Reverse Mortgage Loan Blog

Senior citizens who are looking for long term financial solutions are considering a reverse mortgage as one way for them to stay in their homes. Allied Home Mortgage is showcasing this special program to help seniors who are exploring their lifestyle choices.

Maineville, Ohio — March 9, 2007 — Allied Home Mortgage’s Maineville, Ohio office is stepping up its campaign to educate mature residents concerning the options they have for long term financial security. The company’s federally-backed Reverse Mortgage Program has been designed to assist seniors who would like to stay in their residence by tapping the equity in their homes.

“We’re showcasing our Reverse Mortgage Program in response to the growing number of aging citizens in our service area,” remarked Steven Hatte, Branch Manager and Certified Reverse Mortgage Specialist with the Allied Home Mortgage office in Maineville, OH. “Mature homeowners who would like to stay in their homes for the long term as well as seniors who simply want extra cash to live a much better retirement are taking a closer look at reverse mortgages. A reverse mortgage allows property holders to remain in a familiar environment where they can continue to enjoy fond memories and maintain their independence,” added Hatte.

The Reverse Mortgage Program, known commonly as a Home Equity Conversion Mortgage (HECM), is a federal government-insured plan that is available to seniors age 62 and older. A HECM allows homeowners to convert the equity in their home to working cash while the homeowner maintains title to the house.

For Example: “A property owner, who is 71 years old with a home value of $150,000, could choose to receive a monthly payment of $550 for as long as he or she lives in the home. Other choices for the homeowner can include a lump sum payment of $90,691 or keeping the $90,961 as a credit line to use only as needed. By selecting the credit line option, homeowners can take advantage of a growth feature that currently increases at a rate of 6.46% annually on the unused portion of the credit line,” stated Hatte.

Homeowners are responsible for paying their property taxes and homeowners insurance, but no monthly payments are ever required on the loan. When the youngest borrower passes away or moves from the residence, the proceeds from the sale of the home will pay off any balance of the reverse mortgage. FHA fully insures the loan and guarantees that no debt ever passes to the heirs. The heirs do receive any excess equity, probate free and protects funds from creditors without having a living trust.

“Senior citizens who rely on social security as a significant portion of their monthly income may find that a reverse mortgage can ensure that they live a comfortable and financially secure life even should they eventually lose their spouse’s social security income due to their death,” explained Hatte. “A reverse mortgage is designed to provide financial freedom for mature, independent-minded homeowners.”

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