Reverse mortgage loans are a popular financial option for seniors in Bellevue, Washington. A reverse mortgage is a type of loan that allows homeowners to tap into their home equity to increase their cash flow.
How Does a Reverse Mortgage Work?
A reverse mortgage loan converts a portion of a home’s equity into cash. As the money is from loan proceeds, it’s tax-free.* For borrowers who still have a home mortgage balance, a reverse mortgage eliminates the balance and the need to make monthly mortgage payments. Instead, they simply have to take care of property charges like insurance, taxes and home maintenance costs. For people who own their homes outright, the potential loan proceeds are much greater.
Our Reverse Mortgage Loans in Bellevue, Washington
Home Equity Conversion Mortgages (HECMs)
HECMs are the most common type of reverse mortgage loan and are insured by the Federal Housing Administration (FHA). A HECM allows homeowners who are 62 or older to convert a portion of their home’s equity into cash, which can be received in a lump sum, line of credit, monthly payments or a combination of these options.
HECM for Purchase (H4P)
An H4P loan allows borrowers to purchase a new primary residence with a reverse mortgage. As this greatly increases homebuying power, it can be useful for seniors who want to downsize, move closer to family or relocate to a more accessible home. Like the traditional HECM, the borrower does not have to make monthly mortgage payments on their new home. They must simply cover the property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loan
This type of reverse mortgage loan is for high-value homes that exceed the $1,089,300 loan limit set by the FHA. The amount of cash available is based on the appraised value of the home, and borrowers typically have more flexibility in payment options.
Benefits of Getting a Reverse Mortgage Loan in Bellevue, Washington
Realize Home Equity Gains
Home equity hit all-time highs recently, but most homeowners believe that selling their home is the only way to enjoy the benefits of housing market gains. With a reverse mortgage loan, a borrower can remain the sole owner of their home and continue to live in their home while taking advantage of its appreciation.
Portfolio Hedging
A reverse mortgage can help protect against market downturns. Rather than selling off investments at a loss, the proceeds from a reverse mortgage loan can be used to cover expenses until the market recovers.*
No Monthly Mortgage Payments
Even when using a reverse mortgage loan to purchase a new home, borrowers are not obligated to make monthly mortgage payments. Instead, they are responsible for paying property charges, such as insurance, taxes and home maintenance. This can be an incredible financial relief for many retirees and even enable them to retire earlier than they thought possible.
Financial Flexibility
Borrowers can receive their proceeds as a lump sum payment, monthly payments, a line of credit or a combination of these options. The borrower can use those proceeds for any purpose they choose.
Long-term Care
Long-term care is an important issue for many American senior citizens and their families. It can be very expensive and difficult to predict if and when it will be needed. The proceeds from a reverse mortgage loan can help cover long-term care costs and help seniors live more comfortably in their own homes.
Interested in a Reverse Mortgage Loan in Bellevue, Washington?
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.