First State Bank Reverse Mortgage - George Smith

George Smith

REVERSE MORTGAGE SPECIALIST

For most people, the equity in their home is not available for use. Supposedly a home equity loan makes it available for use, but the loan also requires repayment by restoring the borrowed equity. Borrowing money through repayment creates an additional burden by requiring greater income which often leads to even more debt.

One way to get to the equity without a repayment obligation during the life of the homeowner is a reverse mortgage. A reverse mortgage requires an overall sound credit history. You can be declined for bad credit but that is not common. With bad credit, you might still qualify for reverse mortgage proceeds by setting aside funds out of the loan to pay for taxes and insurance.

Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money for a down payment for a second home or to pay off debt.

You or your spouse must be at least 62 years old, own and live in, as a primary residence, a home, condominium, co-op, permanent mobile home, or manufactured home on a foundation in order to qualify for a reverse mortgage.

Here are some typical misconceptions about reverse mortgages

  • The bank does not own the home but owns a lien on the property just as with any other mortgage
  • You continue to hold title to the property as with any other mortgage
  • The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
  • There is no penalty to pay off the mortgage early

The proceeds from a reverse mortgage are tax-free and available as a lump sum or as fixed monthly payments for as long as you live on the property, or available as a line of credit; or a combination of all three of these options.

The amount of reverse mortgage benefit for which you may qualify, will depend on

  • the age of the youngest person on the title,
  • the reverse mortgage program you choose,
  • the value of your home,
  • current interest rates, and
  • for some products, where you live.

As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens before you can withdraw additional funds.

The loan is not due and payable until the borrower no longer occupies the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable. All additional equity in the property belongs to the owners or beneficiaries.

I have been helping seniors with reverse mortgages for 8 years and I have the experience to make sure that the application process goes smoothly for you.

I also work closely with other members of the Utah Elder planning Council to make sure that all the other issues you face or will face in the future have been addressed. I offer you a free no obligation consultation.

You can reach me at: (555) 555-5555 or go to the Contact page and submit a request.

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