Reversing the Tide
Using your home as a liquid asset - a viable tax-free strategy for those 62 and older.
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elebrating 62 can mean many good things, but for some homeowners, that age can also be a financial lifeline for the years ahead. Making use of assets is a smart and prudent approach to managing the rising costs of goods and services. The one asset that is often overlooked is the home and, beginning at age 62, homeowners can apply for a reverse mortgage. Reverse mortgages are special types of loans that enable homeowners to receive either a lump sum, a tax-free monthly amount, or to open a line of credit. The home and the remaining equity stay in the homeowner’s name. Reverse mortgage loans do not have to be repaid until ownership is transferred. They are insured by the Federal Housing Administration, therefore protecting the homeowner from ever outliving the loan or owing more than the value of the home. Reverse mortgages are relatively simple to obtain provided that the homeowner is at least 62 years of age or older, the home is the primary residence, and the home is paid off or has substantial equity. For some homeowners, a reverse mortgage can be a financial lifesaver. They are a good choice for those who want some extra spending money, who need a reliable monthly income, who would like to pay off debts, or perhaps pay for in-home health care services, medications, or travel. Following are a few facts regarding reverse mortgages: • Sixty-two is the minimum age to qualify. There is no maximum age. • Reverse mortgages work for homes completely paid for or with substantial equity. • The mortgage company does not own the home. The reverse mortgage is simply a lien that is added to the property that gets repaid when the property is sold or transferred. • You can’t outlive the loan or be kicked out of your house, regardless of your age or the remaining home equity funds as long as the property taxes, maintenance, and insurance is kept current. • Heirs are not liable for repaying the debt because reverse mortgages are government-backed loans. Homeowners and their heirs are protected from ever owing more than the future value of the home. • Credit scores and income are not currently factors during loan processing. To find out more information about reverse mortgages, call Lisa Parks with The Reverse Mortgage Center at 231-218-0307 for a personalized analysis to determine if a reverse mortgage would benefit you. ADVERTISEMENT
Call Lisa for a free consultation to see if a Reverse Mortgage is right for you!
Team Member of Security Mortgage Corp.
Moving Forward in Reverse
Lisa Parks
Certified Reverse Mortgage Specialist Traverse City, MI
231-218-0307
www.RevMortgageCenter.com NMLS 171640 & 135633