What if you were retired in Nashville; you have some debt, with your Social Security benefits and your pension you are able to get by each month, but it does not leave any money left over for emergencies or much else?As a result, you are dipping into your nest egg at a faster pace than you would like and you are concerned that your nest egg may not last throughout your life. Currently the housing market in Nashville is thriving, but we all remember 2008. What if you could lock in the current market value of your home and have some access to some of the money in it, and not be concerned should the housing market take a dip in the future?
Did you know that if you are 62 or older, you can use the home equity conversion mortgage to utilize the value of your home and tap into that equity?
Home Equity Conversion Mortgage Program (HECM)
Most Reverse Mortgage Lenders in Nashville today are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. The FHA-insured HECM loan is a non-recourse loan.
A non-recourse loanmeans; no matter how much money you have borrowed,how long you have the money for, you nor your heirs can ever owe more than what the house is worth, even if housing values go down. A HECM loan is not due back until you move out of the house permanently or pass away. Most HECM loans become due at the death of the borrower and when that happens the home goes to the heirs or who the will states should receive the home. The heirs can decide what they want to do with the home after your death.
Most heirs will sell the home and any profit that they make after the loan is paid off, belongs to them. If your heirs do not want to sell the home, they can take out their own loan to replace your loan, if they qualify. If they do not want to get a loan they may use life insurance or other assets to pay the loan off. Under no circumstances can you or your heirs ever owe more than what the house is worth. The mortgage insurance that is part of the loan will take care of any short fall, even if the value of the house goes down over time. The lender’s recourse is limited to 95% of the appraised value of the home, at the time it is due.
So, no matter what is owed, if instead of selling the home your heirs would like to retain it they would only need to obtain financing for 95% of the current appraised value at the time, regardless of the balance owed.
You would be able to take advantage of the value of your home currently and not potentially lose any equity, should the value of your home go down.A Nashville Reverse Mortgage Lender with FirstBank, can help you maximize your resources for the rest of your life.
A Reverse Mortgage is a type of loan that allows you to borrow against the equity that you hold in your house, while you continue to live in your house. FirstBank Reverse Mortgage lenders in Nashville, can assist you with a line of credit or monthly payments that will help to boost your retirement income.
If you would like to learn more about how a Home Equity Conversion Mortgage or reverse mortgage line of credit could help you, visit www.reversemortgagelenderintn.com or call Chris Brundige with FirstBank at: 901-472-1301.
**Homeowners are always responsible for continuing to pay their property taxes and homeowners insurance(s).