Reverse Mortgages: Helping Senior Homeowners Move Forward in Life

By
Mortgage and Lending with Your Tampa Bay Mortgage Source

Elderly CoupleTAMPA, FL - Senior homeowners across the nation are now turning to a new source for cash income - their home. From paying for home repairs, home health care or medical expenses to paying off an existing mortgage or credit card debt, Reverse Mortgages are providing the means for seniors to move forward in life.

With a Reverse Mortgage, homeowners at least 62 years in age are now able to capitalize on the equity built up in their homes. Unlike traditional home equity loans, a Reverse Mortgage does not have to be repaid until the borrower(s) no longer lives in the home as their primary residence.

I feel that the Reverse Mortgage is allowing seniors to tap into a cash course previously unrealized, which helps them pay for any type of financial need. Most seniors have no idea what a wonderful retirement investment they have in their home.

The amount of money available to the borrower is typically determined by the value of their home, current interest rates, and the age of the borrower(s). The older the borrower, the more money they will be able to receive.  Proceeds from the loan can be received in several ways: a lump sum payment, equal monthly payments, establish a line of credit, or a combination of these three options. Based on the homeowner's specific needs, the borrower has the luxury of selecting how they will receive the funds. The most popular form of disbursement is the line of credit option. Under the Reverse Mortgage program, the unused funds in the line of credit actually increase over time via an annual growth rate.

Some seniors still question if reverse mortgages are safe. However, numerous consumer safeguards are built in the program. The homeowner always maintains ownership of the home, and their name remains on the title.

Reverse mortgages are also non-recourse loans, which means there is no personal liability for the mortgage. Neither the borrower nor the heirs can ever owe more than the value of the property when the loan becomes due. No assets other than the home will be used to repay the loan, and any equity remaining after repayment belongs to the borrower or their heirs.

According to statistics collected by the industry, more than 150,000 reverse mortgage loans have been originated to date with current fundings approaching 50,000 per year.

Currently, there are three reverse mortgage programs available: the FHA-Insured Home Equity Conversion Mortgage, or "HECM", the Fannie Mae Home Keeper product, and jumbo reverse mortgages available from a private investor and offered by AmeriFirst Home Mortgage.

For additional information on reverse mortgage products and benefits, I have created a consumer awareness hotline for consumers to listen to a free recorded message, anytime 24-hours a day, (888) 226-0523 ext. 1

 

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Location:
Florida Hardee County
Tags:
reverse mortgage
tampa
senior homeowner
income
government assistance
hecm
retirement

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Anonymous #1
Anonymous
Anonymous

I've heard a lot about the reverse mortgages lately......I guess it is a good thing for the right owner under the right circumstances.

May 08, 2007 10:10 AM
Rainmaker
506,295
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate

I think this is great for those folks that are on  fixed incomes.  Yippie!

 

PatriciaAulson/NH/ME/MA

May 08, 2007 10:20 AM
Rainer
29,630
Leah Ross
Tampa, Florida Mortgage
Your Tampa Bay Mortgage Source
Maureen, great point!  Each person has their own situation and something different that works for them.  However, that is where the importance comes in of working with a Professional!  The great thing about Reverse Mortgages is that there are numerous consumer safeguards built in the program and the homeowners are required to attend counciling prior to getting the mortgage, their families are encouraged to attend so everyone understands what is happening!....Wish we could have that requirement for all mortgages!!
May 08, 2007 10:24 AM
Rainer
29,630
Leah Ross
Tampa, Florida Mortgage
Your Tampa Bay Mortgage Source
Absolutely Patricia!  It's another source of income for them that they may need to cover medications or other expenses.
May 08, 2007 10:25 AM
Rainmaker
446,330
Cyndee Haydon
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Charles Rutenberg Realty
Leah - this is great information and I think more and more seniors may be interested in learning more about this type of mortgage. I remember when "ARMs were considered to "risky and unknown" - over time we see every loan has a time and a place - that's why a consultant like you is so valuable in helping each client understand what will be in their best interest.  
May 08, 2007 09:44 PM
Rainer
234,241
Susie Roscoe
Real Estate Specialist | Brandon, FL
Signature Realty Associates
Leah---GREAT POST!  "We" know all about it but the public needs to know more about it.  This is a great article! 
May 09, 2007 05:21 AM
Rainer
29,630
Leah Ross
Tampa, Florida Mortgage
Your Tampa Bay Mortgage Source

Cyndee - you are so right!  With so many mortgage options, it is so crucial for consumers to know all the options!

Susie - Thanks for the Kudos :)

May 15, 2007 01:52 PM
Rainmaker
246,356
Katrina Madewell
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196
this is a great loan program that not too many people offer!  They really are a great product, way better than this ned am stuff that most brokers got going on!
May 18, 2007 09:01 AM
Anonymous #9
Anonymous
Sherry - MetLife Bank

MetLife Bank is looking for a few good Reverse Mortgage Consultants in the Tampa area. If you know of someone who may be interested in coming on board with Florida's MetLife Bank team, please call me at 386-586-2205 or email me at sbaker@metlife.com.

Thanks and have a great day ~

October 03, 2008 08:54 AM
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Rainer
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Leah Ross

Tampa, Florida Mortgage
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