Michael Brouse
Reverse Mortgage Specialist
NMLS #805832
(707) 285-0504
When it comes to Reverse Mortgages, education is the key. Our pledge to you is to complete the education process, so you are able to make an informed decision. We always encourages prospective clients to invite family members to be a part of the discussion during the education process.
The greatest Home Equity Loan ever - specifically designed for Seniors. A Reverse Mortgage may enhance and improve retirement years thru *non-taxable income, a line of credit, cash funds, simply eliminating a traditional mortgage payment, or purchasing your dream home!
Keeping things simple for retirement, should you ever need to resolve your Reverse Mortgage you simply treat it like any other mortgage. You may sell your home and retain any available equity after resolving the loan balance/note, pay the loan off with proceeds from other investments, cash, life insurance, or similar sources.
A Reverse Mortgage is based on the age of the youngest borrower securing the initial loan, and the appraised market value of the home. A typical range may be from 40-60% of the home value. Other factors that will determine funds available are interest rates and the type of Reverse Mortgage a borrower selects.
Homeowners who are age 62+ are eligible to apply for a traditional FHA-insured Reverse Mortgage. In some states, homeowners who are 60+ are eligible to apply for non-FHA insured loans. There are many programs for Homeowners to use their Reverse Mortgage in harmony with other investments and their overall retirement plan.
A general rule of thumb would be to have at least fifty percent equity based on the current market value of your home. Of course, the more equity the more options you will have.
A traditional single-family detached home is the most common home financed in the Reverse Mortgage space. This is truly surprising considering there are townhomes, garden homes, patio homes, duplexes, quad-plexes, condos, site-condos, and manufactured homes that may also qualify for a Reverse Mortgage. So many choices for Seniors!!!
It is always important to have a family member or representative prepared to deal with your financial obligations when you die. Your estate or representative should oversee satisfying the balance owed from cash assets, or refinancing. Most commonly the home is sold and the mortgage is satisfied from the proceeds of the sale with any remaining equity retained by the estate.
