Reverse Mortgages
Equity rich and cash poor? This loan may be the perfect answer for you.
What is a reverse mortgage?
A reverse mortgage is a home loan (used for any purpose) where seniors, 62 and older, can access the equity (cash) built up in their home and is quickly become one of the most sought after loans today.
There are several different reverse mortgage programs. Fannie Mae Home KeeperŽ, Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM) are three such programs. As demand increases, more reverse mortgage programs from different organizations will become available.
The Fannie Mae Home Keeper allows you to buy a home using a Reverse Mortgage! If you are able to put a 50% downpayment on a new home, you may be able to qualify for the FNMA Home Keeper which means after your 50% downpayment you don't have to make payments on the remaining balance of the loan! Imagine that buying a home with a 50% downpayment and have no payments. Give me a call and we can talk more about this wonderful program for seniors.
It is called a reverse mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, rather than in the beginning.
What are some of the benefits of a reverse mortgage?
- Strengthen your personal and financial independence.
- Help pay for health care or other needs.
- You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
- The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
- Keep your Medicare or Social Security benefits.
- Use it as a credit line and draw upon it as needed.
- Get all your cash right away.
- Get the best of both—get cash now and have a balance in reserve to use as a credit line.
- No Income Requirements: The homeowner does not need to be working and is not qualified based on income.
As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.
Assumptions*
| Regular monthly advances | $500 |
| Annual interest rate | 7.0 % |
| Monthly interest rate | .583% (.07 / 12) |
| Month | Beginning Balance | Interest | Ending Balance | Cash Disbursement |
| 0 | 0 | 0.00 | 0.00 | $500.00 |
| 1 | $500.00 | $2.92 | $502.92 | $500.00 |
| 2 | $1,002.92 | $5.85 | $1,008.77 | $500.00 |
| 3 | $1,508.77 | $8.80 | $1,517.57 | $500.00 |
| 4 | $2,017.57 | $11.77 | $2,029.34 | $500.00 |
| 5 | $2,529.34 | $14.75 | $2,544.09 | $500.00 |
| 6 | $3,044.09 | $17.76 | $3,061.85 | $500.00 |
| 7 | $3,561.85 | $20.78 | $3,582.63 | $500.00 |
| 8 | $4,082.63 | $23.82 | $4,106.44 | $500.00 |
| 9 | $4,606.44 | $26.87 | $4,633.31 | $500.00 |
| 10 | $5,133.31 | $29.94 | $5,163.26 | $500.00 |
| 11 | $5,663.26 | $33.04 | $5,696.29 | $500.00 |
| 12 | $6,196.29 | $36.15 | $6,232.44 | $500.00 |
*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.
If you questions on this loan, please free to call/e-mail or click here to apply on-line!
Kevin Walton
Cell: 805-276-1942
Best Capital Funding - 6930 Owensmouth Ave. #102 - Canoga Park, CA 91303
Office Phone: (818) 887-2779 Fax: 800-506-0632 Cell Phone: 805-276-1942
Best Capital Funding.
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