No broker fees, No hassles, low rates
Just like a forward mortgage, the customer retains the title and ownership during the life of the loan and they can sell the home at any time.
Reverse Mortgage loan proceeds are taxfree as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
The HECM is a government insured loan and as long as the borrower maintains the home, pays property taxes and homeowners insurance, the FHA will insure the difference between the value of the home and the amount due to the lender at the time of the sale. Typically over half the cost of a reverse mortgage loan is paid to FHA for this insurance.
Actually, many borrowers use the Reverse Mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.
With a reverse mortgage there are no monthly mortgage payments required. Borrowers are only required to pay property taxes and homeowners insurance.
The perception of the reverse mortgage loans as an assist for the “financially strapped” borrower is changing – many affuent senior borrowers with multi-million dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.