Reverse Mortgage | Joplin MO
A reverse mortgage is a home loan that provides cash payments based on home equity. Homeowners normally “defer payment of the loan until they die, sell, or move out of the home.”
The age of the youngest borrower must be at least 62 years.
The opposite of a traditional mortgage, or forward mortgage, is a reverse mortgage. The reverse mortgage allows the applicant to withdraw equity from their home to use as they desire, without making a monthly payment to repay principal and interest. Upon not occupying the house as the primary residence for 12 months, the unpaid balance is due. The applicant or their survivors can choose to payoff the mortgage and retain the house, sell the home while paying off the mortgage and retaining the equity difference or turn the home over to HUD to liquidate. No deficiency balance, if it exists transfers to the heirs.
The borrower can choose either a fixed rate or an adjustable rate option. The interest rate determines how fast the loan balance grows over time.
For example, you can use a reverse mortgage to:
- Establish a “stand-by” line of credit that you can tap as needed. Unlike a traditional Home Equity Line of Credit (HELOC), a reverse mortgage line of credit cannot be reduced or revoked, as long as the terms of the loan are met. And the unused line of credit grows over time.
- Avoid selling investments at a loss in a “down” market.
- Supplement retirement income with a steady stream of tax-free funds.
- Delay collecting Social Security, for a larger monthly benefit.
- Pay for medical or long-term care costs.
- Pay off an existing mortgage and/or other debts, to improve cash flow.
- Finance the purchase of a more suitable home, with no monthly mortgage payments.
Among the benefits:
- The ability to use your home equity to help maintain a more comfortable standard of living, in your own home.
- Tax-free proceeds you can use however you choose.
- Great flexibility. You can take your proceeds as a line of credit; monthly advances for a set period of time; a monthly stream of funds for as long as you live in your home; a lump sum; or a combination of these options. You choose the plan that works best for you.
- No monthly mortgage payments. If you qualify and have an existing mortgage, home equity loan or any other type of debt, you can pay it off and improve your monthly cash flow, with no minimum monthly loan payments. (As the homeowner, you remain responsible for paying property taxes, homeowners insurance, and homeowner’s association dues if applicable.)
The Mortgage House will beat any national reverse mortgage lender in rate and cost!
We hope to work with you soon. Please call The Mortgage House at (417) 782-7800, or email us here.
“This material is not from HUD or FHA and has not been approved by HUD or a government agency.” Missouri License number 16-1693.