What is a Reverse Mortgage - Reverse Mortgage in Utah

What is a Reverse Mortgage - Reverse Mortgage in Utah

If your home is fully paid off, and

If you have enough cash in the bank, and

If you have a monthly income sufficient to pay all your bills,                                    

YOU DO NOT NEED A REVERSE MORTGAGE!

But

If you are still making mortgage payments, or

 If you need to have more cash in the bank, or 

If you need more monthly income to live comfortably, or

 If you need a lump some of cash to pay off bills, or 

Help a child go to college, or pay for a mission, or

Travel or do or buy??

MAYBE A REVERSE MORTGAGE IS FOR YOU!

For some a reverse mortgage is not needed; but 

For others a reverse mortgage is a God-send.

Why Lillie and Jim Chose a REVERSE MORTGAGE

(Ages 72 AND 77)

Lillie and Jim purchased a home in 2005:

Purchase Price…………$220,000.00

20% Down Payment...........44,000.00

30 Yr. @ 6.82%..............$176,000.00 loan amount

Their principle and interest payment was $1,000.00 a month for 30 years.  There are 360 monthly payments in a 30 year loan (12X30=360).  In five years they had made 60 payments but still had 300 ($1,000.00) payments left to pay.  In other words they had paid $60,000.00 of the $360000.00 but still had $300,000.00 more to pay.  They still had 25 years to go or 300 more $1,000.00 payments.

                              WHAT WERE THE OPTIONS?

Let the home go into foreclosure

Ask the children to make the mortgage payments

Put the home on the market and try to sell it.

Refinance the home 

Rent out the home.

Get an FHA Reverse Mortgage Loan 

What is a Reverse Mortgage - Reverse Mortgage in Utah

Reverse Mortgage for Seniors in Salt Lake City - 801-277-5100 Call Mark Hammond, Your Utah Reverse Mortgage specialist. Based in Salt Lake City, Utah. Learn about Reverse Mortgages and save!

Legend Reverse Mortgage in Utah - Testimonial Video

REVERSE MORTGAGES ARE NOT FOR EVERYONE!

If your home is fully paid off, and

If you have enough cash in the bank, and

If you have a monthly income sufficient to pay all your bills,                                    

YOU DO NOT NEED A REVERSE MORTGAGE!

But

If you are still making mortgage payments, or

If you need to have more cash in the bank, or 

If you need more monthly income to live comfortably, or

If you need a lump some of cash to pay off bills, or 

Help a child go to college, or pay for a mission, or

Travel or do or buy??

MAYBE A REVERSE MORTGAGE IS FOR YOU

For some a reverse mortgage is not needed; but 

For others a reverse mortgage is a God-send.

Why Lillie and Jim Chose a REVERSE MORTGAGE

(Ages 72 AND 77)

Lillie and Jim purchased a home in 2005:

Purchase Price…………$220,000.00

20% Down Payment...........44,000.00

30 Yr. @ 6.82%..............$176,000.00 loan amount

Their principle and interest payment was $1,000.00 a month for 30 years.  There are 360 monthly payments in a 30 year loan (12X30=360).  In five years they had made 60 payments but still had 300 ($1,000.00) payments left to pay.  In other words they had paid $60,000.00 of the $360000.00 but still had $300,000.00 more to pay.  They still had 25 years to go or 300 more $1,000.00 payments.

In the 2008 market crash they lost their investments and retirement income.  In August of 2010 Jim’s company downsized and Jim lost his job.  They were not able to survive on their meager social security payments.   

Their children volunteered to make the mortgage payments or assume the loan.  That was another 300 ($1,000.00) payments for another 25 years, totaling $300,000.00.  

Would it be wise for anyone to pay $1,000.00 a month, for the next 300 months to live in their home, if they didn’t have to?  Consider the costs so far:

Down Payment………………………………...………..$44,000.00

Five years P.I… ………………………..…………….…..60,000.00

Property taxes and insurance ($300.00 X 60 months)……18,000.00

30X40 two story barn and other improvements…….….....36,000.00 

Total cash in the home…….............................................$158,000.00

Is it wise to pay another?……………….…….…….….…300,000.00

Total cost plus 25 more years for taxes and insurance.....$458,000.00

After five years they still owed about $161.000.00 with 300 payments left.  With no income they immediately fell behind in their house payments.  

                              WHAT WERE THE OPTIONS?

1. 
   Let the home go into foreclosure


2. 
   Ask the children to make the mortgage payments


3. 
   Put the home on the market and try to sell it.


4. 
   Refinance the home 


5. 
   Rent out the home.


6. 
   Get an FHA Reverse Mortgage Loan 

CONSIDERING THE 6 OPTIONS!

1. 
   Let the home go into foreclosure.

Unthinkable: lose our $158,000.00 investment, our credit and a place to live.

1. 
   Let the children make our mortgage payments.

Unthinkable: Nice to know they offered and are capable but they have their own expenses and trials.  We do not want to become a financial burden on our children.

1. 
   Put the home on the market and try to sell it.

Unrealistic:  The chances of selling a home in this market at a fair price are very poor.  It is also very expensive to sell (8-9%) and we would have only a little cash after paying off the loan and no place to live.

1. 
   Refinance the home.

Impossible:  Must have good income and qualify for the loan because you must make payments for the duration of the loan.  With no job it is impossible to refinance.

1. 
   Rent out the home.

Impractical: The mortgage payments are more than the home could be rented for in today’s market.  And…where would Lillie and Jim live?  

6.  Get an FHA Reverse Mortgage Loan.

Practical:  About 5% in costs; and because there are no mortgage payments we needed no credit or income.  We had already put many thousands of dollars into our home.  This option allowed us to stay in our home as long as we wished with no more mortgage payments for the rest of our lives.  For Lillie and Jim this was the perfect solution.

Getting a Reverse Mortgage is less expensive than selling a home through a real estate broker.  The Reverse Mortgage costs about 5% of the appraisal; selling with a broker costs about 8-9%.  The seller of real estate has higher sales costs and pays taxes on profits.  The individual getting a reverse mortgage always owns his property, gets to live in the home with no mortgage payments forever, gets tax free money, and focuses on savings, not expenses.

HOW MUCH IS THE REVERSE MORTGAGE SAVING?

If Jim and Lillie live 5 years they will save $60,000.00 in mortgage payments.

If Jim and Lillie live 10 years they will save $120,000.00 in mortgage payments.

If they live 15 years they will save $180,000.00 in mortgage payments

If they live 20 years they will save $240,000.00 in mortgage payments.

If they live 25 more years they will save $300,000.00 in mortgage payments. 

What Happens In The End?

When does the Reverse Mortgage have to be paid off?  

1. 
   When the home is sold.


2. 
   When the home is no longer the primary resident of the senior couple.


3. 
   A year after the death of the last senior living in the property.


4. 
   A year after the last senior abandons the property (i.e. rest home, etc.)


5. 
   If the taxes and insurance are not paid, or the property not kept in repair.

When the time comes to pay off the loan, if the amount of the loan is more than the property is worth, the children can let the home go back to the lender.   The property will then be placed on the market at a fair market value and sold on the open market as in a normal real estate sale.  Any losses to the lender will be paid by the insurance company that insured the loan originally.  If the heirs are interested in buying the property they can purchase the property when it is offered for sale on the open market.  Regardless of how much the loan has grown the heirs are not responsible for it.

The reverse mortgage is a non-recourse loan.  A non-recourse loan is a loan which does not allow the mortgage company or anyone else to go to court and get a deficiency judgment because they lost money on their loan.  In other words, if there is a loss of money when the property is sold and the lender cannot recover the full amount owed on the mortgage, the lender can not come after the owners to recover any financial loss whatever.

If the amount of the loan is less than the market value of the property the heirs may choose to sell the property and make a profit.  Or they may elect to refinance the property and occupy the property themselves.  The heirs will never have to pay more than the property appraises for at the time of the future sale.

The Future Real Estate Market? 

How unstable will our economy be in the future?  Two or three years ago we could have sold our properties for much more than they are worth today.  Some have struggled and paid off a home mortgage of $200,000.00 only to see the market sink, buyers drop off and property values tumble to 50% of what they paid for their property.  No one can predict the future.  The home your children inherit from you could be worth a million dollars or next to nothing, depending upon things completely out of your control, the economy. 

IN SUMMARY:  No one can predict what 10 or 20 years will bring.  Today you might be able to get a $100,000.00 reverse mortgage on your home; next year it will be more or less, depending on the market.  Two or three years ago you could have gotten much more than you can today.

 Reverse Mortgage for Seniors in Salt Lake City - 801-277-5100 Call Mark Hammond, Your Utah Reverse Mortgage specialist. Based in Salt Lake City, Utah. Learn about Reverse Mortgages and save!

Reverse Mortgage for Seniors in Salt Lake City

How do you begin to learn about a reverse mortgage? You contact a reverse mortgage professional at a lender who specializes in these loans.


Reverse Mortgage Process:

• 
  Present you with a full range of reverse mortgage products that are available from his/her company;


• 
  Explain the terms, benefits and costs of each product;


• 
  Clearly explain his/her responsibilities to you;


• 
  Clearly explain your responsibilities under the terms of a reverse mortgage, including paying property taxes on time, maintaining insurance and maintaining your home in good condition;


• 
  Carefully review your income, assets and expenses to help you assess whether you can meet these obligations and determine whether the reverse mortgage is the best financial product for your situation;


• 
  Meet with you as frequently as you need and, at your request, also meet with other members of your family or your financial advisors;


• 
  Explain that, according to Federal statute, you must complete a reverse mortgage counseling session and provide you with a list of HUD-approved counselors you may contact. (As a means of maintaining a hands-off relationship so that you get unbiased third-party advice, a lender is not permitted to recommend any specific counselor);


• 
  Prepare you for making your counseling session the most effective by providing you with questions you might want to ask and information you should confirm.

Types of Reverse Mortgages

The products, all or some of which a lender may have available, include:

Home Equity Conversion Mortgage (HECM)

HECM is the commonly used acronym for a Home Equity Conversion Mortgage, which is a reverse mortgage insured by and regulated by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD).


A HECM is not a government loan. It is a loan issued by a private lender that is insured by the Federal Housing Administration (FHA). The borrower pays an insurance fee upfront at loan origination, and each year the borrower is charged an annual insurance fee of 1.25% of the outstanding loan balance. Your loan balance thus increases by the amount of this fee. The insurance purchased by this fee protects the borrower (1) if and when the lender is not able to make a payment; and (2) if the value of the home upon selling is not enough to cover the loan balance. In the latter case, the FHA will pay off the remaining balance. Currently, HECMs make up 99% of the reverse mortgages offered in America. HECMs come with rules and regulations that include a requirement that the borrower receive third-party counseling.

HECM OPTIONS

• 
  HECM Standard
  
  The term “HECM Standard” refers to a traditional Home Equity Conversion Mortgage, which has been available since 1989. There are currently more than 500,000 senior homeowners who have standard HECMs on their homes. The amount of money you receive is based on a table created by HUD and is based upon your age, the current appraised value of your home and interest rates. Fees can include an origination fee, an upfront mortgage insurance premium (MIP), an appraisal fee, traditional closing costs and a monthly servicing fee. (More on fees later.)  Beginning April 1, 2013, this product option is only available with an adjustable interest rate. This product is desirable for senior homeowners who need the most money available to them.

• 
  HECM Saver
  
  HECM Saver is a lower-cost version of the HECM Standard. The savings comes from a lower upfront mortgage insurance premium (MIP). The MIP collected by the Federal Housing Administration on a HECM Saver is equal to 0.01% of the value of the home, rather than 2% on a HECM Standard. On a$250,000 home, for example, you pay $25 in MIP under the Saver option, instead of $5,000 for a HECM Standard. The trade-off is that you receive 10-18% less money. This product is desirable for people who don’t need as much money compared to a HECM Standard, or don’t want to pay the higher fees. Because the fees are lower, and no monthly payment is required, it may also prove to be an alternative to obtaining a home equity line of credit that requires monthly payments.

• 
  HECM for Purchase
  
  While retirees typically use a HECM to cover living expenses, supplement income, eliminate debts, or pay for healthcare, a growing segment of the senior population is using HECMs to purchase new homes that better suit their needs. The advantage of using a HECM for Purchase is that the new home is purchased outright, using funds from the sale of the old home, which are then combined with the reverse mortgage proceeds. This homebuying process leaves you with no monthly mortgage payments. While study after study reveals that an overwhelming percentage of seniors want to continue living in their current home for as long as possible, for some people that isn’t the best, or safest, option. HECM for Purchase offers a solution for downsizing into a place that’s more easily navigable, possibly more energy efficient, with lower maintenance costs, or which is closer to friends and family.

Proprietary Reverse Mortgages

Right now, very few proprietary reverse mortgages exist. However, it’s important to mention them, because market conditions may change in the foreseeable future when property values stabilize.


Proprietary reverse mortgages are non-FHA insured reverse mortgages offered by banks and mortgage companies. They are not subject to all of the same regulations as HECMs. In some states, no counseling is required, although it is always recommended and required by some lenders.


Proprietary reverse mortgages are sometimes called “jumbo” reverse mortgages, because they are taken on higher-valued homes, generally $750,000 or more.

REDLIGHT

To obtain a reverse mortgage on a home, that home must be your primary residence, which means you must reside there 183 days per year or more. When you obtain a reverse mortgage and each year thereafter, you must confirm your residency by signing an Annual Occupancy Certificate that will be provided to you by your Servicer. If you must leave your home for an extended period, due to work or health or for some other reason, you should notify your Servicer and coordinate winterization and other preservation issues. If you are out of the home for twelve consecutive months, your loan could be in default. If, for any reason, you rent the property to someone else, it precludes the property from being your primary residence and the loan is in default. If the loan is in default, your Servicer will request HUD approval that the loan become due and payable.

Additional Information:

In addition to company-specific educational materials provided by a lender, a prospective applicant can gather information from independent sources, such as newspapers, magazine articles and informational websites. Educational material is available from HUD (hud.gov), AARP (AARP.org) and NRMLA (reversemortgage.org). Prior to being counseled, you will receive an information packet from either the counseling agency, or the lender, depending on who you contact first.  This information packet will include the following materials:

• 
  An informational document called "Preparing for Your Counseling Session" 


• 
  A printout of loan comparisons, so the counselor may review what you are potentially eligible to receive from the reverse mortgage


• 
  A printout of the Total Annual Loan Cost (TALC) Disclosure required by the Federal Reserve Board on all reverse mortgage transactions. This form illustrates the cost of the loan if it is outstanding for different durations of time.

801-277-5100 Legend Financial Services specializes in Reverse Mortgages. Based in Salt Lake City, Utah. Purchase a Home with a Reverse Mortgage. Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize can sell their existing home, make a large down payment on a smaller home, and finance the rest with a reverse mortgage. Then, no payments will need to be made for life. http://www.legendfinancialservices.com/

Watch a Video at http://www.youtube.com/watch?v=ejzyNK3c2qg

Reverse Mortgage in Salt Lake City

How do you begin to learn about a reverse mortgage? You contact a reverse mortgage professional at a lender who specializes in these loans. 

Reverse Mortgage Process:

• 
  Present you with a full range of reverse mortgage products that are available from his/her company;


• 
  Explain the terms, benefits and costs of each product;


• 
  Clearly explain his/her responsibilities to you;


• 
  Clearly explain your responsibilities under the terms of a reverse mortgage, including paying property taxes on time, maintaining insurance and maintaining your home in good condition;


• 
  Carefully review your income, assets and expenses to help you assess whether you can meet these obligations and determine whether the reverse mortgage is the best financial product for your situation;


• 
  Meet with you as frequently as you need and, at your request, also meet with other members of your family or your financial advisors;


• 
  Explain that, according to Federal statute, you must complete a reverse mortgage counseling session and provide you with a list of HUD-approved counselors you may contact. (As a means of maintaining a hands-off relationship so that you get unbiased third-party advice, a lender is not permitted to recommend any specific counselor);


• 
  Prepare you for making your counseling session the most effective by providing you with questions you might want to ask and information you should confirm.

Types of Reverse Mortgages

The products, all or some of which a lender may have available, include:

Home Equity Conversion Mortgage (HECM)

HECM is the commonly used acronym for a Home Equity Conversion Mortgage, which is a reverse mortgage insured by and regulated by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD).

A HECM is not a government loan. It is a loan issued by a private lender that is insured by the Federal Housing Administration (FHA). The borrower pays an insurance fee upfront at loan origination, and each year the borrower is charged an annual insurance fee of 1.25% of the outstanding loan balance. Your loan balance thus increases by the amount of this fee. The insurance purchased by this fee protects the borrower (1) if and when the lender is not able to make a payment; and (2) if the value of the home upon selling is not enough to cover the loan balance. In the latter case, the FHA will pay off the remaining balance. Currently, HECMs make up 99% of the reverse mortgages offered in America. HECMs come with rules and regulations that include a requirement that the borrower receive third-party counseling.

HECM OPTIONS

• 
  HECM Standard 
  
  The term “HECM Standard” refers to a traditional Home Equity Conversion Mortgage, which has been available since 1989. There are currently more than 500,000 senior homeowners who have standard HECMs on their homes. The amount of money you receive is based on a table created by HUD and is based upon your age, the current appraised value of your home and interest rates. Fees can include an origination fee, an upfront mortgage insurance premium (MIP), an appraisal fee, traditional closing costs and a monthly servicing fee. (More on fees later.)  Beginning April 1, 2013, this product option is only available with an adjustable interest rate. This product is desirable for senior homeowners who need the most money available to them.

• 
  HECM Saver 
  
  HECM Saver is a lower-cost version of the HECM Standard. The savings comes from a lower upfront mortgage insurance premium (MIP). The MIP collected by the Federal Housing Administration on a HECM Saver is equal to 0.01% of the value of the home, rather than 2% on a HECM Standard. On a$250,000 home, for example, you pay $25 in MIP under the Saver option, instead of $5,000 for a HECM Standard. The trade-off is that you receive 10-18% less money. This product is desirable for people who don’t need as much money compared to a HECM Standard, or don’t want to pay the higher fees. Because the fees are lower, and no monthly payment is required, it may also prove to be an alternative to obtaining a home equity line of credit that requires monthly payments.

• 
  HECM for Purchase
  
  While retirees typically use a HECM to cover living expenses, supplement income, eliminate debts, or pay for healthcare, a growing segment of the senior population is using HECMs to purchase new homes that better suit their needs. The advantage of using a HECM for Purchase is that the new home is purchased outright, using funds from the sale of the old home, which are then combined with the reverse mortgage proceeds. This homebuying process leaves you with no monthly mortgage payments. While study after study reveals that an overwhelming percentage of seniors want to continue living in their current home for as long as possible, for some people that isn’t the best, or safest, option. HECM for Purchase offers a solution for downsizing into a place that’s more easily navigable, possibly more energy efficient, with lower maintenance costs, or which is closer to friends and family.

Proprietary Reverse Mortgages

Right now, very few proprietary reverse mortgages exist. However, it’s important to mention them, because market conditions may change in the foreseeable future when property values stabilize.

Proprietary reverse mortgages are non-FHA insured reverse mortgages offered by banks and mortgage companies. They are not subject to all of the same regulations as HECMs. In some states, no counseling is required, although it is always recommended and required by some lenders.

Proprietary reverse mortgages are sometimes called “jumbo” reverse mortgages, because they are taken on higher-valued homes, generally $750,000 or more.

REDLIGHT

To obtain a reverse mortgage on a home, that home must be your primary residence, which means you must reside there 183 days per year or more. When you obtain a reverse mortgage and each year thereafter, you must confirm your residency by signing an Annual Occupancy Certificate that will be provided to you by your Servicer. If you must leave your home for an extended period, due to work or health or for some other reason, you should notify your Servicer and coordinate winterization and other preservation issues. If you are out of the home for twelve consecutive months, your loan could be in default. If, for any reason, you rent the property to someone else, it precludes the property from being your primary residence and the loan is in default. If the loan is in default, your Servicer will request HUD approval that the loan become due and payable.

Additional Information:

In addition to company-specific educational materials provided by a lender, a prospective applicant can gather information from independent sources, such as newspapers, magazine articles and informational websites. Educational material is available from HUD (hud.gov), AARP (AARP.org) and NRMLA (reversemortgage.org). Prior to being counseled, you will receive an information packet from either the counseling agency, or the lender, depending on who you contact first.  This information packet will include the following materials:

• 
  An informational document called "Preparing for Your Counseling Session" 


• 
  A printout of loan comparisons, so the counselor may review what you are potentially eligible to receive from the reverse mortgage


• 
  A printout of the Total Annual Loan Cost (TALC) Disclosure required by the Federal Reserve Board on all reverse mortgage transactions. This form illustrates the cost of the loan if it is outstanding for different durations of time.

801-277-5100 Legend Financial Services specializes in Reverse Mortgages. Based in Salt Lake City, Utah. Purchase a Home with a Reverse Mortgage. Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize can sell their existing home, make a large down payment on a smaller home, and finance the rest with a reverse mortgage. Then, no payments will need to be made for life. http://www.legendfinancialservices.com/

Watch a Video at http://www.youtube.com/watch?v=ejzyNK3c2qg

Reverse Mortgage Salt Lake City, UT (801)-277-5100

7 Gas Saving Myths Busted

If you're like most drivers, you've probably come across several quick fix ideas to help improve fuel economy. But many of these ideas are urban legends that don't actually improve gas mileage. Here are seven of the most popular:



1. Morning Fill-Ups Get You More Gas:

Fluids are denser at lower temperatures, so if you fill up your gas tank in cold weather you'll get more gas, right? Wrong. Gas tanks are kept at a set temperature, so there's no benefit in waking up early to buy fuel.



2. Turning Air Conditioning Off and Rolling Down Windows Increases Fuel Economy:

Running your vehicle's air conditioning is no worse for your gas mileage than driving with your windows down. As your vehicle speeds up, air flow creates a drag against the vehicle, making the engine work harder and hurting gas mileage. In fact, air conditioning can be a more efficient option at higher speeds.



3. Letting Your Engine Idle Uses Less Gas Than Starting and Stopping: Modern vehicles use more gas while idling than they do starting the engine, so when you park your vehicle for a short period of time, you save fuel by turning the engine off and restarting it. And it's illegal in Utah.



4. Spoilers Add to the Aerodynamics of a Vehicle, Increasing Gas Mileage: Spoilers add additional weight to your vehicle, making your engine work harder and lowering gas mileage. Getting rid of unnecessary junk, such as an old toolbox in the trunk, is a great way to lighten your load and increase your fuel economy.



5. Dirty Air Filters Lead to Bad Gas Mileage:

Keeping your vehicle's air filter clean doesn't increase gas mileage. Your engine's performance may lag if the air filter is clogged, but it won't make a noticeable change in your fuel economy.



6. Purchasing Premium Gas Increases Fuel Economy:

Each make and model of vehicle requires a specific octane to run efficiently. Using a higher octane than required can make it harder for the engine to burn fuel, resulting in lower gas mileage.



7. Chemical Additives Make Your Vehicle's Engine More Efficient:

If a five dollar bottle of fuel additives could drastically improve gas mileage, gas stations would be scrambling to add it to their fuel. No additive can make gasoline burn more slowly, so don't bother wasting your money.



If you want to save some real money, call Mark Hammond to refinance your mortgage. 801-277-5100. http://www.legendfinancialservices.com

Reverse Mortgage Salt Lake City, UT (801)-277-5100

 

Reverse Mortgage Salt Lake City, UT  | (801)-277-5100 

 

A reverse mortgage is a form of equity release (or lifetime mortgage). It is a loan available to home owners or home buyers over 62 years old, enabling them to access a portion of the subject home's equity. The home owners can draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their (joint) lifetimes, as a revolving line of credit, or some combination thereof. The would be home buyers, would use the existing equity on the home they intend to acquire, to get a reverse loan with a down payment and no additional payments.

 

 

 

In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases by the amount of the principal included in the payment, and when the mortgage has been paid in full the property is released from the mortgage. In a reverse mortgage, the home owner is under no obligation to make payments, but is free to do so with no pre-payment penalties. The line of credit portion operates like a revolving credit line, so a payment in reduction of a line of credit increases the available credit by the same amount. Interest that accrues is added to the mortgage balance.

 

Title to the property remains in the name of the homeowners, to be disposed of as they wish, encumbered only by the amount owing under the mortgage.

 

If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home in some areas. 

 

However most lenders do not like to take a second or third lien position behind a reverse mortgage because its balance increases with time. It is rare to find reverse mortgages with subordinate liens behind them as a result. A reverse mortgage may be refinanced if enough equity is present in the home, and in some cases may qualify for a streamline refinance if the interest rate is reduced.

A reverse mortgage line is often recorded at a higher dollar amount than the amount of money actually disbursed at the loan closing. This recorded lien is at times misunderstood by some borrowers as being the payoff amount of the mortgage. The recorded lien works in similar fashion to a home equity line of credit where the lien represents the maximum lending limit, but the payoff is calculated based on actual disbursements plus interest owing.

Reverse Mortgage Utah - Home Loans for Seniors

Reverse Mortgage Utah - Home Loans for Seniors Call  801-277-5100

 

 

Reverse Mortgages

“I’m retired and my income is low. I have a lot of equity in my home, but it does me no good unless I sell the house. But I need a place to live! I wish there was a way to stay in my home and stop making mortgage payments. I would love to get at some of that equity to pay for prescriptions, medical costs and spoiling my grandchildren. Can’t the lender just let the interest build up on my loan and collect it later after I die? Right now I need a break!"

Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, are Federal Housing Administration insured low-interest home loans for seniors (over 62 yrs) that require no payments EVER as long as the seniors live in the home. Existing loans can be paid off and equity can be drawn out to pay for medical expenses, living expenses, or whatever the borrower chooses. The maximum loan amount is a percentage of the home's value determined by the age of the youngest homeowner.

Since no interest is paid by the borrowers, interest accrues on the note each month, but is not collected until after the death (or permanent vacancy) of the all borrowers on the note. Lenders assume the risk that the loan balance might become greater than the value of the home. Borrowers retain ownership of the home and can sell the home or refinance the loan to a regular loan later if they choose. Reverse mortgages can also be refinanced later on with a new reverse mortgage to pull out more equity if the home value increases substantially.

Getting rid of monthly mortgage payments and using the nest egg built up over the years can really ease the stress of retirement for seniors. Knowing that their home can never be taken away is also a great relief. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has 12 months (with no required payments) to refinance the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is passed on to the heirs.  If no equity remains in the home, the estate can simply walk away with no liability. The estate is not liable if the home sells for less than the balance of the reverse mortgage.

Purchase a Home with a Reverse Mortgage

Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize can sell their existing home, make a large down payment on a smaller home, and finance the rest with a reverse mortgage. Then, no payments will need to be made for life.

Call us today just to see how much money you can get.  

801-277-5100

Reverse Mortgages in Utah

Reverse Mortgages

“I’m retired and my income is low. I have a lot of equity in my home, but it does me no good unless I sell the house. But I need a place to live! I wish there was a way to stay in my home and stop making mortgage payments. I would love to get at some of that equity to pay for prescriptions, medical costs and spoiling my grandchildren. Can’t the lender just let the interest build up on my loan and collect it later after I die? Right now I need a break!"

Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, are Federal Housing Administration insured low-interest home loans for seniors (over 62 yrs) that require no payments EVER as long as the seniors live in the home. Existing loans can be paid off and equity can be drawn out to pay for medical expenses, living expenses, or whatever the borrower chooses. The maximum loan amount is a percentage of the home's value determined by the age of the youngest homeowner.

Since no interest is paid by the borrowers, interest accrues on the note each month, but is not collected until after the death (or permanent vacancy) of the all borrowers on the note. Lenders assume the risk that the loan balance might become greater than the value of the home. Borrowers retain ownership of the home and can sell the home or refinance the loan to a regular loan later if they choose. Reverse mortgages can also be refinanced later on with a new reverse mortgage to pull out more equity if the home value increases substantially.

Getting rid of monthly mortgage payments and using the nest egg built up over the years can really ease the stress of retirement for seniors. Knowing that their home can never be taken away is also a great relief. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has 12 months (with no required payments) to refinance the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is passed on to the heirs.  If no equity remains in the home, the estate can simply walk away with no liability. The estate is not liable if the home sells for less than the balance of the reverse mortgage.

Purchase a Home with a Reverse Mortgage

Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize can sell their existing home, make a large down payment on a smaller home, and finance the rest with a reverse mortgage. Then, no payments will need to be made for life.

Call us today just to see how much money you can get.  

801-277-5100

Visit us on our Website http://www.legendfinancialservices.com

Reverse Mortgages in Salt Lake City Utah

REVERSE MORTGAGE ELIGIBILITY

To be eligible for a reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62 and have sufficient equity in the home That’s IT! There are no income or credit requirements for a reverse mortgage. Borrowers can even be in foreclosure or bankruptcy and the reverse mortgage can pay off the existing loan.



Simply provide your Legend Financial Services loan consultant with your age(s), the approximate value of the home and the existing loan balance(s). Your loan consultant will let you know the approximate loan amount that you can get (subject to appraised value). Whatever amount exceeds your loan balance is yours to keep and can be taken as a lump sum, line of credit, or monthly payments to you.  If you don't have a mortgage, the entire amount of the loan is available for you to use.

BENEFITS OF A REVERSE MORTGAGE

What are some of the benefits of a reverse mortgage?

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  Strengthen your personal and financial independence.


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  Help pay for health care or other needs.


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  You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.


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  The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.


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  Keep your Medicare or Social Security benefits.


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  Use it as a credit line and draw upon it as needed.


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  Get all your cash right away.


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  Get the best of both—get cash now and have a balance in reserve to use as a credit line.


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  No Income Requirements: The homeowner does not need to be working and is not qualified based on income.


• 
  Lock in your loan amount NOW before any more possible depreciation of your home's value.


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Reverse Mortgages in Utah - Learn what a Reverse Mortgage is

Reverse Mortgages in Utah - Learn what a Reverse Mortgage is

What are some of the benefits of a reverse mortgage?

• Strengthen your personal and financial independence.
• Help pay for health care or other needs.
• You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
• The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
• Keep your Medicare or Social Security benefits.
• Use it as a credit line and draw upon it as needed.
• Get all your cash right away.
• Get the best of both—get cash now and have a balance in reserve to use as a credit line.
• No Income Requirements: The homeowner does not need to be working and is not qualified based on income.
• Lock in your loan amount NOW before any more possible depreciation of your home's value.