The Retirement Landscape Has Changed.
Retirement for Americans is not what it used to be. Many Americans have to retire sooner than they’d planned. This means that the traditional approach of funding your retirement with savings, social security and a pension plan or 401(k) may no longer be enough to live on.
A HECM can be a powerful option to your financial needs.
OPTIMIZE YOUR RETIREMENT
You’ve saved consistently over the years; is it enough?
Early retirement combined with longer life expectancies may mean your retirement dollars need to stretch even further. Retirement needs are changing! Do you have the financial resources needed to fund your longevity? A HECM from Big Horizon Mortgage may be able to help you get the most out of the next leg of your journey.
Caring for a loved one, unexpected medical procedures, home upkeep and other unexpected costs can add up fast. A reverse mortgage may provide a steady flow of supplemental income.
The flexibility to use funds when and how you choose can give you more cash, security, and peace of mind.
Create a source of additional funds you can benefit from immediately. The Big Horizon team will take the time to understand your needs.
Let Sharron and the Big Horizon Team help you do more with your home investment through a Home Equity Conversion Mortgage (HECM). Homeowners aged 62 and older that qualify can tap into existing home equity to help cover retirement needs!
Find Out If You Qualify
Reverse Mortgages for Purchase or Refinance
In the past there were two ways to get cash from your home:
- Sell your home – requires you to move.
- Borrow against your home – requires you to make monthly loan repayments.
A Home Equity Conversion Mortgage (commonly known as a reverse mortgage) offers a third option for getting money from your home. You do not have to sell your home and in many cases regular loan repayments are not necessary.
Get the facts about your personal situation. Call or e-mail to arrange a free, no obligation, consultation to learn how a reverse mortgage can help you.
A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. It can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back plus interest when you die, sell your home, or permanently move out of your home.
All owners of the home must apply for the reverse mortgage and sign the loan papers. All borrowers must be at least 62 years of age for most reverse mortgages. Owners must occupy the home as a principal residence (where they live the majority of the year).
Reverse mortgage loans typically require no repayment for as long as you live in your home. But they must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home, or permanently moves away. Because you make no monthly payments, the amount you owe grows larger over time. As your debt grows larger, the amount of cash you would have left after selling and paying off the loan (your “equity”) generally grows smaller. But you can never owe more than your home’s value at the time the loan is repaid.
Reverse mortgage borrowers continue to own their homes. So you are still responsible for property taxes, insurance, and repairs. If you fail to carry out these responsibilities, your loan could become due and payable in full.
Benefits of Reverse Mortgage
These loans can be paid to you all at once in a single lump sum of cash, as a regular monthly loan advance or as a creditline that lets you decide how much cash to use and when to use it. Or you may choose any combination of these payment plans.
The amount of cash you can get from a reverse mortgage depends on your age, your home’s value, and the prevailing interest rate for the program chosen. The greatest cash amounts typically go to the oldest borrowers.
The amount of cash you can get also depends on the specific reverse mortgage plan or program you select. The differences in available loan proceeds can vary greatly from one plan to another.
Reverse mortgage fees have gone down in recent years making them more affordable than ever. Lower mortgage insurance factors play a big part.
Reverse mortgages may have tax consequences, affect eligibility for assistance under Federal and State programs, and have an impact on the estate and heirs of the homeowner.
An American Bar Association guide states that generally “the IRS does not consider loan advances to be income.” The guide explains that if you receive SSI, Medicaid, or other public benefits loan advances are counted as “liquid assets” if you keep them in an account past the end of the calendar month in which you receive them. If you do, you could lose your eligibility for these programs if your total liquid assets (for example, money you have in savings and checking accounts) are greater than these programs allow.
YOU NO LONGER OWN YOUR HOME. This is totally untrue. You retain ownership to your home AND you or your estate retains any equity after the reverse mortgage is paid off.
YOU HAVE TO HAVE 100% EQUITY TO GET A REVERSE MORTGAGE. If you have a mortgage you may still benefit from a reverse mortgage. Most borrowers are paying off some sort of debt.
YOU HAVE TO BE IN GOOD HEALTH. Your health is not considered as a part of the underwriting decision.
YOU WILL BE KICKED OUT OF YOUR HOUSE WHEN YOU HAVE USED UP THE MONEY. You never have to leave your home as long as you keep current on your taxes and insurance and it is still your primary residence.
Note from Sharron about reverse mortgage:
I have seen this product change lives. From simple things like a vacation or a car purchase to very important things like paying for medications or keeping the heat on.
Improve your quality of life with a reverse mortgage:
- Renovate your home
- Pay for healthcare or medication for yourself or a loved one
- Pay off a mortgage
- Settle a divorce or bankruptcy
- Increase monthly cash flow
- Gift money