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Reverse Mortgage Loans

Introduction to Reverse Mortgage Loans

Many homeowners have found that a reverse mortgage loan is a great way for them to take advantage of the equity they have built up in their homes.

A reverse mortgage loan is different than a traditional mortgage. With a traditional mortgage loan you make monthly mortgage payments, but with a reverse mortgage loan the lender pays you money through monthly installments, a one-time lump sum payment, a line of credit or a combination of a line of credit and monthly installments. The money that you receive is dependent on your age, the value of your home and the current interest rate.

Two great advantages of a reverse mortgage loan are that you are not required to pay monthly mortgage payments or pay the loan back until the home is no longer your primary residence or you fail to maintain the home, or fail to pay property taxes and/or homeowner's insurance or do not otherwise comply with the terms of the loan. For more information on when a reverse mortgage loan comes due click the following link: What about Repaying a Reverse Mortgage Loan

If you’re aged 55 or older and own your home you might be eligible for a reverse mortgage loan. Contact us to find out more about reverse mortgage loans and ways to make it work for you, or apply now and start the process of tapping the equity in your home.

Check out these pages for more information about reverse mortgage loans.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Are Reverse Mortgage Loans Safe?

You’ve worked hard to pay the mortgage on your home. With a reverse mortgage loan you can receive a portion of the equity that you earned. A federally insured HECM reverse mortgage loan can help you unlock that equity by increasing your monthly cash flow. Rest easy knowing you’re protected because with a reverse mortgage loan you can:

Speak with one of our professionals today and learn how you can make the most of a reverse mortgage loan.

If you're ready to get started on your reverse mortgage loan - apply now.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

3 Reverse Mortgage Loan Questions to Consider

What is a Reverse Mortgage Loan?

A reverse mortgage loan, also known as Home Equity Conversion Mortgage, is a loan designed to allow seniors to draw upon the equity in their homes. Seniors can select to receive the loan proceeds either by a lump sum payment, by monthly installments, as a line of credit or as a combination of a line of credit and monthly installments thus providing cash flow even after retirement. The reason this type of loan is called a “reverse mortgage loan” is because the loan proceeds are paid to the home owner.

Eventually the money paid to the homeowner is repaid with interest, however the loan generally does not become due until the borrower passes away, sells the home, no longer maintains the home as the primary residence or fails to pay property taxes, fails to pay homeowners insurance or otherwise fails to comply with the loan terms.

Why should I get a Reverse Mortgage Loan?

Getting a reverse mortgage loan is a big step and needs to be carefully evaluated. Many people have found that by taking a reverse mortgage loan they avail themselves of the equity they have built in their home.

Typically those who benefit most from a reverse mortgage loan are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes. 

Contact one of our professionals today to find out if you have enough home equity to make a reverse mortgage loan a good decision for you. If you have a good amount of equity in your home and you plan on staying there for an extended period of time then a reverse mortgage loan might be right for you.

How do I qualify for a Reverse Mortgage Loan?

If you own your home and are 55 years of age or older (your spouse can be younger) you might be eligible to apply for a reverse mortgage loan. The home you are thinking of taking the reverse mortgage loan out on must be your primary residence. There are some conditions to what type of home may qualify.

We can help you figure out if you’re eligible for a reverse mortgage loan. Call us today! If you're ready to get started on a reverse mortgage loan apply now and receive a FREE Reverse Mortgage Consultation and FREE Reverse Mortgage Analysis at absolutely no cost or obligation.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Steps to getting a Reverse Mortgage Loan

Below is the most common process for getting a reverse mortgage loan. Our professionals are eager to help you understand the reverse mortgage loan process. Please contact us with any questions.

Step 1 - Research Reverse Mortgage Loans
Speak with one of our licensed Reverse Mortgage Consultants about reverse mortgage loan options. We offer FREE Reverse Mortgage Consultation and FREE Reverse Mortgage Analysis. Familiarize yourself with the various types of reverse mortgage loan options and pick the one that is right for you.

Step 2 - Meet with a HUD approved counselor

In order to receive a reverse mortgage loan you must meet with an HUD approved independent councilor who will help you understand what it means to have a reverse mortgage loan. Independent HUD counseling typically costs $125 an we will provide you with a list of HUD approved counselors in your area.

Step 3 - Fill out our Reverse Mortgage Loan application

After you’ve determined which reverse mortgage loan option best suits you fill out our reverse mortgage loan application by clicking here. Your information is securely stored and transmitted.

Step 4 - Your application is processed and your home is appraised

While your application is being processed a licensed appraiser will determine if your house needs any kind of repair. Any problems must be fixed before you can be approved.

Step 5 - Your loan reaches underwriting

All details are worked out and your loan is underwritten. Additionally it will be determined whether you’ve been approved or not.

Step 6 - Your loan reaches closing
Once you are approved your loan will enter closing where you’ll get the chance to review the terms as well as all reverse mortgage documents and estimates with our Reverse Mortgage Consultant BEFORE you sign the final paperwork.

Step 7 - Post-Close review and consultation 

Our Reverse Mortgage Consultant will contact you to conduct a post-close review of the final Closing Statement, compare it to the initial estimates, and answer any questions you may have at that time.

Step 8 - Receive your payments

After closing you’ll have three business days in which to cancel the loan. Once that grace period is up, you’ll start to receive the reverse mortgage loan proceeds according to the manner that you have elected: one-time lump sum payment, monthly installments, as a line of credit or as a combination of a line of credit and monthly installments.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

What about repaying a Reverse Mortgage Loan?

The very nature of a reverse mortgage loan can be confusing. With a reverse mortgage loan, lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The reverse mortgage does not require monthly payments, although they can be made with no penalty, if the borrower wishes to do so. The following lists provide information regarding repayment of a reverse mortgage loan.

A reverse mortgage loan comes due when under the following conditions:

When the reverse mortgage loan becomes due there are options for paying it off.

  1. Proceeds from the sale of the home
  2. The homeowner or heirs of the homeowner can refinance the loan
  3.  Pay off from other assets (savings, investment accounts, cash-out refinance of another property)
  4. Life insurance proceeds (if homeowner passes away and has a life insurance)

Like all loans a reverse mortgage loan does carry conditions in order to remain valid. Reasons a borrower may find themselves in default include:

To apply for your reverse mortgage loan click here.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

What are the costs of getting a Reverse Mortgage Loan?

Much like a traditional mortgage, a reverse mortgage loan does have fees associated with securing it. We provide a FREE Reverse Mortgage Estimate in writing and upfront  as  part of our  FREE Reverse Mortgage Analysis.

The following is a list explaining common fees you may have to pay when getting your reverse mortgage loan.

Origination Fee – The origination fee covers the lenders operating expenses associated with making the reverse mortgage loan. This can include things like overhead, marketing and title searches. In some cases the Origination Fee can be waived depending on the type of the Reverse Mortgage you qualify for.

Appraisal Fees – Before a reverse mortgage loan can be approved an appraiser will come to your home and inspect it. The appraiser will be looking to determine the worth of your home based mostly on condition, location and the current market situation.

If the appraiser uncovers a significant problem you will be required to hire a contractor to fix the problem before obtaining your reverse mortgage loan. That same appraiser will come out again and re-inspect the property.

Mortgage Insurance Premium – The mortgage insurance premium is a fee associated with the HECM reverse mortgage loan, which is insured by FHA.  However, reverse mortgage loans which are NOT insured by FHA have NO mortgage insurance.

Closing Costs – Closing costs that are generally included in a reverse mortgage loan are:

Apply Now to get started with your reverse mortgage loan application and take advantage of our FREE Reverse Mortgage Consultation and FREE Reverse Mortgage Analysis at absolutely no cost or obligation.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.