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How A HECM Reverse Mortgage Can Help During The COVID-19 Crisis

In one week the COVID-19 virus has shook not only the health of the entire world, but our national economy and stock market and our local economies as well.  Seniors are an especially vulnerable age group to not just the virus itself, but also to the broad reaching impact on finances.

Here’s how a HECM reverse mortgage could help with different scenarios:

1.) Pay off existing conventional mortgage and/or other debt.
2.) Provide cushion for a volatile stock market that can affect retirement portfolios.
3.) Allow seniors to move out of senior living homes (as is being recommended) and fund long term care or long term care insurance.
4.) Allow seniors to move out of senior living homes and purchase a home or condo using a Reverse Mortgage for Purchase.

Regardless of how a HECM Reverse Mortgage can help, the truth is right now is the time to do it.  This is because home values are high and interest rates are low, but this may change quickly.  The amount available through a reverse mortgage is based off two main factors – the appraised value of the home and the age of the borrower(s).

Reverse mortgages are available to homeowners 62 and over, including married couples, with many protections in place to ensure borrowers are adequately educated before using this option, such as required third-party counseling.  Reverse mortgages are gaining in popularity among retirees from all walks of life.  A reverse mortgage for purchase option is available for those looking to purchase a new residence.

Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.

 

HECM Reverse Mortgages in Connecticut – 5 Fast Facts

reverse mortgage advisor connecticutThe HECM Reverse Mortgage, created to aid the realization of retirees dreams, will be in your face if you have approached, or are approaching, the eligible age of 62. As with the all special offers across Connecticut, marketing can promote it in such a way as to allure you – or to terrify you.

There are a number of points to know when you begin to learn about reverse mortgage. These are simple facts and not marketing strategies.

1.) First of all, married couples can both be on the HECM reverse mortgage loan if they are both over the age of 62. This means when one passes, the other can continue living in the home under the same agreement. No changes take place just because both are no longer in the home.  This gives the remaining spouse a true security as they navigate through the transition of losing their life partner.  The same would apply if one spouse was to leave the home permanently and move into an assisted living facility.  As long as both partners are on the loan,  and one still remains in the home, nothing changes.  In addition, just last year HUD made changes to non-borrowing spouse regulations, making it easier for non-borrowers to remain in the home even if the borrower has passed.  Discuss this with your reverse mortgage advisor.

2.)  Second, there are NO monthly mortgage payments. So long as the borrower(s) remain in the home as their primary residence, their only financial responsibilities are the homeowner’s insurance, HOA payments, property taxes and basic upkeep/utilities.  This is the case whether a traditional HECM reverse mortgage is acquired, or a HECM reverse mortgage to purchase a home.  No mortgage payments, ever.

3.) Third, funds from a HECM reverse mortgage will not affect Social Security, Medicare or pensions because they are considered “tax free” income.  They also are not declared on tax returns as income.

4.) Fourth, you retain the title to your home and it stays in your name.  There is not a transfer of ownership just because you drew upon the equity of your personal asset.

5.) Lastly, you can access the funds in various ways including monthly payment, a line of credit, a lump sum, or as a purchase.  And the funds can be used however you see fit.  Borrowers can even use a reverse mortgage to buy a new home via the HECM Reverse Mortgage for Purchase program allowing the home purchase and the reverse mortgage loan transaction to take place at the same time.  This a great option for those who wish to be close to family, in a desired location or have a place that fits your new lifestyle, or even move to your retirement dream home.

Reverse mortgage are available to seniors 62 and over all over Connecticut.  To learn more, contact a reputable reverse mortgage lender.

Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.