Reverse mortgage Hollywood FL with Kevin A. Guttman

Reverse mortgage Hollywood

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 Hollywood 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 Hollywood FL?

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.

Hollywood 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?

Geographic info for Hollywood, FL

Hollywood is a city in Florida. It is in the southern part of Broward County, between Fort Lauderdale and Miami. As of July 1, 2019, there were 154,817 people living in Hollywood. The city was founded in 1925, and in the 1950s and 1960s, it grew quickly. It is now the 12th largest city in Florida. Hollywood is a major city in the Miami metropolitan area, which had an estimated population of 6,012,331 in 2015. On average, it is between 68 and 83 degrees Fahrenheit (20 and 28 degrees Celsius).

Joseph Young moved to South Florida in 1920 so he could build his own “Dream City in Florida.” In his plan, the beaches of the Atlantic Ocean would stretch westward, and there would be man-made lakes, roads, and the Intracoastal Waterway. He wanted to include big parks, schools, churches, and golf courses, all of which were very important to Young in his life. Young spent millions of dollars building the city. In 1925, he was chosen as the city’s first mayor. People from the north, called “snowbirds,” quickly moved to this new town. They left the north in the winter and the south in the summer to avoid the harsh weather. By 1960, there were more than 2,400 hotel rooms and 12,170 homes with just one family. Young bought up thousands of acres of land around 1920, and named his new town “Hollywood by the Sea” to distinguish it from his other real-estate venture, “Hollywood in the Hills”, in New York.

A picture of Hollywood Beach taken in late October 2020, during the COVID-19 pandemic.

The Florida guide, published by the Federal Writers’ Project, describes the early development of Hollywood, an early example of a planned community that proliferated in Florida during the real-estate boom of the 1920s:

In the early days of development, 1,500 trucks and tractors were used to clear land and level streets. Two yacht basins, designed by General George Washington Goethals, who was the chief engineer for the Panama Canal, were dug out and connected to the Intracoastal Waterway. When the city lights came on for the first time after a big power plant was put in, ships at sea thought Miami was on fire. Their radio alarms and the red glow in the sky brought people from miles away to help.

Part III: The Florida Loop, Florida: A Guide to the Southernmost State, Federal Writers’ Project (1947)

Land buyers were enticed to buy by giving them free hotel rooms and entertainment. They were also “driven around the city-to-be on trails blazed through palmetto thickets; it is said that some stretches were so lonely and sad that many women became hysterical and a few fainted.” Young had a dream that Hollywood would have lakes, golf courses, a luxury beach hotel (the Hollywood Beach Hotel, which is now the Hollywood Beach Resort), country clubs, and a main street called Hollywood Boulevard. After the 1926 hurricane in Miami, Hollywood was badly damaged. Local newspapers said that only Miami had more damage than Hollywood. After Young died in 1934, the city was hit by more damaging hurricanes, and the stock market crashed, causing many people to lose money.

In 2017, Hurricane Irma hit Florida and caused a lot of damage. Because the hurricane came out of nowhere, almost 700 elderly people who lived in nursing homes died. After the hurricane, when it was looked into, it was found that some of the deaths weren’t caused by the hurricane itself, but by the bad conditions they were left in afterward. Four people who worked at the nursing home were charged with negligence and manslaughter because of this. After Hurricane Irma caused damage in Florida in 2017, the Florida Department of Economic Opportunity started a program called “Rebuild Florida” to help people who were hurt by the storm. The first thing that Rebuild Florida worked on was its Housing Repair Program, which helped families rebuild their homes after Hurricane Irma. The program gives priority to people with low incomes who are vulnerable, like the disabled, the elderly, and families with children under the age of five. [needs citation] The success of this program has different effects in different parts of the city. For example, hundreds of people say they were left without help.

Reverse mortgage rates Hollywood

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.

Hollywood 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 Hollywood FL?

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!

Jumbo reverse mortgage in Hollywood

A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.

Jumbo reverse mortgage loans are targeted at new homeowners with homes valued upwards of 600,000$. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.

Private firms and larger banks are generally responsible for jumbo reverse mortgages, however, mortgagers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.

Reverse mortgage lenders near Hollywood FL

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.

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Image Source: Dru Bloomfield – Wikipedia Commons