I am venturing out in new territory doing both real estate and loans. I sold and this house in South Lake Tahoe and helped her purchase a new one in the Central Valley. If you are looking to buy or sell a vacation home or second home or looking to relocate I can help. . 

Reverse Mortgage…

Reverse Mortgages have gotten a bad rap over the past few years here are 5 facts you might not know. If you or someone you know is 62 or over a Reverse Mortgage might be a loan that works for you.

#1 You remain the owner of your home.

A common misconception of reverse mortgages is that the lender takes ownership of your home. This is false. You continue to maintain ownership of your home, as long as you comply with the terms of the loan and pay your taxes and insurance.

#2 There are no monthly mortgage payments required from you.

One of the most attractive benefits of reverse mortgages is that payments are made TO you, as long as you live in your home. This is quite different from a traditional forward mortgage where you must pay funds in a monthly amount. With reverse mortgages, you receive funds. The loan is repaid when you sell your home, move to another primary residence, or when the last borrower leaves the home.

#3 You are protected if the housing market declines.

The reverse mortgage loan is insured by the federal government. With federal insurance comes greater security. If the loan ends up amounting to more than the value of the home when sold, government insurance will cover the difference. This means that the loan will be paid in full using only the proceeds your home sells for, and no more.

#4 You may choose from several options of disbursement.

Each individual senior has different needs. Thus, there are different disbursement options to cover different needs. This includes the choice to receive funds in a full or partial sum, a line of credit, monthly payments, or a combination of any of these.

#5 Social Security and Medicare benefits are unaffected.

Seasoning..

Like all recipes you need seasoning to make your dish come together, we’ll getting a loan is lIke cooking. You need seasoning. When you buy a house and you have to show 5% of your own money it needs to be in your account for at least 2 months. The exception to this rule is FHA allows the whole 3.5 % down as gift. Or the other exception is when you put down 20% that can be all gift too. So if you have cash at home and want to buy a house put it in your account. If you want help with buying a house and qualifying contact me I can help you maneuver thru the rules…