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Reverse Mortgages

“I’m retired and my income is low. I have a lot of equity in my home, but it does me no good unless I sell the house. But I need a place to live! I wish there was a way to stay in my home and stop making mortgage payments. I would love to get at some of that equity to pay for prescriptions, medical costs and spoiling my grandchildren. Can’t the lender just let the interest build up on my loan and collect it later after I die? Right now I need a break!"

Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, are Federal Housing Administration insured low-interest home loans for seniors (over 62 yrs) that require no payments EVER as long as the seniors live in the home. Existing loans can be paid off and equity can be drawn out to pay for medical expenses, living expenses, or whatever the borrower chooses. The maximum loan amount is a percentage of the home's value determined by the age of the youngest homeowner.

Since no interest is paid by the borrowers, interest accrues on the note each month, but is not collected until after the death (or permanent vacancy) of the all borrowers on the note. Lenders assume the risk that the loan balance might become greater than the value of the home. Borrowers retain ownership of the home and can sell the home or refinance the loan to a regular loan later if they choose. Reverse mortgages can also be refinanced later on with a new reverse mortgage to pull out more equity if the home value increases substantially.

Getting rid of monthly mortgage payments and using the nest egg built up over the years can really ease the stress of retirement for seniors. Knowing that their home can never be taken away is also a great relief. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has 12 months (with no required payments) to refinance the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is passed on to the heirs.  If no equity remains in the home, the estate can simply walk away with no liability. The estate is not liable if the home sells for less than the balance of the reverse mortgage.

Eligibility

To be eligible for a reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62 and have sufficient equity in the home That’s IT! There are no income or credit requirements for a reverse mortgage. Borrowers can even be in FORECLOSURE or bankruptcy and the reverse mortgage can pay off the existing loan.

Simply provide your Legend Financial Services loan consultant with your age(s), the approximate value of the home and the existing loan balance(s). Your loan consultant will let you know the approximate loan amount that you can get (subject to appraised value). Whatever amount exceeds your loan balance is yours to keep and can be taken as a lump sum, line of credit, or monthly payments to you.  If you don't have a mortgage, the entire amount of the loan is available for you to use.

Purchase a Home with a Reverse Mortgage

Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize can sell their existing home, make a large down payment on a smaller home, and finance the rest with a reverse mortgage. Then, no payments will need to be made for life.

"So now I have a reverse mortgage! No more house payment means lots of extra money each month and I don’t have to struggle anymore. And I never have to worry about losing my home. It will always be here for me as long as I live. That feeling of security is priceless to me.”

Call us today just to see how much money you can get.  

801-277-5100

What are some of the benefits of a reverse mortgage?

• Strengthen your personal and financial independence.
• Help pay for health care or other needs.
• You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
• The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
• Keep your Medicare or Social Security benefits.
• Use it as a credit line and draw upon it as needed.
• Get all your cash right away.
• Get the best of both—get cash now and have a balance in reserve to use as a credit line.
• No Income Requirements: The homeowner does not need to be working and is not qualified based on income.
• Lock in your loan amount NOW before any more possible depreciation of your home's value.  RESCUE YOUR EQUITY!!  Watch video.

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