Mortgage Tips for AZ and FL
BY Ajeet Khurana
Americans waste much of their working lives thinking about, planning for, and dreaming of their years of retirement. These dreams often include fantasies of settling into a life minus all worries and looking forward to the next visit from the grandchildren. Retirement is seen as a time where special interests are explored, new skills are cultivated, family and friends are enjoyed more, and life is lived to the fullest. Unfortunately, the retirement years are filled with all kinds of challenges that are the consequences of the drop in income. Arizona and Florida are two states where this is a common problem due to their high populations of retirement citizens. When finances become a challenge, one option available to Arizonians and Floridians is that of a reverse mortgage. This enables older Americans to live in comfort and security in their own homes by turning their equity into a monthly income.
What Is A Reverse Mortgage?
A Reverse Mortgage is simply a unique mortgage or loan taken out on your home that enables retired Americans to use the equity you have built while at the same time maximizing your specific flexibility to meet your financial needs. It could be used as a lump sum to pay medical bills, or simply a set amount of monthly income to supplement your current income.
What Are The Benefits To A Reverse Mortgage?
The key to a reverse mortgage is that there are no ore-payments on it as long as you live in your home. Now you can do away with your mortgage payment and have some extra cash as well. In both states of Arizona and Florida, the income you receive is tax-free and there are no income qualifications as you are using existing equity.
Does Everybody Qualify?
In Arizona, you need to be at least 62 years old, and in Florida 65. In both states you will be eligible if you own your home outright, or if you have an existing mortgage. The size of your loan will be determined by your age, the kind of loan you want, the value of your home, and the current market interest rates.
How Do I Pay My Reverse Mortgage Back?
You will need to pay your reverse mortgage back when the last surviving member either expires or moves out, all borrowers permanently move from the home, you stop paying property taxes or home insurance, or the property deteriorates beyond reasonable wear and tear and you do not resolve the issues.
Will My Heirs Be Responsible For My Reverse Mortgage?
Your estate will be responsible for your reverse mortgage. If your home is sold in the event of your death, the estate will repay the lender from the cash received. Any remaining equity will go to your heirs. You can never get a loan that is more than your home's value, so the proceeds from the home will repay the loan with sufficient remaining from your heirs. None of your existing assets outside of your home value will be affected.
For many retirees in Arizona and Florida, a reverse mortgage can really improve the quality of their life. They are allowing the older residents of these states experience better financial security and enjoy their retirement years in the exact same way that they had imagined them.
ABOUTH THE AUTHORAjeet Khurana writes about a host of interesting topics. He recommends: Arizona Mortgage Loans, Florida Mortgage Loans and Buying Homes. |
