Tag Archive for: Reverse Mortgages

Colorado Reverse Mortgage

Colorado Reverse Mortgage

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Colorado Reverse Mortgage product offers easy approval, does not depend on credit or credit score requirements, and there is no income verification involved. Applicant eligibility requires that the applicant has achieved the minimum equity requirement.

Colorado Reverse Mortgages Lender Closing Costs or points

Homeowners ages 62+ may be pleasantly surprised with the thousands of dollars in savings and an easily obtained Reverse Mortgage product. Taylor Mortgage Group offers retirees Colorado Reverse Mortgages with NO points and NO lender closing costs.

Homeowner’s would benefit from no Lender closing costs; the money spent by lenders while approving loans. Homeowner’s using this Reverse Mortgage program only pays for closing costs applicable to the terms and conditions of the lender, i.e. appraisals, etc… These “non-lender” fees can be financed as part of the Reverse Mortgage Loan.

A traditional mortgage or home equity loan requires monthly payments. A Reverse Mortgage Loan program stops all mortgage payments as long as the owners retain the home as a permanent residence. Homeowners that are still making mortgage payments can save hundreds or thousands of dollars each month. Homeowner’s are required to pay insurance, taxes, and to properly maintain the home and property. An upfront one lump sum payment option is available.

Reverse Mortgage clients utilizing this specially designed program enjoy the freedom to use the money they receive after signing the contract. Homeowners have the opportunity to put the money into savings or investments, pay bills, complete renovations/updating, etc.

When a homeowner decides to move permanently from the home the payment structure changes. Reverse Mortgages are a non-recourse loan. Whether the homeowner decides to sell the home or both the homeowner and spouse pass on. Essentially, if home values decline, a surviving spouse and heirs will not be required to pay off more than the fair market value of the home.

Another requirement to obtain a Reverse Mortgage has to do with a federal government guideline. All reverse mortgages are insured by the federal government. The government requires reverse mortgage applicants to speak with a counselor from the Department of Housing and Urban Development (HUD) prior to approval. Once the applicant receives HUD Certification, then the Reverse Mortgage approval process can be finalized.

For information about creative solutions for home loans and reverse mortgages or rural loans used to develop housing, businesses, industries, and cooperatives, please call Taylor Mortgage Group, at (303) 339-5950 or Janie Taylor directly at (303) 884-9393.

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Customer Reviews - Reverse Mortgages

Reverse Mortgage

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Reverse Mortgage for Colorado Homeowners:

Taylor Mortgage Group offers reverse mortgages to those 62 and older who own their own homes peace of mind and funding for years to come.

  1. Lump sum payment, guaranteed monthly payments, or line of credit options
  2. Never make a monthly mortgage payment again (Homeowner must still live in the home as your primary residence, continue to pay required property taxes homeowners insurance, HOA fees and maintain the home according to FHA requirements)
  3. The money you receive does not affect Medicare
  4. Access to your home’s equity
  5. Heirs inherit any remaining equity after paying off reverse mortgage loan
  6. Maintain home ownership and title

Eligibility:

  • At least one homeowner must be at lest 62 years old
  • Must have sufficient equity in your home
  • Single family home, two to four unit owner occupied home, townhouse.

There are a number of products available to fit the goals and needs of homeowners. One size does not fit all homeowners in Colorado and Taylor Mortgage Group will tailor the reverse mortgage to your individual situation.

  • Taylor Mortgage Group assists clients to choose the best reverse mortgage product for their circumstances. For example, the London Inter-Bank Offering Rate is connected to the HECM LIBOR Reverse Mortgage. It is traded around the world. It provides stability and higher credit with more cash available. With current low interest rates, the HECM Fixed Rate Reverse Mortgage offers similar value to the adjustable option. Interest rates are subject to change.
  • The HECM for Purchase Reverse Mortgage allows the senior to buy a new principal residence with less upfront cash than would be needed in a regular purchase. The amount depends on home purchase price, lending limit, age, and interest rate. The buyer makes no payments while living in the home.
  • If the holder of a reverse mortgage permanently sells the home, passes away, allows homeowners or flood insurance to lapse or refuses to pay property taxes, then the loan becomes due and payable. However, many of these elements can be dealt with in the design of the reverse mortgage product.

For more information, please call Taylor Mortgage Group at (303) 339-5950 or Janie Taylor directly at (303) 884-9393.

Apply Online Now
Reverse Mortgages - Home Equity Conversion Mortgage

Home Equity Conversion Mortgage (HECM)

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Reverse Mortgages as a Home Equity Conversion Mortgage (HECM)

Funds Available, Distribution Options, Interest Rates and Costs

  • Most closing costs and fees can be financed as part of the loan, resulting in little or no upfront fees (except for HUD required counseling).
  • The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. Consult your advisor for detailed program terms.
  • Receive your funds in a lump sum, a regular monthly payment, a credit line, or a combination of these options.
  • Amount available is based on the age of the youngest borrower or non-borrowing spouse, current interest rates, existing mortgage amount, and the lesser of the appraised value of your home, sale price or the maximum lending limit.
  • Fixed and variable loan rates may be available.

Eligibility

  • At least one homeowner must be at least 62 years old
  • Must have sufficient equity in your home
  • Single family home, two to four unit owner occupied home, townhouse, approved condominium or permanently affixed manufactured home

Benefits

  • Eliminates existing monthly mortgage payments. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, HOA fees and maintain the home according to Federal Housing Administration requirements.
  • Stay in your home and maintain the title
  • Heirs inherit any remaining equity after paying off the HECM loan
  • Federal Housing Administration (FHA) insured HECM Loan Program
  • Loan proceeds are tax-free (Please consult your financial advisor)

Forward Mortgages vs Reverse Mortgages

Forward Mortgage,Lender requirements:

  • Good credit ratings as well as total debt limits.
  • The borrower pays upfront costs, such as closing costs and down payments, and the monthly house payment.
  • When applying for forward home loans, applicants must show proof of income and assets.
  • The homeowner is responsible for taxable income and property taxes.
  • Substantial indications are required that an applicant will be able to make payments on their homes.

VS

Reverse Mortgage Lender Requirements:

  • At least one homeowner must be at least 62 years old
  • Must have sufficient equity in your home
  • Single family home, two to four unit owner occupied home, townhouse, approved condominium or permanently affixed manufactured home

Physical property and equity already paid can serve as collateral in a reverse mortgage. Reverse mortgages are federally insured (FHA) and offer homeowners and heirs additional benefits.

Home Equity Conversion Mortgage (HECM), is A FHA insured loan and used for 95 percent of all reverse mortgages. Consequently, Colorado reverse mortgages are often a better choice for those who qualify. Traditional loan costs increase over time; reverse mortgage costs decrease. To calculate the Total Annual Loan Cost or TALC, ask your mortgage professional for a helpful form similar to the APR of a traditional loan.

For information about creative solutions for home loans, reverse mortgages, and other mortgage products used to develop housing, businesses, industries, and cooperatives, call Taylor Mortgage Group at 303-339-5950 or Janie Taylor directly at (303) 884-9393.

Apply Online Now
Reverse Mortgages for Seniors

10 Questions & Answers about Reverse Mortgages

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Do you have Questions about Reverse Mortgages? Seniors 62 and older are now joining others who have already taken advantage of the Reverse Mortgages available as one of today’s Colorado home loan options. Senior interest is growing and many are considering applying for Reverse Mortgage home loans.

The Reverse Mortgage

The Reverse Mortgage can fund anything from healthcare to home modifications to travel plans.Seniors are employing the  Reverse Mortgage home loan product as a tool to create financial independence. Because they chose a fitting Reverse Mortgage for their circumstances, quite a large number of homeowners have opted to remain in their Colorado homes free of mortgage payments.  These seniors employed Reverse Mortgage home loan products as tools to create financial independence.

Common questions asked by seniors (age 62+) to determine if the Reverse Mortgage is a good choice for their lifestyle.

  1. May I obtain a Reverse Mortgage if I still owe my lender?  You can qualify for a Reverse Mortgage if you have a low loan amount or a trust.
  2. Do I seem desperate if I opt for the Reverse Mortgage?  No.  Large numbers of homeowners use the Reverse Mortgage as a financial planning tool to fund investments and any number of objectives such as in-home healthcare.
  3. Will the bank take my home if I opt for a Reverse Mortgage?  No.  The title remains in the homeowner’s name.
  4. Does the credit line pay interest?  The increasing credit line grows over time and does not pay interest.
  5. Does the Reverse Mortgage only work for a principal residence?  On a private Reverse Mortgage, some second homes also qualify.  If the Reverse Mortgage is FHA-insured, only the primary home qualifies.
  6. Are all Reverse Mortgages FHA?  Private lenders such as Lehman Brothers and Seattle carried private Reverse Mortgages.
  7. Are the closing costs high?  Closing costs are included in the credit line and are paid when the loan is mature, sometimes after the home owner’s lifetime.  Although the appraisal fees are required up front during closing, some Reverse Mortgage loans can include appraisal fees in the credit line.
  8. Does the Reverse Mortgage tie up all the home equity?  Brief verse mortgages do not allow 100 percent lending against the value of the property.  The applicant is only charged for what is taken out.
  9. If I have a year of bookable trust, can I still do a Reverse Mortgage?  For the Reverse Mortgage, the irrevocable trust can be used with the private jumbo program.
  10. Do I have to be a United States citizen?  There are Reverse Mortgage programs for resident aliens and people with working visas.
Need information about home loans and reverse mortgages? Taylor Mortgage Group is a mortgage broker that offers a variety of loan products and rates with some of the largest and best investors. A pre-approval process can be helpful in structuring your final goal. One of the most important steps in purchasing a real estate is to be pre-qualified or pre-approved. An accurate credit report is a useful tool in assessing your lending options. Call: Taylor Mortgage Group LLC at 303-339-5950 or Janie Taylor directly at (303) 884-9393.