Reverse Mortgage Loans | Retirement Income Mortgage

Reverse Mortgage Loans | Retirement Income Mortgage

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Reverse MortgagesRetirement Income | TK Reverse Mortgage Loan?

Reverse mortgages are often used to convert a part of the equity in your home into tax-exempt income, without the need to sell your home, give up the title or switch to another monthly mortgage payment plan. If you’re aged 62 or older, you can apply for a reverse mortgage.

Through this mortgage program, the lender pays you a lump sum amount or makes fixed periodic (monthly) payments, a line of credit or even a combination of all three. You can use the money received to supplement your retirement income, pay for healthcare or even go on a vacation!  Here’s how reverse mortgages work:

Qualifications for Reverse Mortgages

Reverse mortgages do not involve any credit, payment or income requirements. Even if you still owe money on account of your first or second mortgage, you can still apply for this mortgage incentive. Such mortgages hold the first (primary) lien against your property.

You can borrow reverse mortgages only against your primary residence. For the purpose of raising such mortgage, you need to have any of the following as your primary residence:

  •  Four-unit home
  •  Qualified townhouse
  •  Qualified Condominium
  •  Manufactured homes; only if they were constructed after June 1976 and are permanently fixed on to the ground you own

Value of the Reverse Mortgage for Retired Americans

Reverse Mortgage Retirement FundThe amount of money raised by reverse mortgages depends directly on the age of the youngest borrower. It is also linked with the appraised value of your home (for mortgage purposes) and the locality. As a general rule, the older you get, the more valuable your home becomes, the less money you owe on it and the more money you can raise by virtue of reverse mortgages.

Implications of the Reverse Mortgage

The best feature of reverse mortgage funds is that they are tax-free and have no impact on your regular Social Security and Medicare Benefits. However, be careful of the mode of payment you choose.

If you opt for a lump sum payment, it can affect the amount you receive later on. Any amount that you retain a month after receiving the lump sum reverse mortgage payment counts as a resource.

This resource can affect your Medicaid eligibility. It is best to consult our Medicaid experts for all your reverse mortgages payment modes.

When to Repay the Reverse Loan?

The loan, relating to reverse mortgages, shall be repaid at any time when you stop using your house as a principal residence. This happens when you sell the home, move out permanently or when you or your last remaining spouse passes away. Bear in mind that the amount you owe will never be greater than the value of your home. In the event the sales proceeds are greater than the amount owed in respect of reverse mortgages, the excess goes to you or your estate.

Consult the Best Reverse Loan Officers!

Whenever you think about reverse mortgages, it is best to talk to a reverse mortgage expert or a counselor before making the final decision. At Thompson Kane, our licensed and experienced mortgage experts and officers offer the best advice - with respect to all your mortgage-related matters.  

To learn more about reverse mortgages and how to apply, call us at 800-228-9270 today!  

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