The Reverse Mortgage: What is it and when do they make sense?

I’ve been a “life long” Real Estate Professional and the vast majority of my professional expertise and experience has been working as a Real Estate Broker Sales associate.

My group and I are constantly “learning and relearning” about the various mortgage products and how they effect the validity of any transaction that involves financing. This is especially important when working in urban environments where FHA Approved Buildings are few and far between. Some good examples are Carlton Tower Condos in Passaic and Adams Square Condos in Hoboken.

Moreover, what is extremely important is our ability to quickly and easily determine if the buyer and/or the buyer of one our customers’ properties will qualify for a loan.

Over the past decade, James Chu, my long time business partner and personal friend has stood the test time. His team is one of the leaders in the mortgage banking industry. When I have a question about mortgages, James and his team are always the people my customers and I can bank on!

When thinking about reverse mortgages, I thought it best to go to the source and experts…

James Chu (Bank of America, Home Loan Manager) and Betty Roche (Bank of America Reverse Loan Officer) have kindly prepared today’s guest post on reverse mortgages and when they are a sensible option.

YOU HAVE CHOICES
If you are a homeowner age 62 or older, a Home Equity Conversion Mortgage (HECM), a type of federally insured reverse mortgage, can help you access a portion of the available equity in your home.  A reverse mortgage from Bank of America can help you maintain your independence and give you the security that comes with a financial institution committed to responsible lending.

A Home Equity Conversion Mortgage from Bank of America provides:

• PROCEEDS FOR MANY PURPOSES.  The proceeds are generally *tax-free and can be used to pay for medical costs, make home improvements or cover unexpected expenses.
• MAINTAIN HOMEOWNERSHIP.  You retain the title to your home throughout the course of the loan.
• NO MONTHLY PAYMENTS.  You can continue to live in your home with no monthly reverse mortgage payments.
• FIXED RATE.  An option that give you the security of an interest rate that never changes.
• ADJUSTABLE RATE.  An open-end credit loan that gives you the flexibility to pay down your balance and redraw funds.

As a reverse mortgage loan officer, I’ll provide you with the information and guidance you need to feel confident that you are making the right choice to meet your individual needs.

Disclosure:  *Please consult your tax advisor.
Property insurance is required, flood insurance when necessary.  Borrower is still responsible for paying ongoing property taxes.  Credit is subject to age and property qualifications.  Program rates, fees, terms and conditions are not available in all states and subject to change.  Please contact Bank of America for more information.

Thanks James for the great insight into reverse mortgages. If you’re not sure whether or not a reverse mortgage is advantageous for you please don’t hesitate to call me (800 295 5995 ext 911) today.