By Fran Peart Mitsumura, Branch Manager
First Hawaiian Mortgage Corporation
www.FirstHawaiianMortgage.com
Most home owners – especially those with more than a decade of ownership - are sitting on a large pool of money in the form of equity. Not a very liquid pool you might think, but a reverse mortgage can open the tap now. Let it flow to achieve goals you thought weren’t possible.
You may dream of traveling and maybe owning a second home on Maui or the mainland. In retirement, you may want to visit grandchildren often or have them visit you. A reverse mortgage is a tool that, without touching your existing budget, can allow you to live your dreams.
Here’s how it works: we establish a value for your home, take your age and any existing mortgage or debt, then calculate how much interest will accrue in your estimated life span. This formula will give us reverse mortgage types (there are many) available to you and how much cash you are eligible for. The money can come however you want it – a lump sum, monthly income and/or a home equity loan available when you need it.
Again, the beauty of today’s reverse mortgage industry is the many options available to suit your particular needs.
Reverse mortgages have come a long way since their inception. For example, we can do loans on homes where the value at maturity can go as high as $4,000,000! Think of the flexibility. You could take out cash for whatever reason – a down payment on that second home perhaps - and with left over equity, take a monthly draw on an equity line to pay expenses in your homes, or for plane tickets to wherever.
And remember, you don’t have a payment as long as you live in the house.
Sound impossible? Well, it’s not. Obviously, there are criteria to determine the loan amount you can obtain, but the process is virtually painless. Keep in mind some reverse mortgages are expensive and limit your value at maturity. We are fortunate to have the latest products available, offering low to no cost loans with a minimum loan amount of $275,000.
Another key piece of information that many folks don’t know is that upon your death, your heirs can buyout the reverse mortgage. So if you have more equity than you use, your heirs can still benefit.
Now that I have peaked your curiosity, write down your questions and call us today. A consultation will also be available with an independent third party so we are assured that you have all the information before making decisions. And as with any financial decision, always consult your CPA.
About the Author: Fran Peart Mitsumura is the Branch Manager of First Hawaiian Mortgage Corporation, a mortgage banker and broker located in Lahaina. She has over 26 years in financing Maui properties and is not only able to finance Maui properties, but is able to finance homes in many states on the Mainland as well. She was awarded Realtor’s Choice as “Affiliate of the Year”.
Fran Peart Mitsumura, Branch Manager
First Hawaiian Mortgage Corporation
Phone: 808.661.8886 or 800.599.6284
Fax: 808.877.3925
Website: www.FirstHawaiianMortgage.com
Email:
Statements or expressions of opinion appearing herein are those of the authors and not necessarily the views or opinions of MAUI, A Property Portfolio LLC, its publishers or staff. MAUI, A Property Portfolio LLC, its publishers and staff disclaim any liability arising from reliance upon any information or opinions contained herein.
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