What is a reverse mortgage?
A reverse mortgage is a loan that is available to homeowners over the age of 62 that will allow them to convert part of the equity in their home into tax free cash. As long as these homeowners comply with the terms of the loan, (paying property taxes, homeowner’s insurance, maintaining your home) they do not have to make any monthly mortgage payments. This type of loan was created to help retirees with limited income to use their accumulated wealth to cover monthly living expenses. However, there is no restriction for how a reverse mortgage is used and many people use a reverse mortgage loan to purchase a home, payoff an existing mortgage, or as a line of credit.
This loan is called a reverse mortgage because in contrast to a traditional mortgage, the lender makes monthly payments to the borrower. Borrowers are not required to pay back the loan until their home is sold or the property is vacated. Typically, Social Security and Medicare benefits will not be affected if you aquire a reverse mortgage because it’s considered a loan and not additional income.
There are two types of reverse mortgages available:
Borrowers receive a fixed rate for the entire course of their loan. This also requires that you receive all of the proceeds of the loan at the time of closing in a lump sum. This is normally used for paying off an existing home loan or other existing obligations.
Adjustable rate mortgages are more flexible and generally provide borrowers with lower interest rates. With this option, you can choose to receive monies as a lump sum, a line of credit, or as tenure payments paid to you on a monthly basis. One of the advantages of this option is that the borrower is only paying interest on monies being utilized and the remainder is left in an account that can be accessed for future needs.
A reverse mortgage is an important financial decision and it is a requirement that the borrowers be counseled by a third party (not the lender) to ensure their protection.
Interested in learning more about how a reverse mortgage could benefit you? Click here to contact us today for more information on reverse mortgages in Bellingham.
Kay Gannon worked with the Bjornson Team to get her on the reverse mortgage program!
“29 months into my HECM / Reverse Mortgage – I can’t tell you how THRILLED I am that I took that step! It’s enabled me to relax and have a WONDERFUL ride in retirement!!!!!! Thanks for all your help seeing this through!” – Kay G, Bellingham, WA
I just worked with one of the real estate agents that Marie recommends, and am so thrilled. I found the home I wanted but it sold before I could make an offer. A few weeks later that same property came back on the market. My real estate agent (along with Marie) helped me jump on it before others put in offers. I was the first in line with an offer this time and we closed the loan yesterday! (30 days from start to finish)
Also, who would have known there are so many choices and ways to do a loan … I didn’t, even though I have worked for Marie in the past.
I want to let you know that I was very impressed with your thoughtfulness and your ability to offer different options based on our goals. I have been getting home loans for 43 years and I’ve never been presented with the information like you presented yesterday.
You know you are my #1 pick, but this was really amazing. Thanks so much for persisting when I thought it was just option 1, 2 or 3. Option four was perfect.
We are eternally grateful for Marie and her team. They far surpassed our expectations and made our dream home a reality. Marie takes a personal interest in each client’s scenario, and really makes some magic happen! Thanks, you guys! You’re awesome!
For at least three years, we wanted to move from Chattanooga, Tennessee, to the Bellingham, Washington, area. We drove the 2,600 miles twice in the past three years to scope out the area in advance of my June 2017 retirement from teaching.
When we put our house on the market in Chattanooga, our real estate agent suggested Carol Cattle of Windermere Realty who in turn referred us to Marie Bjornson and Fairway Mortgage.
Marie Bjornson and her Fairway Mortgage Team are hard-working, accurate, and thorough. Like many I think, we came in with our own set of challenges and through Marie’s creative thinking, dedication and initiative we were able to secure a mortgage and close on-time. Buying a house and securing a mortgage is nothing less than high-anxiety. I personally had more than one melt-down during the process and Marie and her team were wonderful and patient, talking me through the steps, answering all of my questions and allying the fears that arose.
My husband and I were ready to take the next step in our life. We wanted to buy our first home. I knew nothing about buying a house! So I got on the phone and started to call around. Most people I talked to sounded too busy to answer my questions and just wanted me to fill out the application right away.
Then I call Fairway and I spoke with Louise. She was so kind and patient with me.
I just closed on a difficult transaction with Marie as the lender and myself as the Seller and Buyer representative. Marie was very creative through the whole process and communicated extraordinaire. I could tell she really cared about the outcome for the client. We closed the transaction and both Seller and Buyer are more than pleased. I would recommend Marie for any financial needs, especially home purchasing.
My wife Becky and I have now purchased 11 homes in the past 43 years. This was the Least painful purchase we have ever experienced.
We really like the way Marie anticipated issues and got ahead of the game regarding needed documentation. The result was a very smooth closing and two very happy customers. Thank you, Marie.
What can we say about Marie? We had no Realtor and no prior experience buying a house. We needed some “hand-holding” (understatement). Marie and her team took GREAT care of us! She worked TIRELESSLY to get us a great rate and saw us through the process from beginning to end. Do not hesitate to call her, she is a GEM!! Thank you Marie!
Marie’s best asset – besides being a top-notch lender ~ she thinks outside the box. If you have a buyer that wants to buy and a seller that wants to sell to that buyer, Marie will get it done… all legally, quickly and painlessly. She just has “that” ability to know how to review a buyer’s qualifications and then package a loan the correct way. She has taken several loan packages that were turned down and examined the faults and made them whole. She knows what the lender is looking for to make it a smooth transaction. I highly recommend Marie to my colleagues and clients.
Jo Anne Wyatt, Windermere
As a licensed realtor and homeowner, I consulted with Marie several times in the last couple years. I heartily recommend Marie Bjornson for those interested in easy, no hassle loans. Here is a professional who gets loans approved when most others cannot. Her vast familiarity in all phases of the loan and banking industry, accompanied by her experience as a Lender and a Certified Public Accountant let you know right away that you are dealing with the best. Yet, what makes dealing with Marie Bjornson truly remarkable is her unfailing dedication to you, her client, to make the process simple and to ensure that you do not spend one dime more than necessary. I am always grateful for the kindness and care that Marie gives those I may refer to her.
Marie is an outstanding loan officer. I’ve turned to her on advice regarding investment loans, reverse mortgages and many other loan types that require a high level of expertise. She is always “in the know” and gives unconditionally to her clients. It’s rare to have someone with so much knowledge and a heart of gold. I would recommend her to anyone!
Marie Bjornson is the most awesome person to work with. Even when we felt it was a shot in the dark to ever own our own home, Marie assured us we will get there. She held our hand for over a year as we got ourselves in a home buying position. During that time Marie became more like a friend then a lender and her insights made all the difference. We plan on working with Marie again in the future for our next home-buying excursion. Fairway Mortgage in Bellingham is Fabulous!
I tried to use Whidbey Island bank long story short, days before closing the underwriters decided not to approve me. They gave several reasons such as recent short sale and potential payment-shock. I was forced to look for a different lender and I’m so thankful to find Marie. Marie and her crew were able to foresee all the potential underwriting concerns and got this same mortgage through without any troubles. My experience with Marie is that she is hardworking, experienced and proactive. If you are buying a house and especially if you have anything “tricky” with your situation–I highly recommend Marie. Lending now days has tough requirements and it’s nice to have someone as experienced as Marie for help. Today Marie continues to be willing to help me and recently sent a friend to her who had a great experience.
Kathy, our real estate agent, recommended Marie. We were told she was the best. Our goal was to get a mortgage for a condo in Birch Bay. Marie was very creative and was able to think outside the box – she made it happen! She was able to put all the puzzle pieces together. We had a very difficult loan to deal with and she was able to get our rental home refinanced, a new car with the payments cut in half and our condo with the ocean view!
Marie went way above and beyond the call of duty, 7 days a week, working with me and my realtor to help with numerous offers until we finally got one accepted in this insane market.
Marie is friendly, professional and efficient. Her office staff complements the comfortable atmosphere she provides in her office. We thoroughly enjoyed meeting her and working with her on our Reverse Mortgage Loan (mortgage conversion).