Lower Rates**Based on data reported by lenders to the U.S. Dept. of Housing & Urban Development. Among the top HECM lenders (minimum of 100 loans), GoodLife Home Loans had the lowest adjustable rates on average for the period from January 1 through October 31, 2020.
What is a Reverse Mortgage
A reverse mortgage is a powerful tool that enables homeowners to tap into a portion of their home equity and convert it to cash so they can live better in retirement. Also known as a home equity conversion mortgage HECM, this federally insured program is designed to help retirees access the home equity they’ve accumulated through tax-free loan proceeds* without having to sell or vacate their property.
*Reverse mortgage loan proceeds are typically not considered taxable income. However, you should consult a financial advisor and appropriate government agencies for the possible effect they may have on taxes and/or benefits.
How a Reverse Mortgage Loan Works
Similar to a traditional mortgage, a reverse mortgage allows you to borrow money using your home as security and is based on the equity you’ve accumulated in your property. But unlike a traditional mortgage, you’re not required to make monthly principal and interest payments.*
Instead, interest on your loan is deferred each month and added to the principal, which increases the loan balance over time. Although you may choose to make voluntary payments, the principal and interest are not due until you sell your home, no longer occupy the property as your permanent residence, or pass away.
*Borrowers are responsible for payment of property taxes, homeowner’s insurance, and any other obligations that might create a lien on the property, and they must maintain the property.
How Much Money Can You Get With a Reverse Mortgage
The amount you can borrow increases as interest rates go down, as age goes up, and as property value increases.
Reverse Mortgage Proceeds Based on Age and Appraised Property Value (APV)
*Estimated amounts. Call for more details.
Reverse Mortgages: Tools for Retirement
Reverse mortgages are designed for borrowers aged 62 and older. These loans allow homeowners to access the equity they’ve accumulated in their homes and use it to supplement their retirement income. There’s no monthly payment required, so borrowers can significantly increase their cash flow for a higher quality of living in retirement.
There are very few restrictions on how you can use your loan proceeds. Use the money to pay off a car loan or credit card, renovate your home, take care of unexpected expenses—it’s all up to you. If you have an existing mortgage, you can use a reverse mortgage to pay it off to eliminate monthly payments and spend the remaining proceeds however you see fit.
History of Reverse Mortgages
The government launched the reverse mortgage program—known as the home equity conversion mortgage HECM—in 1989 to offer Americans a means to finance their longevity. Since then, there have been over 1,000,000 originated in the USA.
Reverse Mortgage Eligibility Considerations
Eligibility for a reverse mortgage depends on these factors:
Age of the youngest borrower
Your primary residency
Value and condition of your home
Reverse Mortgage Process
It’s simple, fast and pain free. Here’s what you can expect:
Tell us about your goals and we’ll teach you about reverse mortgages to see if we can help.
Meet with a counselor to ensure you feel safe and protected every step of the way.
We cut out the middlemen and streamline the process to save you time and money.
Choose how you’d like to receive your money and we’ll move fast to disburse the funds.
Step 1) Education
Find out how we fund your loan faster and at a lower rate. Learn all there is to know about how you'll get lower fees and costs because we cut out the middleman. And, most importantly, our reverse mortgage experts will give you the advice and information you need to help you decide if a reverse mortgage is right for you.
Step 2) Counseling
The federal government requires that all borrowers complete a counseling session with an independent agency approved by the U.S. Dept. of Housing and Urban Development (HUD), which can take place over the phone or in-person at your convenience. The goal is to make sure you receive unbiased information, so the counselor will review the details we provided in step one to ensure you’re a good fit for a reverse mortgage.
They’ll address any concerns you might have, discuss your family budget, and present you with alternative options to a reverse mortgage. It’s important to remember that your counselor is an objective third party. They won’t recommend you take any specific action, they’re simply there as a resource during the process.
Step 3) Application
If you decide to move forward, we’ll help you fill out the reverse mortgage application to ensure no detail goes overlooked. At this time, we’ll verify your income, assets, and credit history, then we’ll arrange an appraisal to determine the value of your property and confirm it’s in a safe, working condition. Once we order the title and escrow, the loan is ready for approval.
Step 4) Funding
After your loan is approved, we’ll draw up the final documents and help you arrange an appointment to sign them with a friendly notary. Upon receipt of your official signature, we’ll fund the loan and make any necessary payoffs within three weeks. And, you’ll face lower closing costs than you’d find elsewhere because our unique business model allows us to offer pricing that can meet or exceed any competitor in the industry, guaranteed.
If you need further assistance, a highly trained GoodLife Mortgage Expert is just a phone call away.