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Gershman Mortgage offers HUD insured, Reverse Mortgages also known as the Home Equity Conversion Mortgage (HECM) for customers age 62 and older. This type of mortgage allows homeowners to convert home equity into cash.
What is a Reverse Mortgage?
A reverse mortgage is a mortgage: a loan with the borrower’s home as collateral. But unlike a conventional mortgage, it is designed as a way for homeowners age 62 and over, with substantial home equity, to tap that equity as a source of funds to pay off their existing mortgage, cover bills or health care expenses, or to provide additional retirement income. Unlike conventional mortgages, borrowers are not required to make monthly payments. The loan must be repaid only when the borrower moves or dies. This feature is the key advantage for retirees who need more income: so long as they live in the house, a reverse mortgage does not add a claim on the income they already have.
Accessing home equity will become increasingly important in a world where retirement needs are expanding – people are living longer and face rapidly rising health care costs – and the retirement system is contracting – Social Security replacement rates (benefits as a percentage of pre-retirement earnings) are declining and employer-provided pensions have shifted from defined benefit plans to 401(k)s, which require individuals to bear all of the risks. Reverse mortgages offer a mechanism for tapping home equity for those who want to stay in their home.
Why Gershman for a Reverse Mortgage?
Gershman is the leading reverse mortgage provider in the area. They have the knowledge and experience to insure that the loan process is simple and easy for you. Within the St. Louis area, Gershman has the only two Certified Reverse Mortgage Professionals certified by the NRMLA. If you want more financial security in your retirement years, you should learn all the benefits of a reverse mortgage from Gershman.
Reverse Mortgage Benefits
- Funds are tax-free (consult tax accountant).
- May affect supplemental income & Medicaid.
- No monthly mortgage payment (real estate taxes and homeowners insurance are still the homeowners responsibility).
- Repayment is not required until the home is no longer your primary residence.
- No prepayment penalty.
- The loan is non-recourse. Repayment cannot exceed the value of the home.
- Refinance – whether you owe a small balance or no balance.
- Reverse for Purchase – Reverse for Purchase allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.
- HECM to HECM – refinance your current HECM loan.
Five Payment Features
- Tenure – set payments for as long as a borrower lives in a home.
- Term – set payments for a specific period of time.
- Line of Credit (LOC) – use as needed.
- Lump Sum – Access up to 60% of the amount you qualify for in the first year.
“The Reverse Mortgage Purchase enables me to have a lovely home with lower monthly costs.
This helps since I have reduced my salary from my business. The Gershman staff members were well informed and helpful. I highly recommend them.”
– Barbara Brown Greiner
Contact a Gershman Mortgage loan officer to learn more about Reverse Mortgages
and if it’s right for you. Call today, 314-889-0600 or Toll Free at 1-800-GERSHMAN (437-7462).
These materials are not from HUD or FHA and were not approved by the Department or Government Agency.