A reverse mortgage is a loan from the U.S. Government for 50% to 75% of the value of a home owned by a homeowner aged 62 and older. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner. The funds from a reverse mortgage are tax-free. The loan doesn't have to be repaid in the homeowner's lifetime, however, when the homeowner dies, the money received plus approximately 4% interest is repaid by their estate. The loan is repaid when the homeowner ceases to occupy the home as a principal residence, due to the homeowner (the last remaining spouse, in cases of couples) passing away, selling the home, or permanently moving out.
Puerto Rico Home Equity Conversion Mortgage (HELM) — Reverse Mortgage: A Comprehensive Guide Overview: Puerto Rico Home Equity Conversion Mortgage (HELM), also known as a reverse mortgage, is a financial product designed to provide senior homeowners with a source of income by converting a portion of their home equity into loan proceeds. Available to those aged 62 or older, this type of mortgage offers various benefits, such as eliminating monthly mortgage payments and enabling seniors to stay in their homes while enjoying their retirement years. Types of Puerto Rico Home Equity Conversion Mortgage — Reverse Mortgage: 1. StandarHELMCM: The most common type of reverse mortgage in Puerto Rico, the Standard HELM allows homeowners to receive their loan proceeds in varying payment options, including a lump sum, line of credit, monthly cash advances, or a combination of these. The borrowers' age, home value, and interest rates determine the loan amount. 2. HELM for Purchase: This variant of the HELM program allows senior homeowners to purchase a new primary residence using a reverse mortgage. It provides an opportunity for older adults to downsize, relocate, or live in a more suitable home while not having to make monthly mortgage payments. 3. HELM Refinance: Designed for those who already have an existing reverse mortgage, HELM refinance allows homeowners to refinance their current loan and potentially access more favorable terms, such as lower interest rates or increased loan amounts. 4. Proprietary Reverse Mortgage: Occasionally known as a jumbo reverse mortgage, this type of reverse mortgage is offered by private lenders and not insured by the Federal Housing Administration (FHA). Proprietary reverse mortgages may be suitable for homeowners with higher home values and can provide higher loan amounts than the standard HELM. Benefits of Puerto Rico Home Equity Conversion Mortgage — Reverse Mortgage: 1. No monthly mortgage payments: With a reverse mortgage, senior homeowners are not required to make monthly repayments as long as they meet certain obligations, such as maintaining the property and paying property taxes and homeowner's insurance. 2. Tax-free loan proceeds: The loan proceeds received through a reverse mortgage are typically tax-free, providing an additional financial benefit for retirees. 3. Flexibility in receiving funds: Borrowers have multiple options for receiving their loan proceeds, including a lump sum, monthly cash advances, or a line of credit that can be used as needed. This flexibility allows seniors to manage their finances according to their specific needs. 4. Staying in your home: Puerto Rico HELM enables older adults to stay in their homes while accessing the equity built up over the years. This can provide financial stability, especially for those who wish to age in place and maintain their independence. In conclusion, the Puerto Rico Home Equity Conversion Mortgage (HELM) — Reverse Mortgage is a financial tool tailored for senior homeowners aged 62 or older. It offers various types of reverse mortgages, including the standard HELM, HELM for purchase, HELM refinance, and proprietary reverse mortgages. With the benefits of eliminating monthly mortgage payments, tax-free loan proceeds, flexibility in fund disbursement, and the ability to remain in one's home, this program provides a viable option for Puerto Rico seniors seeking additional income during their retirement.Puerto Rico Home Equity Conversion Mortgage (HELM) — Reverse Mortgage: A Comprehensive Guide Overview: Puerto Rico Home Equity Conversion Mortgage (HELM), also known as a reverse mortgage, is a financial product designed to provide senior homeowners with a source of income by converting a portion of their home equity into loan proceeds. Available to those aged 62 or older, this type of mortgage offers various benefits, such as eliminating monthly mortgage payments and enabling seniors to stay in their homes while enjoying their retirement years. Types of Puerto Rico Home Equity Conversion Mortgage — Reverse Mortgage: 1. StandarHELMCM: The most common type of reverse mortgage in Puerto Rico, the Standard HELM allows homeowners to receive their loan proceeds in varying payment options, including a lump sum, line of credit, monthly cash advances, or a combination of these. The borrowers' age, home value, and interest rates determine the loan amount. 2. HELM for Purchase: This variant of the HELM program allows senior homeowners to purchase a new primary residence using a reverse mortgage. It provides an opportunity for older adults to downsize, relocate, or live in a more suitable home while not having to make monthly mortgage payments. 3. HELM Refinance: Designed for those who already have an existing reverse mortgage, HELM refinance allows homeowners to refinance their current loan and potentially access more favorable terms, such as lower interest rates or increased loan amounts. 4. Proprietary Reverse Mortgage: Occasionally known as a jumbo reverse mortgage, this type of reverse mortgage is offered by private lenders and not insured by the Federal Housing Administration (FHA). Proprietary reverse mortgages may be suitable for homeowners with higher home values and can provide higher loan amounts than the standard HELM. Benefits of Puerto Rico Home Equity Conversion Mortgage — Reverse Mortgage: 1. No monthly mortgage payments: With a reverse mortgage, senior homeowners are not required to make monthly repayments as long as they meet certain obligations, such as maintaining the property and paying property taxes and homeowner's insurance. 2. Tax-free loan proceeds: The loan proceeds received through a reverse mortgage are typically tax-free, providing an additional financial benefit for retirees. 3. Flexibility in receiving funds: Borrowers have multiple options for receiving their loan proceeds, including a lump sum, monthly cash advances, or a line of credit that can be used as needed. This flexibility allows seniors to manage their finances according to their specific needs. 4. Staying in your home: Puerto Rico HELM enables older adults to stay in their homes while accessing the equity built up over the years. This can provide financial stability, especially for those who wish to age in place and maintain their independence. In conclusion, the Puerto Rico Home Equity Conversion Mortgage (HELM) — Reverse Mortgage is a financial tool tailored for senior homeowners aged 62 or older. It offers various types of reverse mortgages, including the standard HELM, HELM for purchase, HELM refinance, and proprietary reverse mortgages. With the benefits of eliminating monthly mortgage payments, tax-free loan proceeds, flexibility in fund disbursement, and the ability to remain in one's home, this program provides a viable option for Puerto Rico seniors seeking additional income during their retirement.
