Reverse Mortgages

 

Questions & Answers

 

What is a reverse mortgage? 

A reverse mortgage turns a percentage of the equity in your home into tax-free monthly income or lump-sum cash. No payment is ever required for as long as you live in your home. 

 

 

Who is eligible for a reverse mortgage? 

Seniors (age 62+) who own their home can apply for a reverse mortgage. There are NO credit and NO income requirements. 

 

 

How much money can I get? 

The amount available to you is a calculation based on your age, home value and the current interest rate. 

 

How do I get my money? 

The choice is yours 1) A lump sum of cash  2) A monthly income 3) A line of credit with tax-free growth. You can mix the three or even make changes later. 

 

 

How safe are reverse mortgages? 

They are totally safe. It is impossible to fall behind on payments because there are none to make. You retain title and deed along with all homeowner’s rights and privileges. Neither the lender nor the government takes title to your home. Reverse mortgages are “non-recourse”, so no debt can ever pass to your heirs. 

 

 

Is there more than one type of reverse mortgage? 

No. Currently all reverse mortgages are FHA loans. The only difference is your payout choices. 

 

Can a person ever lose their home? 

It is impossible to “default” because there are no payments to make. The home must be the borrower’s primary residence, and like any traditional mortgage, you as homeowner must keep the home owner’s insurance and taxes current. 

 

Who gets my home after death? 

Your estate does. Your heirs have the choice of keeping or selling the house. The proceeds of the sale can be used to repay the mortgage, with the remainder going to your heirs. If they choose to keep it, they must payoff the remaining balance owed with a new loan or their own cash. 

 

Is there any impact on my Income Tax or Social Security benefits? There is NO impact on benefits. Money from a reverse mortgage is NOT income, NOR does it affect Social Security. Homeowners on SSI or Medicaid should check with providing agency first. 

 

 

Who is Spectrum Global Financial? 

We are a company dedicated to helping seniors with their mortgage loan needs. Our entire focus is to meet the needs of our clientele with professionalism, sensitivity and respect. 

 

GOOD REASONS TO LOOK INTO A REVERSE MORTGAGE: 

• AARP and the American Bar Association support this concept. 
• FHA insured and regulated by HUD. 
• You always keep title to your home and pass it to your heirs or estate after death. 
• NO income taxes on the proceeds. 
• You can sell and move at anytime. 
• No restrictions on how you spend your money and you have choices on how you can receive the proceeds. 
• Buy the things you need or want without having to make a monthly payment. 
• No penalty if you decide to pay it off at some future date. 
• Payoff your existing mortgage. 
• Make home improvements or additions. 
• Set-up a college fund for grandchildren. 
• Fulfill your travel dreams. 
• Donate to church or charity