South Sound Home Loans specializes in Reverse Mortgage for seniors over the age of 62 who have equity in their homes and wish to use it to pay off existing mortgages and or other debts. This can improve their finances as well as establish a Line of Credit that grows each year.
Reverse mortgages are government insured through the Federal Housing Administration (FHA) and have been offered for over 30 years. Two options are the Fixed Rate Reverse Mortgage and the Home Equity Conversion Mortgage (HECM).
Maximum loan amounts were raised to $636,150 effective January 1, 2017. Besides the current appraised value, loan limits are based on the youngest borrower’s age. At age 62, only 52% of a home’s equity can be used. At age 90, 75% is the maximum usage. This means even at age 90, the homeowner still has 25% equity in the house and still owns it. There should be enough equity for heirs to sell or refinance the property.
Effective October 2, 2017, the upfront cost factor increased and the rate to calculate annual Line of Credit increases for HECM was lowered.
Reverse mortgage upfront fees can be significant and may not be for every senior who still owns their own home. However, if the borrower(s) do have equity and can qualify otherwise based on income the Reverse Mortgage can be an excellent way to convert equity into loan proceeds to supplement retirement spending and maintain a standard of living through retirement.
For more information and a free quote, cal RANDY LUKE at South Sound Home Loans.
Randy Luke – NMLS LO# 77184
WA State MLO# MB1468332