Hawaii Reverse Mortgage – Hawaii Reverse Mortgage

Important Facts About Hawaii Reverse Mortgage

uring their retirement years, many Hawaii senior homeowners often find themselves struggling to make ends meet. Currently, close to a third of all retirees are getting more than ninety percent of their monthly income from Social Security.

However, individuals who have adequate equity in their home are able to supplement their Social Security income by using the proceeds from a reverse mortgage.
The reverse mortgages derivesits name based on the fact that instead of making a monthly mortgage payment where the balance goes down each month, there is no monthly mortgage payment made therefor the balance goes up because the interest is accumulating

By working with a reverse mortgage lender in Hawaii, retirees are in a position to tap into their home equity without having to expose themselves to the risk that comes with the usual mortgage. Additionally, they are not exposed to the process of offloading their property and having to move into smaller or less expensive housing. Instead, the senior can stay in the comfort and safety of their family home.

Before making the decision on whether to apply for a reverse mortgage, it is imperative to know what it is you are getting into. Below are facts that any person considering a reverse mortgage needs to know:

Hawaii Reverse Mortgages Come With Different Payout Options

As a retiree in Hawaii, you will be provided with a variety of payout options, all designed to allow you to tap into your available home equity.
For instance, the Federal Housing Administration will provide you with five diverse payment plans. You can choose to take equal monthly payments, which will run for as long as you remain alive, and as long as you remain in your home. You may also opt to go for one that comes with a fixed term (years), after which you will immediately stop receiving the payments, even if you are still residing in your home.

You could also be provided with a flexible credit line, which allows you to make a decision on the amount you would like to receive, and when you would like to take the money out. Or you can take a lump sum of cash. Or you may opt to take a combination of these.

The Reverse Mortgage Will Only Provide a Portion of the Available Home Equity

The Hawaii reverse mortgage will not provide you with access to all your available home equity. Instead, the Federal Housing Administration will make calculations on your total mortgage amount based on the home’s appraisal value, theage of the current youngest borrower, and the prevailing interest rates.

Additionally, you will also need to pay the reverse mortgage costs, which include third-party lender expenses, servicing, and origination fees, as well as mortgage insurance premiums.

In many cases, the lender will work these costs into the amount that they have made available to you, and this will further reduce your net proceeds.

To find out how much you qualify for, and whether a reverse mortgage is right for you, consult the author of this article to discuss the pros and cons. For more information you can also visit: www.AlohaMortgageSolutions.com. There you will find two short video’s, one title “Reverse Mortgages Explained;” and the other, “Testimonials of Real Hawaii Clients.”

For a FREE, no-obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution in Honolulu. You can reach him directly at (808) 799-8218 on Oahu; or Toll Free at 888-423-2468 from the Neighbor Islands. Within 10 minutes he can tell you how much you are eligible for.

“YOU’VE INVESTED A LIFETIME, NOW REAP THE REWARDS!”

How You Can Make Use of a Hawaii Reverse Mortgage as a Financial Planning Tool

A reverse mortgage was primarily used as a ‘band aid’ to assist seniors in meeting their day-to-day expenses by pulling out some of the equity that they had in their houses. In many cases it was used to divert a foreclosure. It was considered only during times of an emergency.

However, many seniors today that do not need to meet a certain cash-based need, can still take advantage of the numerous benefits provided by a reverse mortgage, by using it as a tool for their strategic long-term retirement planning.

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Below are ways that a reverse mortgage in Hawaii can be a viable financial strategy:

Delaying Pension and Social Security Payouts

There are seniors who may need to utilize payouts from their pensions and Social Security benefits as soon as they become accessible. However, the cash obtained from the reverse mortgage will allow the retiree to delay collecting their pension or social security allowing it to mature.

Postpone Drawing down Your Retirement Assets

It is a move that is designed to allow your assets additional time to grow. The funds you obtain from a reverse mortgagelender will make it possible for you to postpone drawing on your other resources allowing them to fully mature.

Eliminate Monthly Mortgage Payments to Increase Your Cash Flow

Every time you write a check to pay for your mortgage, it takes a sizable chunk from your monthly income. However, when you apply for a reverse mortgage from a lender in Hawaii, the existing mortgage is automatically paid off.

Once it has been paid off, it means that you will remain with extra money in your pocket, which you would have normally have used to pay the monthly mortgage. However, you will still be responsible for paying your property taxes, homeowners insurance and maintenance of your home.

You Get Access to a Line of Credit that is Low Cost, and Non-cancellable

Applying for a reverse mortgage means that you will get access to a line of credit that is ever growing. The line of credit provided by the reverse mortgage grows as time passes.
It basically means that as the years go by, the unused line of credit available to you will be larger than what you initially received.

Protect Your Investment Portfolio When the Market is down

When the stock markets are down, it means that your cash flow, as well as investment portfolio, may not be performing at peak levels.

When you choose to get a Hawaii reverse mortgage, the payment received will be able to provide you with enough protection until the investment markets start to pick up.
To find out how much you qualify for, and whether a reverse mortgage is right for you, consult the author of this article to discuss the pros and cons. For more information you can also visit: www.AlohaMortgageSolutions.com. There you will find two short video’s, one title “Reverse Mortgages Explained;” and the other, “Testimonials of Real Hawaii Clients.”

“YOU’VE INVESTED A LIFETIME, NOW REAP THE REWARDS!”

Why prefer FHA Insured Reverse Mortgage over Single-purpose or Proprietary?

Both a Hawaii reverse mortgage and a home equity loan are commonly used options by older Americans to tap into the equity in their home. If you have owned your home for a long time to be able to pay the balance loan and free up some equity, both loan options can be viable ones to consider for any planned or unplanned expenses in the old age.

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The three types of reverse mortgages are single-purpose, federally insured reverse mortgages and the proprietary. A single-purpose reverse mortgage is offered by the state, local and non-profit agencies, and is considered the least expensive process. Home equity conversion mortgages (HECM) are federally insured reverse mortgages backed by the U.S. Department of Housing and Urban Development. The proprietary type of Reverse mortgage is used generally for a larger advance at a high value.

There is a big difference between a home equity loan and a Reverse mortgage Honolulu. With a home equity loan, you’ll get either an account with a debit card or checks to write against the balance of your approved loan amount. But with a reverse mortgage, you have a choice to get a lump sum payout or a monthly payments.

There are well-defined standard rules to qualify for a reverse mortgage loan. The borrower must be 62 years or more and have significant equity in their home. With an HECM for Purchase, the borrower must have enough money to make the initial investment. With all HECM Reverse Mortgage loans, the owner need to maintain the home and pay the property taxes as well as property insurance. The loan becomes due when the homeowner no longer lives in the home full time or passes away.

There are major benefits of Hawaii reverse mortgage. A Home Equity Conversion Mortgage (HECM) is commonly known as a reverse mortgage. This is a Federal Housing Administration (FHA) insured loan. This type of mortgage loan enables people to access some part of the home equity to obtain funds which are totally tax free. They also don’t have to make monthly mortgage payments. With an HECM loan, borrowers still own their home. These loans can be beneficial for senior homeowners who need extra funds to supplement their retirement income.

The advantages are:

•   You can buy a home that better fits their needs
•   You can move to friends, medical facilities, etc.
•   You can purchase a new home while preserving their cash.
•   You don’t have to pay any monthly mortgage payments for the life of the loan.

Must Read : Hawaii Reverse Mortgage Pros And Cons

The amount of money the borrower can receive with both a traditional reverse mortgage and an HECM for Purchase is based on various factors. The age of the youngest borrower or non-borrowing spouse and the lesser of the appraised value of your home sale price or the maximum lending limit are most important factors. Generally, if the borrower is older, then he / she will be eligible to receive more money. It is important to know that only specific individuals meeting the terms and conditions will qualify for the Reverse mortgage loans.