Reverse Mortgage Loan Benefits


Reverse Mortgage Loan Benefits

 

Reverse Mortgage Loan Benefits

As a senior citizen, reverse mortgages provide you with a valuable tool.  This tool can be used as part of your overall strategy in financial planning for retirement. Reverse mortgage loan benefits are numerous. If you’re looking to supplement your retirement income, have a look at just three key benefits listed below:

#1 You remain the owner of your home.

A common misconception of reverse mortgages is that the lender takes ownership of your home. This is false. You continue to maintain ownership of your home, as long as you comply with the terms of the loan and pay your taxes and insurance.

#2 There are no monthly mortgage payments required from you.

One of the most attractive benefits of reverse mortgages is that payments are made TO you, as long as you live in your home. This is quite different from a traditional forward mortgage where you must pay funds in a monthly amount. With reverse mortgages, you receive funds. The loan is repaid when you sell your home, move to another primary residence, or when the last borrower leaves the home.

#3 Choose from different disbursement options.

Each individual senior has different needs. Thus, there are different disbursement options to cover different needs. This includes the choice to receive funds in a full or partial sum, a line of credit, monthly payments, or a combination of any of these.

These are only a few of the many reverse mortgage benefits. For a complete view of how a reverse mortgage can benefit you in your particular situation or to learn more about reverse mortgage pros and cons, call us at American Advisors Group. Your Reverse Mortgage Professional will sit down with you and go over a customized financial strategy in order to take full advantage of all the benefits a reverse mortgage has to offer you.

 

Why Work with Mario Quintero

Would you like to take advantage of the many reverse mortgage loan benefits available?  Think you qualify for a reverse mortgage?  Have a look at your options  with the help of Mario Quintero of STC Loans. Mario has been in the reverse mortgage business since 2002. Because of this,  his experience is tested and true.  Mario has helped thousands of clients secure and supplement their retirement through a reverse mortgage.

Mario Quintero, principal of Strock and Tanner Mortgage, gets your deal done. Let me be both your trusted Miami realtor and Miami mortgage broker.

 

Get in Touch with Mario

I’m Mario Quintero, your mortgage & realtor for life. Let me be your Miami home consultant. Our office specializes in both residential and commercial real estate and financing programs. Let me help you secure a conventional, jumbo, FHA and foreign national mortgage loans. Furthermore, we can help your elderly parents secure a comfortable retirement with a reverse mortgage.

Call me today at 305-598-1600 or contact me here.

HELOC Loans

HELOC Loans

 

 

Reprinted from Reverse Mortgage Daily written by Jason Oliva

HELOC Loans

Do you have a HELOC loan on your property?  A large number of U.S. homeowners will be affected by a Home Equity Line of Credit (HELOC) reset over the next few years. Additionally,  many borrowers are either unprepared or unaware of the financial repercussions awaiting them, a recent study indicates.

Of more than 800 polled homeowners holding HELOCs, 43% will be affected by a reset in the coming years.  This information stems from the TD Bank HELOC Reset Measure released this week. And as HELOC borrowers reach their end of draw periods, 23% of survey respondents said they do not have financial plans in place to handle a reset.

 

DANGERS

Feeding into this unpreparedness were misconceptions borrowers hold regarding HELOC repayment. Only 19% of respondents to the TD Bank survey understand that a HELOC reset will increase their monthly payments.  Meanwhile, 34% said they believe their monthly payment will be reduced when their HELOC resets.

Additionally, TD Bank found that one third of borrowers who opened HELOCs prior to 2011 are unaware of their draw period expiration date described in the HELOC contract.  This number rises among Baby Boomers to 42%.

Meanwhile, 53% of respondents who opened HELOCs between 2005 and 2008 don’t know the impact the reset will have on their monthly payments.

HOW A HELOC WORKS

Many HELOC loans allow borrowers to draw for 10 years and make interest-only payments, said Mike Kinane, senior vice president in TD Bank’s Home Equity division.

“When this draw period ends, you are required to pay principal and interest.  This may possibly increase your monthly payments,” Kinane said. “It’s important you plan ahead and review your contract to determine the best course of action based on your current and future financial situations.”

However, the vast majority of respondents (60%) who do not have a plan for their HELOC resets indicated they will not seek guidance from their lenders.

WHAT TO DO

“If you do not have a financial plan for the end of your draw period you should contact your lender as early as possible,” Kinane said. “A responsive lender will offer multiple ways for you to pay down your line of credit.”

But for borrowers who are prepared to face HELOC resets, more than one-quarter of respondents said they plan to refinance their HELOC into another loan.  And almost 70% of those borrowers plan to approach their current lenders.

For those borrowers considering a refi, using a HELOC for emergency funds was most important to them (35%).  Home renovation followed (27%) and travel (26%).

With home values soaring during the housing boom, homeowners sought HELOCs as a means for tapping into their home equity.  Moreover, HELOC loan funds are typically  used to finance a variety of expenses.  Home renovations, medical bills, even help with debt consolidation are among the top uses.

In the TD Bank survey, the top three reasons homeowners opened a HELOC were to renovate a home (38%), consolidate debt (24%) and purchase a new vehicle (20%).

“HELOCs can be a smart and flexible way for you to tap money when needed.  Most uses are for home renovations, debt considation, education, or deal with unexpected expenses,” Kinane said. “It’s a wise idea to consult with your banker, and take advantage of the benefits that HELOCs can offer.”

If you are 62 and over, you may be able to remedy this situation with a reverse mortgage on your home.  Once you have this, the reverse mortgage will pay off your HELOC.

Get in Touch with Me

I’m Mario Quintero, your mortgage & realtor for life. Let me be your Miami home consultant. Our office specializes in both residential and commercial real estate and financing programs. Let me help you secure a conventional, jumbo, FHA and foreign national mortgage loans. Furthermore, we can help your elderly parents secure a comfortable retirement with a reverse mortgage.

Call me today at 305-598-1600 or contact me here.

The Condo Reverse Mortgage

The Condo Reverse Mortgage

The Condo Reverse Mortgage

Do you own a condo?  Are you over 62?  Soon, you may be able to qualify for a condo reverse mortgage, if the FHA proposed rules become enacted.

“In response to changing conditions in the condominium market, the Federal Housing Administration (FHA) today proposed new rules that would allow individual condo units to become eligible for FHA financing, including Home Equity Conversion Mortgages (HECMs), an agency spokesman confirmed to RMD,”  according to Reverse Mortgage Daily.

The agency further went on to state, “FHA’s intent is to modify its condominium rules to ensure financial soundness and project viability, but in a manner that is more flexible where possible and responsive to the market.”

Further excerpts from Reverse Mortgage Daily:

FHA currently requires that approved condos have a minimum of 50% of the units occupied by owners. Through this proposed rule, FHA is specifically inviting comments on this issue and is proposing to establish an allowable range between 25-75%.

“While having too few owner-occupants can detract from the viability of a project, requiring too many can harm its marketability,” FHA stated in the release. “The range allows FHA to choose a specific percentage that is responsive to future market changes.”

 

An individual unit may be eligible for single-unit approval if it meets a variety of criteria, including that the condo is not a manufactured home and is located within a project that has at least five dwelling units.

Projects approved under this rule are fully completed.

The proposal is the latest move by FHA regarding its condo financing policies.

 

Get in Touch with Me

I’m Mario Quintero, your mortgage & realtor for life. Let me be your Miami home consultant. Our office specializes in both residential and commercial real estate and financing programs. Let me help you secure a conventional, jumbo, FHA and foreign national mortgage loans. Furthermore, we can help your elderly parents secure a comfortable retirement with a reverse mortgage.

Call me today at 305-598-1600 or contact me here.