A Colorado reverse mortgage allows senior homeowners to access money before the home has earned it. They are paid cash for future appreciation.
The reverse-mortgage product can also be designed to leave equity for heirs.
Why a Reverse Mortgage for Colorado Homeowners?
Reverse mortgages are preferred Colorado home loans for many reasons.
The federal government insures the FHA-backed reverse mortgages. This means that if the lender goes out of business, the reverse-mortgage holder continues to receive payments through federal monies. Federally-insured reverse mortgages for seniors offer several benefits:
· Homeowners unlock the equity in their homes
· Reverse mortgages ensure financial security
· Senior homeowners live in their own homes
· Monthly mortgage payments disappear
· A reverse mortgage is almost foreclosure proof
· Only maturity events make the loan due and payable
There are some restrictions. Reverse mortgages work for principal homes only if the homeowner spends more than 50 percent of the year in the home. Duplexes, triplexes, and many condos and townhomes, and manufactured homes built later than 1975 qualify for reverse mortgages
There are a number of products available to fit the goals and needs of homeowners. One size does not fit all homeowners in Colorado and Taylor Mortgage Group will tailor the reverse mortgage to your individual situation.
Taylor Mortgage Group assists clients to choose the best reverse mortgage product for their circumstances. For example, the London Inter-Bank Offering Rate is connected to the HECM LIBOR Reverse Mortgage. It is traded around the world. It provides stability and higher credit with more cash available. With current low interest rates, the HECM Fixed Rate Reverse Mortgage offers similar value to the adjustable option. However, interest rates may be changing soon.
The HECM for Purchase Reverse Mortgage allows the senior to buy a new principal residence with less upfront cash than would be needed in a regular purchase. The amount depends on home purchase price, lending limit, age, and interest rate. The buyer makes no payments while living in the home.
If the holder of a reverse mortgage permanently sells the home, passes away, allows homeowners or flood insurance to lapse or refuses to pay property taxes, then the loan becomes due and payable. However, many of these elements can be dealt with in the design of the reverse mortgage product.
For more information, please call Taylor Mortgage Group LLC at (303) 339-5950 or Janie Taylor directly at (303) 884-9393.