A great option to increase your retirement cash flow!
SCL Mortgage offers the FHA Reverse Mortgage products and Jumbo Reverse Mortgages up to $4M for borrowers over 62 years of age.
A reverse mortgage allows seniors the ability to eliminate their monthly mortgage payment. You paid down the mortgage for 30 years and now you can access that equity for any purpose. If you have enough equity, you can receive a tax free monthly payment for a fixed term from your home. Another great option is to set up a line of credit with the reverse mortgage. This will allow you the ability to access funds at any time for any reason. The line of credit will also pay you annual interest at above average rates. The main differences between a Reverse Mortgage line of credit and a home equity line of credit is the reverse mortgage can never be frozen, does not need to be paid back until you sell the property, and pays you interest on the credit balance.
Another popular reverse mortgage product is the HECM for Purchase loan.
With this loan, a borrower would put down approximately 50% (depending on age) and get a reverse mortgage for the other 50%. This program works very well when a senior decides to sell their home and downsize to a less expensive home. Instead of taking all the cash from the sale of the home, they can only put 50% of the funds into the home purchase and 50% of the cash into their pocket. Now they have the funds available for retirement and will never have a mortgage payment. With this program, you will no longer have “dead equity” tied up in your home that you can’t access.
The reverse mortgage is a great tool that can be used to enhance retirement.
At SCL Mortgage, we use a consultative approach and explain all the options available to you so you can make the best decision for your particular situation. This mortgage can be a life changer and should be a part of every senior’s retirement plan.