By
Jim Gallagher
A Reverse Mortgage is a loan against your home that does not have to
be repaid as long as at least one borrower resides there. Temporary
absences such as hospitalization or extended vacations up to twelve
months are allowed.
If you are at least 62 years of age and your home is free and clear
(or nearly so),
instead of making payments on this unique mortgage you can opt to receive
them. Even if you have an existing substantial mortgage, a Reverse Mortgage
can pay off that debt thus relieving the senior borrower from ongoing
monthly payments.
The money realized from a Reverse Mortgage can be paid to you in equal
monthly payments for a fixed period of time selected by you or equal
monthly payments for as long as you occupy the home as your principal
residence. You also have the option of a credit line from which you
can draw cash whenever you like and in amounts of your choosing up to
the maximum amount of money available on your loan. You can even select
a combination of these options and change them whenever or as often
as you wish. Finally, if you want all of the available cash up front,
you can have it!
One of the nicer features of a Reverse Mortgage is that you needn't
worry about credit qualifying or income restrictions. Your maximum loan
amount is based solely on your age, where you live and the value of
your home.
The funds you receive during your loan term, plus accrued interest
become due when you sell or vacate your residence. The total amount
you'll ever owe can never exceed the value of your home and can never
cause you to lose your home. Therefore, your heirs and/or estate will
never be confronted with a shortfall because it's impossible to exist.
The cash you receive from a Reverse Mortgage is completely free of
federal and state income taxes. Nor do the payments affect Social Security
or Medicare benefits. However, under some Senior Assistance programs
the payments may affect your eligibility if not spent in the month received.
You should consult the local offices administering these programs to
determine how Reverse Mortgage payments affect your particular situation.
Many seniors are prime candidates for a Reverse Mortgage because they
want to stay in their homes but their monthly expenses have become burdensome.
Other folks just want to take a long overdue vacation to travel and
see the world, or to help the grandchildren with college expenses. Whatever
your cash needs, you should speak to me. With just a little non-intrusive
information, I can prepare a detailed analysis specifically designed
for you.
-Jim Gallagher
Mr. Gallagher is a Certified Reverse Mortgage Consultant with Wells
Fargo Bank
His office is located at 230 Half Mile Road, Red Bank, NJ 07701
E-Mail: James.Gallagher2@WellsFargo.com
Tel: (732) 933-5642
