of HomEquity Bank’s clients have equity remaining in the home when the loanis repaid.
Myth: Reverse Mortgages are too expensive because the rates are high. Fact: HomEquity Bank ratesare modestly higher than regular mortgages because thereare no payments required. HomEquity Bank offers rates as low as prime+1.25%*. Myth: A reverse mortgage is a solution of last resort. Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer. Myth: A Home EquityLine of Credit (HELOC) is a better option. Fact: HELOCs aree a good short-term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans and there exists significant risk of non-renewal or cancellation. In comparison, a reverse mortgage is a long-termfinancial solution that won’t be called based on economic changes such as interestrates increasing, property values decreasing, or a change in the homeowner’s income. Also, money from a reverse mortgage provides the ability to prolong retirement savings. Myth: A steady income or good credit is required to be approved for a reverse mortgage. Fact: Credit score or income verification is not required to qualify for a reversemortgage. The amount of money the homeowner is eligible for is based on their age, spouse’s age, location of the home, type of home, and the home’s appraised value. Myth: The bank can force the homeowner to sell or foreclose at any time. Fact: A reverse mortgage is a lifetime product, and as long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like. Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage. Fact: Many of our clients use areverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things. Myth: Surviving spouses are stuck paying the loan after the homeowner passes away. Fact: Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home. If you want to find out more about Reverse mortgage options, call me at 647-893-2535 or drop me a line at [email protected] Sign Up Here for Monthly Mortgage Updates
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