Wondering if a Reverse Mortgage is right for you? If you’re a home owner age 62 or older in need of financial freedom, you may want to consider a reverse mortgage. Reverse mortgages take a part of the equity within your current home and transform it into cash.
In most cases this cash is tax free* and doesn’t require you to make a monthly mortgage payment. Please note you are still required to pay any applicable insurance, taxes, maintenance and HOA fees.
* This information does not constitute financial planning advice. Please consult a financial planner regarding enhancements to retirement plans.
Benefits of a Reverse Mortgage
• Get rid of your monthly mortgage payment
• You won’t have to repay more than what the home is worth*
• Postpone social security payments to grow monthly income*
• Can provide payment for long-term care
REVERSE MORTGAGE OPTIONS
When it comes to reverse mortgages,
you have a few different choices:
HECMs – Home Equity Conversion Mortgages
Reverse Mortgages that are federally insured and supported by HUD (U.S. Department of Housing and Urban Development). HECMs are a way for you to access funds from your home equity. Your loan amount will be
HP4 – Home Equity Conversion Mortgage for Purchase
Home Equity Conversion Mortgages for Purchase, is a type of HECM, designed to empower you to secure a new home that caters to your changing needs as senior.
How HP4’s work:
Backed by the FHA, this is a viable option if you have funds available to pay any price variance between funds obtained from your Home Equity Conversion Mortgage, purchase price and closing costs.
Proprietary Reverse Mortgages
Proprietary Reverse Mortgages are private loans that are supported by the individual companies who create them.
The best way to determine your eligibility as well as the best reverse mortgage option for you to call (303)-214-9071 of fill out the form and one of our Preferred Lending Team members will be in touch with you shortly.
Disclaimer: Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Must be at least 62 years old. Loan proceeds are not considered income and will not affect Social Security or Medicare benefits. Your monthly reverse mortgage advances may affect your eligibility for some other programs. Consult a local program office or your attorney to determine how, or if, monthly reverse mortgage payments might affect your specific situation. At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to you and you may need to sell or transfer the property to repay the proceeds of the reverse mortgage with interest from your assets. We will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which we will add to the balance of the reverse mortgage loan. The balance of the reverse mortgage loan grows over time and interest will be charged on the outstanding loan balance. You retain title to the property that is the subject of the reverse mortgage until you sell or transfer the property and you are therefore responsible for paying property taxes, insurance, and maintenance. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately. Interest on reverse mortgage is not deductible to your income tax return until you repay all or part of the reverse mortgage loan.