Restart your conversation in 2018. Frequently Asked Questions about HUD’s #HECM62 Mortgages

The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program, which enables you to withdraw some of the equity in your home.  The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more. It is smart to know more about reverse mortgages, and decide if one is right for you!

Or, if you prefer, call or email Warren Strycker, senior veteran mortgage lender representative to review your thoughts about this amazing product. Call 928 345-1200 or email warren.strycker@patriotlendingusa.com. Strycker is responsible for this information webpage, Gofinancial.net where informational articles investigate the HECM Reverse Mortgage. Strycker recommends the HECM to get your affairs in order.

Expensive homes and the reverse mortgage

By Jack M Guttentag  — (The Mortgage Professor)

(TNS)–As a federally insured reverse mortgage program under the Federal Housing Administration, the home equity conversion mortgage program is not designed to help the wealthy. In calculating maximum draw amounts, the highest property value it will recognize is $625,500 (new limit $679,650.00). If your house is worth $1 million or $10 million, you can’t draw more than the amounts available on a home worth $625,500 (new limit $679,650.00). Further, although higher value properties reduce the risk of loss to the FHA, the mortgage insurance premium is the same for a property worth $1 million and one worth $625,500 (new limit $679,650.00).

Rules Have Changed For Buying a House with a HECM Reverse Mortgage

By Jack M Guttentag  — (The Mortgage Professor)

December 30, 2017

When I wrote about purchasing a house with a HECM reverse mortgage earlier this year, a major issue faced by borrowers was whether to pay a penalty insurance premium in order to maximize the cash draw on the HECM. A few months after the article was written, HUD eliminated the option of paying a lower premium if the borrower drew less cash. The upfront mortgage insurance premium is now 2 percent of property value regardless of how much the borrower draws.

The advantage of buying a house with a HECM has not changed. It remains the case that the HECM does not impose a monthly payment burden on the borrower. The only disadvantage is that the reverse mortgage will cover only about 50-60 percent of the house price, depending on the borrower’s age, requiring the purchaser to find the remaining needed cash elsewhere. The most common source is asset liquidation.

Steps for Getting your Affairs in Order

 

Steps for Getting Your Affairs in Order

  • Put your important papers and copies of legal documents in one place.You can set up a file, put everything in a desk or dresser drawer, or list the information and location of papers in a notebook. If your papers are in a bank safe deposit box, keep copies in a file at home. Check each year to see if there’s anything new to add.
  • Tell a trusted family member or friend where you put all your important papers. You don’t need to tell this friend or family member about your personal affairs, but someone should know where you keep your papers in case of an emergency. If you don’t have a relative or friend you trust, ask a lawyer to help.
  • Give permission in advance for your doctor or lawyer to talk with your caregiver as needed. There may be questions about your care, a bill, or a health insurance claim. Without your consent, your caregiver may not be able to get needed information. You can give your okay in advance to Medicare, a credit card company, your bank, or your doctor. You may need to sign and return a form.
  • https://www.nia.nih.gov/

Consider HECM Reverse Mortgage to use some of your home equity to shore up finances for this “leg” of your finances. Call HECM veteran Warren Strycker, 928 345-1200 or email/write warren.strycker@patriotlendingusa.com for professional friendship through the process.

Patriot Lending — unparalleled service.

OUR VISION

To make retirement free of financial woes. Our dedicated, diverse, and determined staff are available to you 24/7 to hone in on the financial product that most fits your needs. The managerial staff at Patriot Lending has been able to compile a team of qualified professionals to assist you in any way possible.

The financial tools we offer are available at many other financial institutions but, we believe that the service we offer here at Patriot Lending is unparalleled.

6 questions — Take time to get affairs in order — 928 345-1200

Let’s have a conversation today. If you are looking for some answers to the HECM puzzle… answer some of ours — call me (Warren Strycker) 928 928-1200 to start this conversation — let’s talk about HECM. (Strycker is a veteran fully licensed HECM advisor — you’ll get some valuable insights from him).

  1. What year were you born?
  2. Which income streams (will) fund your retirement? a. Pension income; b. 401k distributions; c. Selling home to access equity;  d. An annuity or another income vehicle. Will any of these income streams provide a credit line that grows and doesn’t have cost?
  3. Are you or your spouse currently receiving Social Security? yes or no
  4. Are you still working? Are you retired from working?
  5. How secure do you feel in your current retirement portfolio to provide monthly income you need to support ideal lifestyle? 1 through 5.
  6. Do you currently own your home? Are you making mortgage payments now?