Benefits to a Reverse Mortgage Chattanooga, TN
A reverse mortgage comes with a number of different benefits. It can make your finances in retirement much easier, from not having to make any more monthly home payments to getting tax-free cash advances.
Keep reading to learn more about the benefits, and be sure to contact us if you have any questions. Mortgage South is one of Chattanooga, TN’s leading loan companies; if you’re concerned about possible reverse mortgage pitfalls and want to learn more about the benefits, we’ll give you a careful, experienced perspective.
There aren’t as many reverse mortgage pitfalls as you might think. Get the benefits!
No More Monthly Mortgage Payments of Any Kind
As long as you (the owner) occupy the home as your primary residence, you’ll never have to make any mortgage payments again.
All Other Mortgages/Liens are Paid in Full at Closing
You will not only have more cash in your pocket at the end of every month, but you’ll no longer have to worry about the risk of foreclosure for non-payment of loans. Everything is paid off.
All Cash Advances from Your Reverse Mortgage are TAX-FREE
According to the American Bar Association, “the IRS does not consider loan advances to be income” generally. A reverse mortgage is a loan against your primary residence. However, make sure you consult with a tax professional to get the facts regarding your specific situation.
Credit Line Growth is Approximately .5% per Year at the Current Interest Rate
You can elect to access some or all of your tax-free money through a credit line. As the value of your home appreciates, your credit line will increase. You’ll be able to get more cash over time from your reverse mortgage, until it is all used up.
Numerous Cash Advance Options, and YOU Decide How to Receive Them
We offer a number of different options, including a line of credit, monthly cash advances, a lump sum, or a combination of two or more. You choose which works best for your financial situation.
Loan Balances Do Not Need to be Repaid Until the Owner Moves, Sells, or Passes
You or your heirs are only required to pay back the loan when the following happens: death, property sale, relocation, or if there is a failure of the owners to pay property taxes or hazard insurance, properly maintain the property, or if they are in violation of any of the loan terms.
By Law, an HECM Mortgage is “Non-Recourse”
The reverse mortgage lender can only be paid from the sales proceeds of the home. The lender can only look at the home’s value and selling price to determine how much they will be paid. The lender cannot look at other assets of the borrower’s estate or seek additional repayment from the borrower’s heirs, even if the sales proceeds don’t fully pay off the loan.
Counseling With an HUD-Approved Counselor is Required
Before you apply for an HECM reverse mortgage, every homeowner listed on the title must complete a 30-45 minute telephone interview with an HUD-approved counselor. This is a great opportunity for you to ask questions, confirm features and benefits, and make sure that a reverse mortgage is right for your personal finances. You’ll get key information from an unbiased source.