What you need to know about Reverse Mortgages but might be afraid to ask

Many Hawaii homeowners reach retirement age with a pension or Social Security that is considerably less than what they are currently earning and accustomed to; which makes it difficult for them to meet their basic expenses, let-alone maintain the same life style in their “golden years.”  And this is why more and more senior homeowners are utilizing a Reverse Mortgage, and finding it has been the difference between just surviving, and having economic and emotional peace during this next phase in their life.

A Reverse Mortgage isn’t for everyone.  Hopefully, this short blog will give you enough information to determine if a Reverse Mortgage may be worth taking the time to speak with a Reverse Mortgage Specialist in order to determine whether it is the right vehicle to utilize to put some of the “Gold” back into your Golden Years.

What is a Reverse Mortgage?

Simply stated, a Reverse Mortgage is a unique, versatile loan which allows Hawaii homeowners, age 62 and over, to convert a portion of their home equity into tax-free* cash—without having to sell the family home, give up title, or ever make monthly mortgage payments.  The loan only becomes due when the last borrower permanently leaves the home.  At that time, the heirs have the opportunity to either sell the home and keep any remaining equity after the Reverse Mortgage loan is paid off, or they can buy the home by paying off the existing Reverse Mortgage loan.

What Protections Exist for the Homeowner and their Heirs?

Reverse Mortgages are strongly regulated by the Federal Government which also includes a Federally regulated Mortgage Insurance Premium, insuring that the homeowner can NEVER owe more than the current market value of their home.  For example if, at the time of selling or buying the home by the heir, the currant loan amount owed to the lender is $600,000.00, but the housing market just experienced a similar crash as in 2008 and the home value has decreased to $400,000.00, the heir could buy the home for only $400,000.00.  The shortfall of $200,000.00 owed to the lender would be paid by the Mortgage Insurance Premium.

What are some of the benefits of a Reverse Mortgage for Hawaii Seniors?

With an ever increasing cost of living, a Reverse Mortgage can truly be a lifeline for those that are retiring on a fixed income which is less than their current income.  This type of loan allows seniors to access a portion of their equity based on age and the appraised value of their home and use it for whatever they choose.  For example:

  • Home maintenance and repairs – or even a remodeled kitchen
  • Paying for more expensive prescription drugs
  • Paying the new taxes coming on medical devices
  • Visiting the grandchildren

The choices are only limited to the homeowners imagination, after all – it’s THEIR money!

You’ve Invested a Lifetime – Now Reap the Rewards!

Although Reverse Mortgages are gaining in popularity, they are still greatly misunderstood.  This is unfortunate for the senior homeowners that could truly benefit.  These loans were designed to assist, not hurt seniors, which is why they are now 100% Federally regulated.

For your FREE, no-obligation quote, contact Daniel Nicolosi, at Harbor Financial Group – your Aloha Mortgage Solution, in Honolulu.  You can reach him directly at (808) 664-5711.  Within 10 minutes he can usually tell you whether you are eligible, and approximately how much cash-out you may be eligible for.

Call or email to find out how much you may be eligible for:
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