3/6/2010
One of the benefits of being an approved FHA correspondent is the ability to offer Reverse mortgages.
We closed a reverse mortgage this week. The borrower is 76 years old. She receives social security income of $1000 per month. Before the reverse mortgage her mortgage payment was $450 per month. That payment did not leave a lot for the other necessities of life. She would run short every month. Her credit started to suffer. Because of her limited income and poor credit she was not able to refinance with a standard mortgage. She had lots of equity but that did not put food on the table.
We came up with the solution of a reverse mortgage. She received $160k in cash out after paying off her existing mortgage and other debts. She no longer has a mortgage payment. It is a lot easier to meet her monthly obligations with her social security income without paying a mortgage.
To keep her reverse mortgage she has to
1. Pay the property taxes
2. Keep the property properly insured
3. Live in the property
4. maintain the property
Her children are extremely happy knowing that their mother no longer has the financial stress of making a mortgage payment every month and a significant amount of cash in the bank.
Another benefit of a reverse mortgage is when the borrower passes the heirs have one year to decide on refinancing the reverse mortgage or selling the property.
Please call if you would like to learn more about reverse mortgages
We closed a reverse mortgage this week. The borrower is 76 years old. She receives social security income of $1000 per month. Before the reverse mortgage her mortgage payment was $450 per month. That payment did not leave a lot for the other necessities of life. She would run short every month. Her credit started to suffer. Because of her limited income and poor credit she was not able to refinance with a standard mortgage. She had lots of equity but that did not put food on the table.
We came up with the solution of a reverse mortgage. She received $160k in cash out after paying off her existing mortgage and other debts. She no longer has a mortgage payment. It is a lot easier to meet her monthly obligations with her social security income without paying a mortgage.
To keep her reverse mortgage she has to
1. Pay the property taxes
2. Keep the property properly insured
3. Live in the property
4. maintain the property
Her children are extremely happy knowing that their mother no longer has the financial stress of making a mortgage payment every month and a significant amount of cash in the bank.
Another benefit of a reverse mortgage is when the borrower passes the heirs have one year to decide on refinancing the reverse mortgage or selling the property.
Please call if you would like to learn more about reverse mortgages
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