Sponsored By Liberty Reverse Mortgage
Senior housing wealth has been steadily growing and continues to break records. In a recent report, homeowners who are 62 and older have increased their wealth by 1.6 percent or $121 billion in the third quarter of 2020 and reached a record $7.82 trillion1. There are multiple ways to access your equity, such as selling and downsizing, but what are your options if you want to remain in your home? A reverse mortgage may be what you’re looking for.
Only 1% of eligible homeowners have a reverse mortgage loan.2 With all this amassed housing wealth, why aren’t seniors using it to their advantage?
Advantages of a Reverse Mortgage
- A reverse mortgage loan allows homeowners who are 62 and older to convert a portion of their home equity into usable funds.
- No monthly mortgage payments are required as long as the borrower continues to meet the loan obligations.3
- Most of the closing costs and fees associated with a reverse mortgage loan can be financed into the loan, so out-of-pocket expenses are kept to a minimum.
- Loan proceeds can be collected as a lump sum (fixed-rate only), a line of credit to be drawn upon as needed4, a monthly payment for a set period or as long as you live in the home, or a combination of these options. Funds can be used to consolidate debt and medical expenses.
- Reverse mortgages are non-recourse loans which protects the borrower from ever having to pay back more than the loan balance or value of the property, whichever is less; and no assets other than the home must be used to repay the debt.
- Home Equity Conversion Mortgages (HECM), the most common type of reverse mortgage loans, are insured by the Federal Housing Administration (FHA).4 The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.
- Another option is a jumbo reverse mortgage which allows owners of high-valued homes that exceed the 2021 HECM limit of $822,375 to access more of the equity in their homes.
Why Liberty?
Founded in 2004, Liberty is one of the largest and most experienced direct lenders of reverse mortgage in the United States. Aligned with AMAC’s mission to protect and enrich the lives of seniors, Liberty has helped over 75,000 senior Americans unlock the equity in their homes to live more comfortably.
To learn more, call 866.751.4918 to speak with a licensed loan advisor.
Disclosures:
1 https://www.nrmlaonline.org/about/press-releases/senior-housing-wealth-reaches-record-7-82-trillion
2 https://www.brookings.edu/wp-content/uploads/2019/10/ES_20191024_BailyHarrisWang-1.pdf
3 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements.
4 The funds available to the borrower may be restricted for the first 12 months after loan closing, due to HECM reverse mortgage requirements. In addition, the borrower may need to set aside additional funds from the loan proceeds to pay for taxes and insurance.
© PHH Mortgage Corporation, d/b/a Liberty Reverse Mortgage, 1 Mortgage Way, Mt. Laurel, NJ 08054; NMLS ID # 2726 (www.nmlsconsumeraccess.org); 800-446-0964; Arizona Residential Mortgage Licensee 0903164; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act #41DBO-100264; Colorado Mortgage Company Registration – PHH Mortgage Corporation as Responsible Party; Georgia Residential Mortgage Licensee #6266; Ohio Certificate of Registration MB804016.000; Massachusetts Mortgage Lender License #ML2726; Licensed by the N.J. Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Rhode Island Licensed Lender. Equal Housing Lender