Issue 16.12
By now you have seen ads in the newspaper, heard them on the radio and even seen them on T.V. telling you about “No payments for life” or “Let your home pay you”. These statements can absolutely be true. The fact is the Senior H.E.C.M. loan offers this option to qualified senior citizens over the age of 62, but what is the catch? While conducting past seminars for this type of loan, on every occasion without exception, the comment was made “This sounds too good to be true. What’s the catch?”
As seniors you have been saving your hard earned money and planning for your retirement your entire adult life, hoping to stop putting in 40-80 hours a week in the working sector. Over aggressive sales misers have chosen the senior as a target for scams knowing they are eager to grow their assets for the future, thus making them prey for these seemingly heartless financial predators. It is no wonder why instantly the guard flies up once the benefits of the H.E.C.M. are presented and the popular question becomes “This sounds too good to be true. What’s the catch?”
HUD (Department of Housing and Urban Development) understands this predatory treatment and has implemented, regulated and mandated several items to make this loan a safe and beneficial option for taking money from your own assets and allowing you to utilize them any way you see fit.
The catch is simple, you pay for this opportunity. That’s right, everything presented about this fabulous loan is true and in some cases life changing but definitely not too good to be true as you will pay for this opportunity with an Insurance policy to protect your future. FHA UFMIP (up front mortgage insurance premium) The premium charged at the front end of the loan allows FHA to continue offering this program. A small monthly amount of insurance is also taken from your equity throughout the life of the loan to maintain this security. This monthly amount is not a direct cost paid by the client, yet it is calculated into the loan balance, to be settled by one of several options, once the loan becomes due. A very small price to pay for the benefits the loan may provide.
For more details on the H.E.C.M. (Reverse Mortgage) call Scott Gibson 435-767-1092 Axiom Financial.