Monday, December 14, 2015
HECM Reverse Mortgage Loans in Aventura, FL

HECM reverse mortgage loans in Aventura, FL are growing quite rapidly. There are many different types of HECM reverse mortgage loans in Aventura, FL one can obtain. There is the reverse mortgage for purchase and also a traditional reverse mortgage. Each have their inherent benefits as well as drawbacks.

In this article, we will review which type of reverse mortgage might be beneficial to you during your search for this unique financial product. The reverse mortgage has been around for quite sometime, however, the reverse mortgage for purchase has only been around for less than 10 years. Congress passed the reverse mortgage for purchase in 2008. Aventura residents can now take advantage of this product.

The HECM reverse mortgage for purchase in Aventura is meant to allow a senior over the age of 62 to obtain a new home without having to pay a mortgage.

You may think this sounds to good to be true but is not. However, few often have the funds to obtain this type of reverse mortgage. You must put down at least 40% of the home's value to qualify. This makes sense if you were considering buying a home with cash but the liquidity issue makes you think twice. With this type of reverse mortgage in Aventura, you can buy a new home without having a mortgage payment. You still must pay other types of bills such as real estate taxes, homeowners insurance, & HOA fees.

The other type of reverse mortgage loans in Aventura would be the traditional reverse mortgage. Aventura residents who already live in their home but wish to eliminate their mortgage payment and/or cash out some of the equity in their home without gaining a mortgage would be attracted to this type of reverse mortgage. It is important to note, that to qualify you must be over the age of 62, your home must be in well-kept condition, and you must have significant equity in the home. The older you are and the more equity you have in your home will dictate the actual payout.

Now that you know the type of reverse mortgage loans available to you, you may want to know if this product is safe. Yes it is. The federal government insures all HECM reverse mortgage loans. You may wonder why this is important if you obtain a lump-sum of cash. There are other options with how you can opt to receive your funds. You can get installment payments or a line of credit. So if the bank were to fail, so would your payments if it was not federally insured.

Entitlement programs are typically not affected as this is not earned income, but home equity. So if you are concerned about your Social Security or Medicare getting disqualified you shouldn’t be concerned. If you would like to be extra sure, you can always consult with your tax adviser, accountant, or you can go to this website. There is another guideline you must follow. You have to live in the home as your primary residence. In other words, you cannot obtain a reverse mortgage than buy another property and move into it.

You would effectively turn your primary property into an investment property if this was the case and the reverse mortgage loan would come due. This is something that you want to be extra cautious about as you do not want the loan to come due. It would defeat the purpose of the reverse mortgage loan in Aventura, FL if so.


Posted at 09:51 am by reversemtg
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Saturday, November 07, 2015
How a Florida Reverse Mortgage Helped a Retiree

When one retires, they were not aware what would be required 20 years prior when they were saving their money for retirement. For that reason, many homeowners over the age of 62 are suffering. Being house-rich and cash-poor can equate to a stressful retirement. This story is about my uncle.

With the standard cost of living constantly on the rise with no signs of slowing down, those who budgeted for a slight increase int he cost of living are now forced to face reality. This blog post is dedicated to a retiree who used a reverse mortgage in Florida to make their situation more feasible.

Florida reverse mortgages are on the rise with the recent comeback from the housing market. In just 2012, those who were house-rich and cash-poor did not wish to do anything with the ultra-low valuations their homes were fetching. One retiree in particular decided to wait it out and suffer with a low monthly income just barely getting by.

The housing bubble is now over and the housing market has recovered and home prices are on the increase. The retiree decided to take decisive action and do something about his situation. After realizing he could do a traditional refinance he was relieved. However, the monthly mortgage payment and interest would put him in a worst position. He would have a lump sum of cash but that would soon run out.

Enter the reverse mortgage. He spoke with a company called Shop Reverse Mortgages based out of Florida. Very shortly after, he was advised that he could take out some of the equity in the home without having to pay a monthly mortgage payment or interest payment. My uncle felt like it was to good to be true. However it wasn't. He asked me to help research this financial product. It ended up being insured by the federal government.

This made me feel "safe" about this transaction. After everything that has been happening to scams, it felt good knowing the federal government stepped in to make sure seniors like my uncle wouldn't get taken advantage of.

I also learned his entitlement programs like Medicare & Social Security would not be impacted. The logic is because it is not earned income, rather just unlocking home equity. So the money is treated differently than if my uncle was earning an income from a job.

There was other benefits that I cannot remember but all in all I am very happy this reverse mortgage helped my uncle so much. He received a large lump sum of money and has no mortgage payment as promised. If our family wants the house after he passes away, we just need to pay off the loan or else the bank keeps the home. We decided it was more important for him to live a stress free life rather than be greedy and keep the home after he passes away.

I hope my experience helping my uncle can help someone else.

Posted at 06:49 pm by reversemtg
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