Reverse mortgages are becoming increasingly recognized by Homeowners and Financial Advisors as a smart and safe way to access an important retirement asset: home equity.
Some of the ways I’ve helped my clients:
- Avoid selling investments at a loss in a “down” market
- Pay for medical or long term care costs
- Establish a “stand-by” line of credit that you can tap as needed. Unlike a traditional Home Equity Line of Credit (HELOC), a reverse mortgage line of credit cannot be reduced or revoked, as long as the terms of the loan are met…. And the unused line of credit grows over time.
- Finance the purchase of a more suitable home, with no monthly mortgage payments*
Ted & Janet, age 72 had these options based on their current situation
Home Value Now: $650,000
Loan Amount Now: $200,000
Mortgage Payments Now: $1,193/mo
Reverse Mortgage Options
- A monthly check to them for $533, which, since they no longer have to make their $1193 mortgage payment, improves their cash flow by $1,726/mo
- a "stand-by" line of credit for $92,783 as an additional "safety net" and since they no longer have to make their mortgage payment, improves their cash flow by $1,193/mo
The reverse repayment terms are flexible. You are not required to make monthly mortgage payments, but can anytime you want to.
*As with any home-secured loan, you must meet your loan obligations: keeping current with property taxes, homeowners insurance, and any homeowners association (HOA) fees, and keeping your home in good condition.
Most Frequently Asked Questions
Q: If I have an existing mortgage, can I get a reverse mortgage?
A: Yes. Many borrowers use a reverse mortgage to pay off their existing mortgage and eliminate their monthly mortgage payment. In many cases, there is a line of credit left over for the borrower.
Q: Will the bank own my home?
A: The bank does not take ownership of your home, they simply extend a loan to you. You continue to own and live in your home and are responsible for payment of property taxes, required insurance, and applicable HOA fees.
Q: Do my children/family members lose their inheritance?
A: No. A borrower may designate an heir of their choosing. The heir(s) will inherit the home after the last surviving borrower passes away and may then choose to keep or sell the home.
Q: Do I need to be suffering financial hardship to qualify?
A: No. In fact, many affluent borrowers work with financial planners are using this as a tool to better their quality of life during retirement.
Q: How do I qualify?
A: You must be 62 years or older. You must be living in the home as a primary residence; vacation homes and investment properties do not qualify. You will need to complete a HUD-approved counseling session. You must be able to pay homeowner's taxes, insurance, and any applicable HOA fees.
Meet Your Loan Officers
Richard Wang is a lifelong committed loan originator. Coupling his finance and legal background with his family-bred work ethic and commitment to unparalleled customer service, it is difficult to find another equal. He currently serves on the Board of Directors for the Silicon Valley Chapter of the California Association of Mortgage Professionals and hopes to increase outreach into the mortgage broker community in light of the ongoing overhaul of the industry. DRE 01144748 | NMLS 334072
Maria Guardado has a passion for helping her clients get a home loan. She sees mortgages as puzzles, some are easier than others, and will work diligently to set a clear picture for the lender. She has been working in this industry since 2002, and her engineering background lays a foundation for the detailed work involved in our industry. Maria grew up in the Bay Area, and currently lives in Campbell with her family and is quite involved in volunteering with Boy Scouts. DRE 01400277 | NMLS 314111
If you or someone you care about ever need more information on a reverse mortgage, please call us directly at 408-457-9978
This licensee is performing acts for which a real estate license is required. C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker # 01821025; NMLS # 135622. Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by borrower. Loan is only approved when lender has issued approval in writing and is subject to the Lender conditions. Specified rates may not be available for all borrowers. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender.