![]() Find out more by browsing the official site: Department of Elder Affairs. The programs are often available throughout the entire state, including popular cities like Miami, Boca Raton, Tallahassee, and Orlando. ![]() Florida Senior Resourcesįlorida's Department of Elder Affairs provides a comprehensive senior living resource guide which includes several programs for preserving the independence for seniors living at home. For more information on this process, read through our reverse mortgage checklist. Find a lender who won’t charge such high fees, but make sure the lender is reputable, too. Many reverse mortgages are very expensive and require thousands of dollars of origination fees and closing costs. The most important thing to consider when selecting a lender is the fees that the lender will charge. Contact at least four or five lenders in your area to get rate quotes. Every lender offers a slightly different mortgage rate than every other lender. Florida Reverse Mortgage Lendersīefore you agree to work with any lender on your reverse mortgage loan, make sure you’ve found the lender who can best meet your needs. Your heirs can sell the home and pay back the loan with the proceeds from the sale, or, if they want to keep the home, they can refinance the reverse mortgage into a traditional mortgage and pay it off over time. In the event you pass away, your home will pass to your heirs, who will be required to pay back the mortgage amount. You retain full ownership of the home itself and can continue to live in it for the rest of your life without paying a dime to your lender. This doesn’t mean that your lender owns your home. Does the equity need to be repaid?Īs mentioned above, ownership of your home equity transfers to the lender during a reverse mortgage. You can combine any of these methods to customize your own financial arrangement. You can receive the funds from your reverse mortgage in a number of ways:Īs a lump sum for the full amount of equity.Īs a monthly payment until the equity is depleted.Īs a credit line you can access at any time. It can be as low as 0.5% and as high as 2.5% of the appraised home value, unless the home is over $625,500, in which case the upfront mortgage insurance is calculated by the lender. Mortgage insurance: an upfront mortgage insurance premium (MIP) must be paid for reverse mortgage borrowers. ![]() Fees are in the $100 range but can be waived for lower income seniors. Reverse mortgage counseling fees: HUD mandates all reverse mortgage homeowners attend reverse mortgage counseling. So a $200,000 reverse mortgage with $16,000 in fees paid via the reverse mortgage funds will leave the homeowner with $184,000.Ĭlosing fees: include all the same fees required of a traditional mortgage closing. This means, however, that the money taken cannot be borrowed back. Upfront fees: include the lender's fees, and can be paid from the reverse mortgage funds. There are several costs associated with securing an HECM reverse mortgage in Florida, including but not limited to: What costs are associated with a reverse mortgage? If the current mortgage is not paid off, the initial reverse funds or some combination with out-of-pocket cash must be used to deplete the remaining balance. Homeowners aged 62 and older who own their home outright and have most of their mortgage paid off. This article will focus on HECM reverse mortgages. The most common source is the FHA HECM reverse mortgage, which is insured by the Department of Housing and Urban Development (HUD). Single-purpose: backed by nonprofits or state or local government agencies. Goverment-insured: FHA HECM (Home Equity Conversion Mortgage). You can pay off medical expenses, eliminate debts, take a vacation, or even use it to make a down payment on a new home. You can use the money the lender gives you however you want. In return, the lender takes ownership of the equity in your home, but does not own the home. Your lender provides you funds up to the total amount of equity you own in your home. Reverse mortgages were designed to give seniors with home equity the money they need to live in financial security. When homeowners take out a reverse mortgage loan, their lender pays them and homeowners are not required to make payments. You don’t need to be wealthy or even financially successful. This mortgage taps into your home equity and transforms it into cash you can spend on any expenses that arise. If you’re a senior and you own a home in the sunny state of Florida, you can secure a stable stream of retirement income for yourself by taking on a reverse mortgage.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |