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FEATURES |
BENEFITS |
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No more monthly home loan re-payments of any kind |
What
this means to you:
For as long as one owner occupies the
home as their primary residence, they will never have to make
any mortgage payments again. |
|
All other mortgages and/or liens are paid in full at closing |
What
this means to you:
No longer having any monthly mortgage
or home equity loan payments to make will not only will increase
your monthly cash flow, but it also means there is no future
risk of foreclosure for failure to make those monthly mortgage
payments. |
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All cash advances from your reverse mortgage are TAX FREE |
What
this means to you:
The Freedom Bar Association
guide states that generally, "the IRS does
not consider loan advances to be income",
and a reverse mortgage is a loan against the
primary residence. However, you should consult
a tax advisor for more information about your
specific situation. |
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Credit Line Growth is approximately 0.5% per year over the current
interest rate |
What
this means to you:
HECM borrowers may elect to access some
or all of their tax-free money via a credit line. As the home
appreciates, so does the credit line. Credit line growth allows
the borrowers to get more cash from their reverse mortgage as
the value of the home appreciates-until it is used up. As a
result, there may be a large increase in the available credit
line over time. |
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There are numerous Cash Advance Options, and YOU decide how you will
receive the loan proceeds |
What
this means to you:
You may choose from four options including
a line of credit, monthly cash advances, a lump sum, or a combination
of the above payment methods. |
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Loan balances do not have to be re-paid until the last owner
moves, sells, or passes |
What
this means to you:
Repayment is only required after any of
the folllowing the maturity events: death, property sale, relocation,
or if there is a failure of the owners to pay property taxes
or hazard insurance, properly maintain the property, or violate
any of the loan terms. |
|
By law, a HECM Reverse Mortgage is "non recourse" |
What
this means to you:
The lender is paid only from the sales
proceeds, and the lender can only look to the home value and
selling price to pay off the loan. The lender may not seek repayment
from any other assets of the borrower's their estate or heirs
even if the sales proceeds do not pay off the loan in full.
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Counseling with a HUD approved Counselor is required |
What
this means to you:
Before applying for a HECM reverse mortgage,
all homeowners listed on the Title must complete a 30-45 minute
telephone interview with a HUD approved counselor. This consumer
protection allows you to ask questions, confirm the features
and benefits, and help homeowners determine if a reverse mortgage
is right for their specific situation. |
