Never make mortgage payments on your North County home again.
A Reverse Mortgage is a federally regulated program for homeowners, aged 62 and older. It allows the equity in your North County home to pay you rather than you paying for the home.
What is a Government Insured HECM program?
HECM stands for Home Equity Conversion Mortgage. It is a federally insured and guaranteed program. The HECM is a safe way for you to access the equity in your San Diego home without ever making a mortgage payment.
How is this Program “safe” for North County Senior Homeowners?
No matter what happens in the economy, how much money you receive, or how long you live inyour home you will never be required to make a mortgage payment. In addition, no matter what happens to your lender or your home’s value you have guaranteed access to your money.
Who owns the home if I take a Reverse Mortgage? You own your property. However, you pledge the home as collateral.
What happens if, in the future, the Loan exceeds the Value of the Home? Your Reverse Mortgage will continue – thanks to the federal insurance. The line of credit will still be available and monthly disbursements you may have set up, will still be sent to you.
How are Reverse Mortgages different today?
Today’s reverse mortgages are highly regulated by State and Federal laws to make them safe and to protect you. Among others, the following regulations apply: – You retain title of the home. – No equity share is allowed, meaning the lender does not slowly take over your home. – Fees and costs are federally regulated.
How does a Reverse Mortgage compare to a Conventional Mortgage? In a conventional forward mortgage, you make monthly payments to the bank eventually paying off the mortgage over time. With a reverse mortgage you receive cash from your lender, as lump sum upfront, as monthly installments or as a line of credit that grows over time. As long as you live in your home you never have to pay off a single dollar of the loan.
What restrictions apply to the cash I receive from a Reverse Mortgage? It is your money and you can use it the way you want. It’s non-taxable and does not affect Social Security payments. We do recommend that you talk to a competent financial advisor to determine the effect on any other benefits you may be receiving.
When does a Reverse Mortgage become due and what happens then?
When you no longer live in your home or when you pass away, the reverse mortgage becomes due. You or your heirs have two options:
1) Pay off the reverse mortgage including the accrued interest and retain ownership . 2) Give up ownership of the home and receive the difference between the net sales proceeds and the loan balance. You will not be liable for any shortfall if the sales proceeds do not cover the loan.
What are my obligations under a Reverse Mortgage?
With a Reverse Mortgage you retain title to your San Diego North County home. This means that you also have all your obligations as a home owner. You are responsible for home owner taxes and insurances.
If you are a North County home buyer and are 62 or older, you can use a purchase reverse mortgage to buy your North County retirement home. There are no income or credit requirements. You can now afford to look at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other San Diego North County homes and retire in a home that’s right for you. The table below is an example of what you could expect with an appraised home value of $309,000. Contact Gary Harmon, your San Diego North County Senior Realtor, for different purchase (appraised) values up to $625,000.
Answer to questions if you are 62 or older and looking to buy.
- You do not need to put up the entire purchase amount to buy a new San Diego North County home.
- You do not need to make any more monthly house payments for the rest of your life.
- You do not have to settle for less of a Oceanside home or Carlsbad home than the one you really want.
- You do not need to pay all cash. See the table above for an example of how much you would have to put down.
- You could use the purchase reverse mortgage to pick up that perfect vacation home. For example, you may be able to take out a reverse mortgage on your primary residence and use the proceeds for the down payment on the second home.
- Purchase reverse mortgages can be used on most types of San Diego North County homes. Examples are as follows: Single family detached, attached, condos, and even manufactured homes.
Contact me, Gary Harmon, with your questions. I work with HomeServices Lending, the nation’s leading retail originator of reverse mortgages. We’re here for you, and ready to help you realize the benefits of the new purchase reverse mortgage. Again, if you are looking at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other North County homes, contact Gary Harmon, your Senior North County Realtor.