The 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.