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Reverse Mortgages

Eligibility Requirements

  1. One borrower must be 62 years or older
  2. Purchased home is required to be your primary residence
  3. New property must be: single-family home, 2-4 unit dwelling or FHA approved condo
  4. Must receive Reverse Mortgage counseling from a HUD approved counseling agency
  5. You must have an adequate down payment for your new home or a gift from a family member
     

The Three Basics of Reverse Mortgages

1. Receive Tax Free Money from Your Home Equity:

A reverse mortgage is simply a financial tool to turn equity in your home into cash that can be used for many different purposes that will enhance and extend your retirement plan. If you currently have a mortgage, a reverse mortgage could eliminate your current monthly payment and also allow you to access any additional equity (over and above your mortgage balance) to create accessible cash which is not readily available while in the form of equity in your home.

You have spent many years putting your money into a special account called reverse mortgage, you can convert that equity in to cash - tax-free! Reverse mortgages are insured by the Federal Housing Administration (FHA) and are called Home Equity Conversion Mortgages (HECM).

 

2. Eliminate your Monthly Mortgage Payment:

A HECM is the only mortgage that never requires a payment until you pass away or move out of your home. You are required to always pay taxes and insurance on your home, but whether you take a line of credit, monthly checks, or a lump sum, you will never be required to make a payment during your lifetime as long as you live in your home.However, should you choose a line of credit, you have the option of paying down the line should you wish to have less cash and increase your equity.

 

3. Never Owe More Than What the Home is Worth:

When you permanently move out of your home, whether you sell it or pass away, neither your estate or your heirs are responsible to pay the deficit if the balance owed on your reverse mortgage exceeds the home value. However, should your heirs want to keep your home, they may purchase it for 95% of the current appraised value.

 

The Financial Power and Safety of a HECM Line of Credit (L.O.C.):

Most common uses of a Reverse mortgage when you dont need the money now:

  1. Use as a stand-by line of credit so you can keep your cash fully invested.
  2. Delay filing for social security until you are 67-70 and use your credit line to fill any income gaps.
  3. Bridge the Medicare gap from 62-65 for health insurance premiums or moderate your taxable income to increase the subsidy in the Affordable Care Act.
  4. Pay for life insurance with long-term care riders without impacting your overall cash needs.
  5. Use for tax planning purposes by using optional payments strategically
  6. Save on taxes by decreasing withdrawal rates on IRAs and other taxable accounts.
  7. Purchase a vacation home without increasing your payments and decreasing your investment assets.

Everyone has a different situation, sets of needs, wants, and challenges. It will be well worth your time to meet with one of our Certified Reverse Mortgage Planners to receive personalized advice to improve your retirement.


COLLATERAL SUBJECT TO APPROVAL. PROGRAM TERMS AND CONDITIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE. SOME PRODUCTS MAY NOT BE AVAILABLE IN ALL STATES. OTHER RESTRICTIONS AND LIMITATIONS MAY APPLY.

Fairway Independent Mortgage Corporation. NMLS#2289. 4801 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. Copyright2014. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations apply. Fairway is not affiliated with any government agencies. Fairway is required to disclose the following license information. Alaska Mortgage Lender License No. AK2289; Arizona Mortgage Banker License No. 0904162; CA: Licensed by the Department of Business Oversight under the Consumer Finance Lenders Law; CO: Regulated by the CO Division of Real Estate; Illinois Residential Mortgage Licensee No. MB. 0005475; Kansas Licensed Mortgage Company. KS License #MC.0001375; MA Mortgage Broker and Lender License #MC2289; Minnesota: MN-MO- MN-MO-20183136. This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. Section 47.206 (3) and (4); Mississippi Licensed Mortgage Company; Licensed by the New Hampshire Banking Department Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker-NYS Department of Financial Services; OH MBA License #MB.802711.000; Oregon Mortgage Lender License ML-3791; Rhode Island Licensed Broker & Lender; VA: NMLS ID # 2289; Washington Consumer Loan Company License No. CL-2289.

 

Fairway Independent Mortgage Corp. NMLS Entity ID#2289
37156 Rehoboth Avenue Suite 1, Rehoboth Beach, DE  19971
Office:  (302) 227-LOAN
kgrim@fairwaymc.com
Copyright © 2017 Fairway Independent Mortgage Corp. NMLS Entity ID # 2289- Licensed by the Virginia State Corporation Commission, VA Lic # MC-4040 - Licensed by the N.J. Department of Banking and Insurance
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