real estate – Hawaii Reverse Mortgage

HECM Reverse Mortgage: Does It Affects The Social Security And Other Benefits?

HECM reverse mortgage, a viable option for the seniors that make their retirement relaxed. Indeed. But retirees do have some common concerns regarding the taxes and reverse mortgage solution. You know everything has its pros and cons and it is always better to get them clarified in the very beginning itself to prevent future confusions. Most of the seniors have this question in mind that whether their other benefits including the social security would be affected if they go with a reverse mortgage in Hawaii. Fair enough! Retirees opting for the reverse mortgage often come up with the concerns like will their pension be affected, what will happen to their Medicare and Medicaid benefits which they are already receiving and so on. Well, there are a lot of myths associated with all these queries and all they need is the facts. And this post is all about the facts that will definitely strengthen their trust in the HECM reverse mortgage.

Let’s start with the social security benefits first, you will be glad to know that HECM reverse mortgage does not hamper your social security. They will not change once you get your reverse mortgage, which means you will keep on receiving your benefits even after this mortgage solution. This was something you contributed in while you were working and receiving a reverse mortgage cannot affect these benefits. It is your right to collect your social security and no mortgage solution can prohibit you from doing that.

Next on the concern list is the pension benefits, well these were the benefits you established with your employer and this cannot be affected by receiving a reverse mortgage. Your pension is that benefit for which you worked hard and saved it for your upcoming years. In no way receiving a reverse mortgage in Hawaii can affect your pension. So just stay relaxed and enjoy your retirement in a better way.

Coming over to Medicare now, this is the part of the social security act only that was created in 1965 to help seniors with their health care costs. It was a way to provide health insurance to seniors aging 65 or above. This was a government program that was specially designed for the seniors to help them from the medical perspective. And, same is the HECM reverse mortgage that is formulated to provide financial help to the seniors. This means you can continue using your Medicare benefits even after taking a reverse mortgage in Hawaii.

Last but not the least is the Medicaid, the only thing that might get affected with your reverse mortgage. The eligibility for this benefit requires the seniors to have no more than $2K ($3K for couples) in assets on any day of the month. However, this does not affect your eligibility for a reverse mortgage but you may not be able to receive your Medicaid benefits once you start getting a reverse mortgage in Hawaii.

So, just make sure to consult a financial advisor before planning out anything. It is better to be safe than sorry.

A Know How About Reverse Mortgages In Hawaii

At any stage in your life, stability and success will be those two factors on which your future will depend. Sometimes, even after being successful we are unable to save enough for our upcoming years. This is usually the retirement scenario where due to shortage of funds things take a different turn. To get over this, start exploring reverse mortgages in Hawaii. These are a small fraction of the mortgage market, which is growing fast because of its tantalizing advantages. With 10, 000 people retiring daily life expectancies are rising and retirees could outlive their assets.

Today, the growing number of reverse mortgage lenders in Hawaii is recommending people to take a fresh look at reverse mortgage in order to enjoy the best retirement income. If you are still holding on to the basics then let me make this clear that the present day reverse mortgages in Hawaii are far more different from reverse mortgages 10 years ago. You must give up those age old misconceptions and start considering it as a financial planning strategy.

I agree reverse mortgages can be a difficult concept to understand especially when there is so much conflicting information about it. We don’t know whether it will prove beneficial for us or not. If you are a good candidate it can help you lower your bills, giving you another reliable source of income. The proceeds can be used for in-home care, healthcare costs, home improvements and purchase, long-term care, emergency funding, traveling, payment of property taxes and insurance and a great supplement for retirement income. All in all, reverse mortgages in Hawaii can be a good alternative for seniors who are falling short of money, yet sitting on a significant amount of equity in their homes.

However, with so many Hawaii reverse mortgage questions, this is how reverse mortgage is explained below:

• Many people have a question that in case they are unable to pay the loan, will the lender take away their home. The answer to which is No. As long as you or one of the borrowers continues to live in the house and pays the taxes and insurance, your house is yours. Also, you can never owe more than the value of the property if you are planning to sell it.
• Another common thing that people ask about a reverse mortgage is how much money they will get if they apply for it. Well, it will entirely depend on your age, the current interest rate and the appraised value of your home or mortgage limits for your area fixed by FHA, whichever is less.

• Last but not the least, many borrowers ask whether they will have a property to leave for their heirs or not. When you decide to sell your home, you will have to repay the amount you received from the reverse mortgage plus the interest and other fees to the lender. The remaining equity, if any, will be there for you and your heirs.

So, what are you thinking about? It’s time to enjoy your retirement on your terms!

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.

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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

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.

Choosing Reverse Mortgage Lenders In Hawaii: Some Things To Ponder Upon!

Planning to get a reverse mortgage is a huge financial decision. It requires you to have significant equity in your home to be eligible for it. There are borrower obligations, the cost for insurance protection and a lot of other things that a Hawaii reverse mortgage brings along. Therefore, it is important to look for reputable reverse mortgage lenders in Hawaii who can help and guide you well. Make a wise choice about who would you like to help you.

So before you actually make your mind for a reverse mortgage in Hawaii, do ask yourself some questions regarding the choice of reverse mortgage lenders in Hawaii. Below is the list of those must-ask questions:

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• What Type Of A Lender Do You Want To Work With, Large (National) Lender or Small Lender?

Well, this entirely depends on personal preference. As the loan received is similar in both the cases so the difference will be only in the type of service you may receive and the service cost of the lender. If you will choose to go with small reverse mortgage lenders in Hawaii, you will be able to form a closer relationship with your loan officer as compared to a larger lender. But, the final call is yours. It is you who has to take the decision.

• Are You Being Pressurized While Deciding On A Reverse Mortgage In Hawaii?

If you feel pressured by your reverse mortgage lender, it’s high time you should rethink your choice. Your reverse mortgage lenders in Hawaii should never make you feel pressured while planning a reverse mortgage loan. They should be there to help and guide you rather than pressurizing you and complicating the things for you. Choose a lender who can answer all your questions and will keep you well-informed by being truthful to you in all aspects. Go with the one who is transparent in his conduct and will offer an honest helping hand to get you a reverse mortgage in Hawaii.

• Is Your Company Reputed?

Dealing with finances demands utmost safety and trust. That is why it is important to pick some trusted firm to handle your money. A reputable company will not only save you from falling prey to scam artists but will also manage your finances effectively. So, research as much as you can before hiring reverse mortgage lenders in Hawaii. Your right pick will definitely make getting a reverse mortgage in Hawaii simple and easy.

Must Read : A Deeper Insight Into Hawaii Reverse Mortgage

• How Efficient Is Your Chosen Company? Can They Provide You All The Info You Need?

While planning to get Hawaii reverse mortgage, make sure your hired reverse mortgage lenders in Hawaii are able to provide you all the information that you need to know about the reverse mortgage. They should not charge you for any info that you could otherwise get for free, they should be capable of making you understand all the terms and conditions properly.
So for great results, just keep these questions in mind before applying for a reverse mortgage in Hawaii.

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.

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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!

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.

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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.

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.