Retire Better
Find out how a reverse mortgage loan can give you greater peace of mind, more financial security and improve your retirement lifestyle.
Retire Better with a Home Equity Conversion Mortgage
Retire Better
Find out how a reverse mortgage loan can give you greater peace of mind, more financial security and improve your retirement lifestyle.
Retire Better with a Home Equity Conversion Mortgage
Reverse Mortgage loans from Magnolia Bank
At Magnolia Bank, we have a personal way of doing things. Our focus is to help you to “retire better”. We’ll look at your individual circumstances and determine the best way to help you improve your golden years. Most likely, your home is one of your greatest assets. One in which you’ve invested time and money over the years – and now that investment can help you improve your retirement. With over 10,000 people turning 65 each day and most people living longer lives, it’s no wonder over 1 million homeowners have taken advantage of a Home Equity Conversion Mortgage, a type of reverse mortgage loan insured by the Federal Housing Authority (FHA). A reverse mortgage can help to improve your overall retirement so you can get more enjoyment out of your later years. To learn more and understand your options, talk with a Magnolia Bank professional today.
Reverse Mortgages
The most common type of reverse mortgage loan is a Home Equity Conversion Mortgage (HECM). These are the only reverse mortgages insured by the Federal Housing Administration (FHA) and are only available through an FHA-approved lender. Established in 1920, Magnolia Bank is an FDIC-insured bank and an FHA-approved lender. An HECM loan could enable you to convert your home equity into a lump-sum payment, monthly payments, a line of credit – or any combination of these. You can also use a reverse mortgage to eliminate your monthly mortgage payment. And, when used in conjunction with other assets or income streams, a reverse mortgage can also strengthen your overall retirement portfolio. If you plan to remain in your home during your retirement, choosing a reverse mortgage makes sense. As long as you meet the loan terms – you must continue to pay your property taxes, homeowners’ insurance, any homeowners association dues and maintain the property – you’ll receive funds or cashflow that can greatly improve your retirement lifestyle and allow you to retire better. One of the best parts is the funds from a reverse mortgage loan are not considered income so they are tax free**.
Eliminate Mortgage Payments
Free yourself up from monthly mortgage payments and use the money elsewhere*.
Gain Access to Tax Free Cash**
Use the cash for whatever you wish. To pay off debts, for home improvements, vacations, medical expenses, and more. The proceeds from a reverse mortgage loan are not considered income and are tax free**.
Jumbo Loan
A reverse mortgage loan allows you to stay in the home you know and love. Access up to $4 million in equity on high-value properties with a jumbo reverse mortgage.
Enhance your Retirement Portfolio
A reverse mortgage loan is no longer just for house- rich and cash- poor individuals. It can be used strategically as a retirement-income tool.
**Consult your tax advisor.
How does this work?
If you’re 62 years or older and you’re a homeowner, you can convert a portion of your home equity into cash without having to continue to make monthly mortgage payments. You’ll have to continue living in your home as your primary residence and pay your property taxes, homeowner’s insurance, any homeowners association dues (HOA), and maintain your home. You’ll retain ownership of your home, which usually holds a certain amount of equity. The loan is repaid when the last borrower or eligible non-borrowing spouse passes away or leaves the house, or the property is sold. This gives the home-owner access to equity without having to pay principal or interest on a monthly basis.
- You remain on your home’s title – just like you are now with a traditional mortgage.
- The amount you’re able to borrow is dependent on the youngest borrower’s age and the value of the home. Generally, the older you are, the more equity you’ll be able to access.
- This is referred to as a “non-recourse” loan, which means that you or your estate will never owe more than what the house is worth. If the loan balance exceeds the home’s value, the Federal Housing Administration will cover the difference.
- There are no mandatory monthly mortgage payments. You just need to pay your property taxes, homeowners’ insurance, HOA dues, and maintain the home.
Who can qualify?
You must be at least 62 years of age
You must own your own home
The home must be your primary residence
The HECM reverse mortgage has certain safeguards in place to protect both the program and its borrowers. In order to qualify, you must:
- Attend a counseling session with an independent HUD-approved counselor. (U.S. Department of Housing and Urban Development)
- Undergo a financial assessment during which your expenses, assets, and income are evaluated to ensure you meet the residual-income requirements of the program.
- If your spouse is younger than 62, they can qualify as an eligible non-borrowing spouse and remain in the home even if you leave or pass away, so long as they continue to meet all the loan obligations.