Backstory: A homeowner hoped to refinance his current adjustable-rate mortgage into a lower-rate loan. Since he had taken out his current loan seven years ago, he had retired and was no longer able to show enough income to qualify for a new loan. His other option was to sell his home and downsize or move out of the area. Neither option appealed to him.
A senior specialist referred him to Stevens, who showed him that a home equity conversion mortgage could pay off his current loan and release him from future loan payments for the rest of his days. This would allow the borrower to live comfortably on his retirement income. The calculations also showed her borrower that there was ample equity to leave his heirs when he left or sold the home, which was an important consideration to the homeowner.
Stevens and her team completed the transaction within 30 days, providing great to relief to her client.
The government sponsored Federal Housing Administration loan allows adults ages 62 and older to halt mortgage payments forever. The program requires the home to be maintained as a primary residence and the owner to stay current on property taxes and hazard insurance. As non-taxable income, it does not affect Medicare, Social Security or pensions.