Reverse Mortgage Calculator
What Is A Reverse Mortgage?
A Reverse Mortgage is an innovative Government insured loan that allows you to access the existing equity in your home. With this additional money you can now fund your retirement needs exactly how you envisioned them. Since 1987 Reverse Mortgages have helped thousands of seniors retire in their homes without the burden of a mortgage payment throughout their retirement years.
• Must be at least 62 years of age and currently live in your home as a primary residence
• No person on the deed can be younger than 62
• The home needs to have sufficient equity
• All existing liens and mortgages must be paid off with the Reverse Mortgage
• Property taxes and home insurance must be maintained by the borrower throughout the life of the loan
Unfortunately even if you have planned and saved throughout your life current circumstances beyond your control may have caused your retirement fund to decrease over the last several years. Now more than ever is the time to consider all the options that you have to live the dream retirement that you so much anticipated… We are here to help so please call a licensed Reverse Mortgage Consultant… It could change your life forever!
Types of Reverse Mortgages
• Adjustable – Rate Home Equity Conversion Mortgage
A government-insured Adjustable - Rate Home Equity Conversion Mortgage (HECM) provides you with flexibility on how you receive your Reverse Mortgage proceeds. You can choose between a combination of monthly payments, a line of credit or a lump sum. The benefit of having an adjustable rate HECM is that you may have a lower interest rate.
• Home Equity Conversion Mortgage (HECM) Saver Reverse Mortgage
There are two main differences between the HECM Saver product and the HECM Standard Reverse Mortgage. The first being that there is significantly less up front costs which can save the borrower thousands. The second is the amount of money that can be borrowed is less than the HECM Standard Reverse Mortgage. Ask your US Mortgage Corporation Reverse Mortgage Consultant for more information.
• Home Equity Conversion Mortgage for Purchase (HECM) for Purchase
A HECM for Purchase can be used to purchase a one family dwelling that the principal resident must occupy within 60 days of closing. This product allows seniors to purchase a home with a lower down payment and live in the house without having a monthly mortgage payment.
Uses for a Reverse Mortgage?
What can I use the Proceeds from my Reverse Mortgage for?
There are several reasons why individuals, like yourself apply for Reverse Mortgages:
• Paying your Monthly Bills
• Paying for Medication and Health Care
• Helping your children and grandchildren
• Planning for unexpected expenses
• Home Improvements
• Estate Planning
• Supplementing your Social Security & Retirement income
One important step you must take, by law, is to meet with an independent counselor who will review your overall financial situation. Once your counseling is complete, you will receive a certificate that you will need to present to your US Mortgage Corporation Consultant in order to proceed with your Reverse Mortgage application.
Your counselor will make sure you:
• Understand the Reverse Mortgage process
• Are aware of all financial implications
• Have all your questions answered
Repayment of your Loan
As long as your home serves as your primary residence, you remain the homeowner. You can sell your home at anytime and keep the proceeds after you pay the lender the amount of the outstanding loan balance.
When does the repayment process begin?
• If the borrower fails to pay property taxes and/or insurance
• The last surviving borrower fails to live in the home for 12 consecutive months or passes away
• All borrowers move out of the home
• The borrower let’s the property deteriorate below Housing and Urban Development (HUD) standards
If any of these should occur, the loan balance plus any added fees and the interest added on to the total principal balance needs to be repaid. The most common practice is to sell the home and other assets, but a conventional forward mortgage can be used as well to settle the claim.
The Reverse Mortgage Process
Step 1: Call 800-562-6715 to set up a no-obligation meeting with one of our Reverse Mortgage Consultants
This step will enable you to ask any questions you or your family might have. Your US Mortgage Corporation Consultants will be able to estimate how much money may be available to you and at what rate.
Step 2: Meet with an independent Reverse Mortgage counselor
As required by the U.S. Government, this step is to ensure that you have all of your questions answered by an independent third party. ALL counselors must be approved by the U.S. Department of Housing and Urban Development (HUD). Once you finish this step you will be given a certificate, which you will need for the next step.
Step 3: The Application
In this step you will not only need the mortgage counseling certificate but you will also need the following documents to complete the application.
• Social Security Number
• Birth Certificate
• Current property tax bill
• A copy of your Homeowners/Hazard insurance policy and a copy of your flood policy if applicable
• The death certificate of any deceased property owner who still appears on the title
Step 4: Have the Home Inspected and Appraised
In this step the value of your home is determined. This process is standard in all mortgage transactions and is usually accompanied by a home inspection.
Step 5: The Closing
At this point you will sign the final papers and your Reverse Mortgage will be complete. You will need to make your decision on how you would like your funds. For example, lump sum or line of credit.