Many senior citizens may find themselves in a tough decision when considering moving from their current location. When a man, woman, or couple are enjoying their golden years, the last thing they want to do is worry about a monthly mortgage payment. Yet, many retired citizens, even if they are relatively well to-do, are not able to hand out immediate cash to cover the cost of a new house. The fact that mortgage payments are all but obligation for people looking to purchase a new home is very stressful for senior citizens who simply want to be near family, grandchildren, or a dream location, and relax by enjoying carefree days. Yet, mortgages are a fact of life, right? Well, technically yes, but there is a better option available strictly for society’s beloved senior citizens, our grandmas and grandpas, our elders and wise men/women: Fannie’s Mae’s Reverse Mortgage product.
Fannie Mae is the nation’s largest home mortgage investor. However, Fannie Mae also invests heavily in reverse mortgages. Reverse mortgages are payment plans that work oppositely from regular mortgages. For example, instead of the homeowner having to make monthly payments to a lender, the lender is the one who makes the payments directly to the homeowner. Reverse mortgages are available in every U.S state, but only for citizens 62 years or older. And, although there is a federally insured system for reverse mortgages called the Home Equity Conversion Mortgage (HECM), Fannie Mae has managed to improve the plan by implanting the nationally available “Home Keeper Reverse Mortgage”
Home Keeper is similar to standard reverse mortgage plans in most aspects, but it differs in the fact that Fannie Mae’s plan has more benefits. For example, “Home Keeper Reverse Mortgages” include all of the regular aspects of a reverse mortgage such as the following: homeowners are paid either in lump sum, monthly payments (as long as the borrower occupies the home as his/her principal residence), line of credit, or a combination thereof. If the homeowner becomes deceased, has to move out into another’s care, or decides to sell, then the lender is paid back the reverse mortgage loans by selling the property, and keeping the money. If the property is sold for more than the due loan amount, then the difference is given to the homeowner, or heir(s), if the property sells for less money than the due loan then insurance usually covers the difference.
The added benefits with Fannie Mae’s “Home Keeper” reverse mortgage plan is the ability for people to purchase a new home in one single transaction, but without the out-of-pocket cash. This gets rid of any new monthly mortgage payments that must be paid in part by the reverse mortgage loans, and aids in senior citizens keeping more of the sales proceeds from their old house, or even a heftier amount of savings that can be used for other purposes.
So, if a senior citizen sells his or her home, and makes a profit, then that person can use the profit made by his or her sell to partly fund a new housing purchase. However, instead of having to either pay for the remaining costs of the new house with out-of-pocket money, and in order to avoid taking out a mortgage, then the senior citizen can actually pay for the rest of his or her new house up-front with the Home Keeper reverse mortgage. Fannie Mae’s Reverse Mortgage product affords senior citizens amazing benefits by providing all of the conveniences of a reverse mortgage and more. Now you can relax and enjoy life to the fullest without having to worry about those pesky mortgage payments, or how you are going to pay up-front for a new house out of a savings account. After all, you need to have plenty left for spoiling the grandkids when they come to visit your beautiful new house.
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