Change Your Life With A Reverse Mortgage
Post on 26-Jan-2016
DESCRIPTIONChange Your Life With A Reverse Mortgage. Reverse Mortgage History. 1989 FHA program began 2006 More than 240,000 lives changed through Reverse Mortgages 2007 Fastest growing segment of the mortgage market. Facts From AARP. - PowerPoint PPT Presentation
Change Your Life With A Reverse Mortgage
Reverse Mortgage History1989 FHA program began2006 More than 240,000 lives changed through Reverse Mortgages2007 Fastest growing segment of the mortgage market
Facts From AARP65% of senior homeowners plan to stay in their existing home as long as possible 82% of senior homeowners who require some level of assisted living prefer to remain in their home as long as possible
National Council on the AgingThe National Council on the Aging prepared an extensive report on how to use a Reverse Mortgage to Use Your Home to Stay at Home
Improve Your Life!Better LifeHome EquityCash FlowA Reverse Mortgage allows you to use the money you have invested in your home for so many years Afford the things you enjoy and need Fulfill your dreams Make life easier and worry free
What are Your Goals?Monthly Cash Flow?Healthcare Costs?Travel?Big Purchase? Home Improvements?Peace of Mind?
Benefits of a Reverse MortgagePay off your mortgageNo monthly payments everTax-free cash flowGenerally, there are no restrictions on how you spend your moneyDoes not affect Social Security or Medicare benefitsYou continue to own your homeYou/Your heirs keep all remaining equity once the Reverse Mortgage is paid off
Benefits of a Reverse MortgageYou will never pay back more than the home valueNo credit, income or asset qualifications Repay at any time with no prepayment penaltyGovernment insured FHAIndependent non-profit counseling
How Does it Work?Who Qualifies?Homeowners with some equity in their homeAll people on title must be at least 62 years oldProperty must meet lenders qualifications
How much equity is available?Determined by Age & Home ValueAll existing home loans are paid offClosing costs are financed into the loan
Flexible Payment OptionsLump sumWe discourage placing full draws into savings or other investmentsCredit lineThis is the most common method of disbursementFixed termMonthly payments for life TenureFixed monthly payments to you guaranteed by the FHA insurance
Repayment OptionsWhen you sell your homeWhen you leave the home for more than 12 consecutive months for medical reasonsAfter the passing of the last homeownerRepay or refinance at anytime during the loan (Details vary by loan program)If you dont pay your homeowners insurance (replacement coverage) andProperty taxes
Closing CostsLoan Origination FeesTypical mortgage closing costsAppraisal & related inspectionsCredit reportTitle & escrowFHA mortgage insurance premium (MIP) on FHA HECM loansNo hidden costsEvery cost detailed on the Good Faith Estimate
FHA Protection FeaturePrincipal Limit LockSets the Expected Interest Rate ceiling If the Expected Rate on the Loan Application Date is differentfrom the Expected Interest Rate on the Loan Closing Date, theClient will receive whichever of these Expected Rates thatresult in a higher maximum amount that may be borrowed.
Obligations During the LoanMaintain the home as primary residenceKeep the home in good conditionMaintain paying homeowners insurance and property taxesOngoing costs added to loan balanceInterest accrues only on amounts borrowedMonthly service fee 1/2% annual FHA mortgage insurance premium (FHA Loans)
You May Need Home RepairsBenefit to ensure safety of the homeRepairs can be done after the loan has closedLicensed contractor for bids only1 times the bid amount held in the true set asideaccount6 months to complete repairsRe-inspection will be done when work is completeTwo party check to pay contractorRemaining true set aside account funds returned to you
Change Your Life!What are the overall benefits of a ReverseMortgage? IndependencePeace of mindFlexibilitySecurityAdditional cash flowControl of your lifeHappinessHow do you put a price on these?