Philadelphia Seniors Get Help From Reverse Mortgage

Reverse Mortgage Philadelphia: If you are a senior living in the Greater Philadelphia area considering using the funds from a reverse mortgage to help supplement social security and pension income, then here's several things you'll want to keep in mind when you talk to your Reverse Mortgage Specialist. Call 610-717-2879 to speak to someone today.

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What is a Reverse Mortgage

It's a home loan that enables you to convert a portion of your home equity into tax-free funds without having to sell your home, give up title, or take on a new monthly payment. (Consult a tax adviser)

Instead of making monthly mortgage payments, your mortgage pays you. That's the "reverse" part of a reverse mortgage.

How a reverse mortgage differs from a traditional mortgage

With a traditional mortgage or home equity loan -

Homeowners qualify based on their credit history and debt-to-income ratio. They borrow money which requires making monthly payments.

With a reverse mortgage

Your mortgage makes payments to you and there are no income, employment or credit score qualifying restrictions.

Reverse Mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions.

Why get a reverse mortgage

A reverse mortgage can give you access to your home's equity without the burden of monthly payments

Reverse mortgage proceeds may be used for 
any purpose, including:

1. Eliminating your existing mortgage

2. Meeting daily or monthly expenses

3. Covering healthcare expenses

4. Remodeling or home repairs

5. Reducing credit card debt

With the reverse mortgage for purchase 
feature, the loan proceeds are used to 
help purchase a new primary residence 
better suited to your needs

How the loan proceeds are disbursed



You have several options to receive your reverse mortgage proceeds, they are available to you in the following distribution options:

Lump Sum — A specific amount is made immediately available (often used to pay off an existing mortgage).

Term — Funds are released in fixed monthly amounts for a set period requested by the customer.

Tenure — Funds are distributed in equal monthly allotments for as long as at least one homeowner continues to occupy the home as a principal residence.

Line Of Credit — Funds remain available for the customer to draw on as needed or in automatic monthly disbursements.

Combination — You can choose any combination of lump sum, monthly or line of credit disbursements. You can even receive an initial lump sum and put the rest in a line of credit. Regardless of how you choose to receive your proceeds, you can adjust your plan as often as you wish to accommodate changing needs.

Three essential facts



1. As long as all program requirements are met:

You retain the title to the property and continue to own your home.

Instead of making mortgage payments, you can have a mortgage that pays you.

You cannot owe more than the value of the home.

2. Program requirements include but are not limited to:

One of the borrowers continuing to live in the house

Keeping the taxes and insurance current

Maintaining the property according to FHA standards

3. If the program requirements are no longer being met and you or your heirs choose to retain ownership of the home, the full outstanding loan balance must be paid.

Age and eligibility requirements

You and any co-owners must be at least 62 years old

Your home must be your primary residence

You must own your home free and clear, or the existing mortgage must be paid off with the loan proceeds

Educational counseling with a HUD-approved counselor is required

How much can I borrow



The amount that can be borrowed is determined by a HUD formula that is based on the following factors:

The age of the youngest 
homeowner

The appraised value 
of the home

The current interest 
rate

The established 
lending limit

What are the interest rate options

Both fixed- and variable-rate reverse mortgages are offered.

With a fixed-rate reverse mortgage, your interest rate will remain the same through out the life of the loan

With a variable-rate reverse mortgage, the interest rate may adjust at predetermined periods.

In most variable-rate cases, you may choose monthly or annual rate adjustments.

The frequency by which your interest rate adjusts – monthly or annually - will not affect the number of loan advances you receive, but will affect how fast or slow your loan balance grows.

Call today 610-717-2879 to be connected to Rodney Goldston,Reverse Mortgage Specialist .