Saturday, November 28, 2015 • 11:06

FHA Insured Retirement Stability

July 23, 2014
Seniors are surprised and comforted with the stability an FHA insured reverse mortgage can give to their retirement. For homeowners 62 or older with significant equity in their homes, a reverse mortgage can help them improve cash flow, get a lump sum of cash, and even establish a line of credit for future expenses, all without incurring a monthly payment and actually eliminating their monthly mortgage payment while maintaining full title to their home.

Many seniors are equity rich but cash flow poor; a reverse mortgage is designed to help those seniors unlock the equity in their homes with flexible options that they control themselves. The key to a reverse mortgage is that the homeowner will never have a payment on their mortgage or the cash they access, whether accessed through a regular monthly payment for life or a line of credit they access as needed, as long as they live in the home as their primary residence.

An option some seniors have used to increase their retirement stability is use of a line of credit from their reverse mortgage to eliminate their house payment and have a significant line of credit on standby to be used as needed for future expenses, whether household, medical, or emergency in nature. These senior homeowners have the comfort of knowing that cash is readily available anytime from this line of credit & that any unused portion of the line of credit will grow at the reverse mortgage interest rate, giving them access to an increasing amount of money available overtime.

A tenure payment to the homeowner is also available; based on the age of the younger homeowner, the equity in their home, and current interest rates, using FHA software, a monthly payment is established that the homeowner can receive for life or as long as they live in their home. This is an FHA insured monthly payment that is received by the homeowner as long as they live in the home and which will never stop regardless of their future equity in the home. Under a reverse mortgage, the homeowner maintains title to their home and will never owe more than the net proceeds from their home at the time of a potential future sale.

To learn more please join us for free informational workshop on Saturday July 26 from 10:30-11:30 a.m. at the Valley Center Library. Refreshments will be served.

Scott Harmes is a reverse mortgage specialist with 32 years mortgage and real estate experience: Phone: 619-316-7818, National & California NMLS Lic. 248551, CA BRE Broker Lic 11113987.

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