Mary Joe Sato

20+ Years of HECM Mortgage Experience

 

Hawaii's Reverse Mortgage Specialist!

(808)791-1044

 

What is a Reverse Mortgage?

A Home Equity Conversion Mortgage, or HECM, is a flexible financial product designed for homeowners aged 62 and older. The loan is insured by the Federal Housing Administration (FHA) so that borrowers will not owe more than the value of the home at maturity. With a HECM, also known as a reverse mortgage, you can convert some of the equity in your home into cash to meet financial goals, such as supplementing retirement income, buying a new home, maintaining a quality lifestyle, or preparing for a more secure and rewarding financial future.

All that happens without giving up ownership or control of your home and without having to make monthly mortgage payments. Of course, as homeowners, you are responsible for occupying the home as your primary residence, keeping up with property maintenance, and staying current on paying property taxes, required insurance and any homeowners’ fees.

Instead of repaying the loan in monthly installments, you or your estate repay the principal, accrued fees and interest when you no longer live in the home.

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What Are the Basic Reverse Mortgage Requirements?

  • Borrowers must be age 62 years or older
  • Own their home and have enough equity to qualify
  • Occupy the home as primary residence
  • Receive counseling by an approved HUD/FHA counselor
  • The home must be in reasonably good repair...

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How Can I Receive My Reverse Mortgage Money?

When it comes to getting your payment, you determine how you’d like to receive your funds based on your individual financial needs and objectives. For example:

  • A monthly payment will supplement your income each month.
  • A lump sum will provide your available funds at once, subject to initial disbursement limits.
  • A line of credit will allow you to withdraw cash as you need it.
  • Any combination of the above

How Can I Use the Proceeds?

Use the proceeds for the things you need and want. For example: establishing a “rainy day” fund for the unexpected, paying monthly bills, making home improvements, paying for health care, covering the cost of in-home services, making a major purchase such as a new vehicle, and more.

 

Is a Reverse Mortgage Right For Me?

Please consult with your accountant, financial advisor or lawyer before proceeding. A reverse mortgage is a home-secured loan that’s exclusively for homeowners and homebuyers age 62 and older. It allows borrowers to convert some of the equity in their home into income-tax-free funds. (Not tax advice, consult a tax professional.) There are different loan products to choose from that offer you options on what interest rate you are charged, how much money you can access, and how you receive your payments. A reverse mortgage is a useful tool for some people. Branch Manager Mary Joe Sato understands this can be a big financial move, that's why she sits down with every client and his/her financial team to discuss the pros and cons of a reverse mortgage.

How Much Money Can I Get?

The specific amount depends on several factors, including:

  • Your age
  • The type of reverse mortgage you select
  • Current interest rates
  • Appraised value of your home
  • Federal Housing Administration (FHA) lending limits

HUD also regulates the amount of money that can be withdrawn during the first year of your reverse mortgage. This is to help preserve your home equity for a longer period of time.

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 Hawaii's Reverse Mortgage Specialist!

(808)791-1044

 

FREE QUICK QUOTE