Reverse Mortgages,atlanta, Ga

The Plain-English Guide to Reverse Mortgages: What is a reverse mortgage? A reverse mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home to eliminate mortgage payments and even gain tax-free income without losing title to your home. The equity in your home that has built up over the years of mortgage payments and appreciation can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer uses the home as their principal residence. Reverse mortgages offered by Park Place Reverse are FHA-insured and guaranteed. Can I qualify for a HUD reverse mortgage? To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; owns their home outright or has a low mortgage balance that can be paid off at the closing with the proceeds from the reverse mortgage; and must live in the home. It is required that the home owner receive information from HUD-approved counseling sources prior to completing the loan. What is the difference between a reverse mortgage and a bank home equity loan? With a home equity loan you make monthly payments until the loan is repaid (in addition to your mortgage payments). In a reverse mortgage no payments must be made as long as the house remains the principal residence. As with all homeowners, real estate taxes and insurance must be paid, there is absolutely no foreclosure or forced vacancy because no mortgage payment is required. Will a reverse mortgage affect my public benefits? No. A reverse mortgage will not affect Social Security or Medicare. Is the money tax-free? Yes.

The proceeds are not considered income by the IRS.

Am I qualified for a reverse mortgage if I have a existing loan? Yes. The existing loan will be paid off during the closing.

Will I still have an estate that I can leave to my heirs? When you sell your house or the last person on the title has passed, your estate will repay the cash you received from the reverse mortgage, plus interest and fees to the lender. The remaining equity in your home, if any, belongs to you or your heirs. Reverse mortgages are “non-recourse” loans, which means that the lender does not have recourse to anything other than the home. Not income, not any other assets, not your heirs assets. How much money can I get from my home? The amount you can borrow depends on your age, the current Expected Interest Rate, other loan fees and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the Expected Interest Rate, the more you can borrow. What I do with the money I receive from a reverse mortgage? The good news is you can do anything you want with the money; after all it’s your money. Many people take vacations, buy a new car, and help the kids or grandkids with college or their first home. Many people put some in a line of credit that they will use in the future for in-home care or other health care costs. How do I receive my payments? Tenure- Equal monthly payments as long as at least one borrower continues to live in your house as a principal residence. Pros-Ensures a monthly income as long as you live regardless of interest rates, home value, the economy or anything else. Cons-The amount you receive is based on the number of years to age 100, which means the younger you are, the less you will receive over the lifetime of the loan. Term-Equal monthly payments for a fixed period of months selected. Pros-You can receive the maximum amount monthly for a given period of time. Con- When the term is complete, the money is gone and you will receive no more funds from the reverse mortgage.

Line of Credit - A credit line that you can draw on whenever you wish. at about 6% annually.

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Pros-Allows you to save money for emergencies or future purchases. The borrowing capacity of a credit line continues to grow while it sits in a Line of Credit account at no cost to you. Lump Sum- Obtain a lump sum payment of some amount .

Pros-Obtain cash immediately for large item purchases, travel, home improvements or anything you desire. Cons-The amount you take out as a lump sum will reduce the amount you receive every month if a Tenure payment is selected. Combination- Do a combination of all the options. You could take out some amount as a lump sum for home improvements, travel or large item purchases, put some into a Line of Credit for possible future use, or the remaining as a Tenure monthly payment for life. “Not Against Your Home” Borrowing against your home usually means paying back a loan every month. But if you lose your job or your income drops, you could miss some payments and lose your home to foreclosure. That’s why it’s generally not a good idea to borrow against your home unless it’s for a very basic purpose. You want to avoid jeopardizing your home ownership. This caution, however does not apply to reverse mortgages because no monthly repayment is required. As long as you pay your taxes and insurance you cannot lose your home.

What should I look for in a reverse mortgage company? Here are some important questions to ask when evaluating reverse mortgage companies: Does the company require you to give them money during the application process? This is not required and it is recommended that if a company requests money upfront, you should consider not doing business with them. Does the company specialize in reverse mortgages or do they have multiple products to sell? A reverse mortgage is a very different product compared with a forward mortgage and requires special expertise. Park Place Reverse Mortgage is committed to “Making a Difference For Seniors” by helping them achieve their goals. As our name implies, we dedicate 100% of our time providing reverse mortgages to our clients.

Park Place Reverse Mortgage 1176 Grimes Bridge Road Suite 400 Roswell, GA. 30075

Kurt Kannwischer 7704821827