Baby boomers & reverse mortgages(revised draft)[1]

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Benefits and practical information on Reverse Mortgages.

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Baby boomers & reverse mortgages(revised draft)[1]

  1. 1. 2/11/2011<br />1<br />Baby Boomers& The Reverse Mortgage<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  2. 2. 2/11/2011<br />2<br />As of 2007, Baby Boomers are projected to represent the largest segment of the U.S. population, continuing well into the future (approx. 10 years or more).<br />The large percentage of Baby Boomers will be in or entering retirement during this coming 10 + year period.<br /><ul><li>Many Baby Boomers will have lived in their homes for 10 or more years.
  3. 3. Many Baby Boomers will have at least $10,000 in debt.
  4. 4. Many Baby Boomers will have less than $10,000 in savings.</li></ul>Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  5. 5. 2/11/2011<br />3<br />Many Baby Boomers are not financially prepared to thoroughly enjoy Retirement Living.<br />For many retired persons, pensions and social security income represent a fraction of the income earned during working years.<br />A great percentage of retired Baby Boomers have lost or will lose much of their disposable income upon entering retirement years. <br />Many Baby Boomers will continue to work or seek employment to supplement their changing economic situation.<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  6. 6. 2/11/2011<br />4<br />Are you financially prepared to comfortably enjoy Retirement Living?<br />Upon retiring, many Baby Boomers will experience a dramatic decreasein monthly income… will you?<br />In retirement years, many Baby Boomers will experience increased medical expenses.<br />For many retired persons, total monthly expenses will not lessen in retirement years.<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  7. 7. 2/11/2011<br />5<br />Many retired Baby Boomers will continue to make monthly Mortgage Payments well into their retirement years.<br />Mortgage payments are projected to increase for many retirees due to withdrawal of home equity used to supplement lifestyle.<br />Many retirees will not be approved for equity lines or refinancing because their income will not support the new debt.<br />Many Baby Boomers will not outlive their mortgage. <br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  8. 8. 2/11/2011<br />6<br />Is That ReallyThe Retirement You’ve Always Dreamed Of?<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  9. 9. 2/11/2011<br />7<br />What If…<br />…You never had to make a mortgage payment again, as long as you live in your home? **<br />…Your credit quality did not prevent you from refinancing into a more beneficial loan program?<br />…The amount of your monthly income did not play a role in qualifying you for a mortgage loan? **<br />…You had more money each month in your pocket or purse,<br /> What would you do with the money?<br />** some restrictions apply<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  10. 10. 2/11/2011<br />8<br />ENJOY YOURRETIREMENT!<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  11. 11. 2/11/2011<br />9<br />Imagine This…<br />No more Mortgage Payments.<br />Money in the bank.<br />Reduced or paid off debt.<br />No retiree work unless you want it. <br />You really get to Enjoy Your Retirement!<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  12. 12. 2/11/2011<br />10<br />Reverse Mortgage,A Solution For Many <br />A reverse mortgage allows the borrower to access and use the equity in their home now for anything they want.<br />No payment is due until the borrower no longer lives in the subject property.<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  13. 13. 2/11/2011<br />11<br />Reverse Mortgage Details<br />A Reverse mortgage allows access to equity in:<br />A lump sum payment.**<br />A line of credit that can be used whenever you want.**<br />Monthly installments.**<br />Or any combination of these.**<br />**Some Restrictions May Apply<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  14. 14. 2/11/2011<br />12<br />Reverse Mortgage Details<br />The loan becomes due when the borrower no longer resides at primary residence.<br />The amount owed, when the loan becomes due, is the dollars actually used plus interest.<br />Closing cost are written into the loan.<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  15. 15. 2/11/2011<br />13<br />Reverse Mortgage:Frequently Asked Questions<br />Will the bank own my home when the loan becomes due?<br />Will this loan use up all of my equity?<br />Is it possible to out live this loan?<br />How is the loan repaid?<br />Are there fees to write this loan?<br />How long does the process typically take?<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  16. 16. 2/11/2011<br />14<br />Reverse Mortgage:More Frequently Asked Questions<br />I wanted my kids to inherit the house, what happens to that plan?<br />What happens if I pass away and my spouse is not on title?<br />My spouse is not yet 62 years old, what happens if I pass away?<br />What happens if I use all of the equity I’ve taken?<br />Can my POA, Gaurdian/Conservator be on the loan?<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  17. 17. 2/11/2011<br />15<br />Reverse Mortgage Requirements**:<br />Borrower must be 62 years of age or older at time of closing.<br />Must be on title.<br />Must have some equity in home.<br />Home must be primary residence.<br />Property in trust is eligible, (must be revocable trust).<br />SFR, Town homes, Condos, Mfg. Homes, Modular Homes, 2-4 unit properties are OK.<br />Borrower must attend HUD approved counseling, (in person or by telephone).<br />Home value will be determined by appraised value or FHA county lending limit, whichever is lower.<br />** some restrictions apply<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  18. 18. 2/11/2011<br />16<br />How Do I Get a Reverse Mortgage?<br />Complete an Application form for Reverse Mortgage.<br />Participate in Reverse Mortgage counseling by phone.<br />Obtain appraisal on subject property.<br />Provide necessary documentation<br />(checklist available on request).<br /><ul><li>Specify how you want to receive funds.</li></ul>Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />
  19. 19. 2/11/2011<br />17<br />How Do I Get a Reverse Mortgage?<br />Speak to a Homewell Mortgage <br /> Loan Specialist to discuss any questions or loan application requests you may have.<br /> Apply today!<br />Homewell Mortgage, Inc.<br />Reverse Mortgage Dept.<br />2930 Inland Empire Blvd Ste. 100<br />Ontario, CA 91764 <br />(800) 409-1958 ext. 8127 <br />__________________________________<br />Homewell Mortgage, Inc. is an Equal Housing Lender licensed as a real estate broker by the California Department of Real Estate, corporate broker number: 01810870. Not all applicants will qualify.<br />Baby Boomers & The Reverse Mortgage * Property of NMR *Used with express permission only.<br />

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