You may be interested in exploring whether a reverse mortgage can be a simple way to accomplish your financial goals. It certainly is for thousands of people every month!
Reverse mortgages are government-sponsored FHA insured loans—very similar to a home equity line of credit. The biggest difference is that you're not required to make any monthly payments as long as you are living in your home! A reverse mortgage converts equity into a tangible benefit (cash), giving you a higher quality of life, and peace of mind. Please peruse this site and feel free to contact me; I'd be happy to answer any questions and provide personalized information.
A reverse mortgage is an FHA mortgage that does not require any payments, except upon the borrower's death or the sale of the home.
A reverse mortgage converts a portion of equity into cash without an obligation on the part of the homeowner to make mortgage payments. Nothing changes with the home ownership. The owners can sell their home at any time and certainly leave the home to their heirs when they pass away. Like with any mortgage, the homeowner is still responsible for paying property taxes, homeowners' insurance, HOA fees and general maintenance of the home.
A reverse mortgage is an FHA loan that allows folks 62 or better to convert a portion of their equity into tax-free cash. Instead of making monthly payments to a lender as with a traditional mortgage, the lender makes payments to the borrower.
The percentage of the appraised value that FHA allows to be borrowed is based on current interest rates and the date of birth of the youngest borrower. The older a borrower is, the higher the percentage. Typically, between 50% and 70% of the home's value can be borrowed.
The primary borrower needs to be at least 62 years old and the home needs to be their primary residence. Borrowers must also meet certain income and credit requirements. A reverse mortgage is for folks who want to access their equity to pay off their current mortgage, for home upgrades, to pay off credit cards or medical expenses, to travel or just for the overall enhanced quality of life that financial security provides.
And, it’s becoming more common now among affluent homeowners who simply want to add longevity to their retirement portfolio.
Largely based on the borrower's date of birth, the required equity to obtain a reverse mortgage can be as little as 30% all the way up to 100%.
Since there is no prepayment penalty, a reverse mortgage can be paid down or paid off at any time for any reason, including the sale of the home. One needs only to request a final payoff amount from the servicer of the loan and send them that amount.
After the passing of the last homeowner, the home will go to the heirs and the loan will become due. If the heirs want to keep the home, they can satisfy the reverse mortgage balance with their own money or get a traditional refinance. Most of the time, heirs hire a real estate professional and sell the home. Staying in communication with the servicer of the loan, the heirs have six months plus two, three-month extensions to sell the home. At the close of the sale, the reverse mortgage balance is satisfied from the proceeds of the sale and the heirs keep the difference.
"David helped me to understand the process, patiently explaining every step. A very professional man and a pleasure to have him in my corner when reverse mortgage was a little scary."
“From the initial phone call to the call to set up the closing, everything occurred exactly as I was told. Personally I spoke with him and always he was very polite and efficient. From start to finish was a very pleasant experience. Thank you for Fulfilling or needs As promised”
"Marie & I were very skeptical about Reverse Mortgages. Since our meeting with David Edel and his full explanations of all of how it works, we knew this was the right avenue for our particular situation. He gave us as much of his time we needed to comprehend the inner working of this type of, what i call, [the rest of our lives protection and comfort]. David made us feel like family members, and that is a comfort you cannot buy. Even though it was unbelievable paperwork, David did all the work."
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Important Disclosure Information
Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108.
Alabama Consumer Credit License 22123; Alaska Broker/Lender License AK1025894. Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, License 4131356; Loans made or arranged pursuant to a California Finance Lender Law license, 60DBO93110; Colorado Mortgage Registration 1025894; Connecticut Mortgage Lender License ML-1025894; Delaware Lender License 028515; District of Columbia Mortgage Dual Authority License MLB1025894; Florida Mortgage Lender Servicer License MLD1827; Georgia Mortgage Lender License/Registration 46648; Hawaii Mortgage Loan Originator Company License HI-1025894; Idaho Mortgage Broker/Lender License MBL-2081025894; Illinois Residential Mortgage Licensee MB.6761115; Indiana-DFI Mortgage Lending License 43321; Iowa Mortgage Banker License 2019-0119; Kansas Mortgage Company License MC.0025612; Kentucky Mortgage Company License MC707287; Maine Supervised Lender License 1025894; Maryland Mortgage Lender License 21678; Massachusetts Mortgage Broker and Lender License MC1025894; Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022452; Minnesota Residential Mortgage Originator Exemption MN-OX-1025894; Mississippi Mortgage Lender 1025894; Missouri Mortgage Company License 19-2472; Montana Mortgage Broker and Lender License 1025894; Nebraska Mortgage Banker License 1025894; Nevada Exempt Company Registration 4830. Licensed by the New Hampshire Banking Department, Mortgage Banker License 19926-MB; Licensed by the New Jersey Banking and Insurance Department. New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; North Carolina Mortgage Lender License L-186305; North Dakota Money Broker License MB103387; Ohio Residential Mortgage Lending Act Certificate of Registration RM.804535.000; Oklahoma Mortgage Lender License ML012498; Oregon Mortgage Lending License ML- 5208; Pennsylvania Mortgage Lender License 72932; Rhode Island Lender License 20163229LL. Rhode Island Loan Broker License 20163230LB; South Carolina BFI Mortgage Lender/Servicer License MLS-1025894; South Dakota Mortgage Lender License ML.05253; Tennessee Mortgage License 190182; Texas Mortgage Banker Registration 1025894; Utah Mortgage Entity License 8928021; Vermont Lender License 6891; Virginia Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org); Washington Consumer Loan Company License CL-1025894; Wisconsin Mortgage Banker License 1025894BA; Wyoming Mortgage Lender/Broker License 3488. (866) 200-3210. Subject to Credit Approval.
Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property.
These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to: www.nmlsconsumeraccess.org
David Edel services the areas of both Naples and East Naples, Florida.
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