What You Need To Know About Getting A Reverse Mortgage In Oregon
Whatever the need, a Reverse Mortgage in Oregon enables you to convert the equity in your home to cash without selling your home or incurring a monthly loan payment. These funds are tax-free, you retain title to the property, and no repayment is required until the you permanently leave the home.
Many times, when retirement age comes around, you would like additional cash to take care of things that you’ve been putting off. Perhaps it’s a much-needed vacation? Perhaps monthly medical expenses are holding you back from taking that much-needed vacation?
Getting A Reverse Mortgage In Oregon Means Tax-Free Cash
Convert a portion of your home equity into tax-free cash
that you can use for any purpose, including:
- Financing home repairs and renovations
- Eliminating an existing mortgage
- Paying property taxes
- Covering medical expenses or prescription drug costs
- Managing day-to-day living expenses
- Taking vacations
- Making special purchases
A Reverse Mortgage Also Means…
- You maintain ownership. A Reverse Mortgage enables you to maintain ownership and live in your home while taking advantage of the equity you have built.
- No month mortgage payments required. As long as you maintain the terms of the Reverse Mortgage, no payments are required.
- Flexibility to receive cash the way you want. You can receive funds in a lump sum, in monthly installments, or as a line of credit that you can draw from when or if you need it.
- Easy qualifying. There income and credit qualifications required.
- Government-insurance. Most Reverse Mortgages are insured and regulated by the Federal Housing Administration (FHA). They are called Home Equity Conversion Mortgages (HECM’s).
- Built-in consumer protection. All FHA insured Reverse Mortgages offered today have features that prevent you and your family from owing more than the value of your home – even if your home declines in value.
No impact on Social Security and other benefits. Reverse Mortgages will not affect your Social Security, Medicare, pensions or other investments.
Reverse Mortgages in Oregon are great for many, but they are not for everyone.
Is it right for you? Call me and let’s find out! We can meet whenever and wherever you want (my office, your Oregon home, for your convenience). Most information I can give you on the phone, too – or by Fed Ex, Email as well. And, again, there is no-obligation, even if we have a face-to-face meeting!
Imagine living in your home mortgage free, or enjoying a tax free income for life benefiting from the years you’ve invested in your home. A reverse mortgage is a unique tool designed for seniors 62 and older. You enjoy access to part of the equity in your home and the freedom and comfort of the home you’ve known for so many years. It’s your home, now you can put it to work for you.
Reverse mortgage borrowers in Oregon retain ownership and title to their home. It’s yours just as it was before, but now you can benefit from the equity that’s been building in your home for years. In addition, HECM reverse mortgage loans give you the peace of mind of a government guaranteed FHA backed loan where you will never owe more than the home is worth. You can get a reverse mortgage on your primary residence and no repayment is due until the last borrower passes away or permanently leaves the home.
As a protection all those seeking an Oregon reverse mortgage are required to obtain HUD counseling (from an independent third party) prior to incurring any costs associated with the loan. While proceeds from a reverse mortgage are tax free, borrowers should seek tax advice on how proceeds may effect government needs-based programs such as Medic-Aide.
The Reverse Mortgage Facts
– A Reverse mortgage is a specialized loan for seniors 62 and older
– A reverse mortgage allows seniors to access a portion of the equity in their home.
– Borrowers maintain title and ownership of their home.
– Proceeds from a reverse mortgage are tax free but borrowers should seek tax advice on how proceeds may effect government needs-based programs such as Medic-Aide.
– It is not a government grant, but a loan that is repaid in the future when the last borrower dies or permanently leaves their residence
– A reverse mortgage is eligible only for the borrower’s primary or principle residence
– HUD counseling (from an independent third party) is required prior to the borrower incurring any costs associated with the loan
How Do You Get Access To The Equity In Your Oregon Home?
Reverse mortgage payments can be received in one of five ways:
- Tenure: equal monthly payments
- Term: equal monthly payments for a fixed period of months as decided by the borrower
- Line of Credit: payments made in installments or at various times and in amounts dictated by the borrower(s)
- Modified Tenure: monthly payments with a line of credit
- Modified Term: monthly payments for a fixed period of months with a line of credit
Advantages and Disadvantage To Getting A Reverse Mortgage In Oregon
Reverse mortgage loans in Oregon provide many advantages for the senior borrower. Here is a short list of just a few:
- Tax-free proceeds do not affect Social Security or Medicare
- Frees up an illiquid asset (home equity)
- Can allow senior to purchase a new home with no mortgage payment
- Can provide source of income while borrower allows their investments to recover from market losses
- Improves a senior’s standard of living or allows them to live out their dreams
- Pays off existing mortgage, in many cases freeing up thousands in monthly payments or preventing foreclosure. No more mortgage payments
- Allows the senior to maintain their independence while living in their own home
- Provides money for in-home health care or medical expenses
- Spends part of the equity that would be passed on to the estate or children
- Increasing loan balance, decreased equity over time
- May affect eligibility for needs-based programs such as Medicaid
- For those itemizing tax deductions, a reverse mortgage eliminates the deduction for home interest as no interest is paid out of pocket
- Closing costs and insurance are expensive which means the borrowers should plan on living in the home for several years to reduce overall costs
You Purchase A Home In Oregon Using A Reverse Mortgage Too!
HECM for Purchase
While the typical retiree uses a HECM to eliminate debts, pay for health care and/or cover daily living expenses, a growing segment of the senior population is using it to purchase a home that better suits their changing needs.
The advantage of using a HECM for Purchase is that the new home is purchased outright, using funds from the sale of the old home, private savings, gift money and other sources of income, which are then combined with the Reverse Mortgage proceeds. This home buying process leaves you with no monthly mortgage payments.
While study after study reveals that an overwhelming percentage of seniors want to continue living in their current home for as long as possible, for some people that isn’t the best, or safest, option. HECM for Purchase offers a solution to downsize into a place that is more easily navigable, more energy efficient, with lower maintenance costs, or which is closer to family and friends.
Give me a call today. I look forward to hearing from you.