Cherry Creek Reverse Mortgage: Is It Right for You?

A reverse mortgage can be a complex financial product, but it can also provide a much-needed source of funds for homeowners who are 62 or older.

To qualify for a Cherry Creek reverse mortgage, you must own your home outright or have a low balance on your mortgage.

You can borrow up to 80% of your home's value, but you'll need to consider the potential impact on your heirs.

One of the benefits of a reverse mortgage is that you can use the funds as you see fit, whether that's to pay off debt, cover living expenses, or make home improvements.

A reverse mortgage is a type of loan that allows homeowners age 62 and up to access the equity in their home. This type of loan is also known as a Home Equity Conversion Mortgage (HECM) or HECM loan.

The most common type of reverse mortgage is the HECM, which is available to seniors who are at least 62 years of age. This financial tool allows them to cash-in on the equity in their homes without having to sell their home.

Consider reading: Reverse Mortgage Age 55

The lender pays off the current traditional mortgage, if there is one, and then makes payments to the borrower for the term of the arrangement. The borrower need not worry about reimbursing the money, the loan is repaid when the home of the borrower is sold or the individual leaves the premises for any reason.

A reverse mortgage can be used to receive the loan proceeds as monthly payments, a lump sum, and/or a line of credit. It can also be used to purchase a new home, known as a HECM for Purchase.

Here are some key benefits of a reverse mortgage:

A reverse mortgage can be a reliable income source for many retired seniors, providing funds in one payment or multiple distributions, just like a paycheck. This can be especially helpful for those who are struggling to make ends meet on their fixed income.

One of the benefits of a reverse mortgage is that it doesn't affect other sources of income, such as Social Security or Medicare payments. This means you can take the cash from your home without worrying about impacting your other benefits.

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If you're considering downsizing your current living situation, a reverse mortgage may be a smart alternative. Some seniors even use the money to purchase a new home, giving them the freedom to stay in their community.

The money you receive from a reverse mortgage is typically tax-free, but it's always a good idea to speak with a tax professional to confirm your situation.

Related reading: Reverse Mortgage Tax Benefits

Using loan calculators can give you a clear picture of your monthly payments, with some calculators even allowing you to adjust interest rates and loan terms to see how it affects your payments.

A loan amortization schedule can help you understand how your payments are applied to the principal and interest, which can be a game-changer for those who want to pay off their loans quickly.

The minimum payment rule can be a useful tool for managing debt, but it's essential to remember that making only the minimum payment can lead to a longer repayment period and more interest paid overall.

Broaden your view: Do You Make Payments on a Reverse Mortgage

Some lenders offer pre-approval, which can give you an idea of how much you can borrow and what your monthly payments might look like, but it's not a guarantee of final approval.

A credit report check can help you identify potential issues that could impact your loan application, such as errors or outstanding debts, and give you time to address them before applying.

A reverse mortgage can be a reliable income source for retired seniors, providing funds in one payment or multiple distributions, just like a paycheck. This can be a welcome relief for those living on a fixed income.

You can receive this cash from your home without affecting other sources of income, such as Social Security or Medicare payments. This means you can keep your other benefits intact.

A reverse mortgage can also be a smart alternative to downsizing your current living situation. Some seniors even use the money to purchase a new home.

The money you receive from a reverse mortgage is typically tax-free, but it's always a good idea to consult with a tax professional to confirm your situation.

Worth a look: Hecm Program for Seniors

Brandon Hansen is Utah's largest HECM loan originator, with over $53 million in total volume, ranking him tenth for FHA loan origination in the nation.

He has years of experience with reverse mortgages and closed over $36 million in reverse mortgage loans in the past year alone.

Brandon is a Senior Advisor, Managing Broker, and Principal Lending Manager with Cherry Creek Mortgage, and also hosts a weekly radio show, "Senior Weekly", offering financial advice on the mortgage industry.

He believes there's a difference between a loan officer and a mortgage planner, focusing on education rather than just loans.

Hansen's impressive loan record includes funding more FHA loans in the last three years than all other lenders in Washington County combined.

Cherry Creek Mortgage is one of the few lenders with delegated HUD authority, allowing them to underwrite and close reverse mortgage loans in-house.

The company funds mortgages for over 70 banks and credit unions across the United States.

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