Reverse Mortgage

 Keep the house, get the cash!

 

We are Reverse Mortgage Experts! 

 

The specialists at American Pacific Mortgage passionate about seniors and their right to age with dignity  in place.  We believe that everyone deserves the right to use the equity in their homes to enrich their lives, (whether that be in the form of home improvement or fixing their homes to accommodate their changing lives) augmenting their retirement income, obtaining additional cash for medical needs, travel or for any other needs you may have.  Whatever your needs are, you’ve spent a lifetime paying for your home to build equity and now it’s time for your equity to pay for those needs for you.

 

Why use a Reverse Mortgage?

 

The specialists at APMC know all the lenders’ guidelines, who allows the most cash to the borrowers under various circumstances and who has what programs available, etc.  In other words, the professionals at APMC will make sure you get the program which best suits your needs…not just one of the ones that they happen to offer. 

 

We work for you to “Put your equity in reverse to keep your life moving forward”! 

 

What is a reverse mortgage?

 

A reverse mortgage is a home loan (used for any purpose) where seniors, 62 and older, can access the equity (cash) built up in their home.

There are several different reverse mortgage programs. Fannie Mae Home Keeper®, Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM) are three such programs. As demand increases, more reverse mortgage programs from different organizations will become available.

It is called a reverse mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, rather than in the beginning.


 

What are some of the benefits of a reverse mortgage?

 

  • Strengthen your personal and financial independence.
  • Help pay for health care or other needs.
  • You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
  • The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
  • Keep your Medicare or Social Security benefits.
  • Use it as a credit line and draw upon it as needed.
  • Get all your cash right away.
  • Get the best of both—get cash now and have a balance in reserve to use as a credit line.
  • No Income Requirements: The homeowner does not need to be working and is not qualified based on income.

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

Assumptions*

Regular monthly advances $500
Annual interest rate 7.0 %
Monthly interest rate .583% (.07 / 12)

Month Beginning Balance Interest Ending Balance Cash Disbursement
0 0 0.00 0.00 $500.00
1 $500.00 $2.92 $502.92 $500.00
2 $1,002.92 $5.85 $1,008.77 $500.00
3 $1,508.77 $8.80 $1,517.57 $500.00
4 $2,017.57 $11.77 $2,029.34 $500.00
5 $2,529.34 $14.75 $2,544.09 $500.00
6 $3,044.09 $17.76 $3,061.85 $500.00
7 $3,561.85 $20.78 $3,582.63 $500.00
8 $4,082.63 $23.82 $4,106.44 $500.00
9 $4,606.44 $26.87 $4,633.31 $500.00
10 $5,133.31 $29.94 $5,163.26 $500.00
11 $5,663.26 $33.04 $5,696.29 $500.00
12 $6,196.29 $36.15 $6,232.44 $500.00

*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.