Helping every senior through their financial journeys. Guiding in achieving your financial secrity in retirement.
Secure Retirement Funds
One of the greatest benefits of reverse mortgage is securing your retirement funds later in life.
Pay Medical & Healthcare Expenses
Helps you pay for your healthcare expenses and medical cost.
Maintain & Keep Your Home
The proceeds can help you maintain and keep your house in a good condition.
LEARN, REFINANCE, AND APPLY
Reverse Mortgage Basics
What are reverse mortgages? For some people who don’t have any ideas about this, reverse mortgages are a type of loan that allows homeowners aged 62 years old and older to access part of their home’s equity as tax-free income.
It is a tool used as part of a person’s retirement planning. Different from a regular mortgage which the homeowners pay to a lender, while a reverse mortgage from the world itself reverses, the lenders pay the homeowner.
Whoever uses this type of loan doesn’t have to worry about monthly payments or doesn’t need to sell their home. Yes! That is right, it is an ability that allows a homeowner to access their home's equity without the burden of monthly mortgage payments. To be specific, they can continue to live in it.
But the loan must be paid until the borrower dies, moves out, or sells their home. However, accessing reverse mortgages has also a huge impact on the person’s estate planning. Understanding how reverse mortgages work and the possible impact on your estate planning is vital.
Aside from learning the basics, it is important to know the types of reverse mortgages to stretch the information you need about this loan.
Home Equity Conversion Mortgage (HECM)
A versatile home loan helps seniors receive a portion of cash from their house under the US Federal Government.
Proprietary Reverse Mortgage
It is a private loan that allows seniors to convert a portion of their home's equity into cash payments.
Single-Purpose Reverse Mortgage
A type of loan where seniors agree to convert a portion of their home's equity into income, this cash must use for a single purpose approved by the lender.
This tax-free income can be used for anything they want such as house repairs, vacation, security of savings, paying off bills, or buy a vacation house. Especially for medical expenses used, these are some acceptable used for the proceeds of a reverse mortgage. A cash-out refinance will ensure to help you with your financial needs, that is why some homeowners choose to use part of their home’s equity.
As say earlier, you’re still the owner of your own, and even though borrowed part of your home’s equity, you can still continue to live in it. There’s a common misconception about reserve mortgages is that the lenders take ownership of your home. This is false because as long as you comply with the terms of the loan and pay your property taxes and home insurance, you maintain the ownership of your home.
One of the best benefits of this loan is that you are not required to pay monthly mortgage payments, as long as you live in your home. Your remaining loan will be repaid once you sell your house, move to another residence, or when the borrowers permanently leave the house. The borrower must continue to pay for property taxes, homeowners’ insurance, and house maintenance.
A reverse mortgage is insured and run by the federal government, meaning if the loan’s end up amount is higher than the house value when sold, the government insurance will cover the remaining. Simply means that the loan will be in full using only the proceed of your home after selling and no other than that.
We understand that every individual even senior has their own needs. In line with this, reverse mortgages offer many different options of reimbursement. Your choice of receiving your fund may be in full or partial sum, through a credit card, monthly payments, or a combination of these options.
The reverse mortgage application process in Boise can be a long, difficult one. The entire process begins with the lender checking that you are the legal owner of the property. The lender will purchase title insurance to protect the property and work with you to clear any title issues, such as trusts or unpaid liens. They will also confirm if there are any bankruptcies on the property.
Once everything is clear, the lender will close the loan. The reverse mortgage application process is simple. Whether you're applying for a private or government-insured loan, it's important to research all options before making a decision. The key to this process is meeting with a qualified Mortgage Loan Originator and understanding your eligibility.
Depending on the value of your home, you may qualify for a private jumbo option. To get started, follow these steps: The next step in the application process is to visit a lender's office and meet with a qualified mortgage loan originator. The process for applying is easy and straightforward, and you can learn about it online or in person.
Choosing a lender will depend on your financial situation and the type of loan you qualify for. You should also consider the cost before you choose a lender. Before you decide to apply for this type of loan, you should check out all the different types of loans and fees.
While government-insured loans are the most common, proprietary loans are not. This increased popularity has led to an increase in fraud and scams. The FBI recommends that you compare lenders to avoid being duped by unscrupulous companies.
The key to this process is meeting with a qualified Mortgage Loan Originator and understanding your eligibility. After comparing prices and fees, choose a company that meets your needs and budget. Once you've determined your eligibility, you must undergo an appraisal. This is required to verify the legal value of your property. An appraiser who is certified by the Federal Housing Administration (FHA) can do this for you. If the appraisal does not match the value of your home, you should look elsewhere for a reverse mortgage.
A professional mortgage loan originator can help you through this process. This is the most important step in the application process. When applying, you should check all of the different types of mortgages available in the market. Some reverse loans are government-insured while others are proprietary loans. You must confirm the funds you wish to receive are available. You should always make sure that the reverse mortgage is insured.
It is also important to ensure that the fund you are receiving is intended for the purpose you intended. Once you've found a lender, the next step in the application process is closing. This is the final step in the process of applying here in the state. Once the loan is approved, you will need to sign the documents. Your signature will be required at this time. This is where the closing will occur. You will sign a contract that will protect your home. You must also be prepared to pay a fee.
The reverse mortgage application process in Boise is fairly straightforward. The first step is to have your property appraised. If your home has already been appraised, you will probably need to have a new appraisal to determine if you're eligible for this loan in this city. Once you have your home appraised, you can proceed with the rest of the process.
When it comes to completing the application, your broker should be able to help you determine the right mortgage plan for your unique situation. The application process isn't complicated at all. However, it is important to understand the details of the process and find a lender who offers the best service.
Remember to do your research before signing a contract. You can compare quotes online and in-person and find the one that fits your needs. You can also take advantage of the application process in Boise if you can qualify.
To find out how long it takes to get a reverse mortgage, homeowners should shop around. While some loans are government-insured, others are not. Proprietary reverse mortgages are private, non-government-insured loans. As the popularity of these loans increases, so does the amount of fraud involving these types of loan products.
Before you make any final decisions, it is important to confirm that the funds you receive can be used for the purpose you intended. To avoid a rip-off, take time to compare costs and fees between different options. Reverse mortgages can last for several months. Upon approval, a loan officer will send you an application form and documents. The lender will review the information and determine if your home is a good fit for a verse loan.
If your home is worth more than the maximum limit, the loan will take a longer time to process. The amount of the loan you borrow will also depend on how much equity you have in your home. You will need to have a minimum value of $417,000 in order to get approved for a reverse mortgage. The process of getting a mortgage loan is generally a simple one.
After a homeowner fills out an application, they must choose a lender. A lender will then verify their qualifications and verify your information. Once your application is approved, your loan will be processed within 60-90 days. After that, you'll need to decide whether you'd like to go with a monthly payment, a line of credit, or a lump sum.
Talk to our amazing Mortgage Officers to help you in your reverse mortgage process.
Serving Boise, The Treasure Valley and all of Idaho. We help our clients understand the benefits of Reverse Mortgage Loans and why it may be a useful tool in retirement.
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