Helping You Find A Way

Lynnette Phillips, Loan Officer/Realtor, Foreclosure Consultant

Home
Services
Foreclosure Consulting
Knowledge Base
Loan Types
Reverse Mortgages
Links
Contact Us
No Obligation Consultatio
Reverse Mortgages
If you are 62 or older and a homeowner or care about someone who is, I’d like to share some tax free cash options available to you.
Secure and Protect the Future!
  • A Reverse Mortgage is a safe and secure way for you to use your home to get the cash you need!
  • A Reverse Mortgage pays money to you.
    You receive monthly payments or a lump sum on the value of your home.
  • Never make a monthly payment.
  • You’ll have cash to cover expenses or funds to achieve your dreams…and the house remains yours.
    The cash can be used for any purpose: your dream vacation, 2nd home purchase, to cover medical expenses, education expenses, a foreclosure alternative...

 

 

 

COMMON REVERSE MORTGAGE MISCONCEPTIONS

1. The borrower can lose the house.
A borrower keeps title to the house & can't be forced out of his or her home as long as any property charges, HOA dues for example, property taxes and hazard insurance is paid and the home is maintained.

2. The home must be free and clear to qualify for a reverse mortgage.
As long as there is enough equity in the property the homeowner could qualify for a reverse mortgage.

3. When the reverse mortgage is due, the lender sells the home.
The homeowner stays in control of the property and retains title. The borrower or his heirs make the decision to sell the home or refinance the loan to pay off the reverse mortgage.

4. It's cheaper to move to a smaller house.
The individual should analyze their own financial situation to make this decision.

5. The heirs don't feel comfortable with a reverse mortgage.
 
Talk with your children...You may find they are happy that you have found a financial solution to remaining independent and secure.
 
 
6. I could end up owing more than my home is worth.
Home Equity Conversion Mortgages (HECM) are FHA insured. Additionally, a borrower or his estate can never owe more than the appraised value of the home.

7. Social Security and Medicare benefits will be affected.
Usually you need not be concerned that your benefits will be affected BUT it is recommended that your financial advisor and/or the particular government agency be consulted.

8. There are restrictions on how the money is used.
The cash from the reverse mortgage can be used for any purpose.

9. Taxes need to be paid on the money received from a reverse mortgage.
The proceeds are tax free because it is already your money. It is suggested though that you consult a tax advisor.

10. Reverse mortgages are only for seniors in need.
Many financial advisors urge seniors to use reverse mortgages as a retirement or planning tool to enhance their retirement years.