Reverse Mortgage Missouri

Reverse Mortgage In Missouri

#ReverseMortgageMissouri, #MissouriReverseMortgage

Reverse Mortgage In Missouri
Reverse Mortgage In Missouri

A reverse mortgage is a type of loan in which the homeowner accesses part of their equity, but does not have to repay the loan until they leave their home or pass on. Reverse mortgages can be a solution for consumers in Missouri who are 62 years and older who have their own home – or at least those who have enough equity. The question is, why would people want to borrow from the house they work hard to pay off? The answer is simple, when you have a free and clear home, it’s just like putting money into a bank knowing that you can’t access it later. Who in their right mind would do that? Even if you don’t NEED money now, you surely will at one point. Many Missouri residents don’t know that Reverse Mortgages have a nice line of credit feature know as a stand by line of credit. Basically, your unused line of credit automatically grows bigger for as long as you live or for as long as you live in your home. You may never need it, but IF you do later on down the road, it’s there AND guaranteed by FHA / HUD. If you never use it, you’re not charged any interest. Also, it never expires like a regular line of credit. It’s there for as long as you live, or for as long as you live in your home.

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When Can You Get a Reverse Mortgage in Missouri?

Those who can apply are homeowners who are aged 62 years or older. And, if there is one partner under the age of 62, they might still be able to get a reverse mortgage if they meet other eligibility criteria. In some states, there are reverse mortgage programs for people age 60 and 61, but this program is not yet available in Missouri. The eligibility criteria in question are as follows:

  • Owning your own home (can be free and clear or have loans on it so long as you meet the equity requirements).
  • Every mortgage you have must be paid off using the proceeds of the reverse mortgage you get (of course there are limited exceptions to this rule).
  • The mortgaged house is the main residence (aka primary residence).
  • Must always pay property taxes, homeowner association contributions, homeowner insurance, and other homeowner obligations.
  • You’ll need to participate in consumer information sessions led by HUD-approved counselors.
  • You need to maintain the property so that it is always in good working condition just like you probably already do.
  • Eligible homes include single-family homes, multi-unit properties (up to 4 units assuming you live in one of them), condos, townhouses, or manufactured homes built after June 1976 (for more info visit Reverse Mortgage On Manufactured Homes).

More questions? Want a free info kit? Contact us or call (714) 271-8524

Reverse Mortgage Advantages vs Disadvantages for Missouri Residents

  1. The Advantages of Reverse Mortgages in Missouri:
  • With a reverse mortgage, you don’t have to worry anymore about monthly payments. You no longer need to make payments to a mortgage company.
  • Get access to equity in your home that you have accumulated over the years. You can use this equity to do or get everything you want or need. Examples of using equity are to pay bills, travel abroad, renovate your home, pay for weddings or college and more. The equity you receive is your money and you are free to use it however you want.
  • Retire properly. In the absence of a monthly mortgage that must be paid and a large amount of equity that you attract, you can use it to go on vacation or just relax enjoying your retirement at home.
  • You can stay in the house as long as you want and will never be forced to leave (unless you don’t pay your property taxes, which you already have to do anyway). There is no set time when you have to sell your house or repay a loan. This will no longer apply if you don’t live or no longer make your Missouri home your primary residence. You can stay there as long as you want and when you are ready or have to move to another place, you can leave. It works just like a regular loan.

2. The Disavantages of A Reverse Mortgage in Missouri:

  • When it’s time to leave home, you have to pay back the money you used. You can pay it back with money saved or by selling the house or by refinancing it into another type of loan. But really, it’s not much different than a regular loan, except that you control when and IF you make a mortgage payment.
  • When you die, your heirs will be obliged to pay off the money you got from a reverse mortgage. Most of the time, the heirs will sell the home because they want the equity and they probably already have a home of their own. Just as if it were a regular loan, the reverse loan would get paid off with the proceeds and your heirs get 100% of the leftover equity (minus and realtor expenses etc.). This means that a reverse mortgage can cut whatever inheritance you leave behind. If you do not want this to happen, then you must limit the withdrawal of money from the equity you get. After all, you worked hard for your home. Now, let your home work for you.

More questions? Want a free info kit? Contact us or call (714) 271-8524

There Are Several Types of Reverse Mortgages That You Can Choose From:

  1. Proprietary reverse mortgages. You can receive a larger loan in advance from this type, especially if you have higher-valued homes. These loans are not insured by FHA, but are still non-recourse.
  2. Home Equity Conversion Mortgages. This is the most popular type of reverse mortgage and backed by the U. S. Department of Housing and Urban Development (HUD). Before doing a HECM, all borrowers will need to go through counseling from a HUD-approved counselor. The purpose is to help the client understand how this type of loan works without trying to sell you on it.
  3. Single-purpose mortgages. Different from the other two before, the client can only use the loan for one specific purpose. This type of reverse mortgage is usually offered by non-profit organizations or a few states and local government agencies.

Reverse Mortgage in Missouri Summary

Reverse Mortgage gives you access to a certain amount of money and you don’t have to worry about monthly payments. In essence, this financial tool can provide a greater sense of financial security. You can access the money you need or want by getting a reverse mortgage. Borrowers cannot owe more than the value of the home regardless of how much the loan is or what happens to the value of their property from time to time. If the reverse mortgage balance is less than the value of the house at the time of repayment, the borrower or heir maintains the difference. If you are determined to get a reverse mortgage, you can apply similarly to a traditional home equity loan, but with one added step – the counseling.

More questions? Want a free info kit? Contact us or call (714) 271-8524

Additional Reading:

Reverse Mortgage Guide for 2020

Cost of Reverse Mortgage Counseling

Will I Outlive My Money? Consider This Retirement Strategy

Reverse Mortgage Appraisal Process

Jumbo Reverse Mortgage

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