Hawaii Reverse Mortgage

If you’re a senior and you’re planning to retire in the beautiful islands of the tropics, consider taking out a Hawaii reverse mortgage to finance the best years of your life.  Anyone over the age of 62 who owns a home with equity is qualified to receive this type of loan.

Reverse Mortgage Hawaii Information

A reverse mortgage is unlike any other mortgage option available in the market.  In most loan situations, you must make payments to your lender in exchange for the use of funds.  With a reverse mortgage, your lender makes payments to you, and you can spend the funds you receive any way you need to.  Reverse mortgages in Hawaii are commonly used by seniors to pay for day to day living expenses.

With a reverse mortgage, your lender takes ownership of the equity in your home and provides this equity to you as cash that you can live on.  This money can help pay for medical expenses, vacations, a down payment on a new home, debt obligations, or any other bills.  There are many ways to use your home equity for financial success, though.  Make sure you gather as much reverse mortgage information as you can before making a final decision.

If you do decide to pursue this income source, you can customize your equity payout arrangement to meet your personal needs.  Your lender can deliver the money to you in any of the following ways.

• As an established payment amount each month.  This is the most common method.  It provides you with a steady stream of income.
• In full, as a lump sum payment immediately upon the close of the loan transaction.  This method is best if you plan to downsize into a new home or wish to pursue other investment opportunities.
• As a line of credit that you can access at any time.  This method is best if your expenses tend to vary widely and a steady stream of income wouldn’t suit your needs.

You can also combine any of the above arrangements to create a completely flexible payout method.

Your lender will obtain ownership of your home equity.  But don’t let this alarm you.  Your lender does not gain ownership of your home during or after a reverse mortgage.  You can continue living in your home without paying anything back to your lender until the day you pass away or decide to move out.

Upon your death, your heirs will receive ownership of the home.  They will also inherit the responsibility of paying off your reverse mortgage.  Most of the time, your heirs will sell the home and pay off the mortgage with the proceeds.  If the property decreases in value such that the sale price of the home is less than your total outstanding loan amount, don’t worry.  Federal regulations prevent lenders from collecting more than what the home is worth.  In this situation, the lender must simply suffer a loss.  Your heirs won’t see a penny of your debt beyond the value of the home that you leave to them.  A reverse mortgage can ensure that you remain financially independent.

If this seems confusing or you have questions about it, read through the HUD’s Frequently Asked Questions page or contact one of our lenders to get answers and learn more.

Hawaii Reverse Mortgage Lenders

Once you’ve decided to take out a reverse mortgage, the most important thing to consider is the lender you’ll work with.  Every lender is different.  Each one offers different rates and requires different fees.  Contact as many lenders in your area of Hawaii as possible and find out what rates and terms they provide.

Reverse mortgage fees can get expensive.  It’s critical that you find a lender who won’t charge more than what’s fair.  For further information on what to expect when applying, read our reverse mortgage checklist.

About Hawaii

Hawaii is an archipelago located between North America and Asia in the middle of the Pacific Ocean.   The dominant industry in Hawaii is tourism, but food production is also important for the local economy.  Sugarcane, pineapple, and macadamia nuts are produced in large amounts.  Honolulu, Hilo, and Kailua are among the largest cities in the area and are home to many retirees.

The islands of Hawaii offer senior citizens beautiful tropical weather, lots of warm sun all year around, and almost perfect humidity.  It’s truly a paradise for the elderly.  The only drawbacks are the rising costs of living, such as the utilities, medication, and mortgage payments.  A reverse mortgage alleviates these financial burdens.

Tony Dias - VA Loans Hawaii Inc.
Honolulu Veteran Home Loans- Free VA Loan Seminars for VetsWe at VA Loans Hawaii specialize in VA Home Loans, refinance services and educating veterans about their VA home loan benefit. We know that our customers have specific needs, and we strive to meet all of those needs with quality service and individual attention.
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