The Lindley Team at Mortgage Express | 503.517.8641
Reverse Mortgage and Divorce: Is it a Smart Option?
Not only may a Reverse Mortgage be a viable option for divorcing clients who want to remain in the marital home; it may be a wise financial planning decision as well. Taking a reverse mortgage can also have implications on the tax bill, and for configuring potential Social Security income. You may be able to limit the income tax exposure by using cash flow from a reverse mortgage, rather than taxable withdrawals from a 401(k) or other retirement investment, to pay off a traditional mortgage or other debts. If you can delay taking Social Security by using a reverse mortgage as a source of income, you can increase the monthly payment you will eventually receive.
Divorcing clients over the age of 62 may have the option of utilizing a Reverse Mortgage for an Equity Buyout and keeping the home. The HECM is the only reverse mortgage insured by the federal government. HECM loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA tells HECM lenders how much they can lend you, based on your age and home value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.
The HECM program provides the widest array of cash advance choices. You can take your entire loan as a:
In addition, you can choose any combination of these options, and change your cash advance choices at any future time.
Plus a Monthly Advance.
The HECM program lets you combine a lump sum, a credit line, or both with a monthly advance. A monthly loan advance does not increase or decrease in dollar amount over time. So it will buy less in the future as prices increase with inflation. You can choose to have monthly HECM advances paid to you for:
Again, a Reverse Mortgage has many options for divorcing clients over the age of 62. Please contact me if I can provide additional information!
Are you or someone you know going through a divorce where real estate or mortgage is involved? We are the only Certified Divorce Lending Professionals in Portland. Contact us today for a no-obligation consultation:
503.517.8641 or email@example.com
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only, and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.
The Lindley Team
Currently, The Lindley Team is the only Certified Divorce Lending Professional team in Portland, OR. Let us help equip you for the best possible outcome in relation to your mortgage and marital home.
Not a commitment to lock or lend. Terms and restrictions apply. Not all applicants will qualify. Mortgage Express, LLC. NMLS Company ID: 40831 | www.mtgxps.com | Licensed in OR/WA/CA. Licensing in CA by the Department of Business Oversight under the Residential Mortgage Act. Mortgage Express is an Equal Housing Lender. Questions and concerns may be directed to firstname.lastname@example.org, or 10260 SW Greenburg Road, Ste. 830, Portland, OR 97223.