What if there were a way that you could pull equity out of your property during retirement to help you pay your bills? With a reverse mortgage in Miami, you can enhance the flexibility of your finances with supplemental income straight from your home.
- What is a Reverse Mortgage? A Reverse Mortgage is a federally regulated program for homeowners, aged 62 and older. It allows the equity in your home to pay you rather than you paying for the home.
- What is a Government Insured HECM program? HECM stands for Home Equity Conversion Mortgage. It is a federally insured and guaranteed program. The HECM is a safe way for you to access the equity in your home without ever making a mortgage payment.
- How is this Program “safe” for Senior Homeowners? No matter what happens in the economy, how much money you receive, or how long you live in your home you will never be required to make a mortgage payment. In addition, no matter what happens to your lender or your home’s value you have guaranteed access to your money.
- Who owns the home if I take a Reverse Mortgage? You own the home. However, you pledge the home as collateral.
- What happens if, in the future, the Loan exceeds the Value of the Home? Your Reverse Mortgage will continue – thanks to the federal insurance. The line of credit will still be available and monthly disbursements you may have set up, will still be sent to you.
- How are Reverse Mortgages different today? Today’s reverse mortgages are highly regulated by State and Federal laws to make them safe and to protect you. Among others, the following regulations apply:
- You retain title of the home.
- No equity share is allowed, meaning the lender does not slowly take over your home.
- Fees and costs are federally regulated.
- How does a Reverse Mortgage compare to a Conventional Mortgage? In a conventional forward mortgage, you make monthly payments to the bank eventually paying off the mortgage over time. With a reverse mortgage you receive cash from your lender, as lump sum upfront, as monthly installments or as a line of credit that grows over time. As long as you live in your home you never have to pay off a single dollar of the loan.
- What restrictions apply to the cash I receive from a Reverse Mortgage? It is your money and you can use it the way you want. It’s non-taxable and does not affect Social Security payments. We do recommend that you talk to a competent financial advisor to determine the effect on any other benefits you may be receiving.
- When does a Reverse Mortgage become due and what happens then? When you no longer live in your home or when you pass away, the reverse mortgage becomes due. You or your heirs have two options: 1) Pay off the reverse mortgage including the accrued interest and retain ownership. 2) Give up ownership of the home and receive the difference between the net sales proceeds and the loan balance. You will not be liable for any shortfall if the sales proceeds do not cover the loan. Your loan may also become due and payable if you do not continue meeting the terms of the loan (For example, paying taxes and insurance owed on the property.)
- What are my obligations under a Reverse Mortgage? With a Reverse Mortgage you retain title to your home. This means that you also have all your obligations as a home owner. You are responsible for home owner taxes and insurances.
- Your Reverse Mortgage. Based on the information you have provided, you are eligible to receive an estimated $201,588 in proceeds from the government insured HECM Reverse Mortgage. You May Choose How You Want to Receive the Proceeds You can decide how you want to receive the proceeds from the Reverse Mortgage:
- Lump Sum Cash at Closing:
- Line of Credit:
- Monthly Cash Proceeds for Life:
- Or a combination
Here Are the Benefits of a Reverse Mortgage
- Convert equity in your home into cash to use for any purpose. Pay your bills, invest in other real estate, repair or upgrade your existing home, or even go on vacation. There are no restrictions on how you use the money.
- You get to choose the way in which your funds are disbursed to you
- In many situations, the income you receive through a reverse mortgage cannot be taxed.
- You do not need to move out of your home. You can continue to enjoy all of its comforts while experiencing in the benefits of more flexible finances.
- It can never be frozen, reduced or annulled. So long as you are conforming to the terms of your reverse mortgage
Note that a reverse mortgage is not free money; it is a loan like any other. That means that it must eventually be paid off. If you wish, you can pay it off yourself. Otherwise, you can wait for a maturity event such as the death of the last borrower on the loan. At that point, your heirs may decide whether to pay off the loan or sell the house.
Could You Be Eligible for a Reverse Mortgage in Miami?
A reverse mortgage may be the financial answer you have been looking for. Not everyone qualifies however. You will need to meet these basic requirements to pull equity from your home:
- Reverse mortgages are only available to those aged 62 or aboveonly one borrower on the loan must fit the age requirement).
- You must own 50% or more equity in your home.
- A reverse mortgage is only available for your primary residence.
- All your payments as pertain to your home must be current. These include not only your mortgage payments, but also homeowners insurance, property taxes, homeowner’s association fees, and so forth.
- Your house must be properly maintained.
- Your income, credit score, and tax history will be reviewed when you apply for a reverse mortgage.
Choose Lending Bankers Mortgage as Your Reverse Mortgage Company in Miami Florida
If you are ready to boost your available finances during retirement without leaving your home, you can apply for a reverse mortgage today with Lending Bankers Mortgage. We can help you figure out whether a reverse mortgage is the best fit for your situation. If we determine that you are eligible, we will walk you through the application. You are just a phone call away from a higher standard of living and greater comfort during retirement. Call (786) 220-1100 now to get started.