Unlock the Value in Your Home with
Zenith Reverse Mortgages
Are you a homeowner looking for a way to unlock the equity in your home while still keeping your home and lifestyle?
With Zenith Reverse Mortgage program, you can receive payments based on the value of your home without having to sell or move. You get the cash you need to live the life you want, and you get to stay in the place you call home.
Discover Your No Hassle Estimate Today!
Are you interested in learning more about how a reverse mortgage could help you access the equity in your home without any hassle? Zenith Reverse Mortgages is here to help.
Our team of experts can provide you with a personalized estimate to show you just how much you could receive based on your home's value. With our no hassle approach, you can rest assured that the process with be smooth and stress-free.
Frequently Asked Questions
What is a Reverse Mortgage?
A Reverse Mortgage (RM) or a Home Equity Conversion Mortgage (HECM), is a way to turn some of the equity in your home into tax free cash without being required to make monthly re-payments. The sell of the home pays the loan balance at the time of your passing, or when you move from the property permanently.
A RM is a unique loan that allows senior homeowners access to a portion of the equity they have built up in their homes without adding any required repayments. They always remain the sole owners of the property and any money they receive is tax free, also, there are no restrictions on how the money can be spent by the homeowner.
How do I Qualify for a Reverse Mortgage?
At least one borrower needs to be 62 or older
You live in the home as your primary residence. At least 6 months and 1 day of every year (you can’t use this property as a rental at any time)
You must own your home, or have a small mortgage balance.
HUD required counseling must be done prior to application. (To assure you understand the entire process and fees)
You must continue to pay Property Taxes, Insurance and all HOA yearly fees
How much money will I have access to?
It depends on the age of the youngest of the borrowers, the value of the home, how much you owe if anything and current interest rate at the time of closing. The older you are the more you have access to.
Will I have to pay taxes on any proceeds I receive from a RM?
NO. The proceeds are not considered income, so they are tax free
Why is there an MIP fee to do a RM?
Reverse Mortgages are a premium FHA product. Safety nets have been put in place by FHA to ensure Security with the Senior community.
One is it is a non-recourse loan which means you will never owe more than your home is worth and your heirs will never be responsible for any debt under the loan. Should the balance ever exceed the value of the home, the MIP kicks in to pay the difference, so the lender always gets paid Regulated by HUD and Insured by FHA. Interest rate caps. No pre-payment penalties. Origination and 3 rd party fee caps. The remaining closing costs and fees are standard fees for any loan.
What happens if a spouse dies?
Nothing changes if both spouses were on the original RM. When the 2 nd borrower dies, then the loan is called due and payable. Some non-borrowing spouse rules apply.
Does the Bank or the Lender have title to my home?
Title always stays in the borrower’s name. The home can also be titled in a trust if the borrowers prefer and retain control to sell, with no penalties. Also, there are no requirements to stay in your home for any length of time.
Will I have to pay anything out of pocket to get a RM?
The mandatory counseling is done prior to application and is the responsibility of the borrowers, that charge is paid out of pocket, but all other fees are included in the loan. The counseling is usually $125.00 and is some cases is done at no charge. Please ask for the list of Reverse Mortgage Counselors.
Will a RM eat up all the equity, so I leave nothing to my heirs?
Any remaining equity left after paying off the RM goes directly to your estate or is passed to your heirs.
Pros & Cons of a Reverse Mortage
Continue to live in your home and retain title as long as you keep your T/I/H in place
Proceeds are tax free--- You choose your disbursement options
Non-Recourse Loan--- Never pay/owe an amount of mortgage that exceeds the value of your home at time of pay off
LOC will never go away* you will always have access unlike a HELOC
No monthly mortgage payments are required (you DO need to follow loan guidelines)
Age in place
Spouse can stay after one dies*
Use your proceeds for anything you like
You don’t have to move in with your kids
Afford in home nursing should you need than
Leave less money for your heirs
Balance of the loan increases over time as does the interest on the loan and the fees associated
25 Ways to use a HECM
The New Reverse Mortgage is a versatile retirement funding tool that can be utilized in many ways. Here are just some of those ways.
Pay off your forward mortgage to reduce your monthly expenses and increase your cash-flow.
Re-model your home to accommodate aging limitations.
Maintain a line of credit (that grows) for health emergencies and surprises.
Cover monthly expenses and hold on to other assets while their value continues to grow.
Cover monthly expenses and avoid selling assets at depressed values.
Pay for health insurance during early retirement years until Medicare eligible at 65.
Pay your Medicare Part B & D costs.
Combine life tenure payments with Social Security and income generated by assets to replace your salary and maintain your monthly routine of paying bills from new income.
Pay for your children’s or grandchildren’s college or professional education.
Maintain a “standby” cash reserve to get you through the ups and downs of investment markets and give you more flexibility
Combine proceeds with sale of one home to buy a new home without a forward mortgage and monthly mortgage payments.
Pay for long-term care needs.
Fill the gap in a retirement plan caused by lower than expected returns on your assets.
Pay for short term in-home care or physical therapy following an accident or medical episode.
Pay for a retirement plan, estate plan, or a will.
Convert a room or basement to a living facility for an aging parent, relative, or caregiver.
Set up transportation arrangements for when you are no longer comfortable driving.
Create a set aside to pay real estate taxes and property insurance.
Delay collecting Social Security until it maxes out at age 70.
Eliminate credit card debt and avoid building new credit debt.
Cover monthly expenses in between jobs or during career transition without utilizing other saved assets.
Cover expenses and avoid taxes for selling off other assets.
Purchase health-related technology that enables you to live in home alone.
Pay for an Uber or Lyft account so you have mobility and access to appointments and social activities.
Help your adult children through family emergencies.