The Two Home Equity Options
- Traditional Home Equity Conversion Mortgage (HECM), for homeowners 62 years and older—commonly known as a Reverse Mortgage. The maximum Reverse Mortgage limit you can borrow against is $1,089,300.
- Proprietary Mortgage (jumbo Reverse Mortgage), for individuals 55 years and older, home values up to $25,000,000 and loans up to $5,000,000. Same conditions as the traditional HECM with no origination fee or mortgage insurance premium (MIB).
Work With a Trusted Advisor
Legacy Mortgage Advisors will work with your financial advisors to navigate the process and insure that everything goes smoothly.
Working with a trusted advisor is essential when considering a Home Equity Loan, together we can help you understand the process and make sure that it is the right decision for you.
Please contact us for the full details regarding borrower obligations and whether a Home Equity Loan is right for you.
Unlike a conventional mortgage, when you use home equity loans, there are no monthly mortgage payments (however, in order for the loan to remain in good standing, you must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements.) The loan must be repaid when you sell the home or no longer live there as your primary residence.
Let's Work Together!
Legacy Mortgage Advisors clients are:
- Currently retired and looking for additional income by eliminating house payment
- Currently retired, home is paid for, and are in need of additional income to supplement their retirement
- Soon to retire, or have just retired, looking to create the perfect retirement plan
- Those looking to purchase their retirement dream home using a Reverse for Purchase loan
For example, at the age of 66, you qualify for social security but if you wait until you are 70 you will receive an even larger percentage. We examine all of these factors. How long can you wait before drawing from your non-taxable accounts? We take a look at tax efficient use of money.
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A few of the benefits
- Eliminates your existing monthly mortgage payments*
- You can stay in your home and maintain the title
- Loan proceeds are tax-free and can be used any way you choose**
- Heirs inherit any remaining equity after paying off the HECM loan
- The HECM (Reverse Mortgage) loan is FHA-insured
* You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements.
** Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits
Here's One Last Fact!
As you enter retirement you need to take a proactive approach to retirement planning by considering unlocking your Home Equity Loan and, while its not for everyone, a Home Equity Loan can be a useful part of that plan.
Is it Right for You?
There are many factors to consider, work with a CFP who can provide you with Competent, Objective Advice.
Being retired we wanted to find ways to reduce expenses. Our mortgage payment was a big chunk of our budget each month. We heard of Reverse Mortgages but were skeptical. Our financial advisor suggested we talk to Ted Lange.
Ted addressed our concerns and led us through the process to secure our Reverse Mortgage. He went to work for us and we could not be happier with the results. In fact, several years later Ted contacted us to refinance our loan giving us additional funds. It is great having Ted Lange, a professional lookout for you.
- Bill M. | San Marcos