Reverse Mortgage Denver with Kevin A. Guttman

Reverse mortgage Denver - Kevin A. Guttman

Are you about to retire from work, and you’re putting things in place to have a lovely retirement? Then, going for a reverse mortgage in Denver is an option you might want to opt for. You’re qualified to get a reverse mortgage if you are over 62 years, and you own a home with adequate home equity. As a homeowner, a reverse mortgage allows you to borrow equity. Rather than paying the lender, the lender makes payment to the borrower.

How does reverse mortgage work in Denver?

With a reverse mortgage, you’re not required to make any monthly mortgage payments as long as you still stay in the house, and you continue to meet your usual obligations. These obligations include payment of your property taxes, maintaining your property, plus homeowners’ insurance.

Denver Reverse Mortgage Payments

Reverse Mortgage payments can be made either as a lump sum, Periodic advances through a line of credit, as a monthly payment as long as the borrower still resides in the home, or as a combination of any of them. Now comes the question, what precisely do you stand to gain by taking a reverse mortgage?

Denver demographic info

Denver is in the center of the Front Range Urban Corridor, between the Rocky Mountains to the west and the High Plains to the east. Denver’s topography consists of plains in the city center with hilly areas to the north, west, and south. According to the United States Census Bureau the city has a total area of 155 square miles (401 km2), of which 153 square miles (396 km2) is land and 1.6 square miles (4.1 km2) (1.1%) is water. The City and County of Denver is surrounded by only three other counties: Adams County to the north and east, Arapahoe County to the south and east, and Jefferson County to the west.

Although Denver’s nickname is the “Mile-High City” because its official elevation is one mile above sea level, defined by the elevation of the spot of a benchmark on the steps of the State Capitol building, the elevation of the entire city ranges from 5,130 to 5,690 feet (1,560 to 1,730 m). According to Geographic Names Information System (GNIS) and the National Elevation Dataset, the city’s elevation is 5,278 feet (1,609 m), which is reflected on various websites such as the National Weather Service.

Government
• Type consolidated city and county
• Body Denver City Council
• Mayor Michael Hancock (D)

Area
• State capital and consolidated city and county 154.92 sq mi (401.24 km2)
• Land 153.28 sq mi (396.99 km2)
• Water 1.64 sq mi (4.25 km2) 1.1%
• Metro 8,414.4 sq mi (21,793 km2)

Elevation
5,130–5,690 ft (1,564–1,734 m)

Population (2010)
• State capital and consolidated city and county 600,158
• Estimate (2019) 734,134
• Rank US: 19th
• Density 4,744.39/sq mi (1,831.82/km2)
• Urban 2,374,203 (US: 18th)
• Metro 2,932,415 (US: 19th)

Reverse mortgage rates Denver

As a homeowner, reverse mortgage makes you live a more comfortable retirement. It allows you to continue living in your home while also getting paid. Reverse mortgage rates will vary opto the current market rates, loan amount and credit history. Contact the Kevin A. Guttman team to see what today’s mortgage rates are, call (877) 251-9709

Here are the benefits to a reverse mortgage.

  • You remain as the homeowner on title.
  • You still retain ownership of your home.
  • You can also choose to take your funds whichever way you desire.
  • You can take it as a lump sum at once.
  • You can also take it as a line of credit that can be tapped when needed.
  • You can choose to have a steady stream to be paid monthly for a specific period, or as long as you are still a resident of the home.
  • You are entitled to as citizens from the government are generally not affected by a reverse mortgage loan.
  • You’ll still get your social security or your Medicare benefits.

Once your loan has been repaid, you or your heirs are entitled to the remaining equity. In other words, the remaining equity belongs to you. These are the benefits of taking a reverse mortgage.

Denver reverse mortgage broker

Another option is that you can be paid with a combination of these options. However, if you opt for a fixed-rate loan, you’ll be paid a single disbursement lump sum. This is good if you have a significant project you need to spend on. Contact the team at Kevin A. Guttman to get more information on a reverse mortgage.

Like every form of home financing, there are pros and cons to each. For many, a reverse mortgage is a huge lifeline and well suited to their particular situation. For those homeowners, the pros of a reverse mortgage outweigh the cons.

Here are some reverse mortgage pros for your consideration.

  • The proceeds are not taxable.
  • The borrower is not responsible for the repayment of the loan.
  • Backed by the Federal Housing Administration.
  • You can pay off any time, no pre-payment penalty.
  • Equity doesn’t count as income and shouldn’t affect Social Security or Medicare benefits.
  • The term of the loan goes to age 150 of the youngest borrower.
  • The loan can be fixed or adjustable-rate.

Here are the cons of a reverse mortgage.

Property taxes, homeowners insurance, other housing fees such as HOA dues or Flood insurance must be paid by you as with any home. You have to live in the home 6 months or more a year as your primary residence, and maintain the home.

  • A reverse mortgage has strict regulations by the Federal Government.
  • Closing costs are higher than on a traditional mortgage.
  • There is a lien placed on the home.
  • There will be less equity for the heirs.
  • Loan balance can grow over time

What qualifies for a reverse mortgage in Denver?

This particular type of home financing is only available to senior homeowners and the program has been recently reformed to be more fair and favorable towards seniors. A reverse mortgage, for many, is a solution that changes their life.

  • You must be 62 years or greater to qualify.
  • Not all properties qualify for a reverse mortgage.
  • You must have enough equity to qualify.
  • Vacation homes and investment properties are not eligible.

One couple we recently helped wanted to downsize to a house that had main floor living and no yard maintenance. They had enough equity in their home to qualify for the HECM For Purchase (H4P). They were able to purchase a home with main floor living in the neighborhood close to their grand kids and have NO monthly mortgage payment. For them, the cons of a reverse mortgage were outweighed by the benefits!

Reverse mortgage lenders near Denver

If you want to know if a reverse mortgage is right for your situation, you can get a free confidential analysis. We’ll ask a few questions and can easily determine if your property qualifies for a reverse mortgage. Get your FREE confidential analysis.

Image: Creative Commons Attribution-Share Alike 4 Author Zenhaus

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