Whether you use your reverse mortgage to eliminate your monthly montage payment, 5 to set up a line of credit for use in case of emergency, or to cover ongoing monthly expenses, it may help you live more comfortably too. Reverse mortgages help some seniors live a more comfortable retirement by providing a financial cushion. This allows borrowers to purchase a new home without having to pay monthly mortgage payments in retirement. HECM-for-Purchase borrowers can use the sale of their current home as the down payment, and a reverse mortgage to finance the new house. If you are considering relocating to a retirement destination like Florida, you may be able to use a Home Equity Conversion Mortgage (HECM)-for-Purchase to buy your retirement home. CityĪ reverse mortgage is a loan exclusively for senior homeowners 62 years of age or older. 4 The principal limit is the amount of money a reverse mortgage borrower can receive from the loan. 4 Florida’s most popular cities for reverse mortgages in 2018 are in the table below. In fact, 24,069 seniors in Florida have taken out a reverse mortgage on their home in 2018. Many senior homeowners in Florida use a reverse mortgage as part of their retirement plan. 3 However, no matter where you retire you should have a financial plan in place to prevent you from outliving your retirement savings. 2 An added benefit of living in Florida is that the residents are not charged state income or estate taxes. Florida’s healthcare and housing costs are both below the US average. Two significant expenses that seniors often consider in retirement are healthcare and housing. According to the United States Census Bureau, 421,778 adults 65 years old+ call Florida home. From its white sand beaches and sunny weather to its low cost of living, Florida has the amenities and comforts that many seniors wish for in retirement. " Mortgagee Letter 2021-29.Florida, well known as the Sunshine State, is a favorite retirement spot for many reasons. Department of Housing and Urban Development. " How Do I Refinance My Reverse Mortgage?" " 2022 Home Equity Conversion Mortgage (HECM) Limits."ĪAG. " What is a Life Expectancy Set-Aside in a Home Equity Conversion Mortgage (HECM) transaction?" “ How Much Money Can I Get with a Reverse Mortgage Loan, and What Are My Payment Options?” “ Home Equity Conversion Mortgage Program (HECM) Fact Sheet.”Ĭonsumer Financial Protection Bureau. “ How Much Will a Reverse Mortgage Loan Cost?” “ Reverse Mortgages: What Consumers and Lenders Should Know.”Ĭonsumer Financial Protection Bureau. “ Data Point: 2021 Mortgage Market Activity and Trends,”. “ What Is a HECM for Purchase Loan?”Ĭonsumer Financial Protection Bureau. Reverse Mortgage Loan Features and Costs."Īmerican Advisors Group. “ Home Equity Conversion Mortgages for Seniors.” " Are the proceeds I receive from a reverse mortgage taxable to me?" " Avoid reverse mortgage shopping scams." " Senior Home Equity Exceeds Record $11.2 Trillion."Ĭonsumer Financial Protection Bureau. National Reverse Mortgage Lenders Association. ![]() If the borrower needs more money during or after that term, they can access the line of credit.Ĭonsumer Financial Protection Bureau. Term payments plus a line of credit: The lender gives the borrower equal monthly payments for a set period of the borrower’s choosing, such as 10 years.If the borrower needs more money at any point, they can access the line of credit. Equal monthly payments plus a line of credit: The lender provides steady monthly payments for as long as at least one borrower occupies the home as a principal residence.The homeowner only pays interest on the amounts actually borrowed from the credit line. Line of credit: Money is available for the homeowner to borrow as needed.Term payments: The lender gives the borrower equal monthly payments for a set period of the borrower’s choosing, such as 10 years.Equal monthly payments (annuity): For as long as at least one borrower lives in the home as a principal residence, the lender will make steady payments to the borrower.The other five have adjustable interest rates. This is the only option that comes with a fixed interest rate. Lump sum: Get all the proceeds at once when your loan closes.
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