"I just wanted to thank you for getting the Reverse Mortgage for my parents. I especially wanted to thank you for your careful information presentation of the mortgage documents to my mom at the house. I've never dealt with a mortgage broker who so carefully an effectively described the process. I felt very comfortable the you were handling everything in a professional manner."
Thanks so much,
"The Reverse Mortgage afforded me the pleasure of paying off my car in order that I may retire whenever I am ready. That is the only thing we wanted the money for. Todd was a gem to work with"
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"Thank you, I will say that the approval of the Reverse Mortgage from Alliance Guaranty did us a great favor. We were able to get things in our life ow that were unable to get before. This Reverse Mortgages was a great thing and that Roger did a perfect job for us."
"My Reverse Mortgage enabled me to make some improvements to my condo. I also don't have to worry about other expenses and can buy extra things for my great-grandchildren. Roger was very helpful and caring."
"Just a short note to thank Roger for the good work, and for his patience in getting all the paperwork together for our Reverse Mortgage. We had been considering this for a year or two, and the time came when one of our children was in some temporary financial difficulty so we took advanatage of the Reverse Mortgage. It solved the kids problem without tapping into our reserve in case we needed it. I recommend The Reverse Mortgage.
"The Reverse Mortgage I acquired through Alliance Guaranty Mortgage. Gave me financial freedom by paying off my existing mortgage and giving me extra income to pursue some of the things I wanted to do such as getting a new kitchen sind installed and having some trees in my yard trimmed by an arborist. Also, I don't have to pinch pennies."
I have just taken the final steps for a Reverse Mortgage on my wonderful little home in the Cory Merrill Neighborhood. I’m sure most of you have heard terrible things about this option for staying in your home after you turn 62. The stories couldn’t be more untrue and for someone like me, this was the perfect way to use the equity I have in my home. I wanted to share the experience with others who might find this a great way to stay in their homes, reduce their monthly expenses and still hold the title on their property. In Ireland, they call this an
Equity Release Loan…that definition makes much more sense to me!
These loans are a GREAT opportunity for those of us with equity. The loans are HUD/FHA
and are fully INSURED. While there is a slightly high cost to initiate the loan (it is actually
less than a realtor’s commission), that closing cost goes towards a required Mortgage
Insurance, which protects your loan and the value of your property to both you and the lender.
Remember you remain the owner on the TITLE to your home.
There is a required “counseling session” with an FHA/HUD counselor (mine was FANTASTIC) so you completely understand the loan before you even begin the process.
Here is how my loan will work: I have enough equity in my home that I can use that equity to live in my house as long as I want. Each year, a portion of the equity is being used towards my mortgage payment and I am required to pay just my property taxes and homeowner’s insurance for every year I live in the house. I also must make sure that I take care of any major repairs required that could negatively effect the value of the house…in most cases my homeowner’s insurance should handle most any repair. While I may still pay a minimal amount per month for property taxes and insurance, I am saving more than $1000 a month by not having to pay a mortgage payment. The equity in my house is paying that mortgage payment.
If I decide to move away or sell my house, I just have to pay off the original mortgage and the portion of the equity I have used. The rest of the sale price is mine! In our neighborhood, the value of this house should hopefully continue to grow and as I said, no matter when the house is sold, the remaining equity is paid to me. There is a monthly/yearly statement showing the value of the loan. The more the house is sold for, the more I get. If I don’t live a long life, the house will be sold upon my death and the remaining equity is paid to my beneficiary. My beneficiary may also pay the original mortgage and the portion of the equity that has been used and they can keep the house and/or sell it on their own.
If I live in the house until I am 100+, I may have used up all of the equity, but no one has to pay anything more as long as the property taxes and homeowners insurance are paid through the day I die. The house will be sold when I die (even after the ripe old age of 100+) and the proceeds will pay off the loan, and, the mortgage insurance paid throughout the life of the loan covers any deficit. Nothing more needs to be paid by my beneficiary or my heirs. And, if there
is still equity remaining at the time of the sale, that would go to my beneficiary.
I am also able to get some cash out of this transaction since the equity in my home is high but you can only reverse up to $625,000 (even if your house is worth more). Equity Release or Reverse Mortgages are available with a fixed or adjustable rate…and the adjustable rate has a limit on how high it can go. For example, right now, as I complete my loan documents, the rate will start at less than 3% and it can never go higher than 8%. With a fixed rate, if there is cash available, it has to be taken at the start of the loan. With an adjustable rate, the money is provided as a line of credit and I don’t have to take the cash until I need it and it never needs to be repaid (it is applied as a debit toward the equity), and if there is more equity in the future – meaning my house is worth even more than today – there can be additional cash available to me). This money is all non-taxable.
If I decide to pay money back into the loan to cover the monthly interest, it will keep my equity higher and I’ll be able to take interest deductions on my taxes. Otherwise, when the loan is paid off, my heirs (or I) can take the deduction on the interest paid at the time the loan is paid off.
The only negative I have heard or have seen is from family members (heirs) who want the full value of the equity and don’t want their senior family member to use any of it. I guess I must be selfish, I want to use the equity in my house FOR ME and the reverse mortgage (or the equity release) will allow me to stay in my house without paying a mortgage payment. Even when I stop working and start collecting Social Security, this will give me enough money to stay in my wonderful house as long as I can. Seniors over 65 should also check into existing Denver property tax discount programs.
I hope others who have been in this area for years and want to remain in their homes will take advantage of this opportunity to use the equity without giving up the home they have created in this wonderful neighborhood. The way our property values keep increasing it seems possible there may always be equity available even if your family wants to sell the house when you have passed. Remember, you are still on the title and you are NOT giving your property away to the lender, no more than you would with a traditional loan!
Our client, MW from the Cory Merrill Neighborhood in Southeast Denver, has offered to share her experience with others interested in reverse mortgage loans. She has also provided the references and resources she discovered during her research (below); homeowners and seniors should talk to Alliance Guaranty Mortgage or other experts listed below about your specific needs, questions and concerns.
The following are resources and contacts for more Information
HUD Reverse Mortgage (HECM) Counselor (free service in our area):
Helen Taylor (the BEST ever for this info)!
(303) 377-3334 ext 229 â€¨1735 Gaylord St. Denver 80206â€¨â€¨
Mark Skufca – Alliance Guaranty Mortgage 303-785-2800
More info from my research (just the tip of the iceberg):
Home Equity Conversion Mortgageâ€¨â€¨FHA Insurance and program overview (might be a little out of date):
General HUD Info:â€¨
Terry L. Brey –
Customer Service Representativeâ€¨
U.S. Department of Housing and Urban Developmentâ€¨
Customer Service Desk: 303-672-5236
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"On this Christmas Day this is what you mean to me. While traveling life's dust roads we sometimes need a lift, at that point a helping hand is an appreciated gift. Travelers have passed me by and offered no help at all while onlookers have closely stood, an wodered why the stall. But when you pulled off to the side to assist me with my load my travel then go easier along life's dusty road. I could never thank you enough."
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