Senior mortgage seminar
Growth in home equity value over the past several years, better understanding of the potential benefits of reverse mortgages, and improved financial counseling resulted in a banner 2004 for reverse mortgages. The Department of Housing and Urban Development (HUD), reported 47,266 reverse mortgages closed nationwide in 2004: more than doubling the 21,636 reverse mortgages closed in 2003.
What is a Reverse Mortgage?
A reverse mortgage is a unique loan that enables senior homeowners (62+) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Your home remains yours. The bank does not own your home, you do.
The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you.
Enhancing your retirement years
The funds from a reverse mortgage can be used for anything: daily living expenses; home repairs or modifications; health care expenses, including prescription drugs or in-home care; pay-off of existing debts; lifestyle enhancement; vacations; purchase of long term care insurance; and other needs.
There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage.
What are my payment options?
You can choose how to receive the money from a reverse mortgage. The options are: all at once (lump sum); fixed monthly payments (for up to life); a line of credit; or a combination of these.
The amount of money you get from a reverse mortgage depends on several factors, including: your age, type of reverse mortgage selected, appraised home value, current interest rates, and - sometimes - where you live. In general, the older you are and the more valuable your home (and the less you owe on your home), the more money you are eligible for.
The funds from a reverse mortgage are tax-free; it's your money, not additional income. A reverse mortgage does not affect regular Social Security or Medicare benefits.
Paying Back Your Loan
No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when you cease to occupy your home as a principal residence, whether you (or the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out.
The amount owed can never exceed the value of your home. Furthermore, if the home is sold and the sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to you or your estate.
Get More Information
To learn more about Reverse Mortgages, and if one might be of benefit to you, plan to attend an educational seminar. Please call RTG Consultants at 1-888-973-8377 to schedule a seminar in your area or we can send you a FREE educational brochure.
Visit now for your free reverse mortgage analysis
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