- BUY A
- SOUTH STATE
Remember all those years of paying monthly mortgage payments? With a reverse mortgage, you and the bank essentially trade places – you become the one getting paid.
Seniors who qualify can turn their homes into a supplemental source of income, using the equity they’ve built up in their homes. With a reverse mortgage, also called a home equity conversion mortgage (HECM), you receive tax-free cash based on the equity you’ve got in your home. You can opt for a monthly payment, line of credit, or a lump-sum payout from your lender.
In a traditional mortgage, the debt decreases as your payments build equity. It’s the opposite with a reverse mortgage… your equity decreases as the debt increases throughout the life of the mortgage. Many seniors use the money received from a reverse mortgage to cover medical expenses, add some breathing room to their retirement, or pay for other unexpected bills without having to wonder how they will afford to live out their retirement years.
Even better, your reverse mortgage only comes due when you either die, sell your home, move out (12 consecutive months or more), or if you should fail to pay property taxes or your homeowners insurance premiums. Your heirs will have several options when the loan comes due, including refinancing to keep the house, selling the home and cashing out any remaining equity, or turning the home over to the lender.
There are certain conditions you must meet to qualify for a reverse mortgage. They include:
•You are at least 62 years old.
•You occupy the property as your primary residence.
•Maximum reverse mortgage loan amounts vary and are determined in part by your age, the value of your home, and lending particulars of the county where your home is located.
•Any mortgage currently on your property is low enough that you can pay it off with the proceeds of your reverse mortgage.
•Your home satisfies FHA standards.
•You complete an approved counseling course for reverse mortgages, which will educate and protect you as you make the important decision about taking out a reverse mortgage.
To find out more about how we can help seniors turn the equity in their homes into tax-free cash, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511.