With the current uncertainty of Wall Street there is another option for retirement income. After speaking with Mr. Ray Paeciado of Housing Financial Corporation as to the details of the Reverse Mortgage Programs, I was surprised to find out most of its benefits for the home owner. With the financial uncertainty of Wall Street and the all most certain reduction in future dividends a Reverse Mortgage plan could supply need income to live comfortably.
Unlike a traditional mortgage that you pay back each month, a reverse mortgage makes payments to you. You can get these payments in a lump sum to cover an unexpected bill. You can get them as a regular supplement to your monthly income. Or, you can get them at intervals and amounts that are best for you.
We offer reverse mortgage loans that require no repayment as long as your home is your principal residence and you fulfill the borrower’s obligations, such as continuing to maintain the property and paying your property taxes and hazard insurance. You pay the money back plus interest and other charges when you sell or permanently move out of your home.
If you pass away, the loan is due, but the amount due will always be the lesser of your loan balance or the market value of your home. Even if the amount you borrowed eventually exceeds the value of your home, you or your heirs will never owe more than the value of your home. All proceeds in excess of what you owe belong to your estate, which means the remaining equity in your home can be passed on to your heirs.
Unlike the loan balance of a conventional mortgage, which becomes smaller with each monthly payment, the loan balance of a reverse mortgage grows larger over time.
As you receive your payments, the amount of cash you have left after selling and paying off the loan — your equity — generally grows smaller. But with a reverse mortgage you can never owe more than your home’s value at the time the loan is repaid.
If you own your home free and clear or if you have very little mortgage principal outstanding, a reverse mortgage may be a good option for you.
Reverse mortgages are tax-free and can be paid in several different ways:
• A single lump sum of cash
• Regular monthly payments as long as at least one borrower lives and occupies your home
• Regular monthly payments for a fixed period of time
• A line of credit to paid at your discretion
• 62 years of age or older
• Own a property
• Occupy the property as primary residence
If you are interest in obtaining a Reverse Mortgage or just have questions you can speak with Ray Paeciado at 877-967-4700.
Housing Financial Corporation
501 N. Brookhurst Street, Ste. 202
Anaheim, CA 92801