Heritage Tax & Insurance Services, Inc. has a strategic alliance with Senior American Funding and Premier Home Equity offering both mortgage broker and mortgage banker services. A comprehensive range of mortgage services is available to refinance existing mortgages, consolidate debts and even help families acquire new homes and investment properties.

 

We have a friendly and knowledgeable staff that can answer your questions and support you through the whole process.

 

Interest rate reduction on mortgage debt and taking advantage of tax deductions is obvious, but our primary focus is offering retirement solutions that include the government insured Reverse Mortgage.

Established by an act of Congress in 1988, Reverse Mortgages were not always a good product. In fact, early Reverse Mortgages throughout the 1990s included very high fees and interest rates, and even allowed for the bank to participate in future appreciation on the home. It is our opinion that many of these loans were horrible products and those Reverse Mortgages in the early years rightfully deserved the bad reputation they got.

However, new rules and safeguards have been put into place to protect retirees and their families and the government insured Reverse Mortgage available today we feel is an outstanding product and can be a great financial tool. This special type of loan was designed just for retirees age 62 and older and includes many safeguards. The Reverse Mortgage is government insured by the FHA (The Federal Housing Administration) and regulated by HUD (The Department of Housing and Urban Development). You retain title to your home and you are not locked in once you have a Reverse Mortgage… you can move, sell or repay any amount of the mortgage balance at any time with no prepayment penalty.

The money you receive from a Reverse Mortgage is not taxable and has no impact on your Social Security or Medicare benefits*. You can take the money in a lump sum, a monthly income that you cannot outlive or a line of credit for future use. Those that opt for the line of credit are not charged any interest on money they have not withdrawn. Furthermore, the line of credit has a growth rate that increases the line of credit balance for the future.

Many of our clients have used the Reverse Mortgage just to eliminate their existing mortgage payments. Others just need additional income or a line of credit for the future. Some of the highlights of the Reverse Mortgage include:

  • Receive tax-free money from the equity in your house
  • Eliminate your current mortgage payments
  • You are not required to make monthly mortgage payments
  • No out of pocket expense to you
  • The title to the home stays in your name
  • You can do a Reverse Mortgage and keep the title in your Living Trust
  • Your Social Security and Medicare benefits are not affected

It is important to understand that although a Reverse Mortgage might be appropriate for the retiree, it could mean substantially less inheritance for future beneficiaries of the home. It is important to note that the heirs, the children, church or charity receive 100% of the remaining equity in the home after you (and your spouse) are gone, but total future inheritance will be reduced by the Reverse Mortgage balance used by the retiree. When the borrower dies, sells the home or permanently moves out, the heirs have 6 months or more to either refinance and keep the home or sell and get a cash payout of all of the remaining equity.

If you could use additional income or just want to get rid of your current mortgage payments, you owe it to yourself and your family to learn more about the government insured Reverse Mortgage program. We have been helping retirees with Reverse Mortgages for over 10 years.

*https://www.consumer.ftc.gov/articles/0192-reverse-mortgages