Honolulu (KHON2) – When it comes to financial planning in retirement, many seniors seek ways to maintain their quality of life and secure their financial well-being. One often-overlooked option is a reverse mortgage. In this article, Primary Residential Mortgage’s regional branch manager, Nelson Oyadamori, helps us with the concept of reverse mortgages, shedding light on what they are and how they can benefit older homeowners.
A reverse mortgage is a unique loan available to senior homeowners aged 62 and above. While it shares similarities with traditional mortgages and home equity lines of credit, one significant difference sets it apart: there are no mandatory monthly payments. Instead, the borrower has the option to make payments at their discretion.
Although there are no monthly obligations, a reverse mortgage is, indeed, a loan that must be repaid. The loan is typically settled when the homeowner is no longer using the property as their primary residence, either because they’ve moved out or due to the passing of the last surviving spouse. Over time, the interest on the loan accumulates and is added to the balance, causing it to increase. However, the benefit is that homeowners can access cash without affecting their usable retirement income, as eligibility is primarily based on age, not income.
One significant misconception surrounding reverse mortgages is the belief that the lender takes ownership of the home. This is far from the truth. The borrower maintains title to their property, as long as they fulfill obligations such as paying property taxes, homeowner’s insurance, and maintenance fees.
For nearly two decades, Primary Residential Mortgage, Inc. (PRMI), has been offering reverse mortgage products to seniors. Specializing in providing information and seminars on mortgage options, PRMI understands that reverse mortgages require a unique skillset. Their team navigates the intricacies of taxes, Medicare, Medicaid, inheritance, and estate planning, ensuring that a reverse mortgage is a suitable fit for each client.
If you’re interested in learning more about reverse mortgages or discussing your mortgage options with PRMI’s team, they are easily accessible. Simply call them at 808-585-9888 or visit their websites: www.hawaiilender.com and www.Reverse808.com. On these websites, you can find details about upcoming seminars held at their Real Estate Learning Center, located near the Ice Palace in the Stadium Mall. For updates and insights, follow them on Facebook at “Primary Residential Mortgage – Hawaii” and Instagram as “prmi_hi.”