The Simple Facts About Reverse Mortgages
Still paying off your mortgage into retirement?
Find Out If A Reverse Mortgage Is Right For You
Having a clear plan is the start of a promising retirement.
At Solve Lending & Realty, we’re here to help you chart a path to your retirement dreams.
One way to finance these aspirations is to tap into your home equity through tools designed specifically for retirees—reverse mortgages.
Let’s look at this reverse mortgage example:
Let’s say you are 68 with a home valued at
$375,000 and a mortgage balance of $75,000.
You are looking
for extra spending
money to take a
trip or pursue a
passion of yours.
After speaking
with a Loan Educator, you find out you
qualify for
$197,625.
Using those funds,
you pay off your
mortgage and
have $122,625 remaining proceeds.
Now you have no monthly mortgage
payments and you’re focusing on what matters to you.
Illustration is for educational purposes only and assumes a borrower age of 68 who resides in OK and a fixed interest rate of 2.715% (3.055% APR) and financed fees of approximately 3.5% of the home value. Rate quote generated on 12/30/2020. Rates are rounded down to the nearest .01% and are subject to change.
*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes,
fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid
This material is not from HUD or FHA and has not been approved by HUD or any government agency.
*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid.
**Not tax advice. Please consult a tax professional.
When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise, the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
Company NMLS ID: 2013271
www.nmlsconsumeraccess.org
California - DFPI ID: 60DBO-153595
https://docqnet.dfpi.ca.gov/LicenseSearch/LicenseDetails
Equal Lender Opportunity
Equal Housing Opportunity
Company DRE ID: 02123993
www2.dre.ca.gov/PublicASP/pplinfo.asp
For information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval.
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