Welcome to the Colorado Springs area reverse mortgage directory. This website will give you valuable information on reverse mortgage programs as well as help you locate a highly experienced licensed reverse mortgage professional in your state/area. Please Contact Us regarding a licensed representative or if you would like to know how much money is available to you, visit Reverse Mortgage Quote and fill out the appropriate information. Senior Reverse Mortgage Online does not originate mortgage loans.
A Reverse Mortgage is a unique type of home loan product that directly benefit seniors during their retirement years. Increasingly, seniors are taking advantage of reverse mortgages to ease the high cost of gas prices, prescriptions drug costs, or just to free up extra money. Mesa reverse mortgages are growing in popularity, as are reverse mortgages across the USA.
Understanding Reverse Mortgages
A reverse mortgage is exactly what its name states. It is a mortgage in reverse. With a “regular” mortgage, you make monthly payments to the bank. With a reverse mortgage, the lender bases the amount of money they will send you based on the value (equity) of your home, your age, current interest rates, and the county in which you live. Since interest rates have been so low, the time is perfect for seniors to cash in on their home equity.
More and more Mesa homeowners are remaining in their homes and using a reverse mortgage to supplement their retirement income, pay for health care expenses, make home repairs, or establish a line of credit for emergencies. To put it simply, it’s all about quality of life in the golden years. Turning your house into your pension is your reward for being frugal and paying down your mortgage, instead of burying yourself in debt.
But even though we are hearing more about reverse mortgages, some of the basic facts are often misunderstood. Below are the most common questions and answers.
What is a Reverse Mortgage?
A reverse mortgage is a loan that enables homeowners 62 or older to convert part of the equity in their homes into tax-free income without having to sell the home, without giving up ownership, and without making monthly payments. In most cases there are no credit or income qualifications, however, you must occupy the home as your principal residence.
Does the bank own your home after you get a Reverse Mortgage?
No, you own your home and retain full ownership throughout the life of the reverse mortgage. You are never forced to move and are never required to make a payment as long as you live in the home, provided your homeowners insurance and property taxes are kept current. When the last surviving spouse/owner who is on the reverse mortgage permanently leaves the property, the loan must be repaid. Generally, for a move to be considered “permanent”, you must not have lived in your home for 12 consecutive months.
Will I still have an estate that I can leave to my heirs?
Yes, the remaining equity in your home belongs to you or your heirs. When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest, to the lender. None of your other assets will be affected by HUD’s reverse mortgage. The debt will never be passed along to your heirs.
Will a Reverse Mortgage affect my Social Security or Medicare benefits?
No, Social Security and Medicare benefits are not affected by a reverse mortgage, but Supplemental Security Income (SSI) and Medicaid are different. In general, loan advances do not affect SSI and Medicaid benefits if you spend them during the calendar month in which you get them. The IRS does not consider reverse mortgage loan advances to be income so the proceeds are tax free.
How much money can I get?
The amount of money you can borrow depends on your age, the current interest rate, the appraised value of your home, and the county in which you live. Generally, the more valuable your home and the older you are, the more money you will have available. Get Quote
Does your home have to be paid off to qualify for a Reverse Mortgage?
No, even seniors with an outstanding first mortgage or home equity loan can qualify for a reverse mortgage. The proceeds from the reverse mortgage must be first used to pay off any liens on title with the remaining proceeds to be distributed to you.
Are there any restrictions on what I can do with the proceeds from a Reverse Mortgage?
No, there are virtually no restrictions. You can use the reverse mortgage proceeds to pay off bills, make home modifications, buy a car, pay medical and prescription expenses, travel, etc…
How do I receive my payments?
A reverse mortgage allows you to receive your money in several ways. The most popular is the credit line growth account. This option allows you to borrow money as you need it. You can also receive a lump sum or fixed monthly checks for the rest of your life, much like an annuity or pension. You can also receive a combination of these three options.
For additional facts you can visit the following link for answers to the most common questions: Reverse Mortgage Facts
How safe is a Reverse Mortgage?
Created in 1989 by the U.S. Department of Housing and Urban Development, HUD’s reverse mortgage program is a federally-insured private loan. The feature that distinguishes a reverse mortgage from other loans – and makes it so valuable to many senior homeowners – is that no money has to be repaid until they pass or move out of the home. HUD insures that both the homeowner and the lender will receive the benefits outlined in the reverse mortgage.
If you’re living beyond the income your retirement plan provides, a reverse mortgage can be a low-risk way for you to remain in your home for the rest of your life. If you’re like many older Americans, your home is your largest asset, and although you may be concerned at the thought of borrowing on it, your house may be the only way to increase your income. Before making any financial decisions you should investigate all options available to you and choose what is best for you.
Reverse mortgage underwriting guidelines are very different and much easier to be approved than conventional mortgage programs. Many seniors are denied conventional mortgage approval such as a home equity loan (HELOC) or a refinance as banks have tightened their lending requirements. In most cases it will only be possible for seniors to qualify for a conventional mortgage with enough income and good credit scores. There are pros and cons, but most people agree that the Senior Reverse Mortgage is a good idea and the benefits are what they are looking for.
Many thousands of home owning senior citizens across America have been able to improve their quality of life using reverse mortgages. The money received as payments from the lender need not be repaid up front and is completely tax-free.
Basic Reverse Mortgage Requirements
- >>Borrowers must be Age 62 years or older
- >>Own their home and have enough equity to qualify
- >>Occupy the home as primary residence
- >>Receive counseling by an approved HUD/FHA counselor
- >>The home must be in reasonably good repair
Reverse Mortgage Resources
Please Contact Us to receive reverse mortgage information. Feel free to inquire with HUD, or your state regulatory agency for more information on reverse mortgages. You may also contact “NRMLA” for more information.
