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!”

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.

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.

Similar Link : Should You Consider HECM Reverse Mortgage For Your Retirement?

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.

Everything You Need To Know About HECM Reverse Mortgage

HECM or Home Equity Conversion Mortgage, which is commonly known as the reverse mortgage is one of those mortgage solutions that are designed for borrowers over the age of 62. These are federally insured loans that are truly a mortgage in reverse. These are an FHA’s reverse mortgage solutions that allow you to take out a portion of the equity in your home if your financial situation calls for it. In this way, borrower’s current monthly payment is eliminated and he is given an access to the available equity in his home or in some circumstances, to purchase a primary residence as well. As these reverse mortgage solutions are insured by the federal government so it is advisable that seniors interested in this kind of loan should apply for it through a Federal Housing Authority approved lender only.

Highlighting Some Terms Of HECM

•    Furthermore, on availing HECM, you are not subjected to any monthly payments or fees instead you get a monthly cash payment until you don’t use the mortgaged home as your primary residence

•    Over the time this reverse mortgage balance will grow. Since monthly payments have already been eliminated so the loan will yield an interest charge each month, which will be added to the balance of the loan

•    In case the borrower dies or sells the property, the cash, interest and finance charges will be repaid through the equity in the home itself

•    Once the debt is paid, any remaining proceeds after it will either be retained or left to the surviving family members. In no ways, your spouse or loved ones can be held responsible for this debt

Must Read : Do’s And Don’t of Reverse Mortgage Hawaii

Eligibility Criteria For HECM

•    Qualifying this type of financial product demands you to be at least 62 years old

•    An eligible candidate should either own a property that is paid off or has substantial equity in the home or must be living in the property as a principal residence

•    You should not be overdue with any federal debt and must have the finances to pay costs for your property, including taxes, insurance and associated fees

•    The application process also requires you to attend official information session on HECM in order to make things clear to you in advance

•    Properties that can get you these mortgage solutions are either single family property or if you are occupying one of the units of a multi-unit property, as well as, certain manufactured homes and approved condos

Similar Link : Hawaii Reverse Mortgage: Questions Seniors Must Ask Before Applying One!

The Factors That Decide The Amount Of Money You Will Get

•    The monthly payment of the borrower will depend on the following:

# The amount of equity you have
# Your age
# The current interest rate

•    When you will apply for HECM, everything will be verified by your lender, which will cover your income, assets, expenses, good credit as well as how up to date you are on your taxes and insurance premiums

•    If you decide to go with a fixed-rate loan, you will receive the same amount of money each month, which is termed as Single Disbursement Lump Sum Payment Plan

•    For the ones who want to opt for an adjustable rate, they can choose between fixed monthly payments or flexible monthly payments funded by a line of credit or the combination of the two

HECM And The Associated Costs

•    When you apply for HECM, the cost of these reverse mortgage solutions will include an insurance premium between .5 and 2.5 percent of the total loan amount that covers any third-party charges, title search and insurance, and inspections

•    There will be an origination fee of up to $6,000 along with $35 as monthly servicing fee

It is completely your choice whether you want to finance these costs as a part of the mortgage, (which will reduce the total amount of payments you will receive) or you want to pay these costs upfront.

On the whole, HECM is those reverse mortgage solutions that give you the flexibility to have an inflow of ready cash. The best part is all payments are delivered in increments so that you don’t run out of income as you age. Being backed by FHA is its biggest plus point as it gives you the assurance that your investment is fully protected. So, when you are thinking about long-term financial retirement plans, there are no better mortgage solutions than HECM. Of course, you have to meet certain requirements before obtaining one.

Reverse Mortgage In Hawaii: What Is It And How It Is Beneficial?

A boon for senior citizens reverse mortgage in Hawaii has changed the way oldies think of living their retirement age. A type of home equity loan for older homeowners, the Hawaii reverse mortgage is aimed at streamlining the life of old people in the best possible way. The best part is they don’t have to pay the monthly mortgage payments and there are no restrictions on how the money received in this way must be used. Without a doubt, it is an amazing way to improve their monthly cash flow, which will enable them to live a stress-free and happy life.

A perfect method of monetary planning for retirement, the reverse mortgage in Hawaii is a valuable tool that allows the seniors to enjoy lots of benefits and functions, in a way, supplementing their retirement income in a better way. It is the bank who will make payments to the borrower throughout their life and this will be based on the percentage of accumulated home equity. It has many benefits for the senior citizens that help them to lighten their financial burden, which can arise anywhere between retirement planning and the actual retirement.

Check out how this reverse mortgage in Hawaii is a beneficial move:

•    It Will Relieve You From The Burden Of Hefty Monthly Payments: Yes, these reverse mortgages don’t require any monthly payments. Isn’t that great? It will only be repaid when the borrower finally decides to leave the home permanently or they are not complying with borrower obligations to the lender. With a reverse mortgage, you will get funds, which will eventually enhance the monthly cash flow of the borrower.

•    You Are Still The Owner Of Your Property: When you apply for a reverse mortgage in Hawaii you don’t lose the ownership of your home, it is still your place and not of the lender’s. This is because you have borrowed against the equity built up in your property. So, there is no need to worry about such things.

•    You Can Use The Money Received From Reverse Mortgage In Any Way: There are no restrictions on how the received money must be used. It is the sole choice of a borrower how he/she wants to spend this amount. They can use it for home repair, medicines, transportation and a lot of other things during their retirement period.

Read More : Are reverse mortgages safe

•    There Is No Maturity Date Of A Reverse Mortgage In Hawaii: Your reverse mortgage comes with no maturity date. It is a continuous process which requires the borrower to keep up with just three things:

# Home insurance and taxes
# Make home as a primary residence
# Maintenance of the property

•    Reverse Mortgage Is The Best Way To Improve The Quality Of Life At That Stage: There are many people who are unable to save for their retirement. In such a scenario reverse mortgage is a life saver and helps to improve the quality of life of senior citizens.

Well, this is the best thing one can do for his/her old age! Give it a thought!

Reverse Mortgage : Important things to Know

Sometimes people approach to their retirement noticed that they don’t have enough funds. If you are also in similar situation and you are 62 or older, a reverse mortgage can help you a lot. Reverse mortgage Hawaii is FHA-insured loan which is beneficial in maximizing the home’s equity to make you live more comfortable after your retirement period.

Here are few important things you need to know about this type of loan:

FHA-Approved Loan- This loan is also known as Home Equity Conversion Mortgages (HECM) and is approved by the Federal Housing Administration (FHA). Specially designed loan for seniors! This loan acts as a special mortgage product to ensure borrower safety and protection.

Elimination of your Current Mortgage- In case you have a mortgage on your home, this loan can be utilized to pay off the remaining balance. No monthly mortgage payments! The amount you owe increases with time. There is no need to pay the loan amount until you leave the property.

Purchase your Primary Residence using Reverse Mortgage- It is imperative to use a reverse mortgage to purchase a primary residence. It allows you to cut back your home or find a home that meets your physical requirements.

Must Read : Star Bulletin Interview with Daniel Nicolosi

Title of your Home is retained- The home is yours and remains yours as long as it remains your principal residence for at least six months. Reverse Loan isn’t due until you stop living in the home- A reverse mortgage is not due until you stop living in the home. This type of loan must be paid off once the home is sold.

Discover how the Money is Distributed- This loan is distributed as a lump sum, as monthly payments, or as an ongoing line of credit. This type of loan can be paid out in whatever way best suits your requirements.

Tax-free money from Reverse Mortgage- This type of loan provides tax-free cash and will not affect social security or medical benefits.

No Compulsory Repayments- Hawaii Reverse Mortgage does have to be repaid until you leave the house. No pre-payment penalties!

More Money when Your Home Appreciates in Value- In case you sell your home and paid off your loan, the excess amount is yours. A home that appreciates in value offers you more money.

There are some requirements to acquire this type of loan.

• All individuals must be at least 62 years.
• The home must be your primary residence.
• You cannot be offending on any federally-insured debt.
• Responsible for property real estate taxes, insurance, utilities, fuel, maintenance, and other expenses.
• These loans may have fixed or variable rates.

Read More : Is a Reverse Mortgage Safe?

It is a great financial assistance for seniors of age 62 or above. No need to pay monthly mortgage payments! Seek this loan to have physical as well as financial comfort after you retirement period.

 

How Reverse Mortgage is a Good Retirement Plan?

Reverse Mortgage have turned into the desperate property holder’s money related arranging device of decision. The principal FHA-protected reverse mortgage was presented in 1989. Such advances empower seniors age 62 and more established to get to a bit of their home value without moving.

With a reverse mortgage, more established property holders can get cash against the value in their home in the event that they either own their home by and large or have a little existing home loan.

Rather than you paying it back every month such as a common home credit, the bank pays you, and the advance just must be reimbursed when you offer the home or move out, or after your demise.

Must Read : How to Choose a Reputed Reverse Mortgage Lender?

You can get the cash as a single amount, a regularly scheduled installment or a credit extension, and the sum you can obtain at last relies on upon your aggregate value, your age (you should be no less than 62 to qualify), the length of the advance term and current loan fees.

The following are main reverse mortgage advantages:

• A typical misinterpretation of reverse mortgage Honolulu is that the loan specialist takes responsibility for home. This is false. You keep on keeping up responsibility for home, the length of you consent to the terms of the advance and pay your duties and protection.
• A standout amongst the most alluring advantages of house buybacks is that installments are made TO you, the length of you live in your home. This is entirely not the same as a customary forward home loan where you should pay stores in a month to month sum. With reverse mortgage, you get reserves. The advance is reimbursed when you offer your home, move to another main living place, or when the last borrower leaves the home.
• The reverse mortgage credit is guaranteed by the government. With government protection comes more prominent security. If the advance winds up adding up to more than the estimation of the home when sold, government protection will cover the distinction. This implies the credit will be forked over the required funds utilizing just the returns your home offers for, and no more.
• Every individual senior has diverse necessities. Along these lines, there are diverse payment choices to cover distinctive needs. This incorporates the decision to get stores in a full or incomplete aggregate, a credit extension, regularly scheduled installments, or a mix of any of these.
• Government advantage programs that don’t test money related assets, for example, Social Security and Medicare, are not influenced by reverse mortgage. House buybacks are considered advance continues and not pay. Do note, in any case, that pay recompenses, for example, Medicaid and Supplemental Security Income might be influenced.

These are just a couple of the numerous reverse mortgage advantages. For a complete perspective of how a reverse mortgage Hawaii can advantage you in your specific circumstance or to take in more about reverse mortgage upsides and downsides, contact a professional reverse mortgage lender Hawaii

What to Look for Reverse Mortgage Lenders Hawaii???

In this article, we will take a closer look at the ways in which a reverse mortgage can help you to fund your retirement, as well as how you can select the best reverse mortgage lender in your area.

Guaranteed Reverse Mortgages in Hawaii

One of the more popular forms of reverse mortgages is the Home Equity Conversion Mortgage (HECM), which is the only mortgage type insured by the Federal government. FHA insures the loan and sets guidelines that every lender must follow in order to protect the senior homeowner. There are 4 ways you can receive the cash, in a lump sum, a line of credit, a monthly payment you receive instead of make or a combination of these.

Other Types of Reverse Mortgage

There are other kinds of reverse mortgage available, such as the proprietary reverse mortgage. Majority of reverse mortgages are provided by some financial institutions and major banks. The cash amount that you will receive is free of taxation, the same as is any reverse mortgage, and can be spent in any way you see fit. However, these mortgages are usually for “jumbo” loan amounts (over $625,000) and are by far the most expensive, as they charge much higher fees and interest.

Must Read : Reverse Mortgages with Aloha Mortgage Solutions

Experience Counts

One of the things that you should do before you sign any documents relating to a reverse mortgage is to make sure that you are dealing with a bona fide, experienced local company. There are many good and honest reverse mortgage lenders in Hawaii, but there are also plenty of inexperienced ones as well, so make sure that you check them out thoroughly, including references–otherwise it could cost you unnecessarily long closing times and expenses.

Read More : Top 6 Things Every Family Member Should Know

In Conclusion

A lot more people are considering the benefits of a Hawaii reverse mortgage as it is one way of getting their hands on much needed cash and supplementing there retirement income…without having to make a monthly mortgage payment every month. The repayment of a reverse mortgage does not fall due until the home is either sold, or the last remaining homeowner either passes on or moves permanently into a care home.

For more information and for a Free, No-Obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution. You can reach him directly at (808) 945-3000 on Oahu; or Toll Free at 888-532-5642 on the Outer Islands.