Page 26 - AreaNewsletters "Jan 2022" issue

B US I N E S S & F I N A N C E Reverse Mortgage Is it for you in 2022? Is a reverse mortgage a good idea? While there can be speculation, our hope is that you become fully informed of this A unique mortgage loan and make the appropriate decision for you and your family given your unique situation. reversemortgageisauniqueloanthatallowshomeowner(s) • The home must be lived in and be the primary residence of 62 years of age and older to draw on the value of their home, which is paid to the homeowner(s) in a variety of payout options or used as a line of credit. One of the unique features of a reverse mortgage loan is that it does not require mortgage repayment until the homeow ner(s) no longer reside in the residence. Types of Reverse Mortgages There are different types of reverse mortgages. The two most popular are the HECM (Home Equity Conversion Mortgage, insured by the FHA, Age 62 +) and Jumbo or Proprietary reverse mortgages for high value homes and borrowers age 55 and older. Quali cations for HECM Reverse Mortgage To qualify for a reverse mortgage loan there are some basic requirements, such as: • At least one borrower (that will be on title) must be at least 62 years old. the borrower/s. • There must be suf cient equity in the home. While there is no speci c amount of equity required - as a general rule of thumb - you’d want at least 50% equity in your home since you will need to pay off your existing mortgage with the loan proceeds. The more equity you have the more loan proceeds you will have access to. • For a HECM loan, all applicants are subject to a nancial as- sessment to determine their nancial capacity and willingness to pay the loan obligations, such as taxes and insurance. We at Fit Lending are reverse mortgage specialists and are here to assist you as you explore your options and whether a reverse mort- gage solution is right for you. Our goal is that as you learn more about the reverse mortgage you have all the information you need to make the best decision for you and your family. We aim to provide world class service from start to nish. FirsTier Bank Banking CD Rates Special CD Rate .65% APY* 11 Month Term Castle Rock’s only community bank. *Annual Percentage Yield (APY) and interest rate for Certi cate of Deposit (CD) may change after account opening. Fees could reduce earnings on the CD. A penalty may be imposed for early withdrawal. *The CD is automatically renewed into a Standard 12 month CD with current rate at renewal. *The Annual Percentage Yield is current as of December 8, 2021. January 2022 • Castle Rock “AreaNewsletters” 26