 | Randy Vickers is the owner of Priority Mortgage Corp of Wichita, which opened in Jan. 1989, is the oldest locally owned mortgage company in Wichita. Randy has been in the real state business since 1983 and is a licensed real estate broker as well as a licensed mortgage broker. Priority Mortgage Corp of Wichita KS Lic #1996-0122. Randy can be reached at 316-721-7700 |
Real Estate
2007-06-01 09:43:00
What is a reverse mortgage? Is it for me?
Answer: I am asked this question quite often actually, and my response is always the same. “I will be honest with you…a Reverse Mortgage is not for everyone, but the education is.”
Although it has been available since 1988, little is known by the general public about this Government program, and there are many misconceptions about it as well. For instance, many have been told that if a homeowner takes out a reverse mortgage, the government will take their home after they die. The truth is the ownership is transferred to their heirs upon the death of the last homeowner. Another misconception elicits the question…Do I have to have an existing mortgage to qualify for a reverse mortgage? No, this type of mortgage has been, and can be, done either way.
The best answer to the question, “is the Reverse Mortgage right for me”, is to schedule a meeting with a Reverse Mortgage Specialist. Keep in mind, the Government mandates that nothing can be sold at the first appointment. This meeting is for the homeowner, to get answers to their questions, gather information, and determine their eligibility.
While many Reverse Mortgage companies are now soliciting homeowners through telemarketing, many mortgage brokers still provide face-to-face interviews by appointment either at the office or in the home. Your home is one of the largest assets you have, and its security should not be handled by phone. After all, that’s more than likely not how you bought your home in the first place!
To qualify you must have some equity in your home, use it as your primary residence, and be at least 62 years of age. Your current income or credit does NOT affect your qualification. Some of the benefits are that the funds are tax free; there is no repayment as long as you live in the house, you retain 100% ownership in the home, and the additional monthly income does not reduce your Social Security income.
This is a very interesting program that has become more popular with the aging of the population. It is definitely worth checking into, and will be a huge source of funds used by seniors in the future to help fund their retirement and their care. More next month…
