Benefits of a Hawaii Reverse Mortgage

When it comes to a reverse mortgage, Hawaii retirees have a valuable tool at their disposal, which they can use as part of their financial strategy to finance their retirement.

Reverse mortgage loans have many features that can benefit seniors sixty-two years or older who are looking to supplement their retirement income.
Below are some of the benefits of a Hawaii Reverse Mortgage.

  • You Retain Ownership of Your Residence

One common misconception when it comes to reverse mortgages is that the financial institution will take over ownership of your residence.

This is not true. Title remains in your name, just as in a conventional/forward mortgage. You will continue to be the homeowner and can also pass the property on to your heirs should you so desire. However, you are responsible for property taxes, homeowners insurance and upkeep on your home. Failure to do so, could result in foreclosure.

  • No Monthly Mortgage Payments are Required from the Homeowner

One of the most attractive benefits of a reverse mortgage is the fact that no monthly mortgage payments will be required from you. Instead, you are the one who will be receiving monthly payments (or a lump sum, or line of credit) for as long as you continue living in your home.

A reverse mortgage allows you to use in paying the funds however you choose, whether if be for your bills, home improvements or even a vacation. The loan amount is repaid when you sell the residence, relocate to another primary residence, or when the last borrower leaves the home.

  • If the Housing Market Declines, You are Protected

In the event that the loan amount ends up amounting to more than the current value of your residence when it is sold, the FHA Insurance will cover the deficit.

What this means is that your reverse mortgage loan will be paid in full and will only rely on the proceeds collected from the sale of your home, and nothing more. In most cases their will be equity remaining, however, the worst case scenario is nothing will left or owed.

  • You Can Choose from Several Disbursement Options

All seniors have different needs. Therefore, you will find that several disbursement options are available depending on the seniors particular needs.

The choices available include:

  • Receiving funds in full or as a partial sum
  • Getting a line of credit
  • Monthly payments
  • Combination of all the above options
  • Medicare and Social Security Benefits Will Not Get Affected

Hawaii reverse mortgages are not taxable and do not affect government programs that do not test financial resources such as Medicare and Social Security. The reason being that a reverse mortgage is considered a loan, and not income. However, take note that income awards like Supplemental Security Income and Medicaid could get affected. Always consult a financial advisor to be certain.

To find out how much you qualify for, and whether a reverse mortgage is right for you, consult the author of this article or your financial advisor to discuss the pros and cons. For more information you can also visit: There you will find 2 short video’s, one explaining Reverse Mortgages; and the other, testimonials of Real Hawaii Clients.
For a FREE, no-obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution in Honolulu. You can reach him directly at (808) 799-8218 on Oahu; or Toll Free at 888-423-2468 from the Neighbor Islands.


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