Get the factsWhat every homeowner who is at least 62 years ofage should know about reverse mortgage loansChris Beard, NMLS...
What is a reverse mortgage loan? It’s a home loan that enables you to convert a portion  of your home equity into potenti...
Why get a reverse mortgage loan? A reverse mortgage loan can give you access to your home  equity without the burden of m...
Why get a reverse mortgage loan? Reverse mortgage loan proceeds may be used for any purpose,  including:    Meeting dail...
How are the reverse mortgage loanproceeds disbursed?Distribution options to receive your reverse mortgage proceeds:    Lu...
How much can I borrow?The amount that can be borrowed is determined by a HUDformula that is based on the following factors...
What are the interest rate options?Both fixed-rate and variable-rate reverse mortgage loans.   With a fixed-rate reverse ...
How does a reverse mortgage loandiffer from a traditional mortgage?With a traditional mortgage or home equity loan:    Bo...
Age and eligibility requirements You and any co-borrowers must be at least 62 years of age Your home must be your primar...
Reverse mortgage costs A deposit for the appraisal is an out-of-pocket cost There are additional closing costs which may...
Reverse mortgage repayment You do not need to repay the loan as long as all program requirements  are met, including:   ...
Reverse mortgage repayment There is no requirement that the home be sold,  only that the loan be repaid. If you die and ...
Three essential facts   Making an educated decision begins with understanding your    responsibilities when applying for ...
The reverse mortgage loan process1. Discuss your home financing goals with a reverse mortgage   consultant.2. Receive cons...
The reverse mortgage loan process§   Upon approval, a closing is scheduled with all of the required    parties, which may ...
What have we learned?Who owns the home?Can the bank take my home?                             16
What have we learned?Are there restrictionson how I can use myreverse mortgageproceeds?                         17
What have we learned?Will receiving my reverse mortgage proceeds in monthlypayments affect my Social Security or Medicare ...
Count on our capabilities FirstBank is Tennessee’s largest independently owned and operated  bank, with more than $2 bill...
Reverse mortgage loansI’m ready to listen to your needs and help you understand your reversemortgage loan options, so you ...
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What is a Reverse Mortgage

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Tampa FL as a reverse mortgage consultant. Chris Beard works exclusively with senior homeowners seeking a reverse mortgage, a home financing program that allows mature homeowners to utilize the equity in their homes to supplement retirement income.

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  • A Reverse Mortgage loan can optimize cash flow. It can contribute to a more contented retirement. Use the reverse mortgage proceeds to supplement your pension or social security income, for home repairs, buying a car, unexpected expenses, even use it as a down payment toward a new home – whatever you choose.
  • So, based on the HUD formula and assuming you have no liens on the home, the older you are, the more your home is worth, and the lower the interest rate, the more you may be able to borrow — up to the national lending limit. I can do a personalized calculation for you based on your specific information.
  • Reverse mortgage loans are specifically designed for and exclusively available to homeowners who are at least 62 years of age and have substantial home equity. Applicants must agree to receive (face to face or telephone) mortgage counseling from a HUD-approved counseling agency to explain your potions and confirm your eligibility. Explain HUD – Housing and Urban Development
  • You will be responsible for maintaining the property and making the necessary home repairs, as well as paying taxes and insurance premiums on the property.
  • You will be responsible for maintining the property and making the necessary home
  • I’ll be happy to meet with you privately to answer your questions and help you choose the financing option to fit your goals. Your HUD-approved counselor will further explain available options and confirm your reverse mortgage eligibility.
  • I’ll be happy to meet with you privately to answer your questions and help you choose the financing option to fit your goals. Your HUD-approved counselor will further explain available options and confirm your reverse mortgage eligibility.
  • Who owns the home? You do. You retain title and ownership of your home Can the bank take my home? No, as long as you or at least one of the borrowers continue to live in the home as a primary residence, pay all taxes and insurance on the property, maintain the property to FHA standards and all the program requirements are met.
  • There are no restrictions on how you may use proceeds received through a reverse mortgage loan. However, if there is an existing mortgage on the property, that mortgage would be refinanced with the new reverse mortgage. You can direct the funds toward a variety of purposes, including: • Consolidating high-interest debt • Supplementing retirement income • Remodeling or repairing your home • Paying property taxes • Covering healthcare expenses • Planning for long-term care needs And, if you choose, you could use the reverse mortgage loan for purchase feature and use your reverse mortgage funds to help you purchase a new primary residence
  • If you opt to receive monthly payments, they will not affect your Social Security or Medicare benefits. However, your eligibility for need-based programs such as Medicaid or state assistance programs may be impacted. We recommend that you consult a tax or legal advisor and your local Area Agency on Aging for advice.
  • Exit Screen Talking Points Leave this screen up as you take questions and wrap up your presentation.
  • What is a Reverse Mortgage

    1. 1. Get the factsWhat every homeowner who is at least 62 years ofage should know about reverse mortgage loansChris Beard, NMLS# 353274Reverse Mortgage Specialist9822 Montague Street ● Tampa, FL 33626Cell: 813-857-1254 ● Toll Free: 866-684-7868cbeard@firstbankonline.comwww.GoLocalReverseMortgage.com
    2. 2. What is a reverse mortgage loan? It’s a home loan that enables you to convert a portion of your home equity into potentially tax-free funds1 Unlike a traditional mortgage, you do not need to repay the loan as long as you or one of the borrowers continues to live in the home, keep the taxes and insurance on the property current, maintain the property to FHA standards and all other program requirements are met 1. Consult a tax advisor1. Consult a tax advisor 2
    3. 3. Why get a reverse mortgage loan? A reverse mortgage loan can give you access to your home equity without the burden of monthly mortgage payments as a traditional mortgage Again, unlike a traditional mortgage, you do not need to repay the loan as long as you or one of the borrowers continues to live in the home, keep the taxes and insurance on the property current, maintain the property to FHA standards and all other program requirements are met 3
    4. 4. Why get a reverse mortgage loan? Reverse mortgage loan proceeds may be used for any purpose, including:  Meeting daily or monthly expenses  Covering healthcare costs  Remodeling or home repairs  Consolidating credit card debt  Refinance your existing mortgage to a reverse mortgage loan, without making the monthly mortgage payments of a traditional mortgage2 With the reverse mortgage loan for purchase feature, the loan proceeds may be used to help you buy a new primary residence better suited to your needs 2. Borrower is required to refinance the existing mortgage balance with the reverse mortgage loan proceeds or own the home free and clear. 4
    5. 5. How are the reverse mortgage loanproceeds disbursed?Distribution options to receive your reverse mortgage proceeds:  Lump sum — a specific amount is made immediately available (required with a fixed- rate reverse mortgage loan)  Term — funds are released in fixed monthly amounts for a set period requested by the customer with a variable-rate reverse mortgage line of credit  Tenure — funds are distributed in equal monthly advances for as long as at least one borrower continues to occupy the home as a principal residence with a variable-rate reverse mortgage line of credit  Line of credit — funds remain available for the borrower to draw on as needed or in automatic monthly disbursements  Combination — with a variable-rate reverse mortgage, choose any combination of lump sum, monthly advances or line of credit disbursements; even receive an initial lump sum and leave the rest in a line of credit. Change the way proceeds are received as often as you wish provided sufficient loan proceeds are available. 5
    6. 6. How much can I borrow?The amount that can be borrowed is determined by a HUDformula that is based on the following factors:  The age of the youngest borrower  The appraised value of the home  The current interest rate  The established lending limit 6
    7. 7. What are the interest rate options?Both fixed-rate and variable-rate reverse mortgage loans.  With a fixed-rate reverse mortgage loan, your interest rate will remain the same throughout the life of the loan  You would receive a lump sum distribution  With a variable-rate reverse mortgage loan, the interest rate may adjust monthly  The frequency at which your interest rate adjusts — will not affect the number of loan advances you receive, but will affect how fast or slow your loan balance grows  You can change your distribution options as often as you like 7
    8. 8. How does a reverse mortgage loandiffer from a traditional mortgage?With a traditional mortgage or home equity loan:  Borrowers qualify based on their income, employment and credit score. These loans require the borrower to repay the amount borrowed by making monthly mortgage payments over a specified term to the loan servicer.With a reverse mortgage loan:  There are no income, employment or credit score qualifying restrictions.3 3. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions. 8
    9. 9. Age and eligibility requirements You and any co-borrowers must be at least 62 years of age Your home must be your primary residence You must own your home free and clear, or the existing mortgage is required to be refinanced with the reverse mortgage proceeds Educational counseling with a HUD-approved counselor is required 9
    10. 10. Reverse mortgage costs A deposit for the appraisal is an out-of-pocket cost There are additional closing costs which may be financed as part of the loan such as:  Title insurance  Mortgage insurance premiums  Attorney fees 10
    11. 11. Reverse mortgage repayment You do not need to repay the loan as long as all program requirements are met, including:  You or one of the borrowers continue to live in the house  You keep the taxes and insurance on the property current  You maintain the property to FHA standards The balance due can come from home sale proceeds, or from other resources such as, personal savings, life insurance or possibly applying for a new mortgage. There is no requirement the home be sold, only that the loan be repaid. 11
    12. 12. Reverse mortgage repayment There is no requirement that the home be sold, only that the loan be repaid. If you die and your heirs choose to retain ownership of the home, the full outstanding loan balance must be paid. And, there is a possibility that the balance owed may be greater than the value of your home. Because the home is the only collateral attached to the loan, any remaining home equity, along with your other possessions, belongs to you or your heirs. 12
    13. 13. Three essential facts Making an educated decision begins with understanding your responsibilities when applying for a reverse mortgage loan. Three points you need to be aware of are: 1. You must live in the home as your primary residence. 2. You must stay current on property tax and homeowners insurance payments and maintain the home to FHA standards. 3. If you or your heirs choose to retain ownership of the home, the full outstanding loan balance must be paid. Depending on how long the loan has been in place and market conditions, there is a possibility the loan balance may be higher than the value of the home. 13
    14. 14. The reverse mortgage loan process1. Discuss your home financing goals with a reverse mortgage consultant.2. Receive consumer counseling from a HUD-approved counselor.3. Meet with a FirstBank Mortgage reverse mortgage consultant to apply for your loan.  Fill out an application  Select a payment plan  Present required documentation4. Underwriting and loan decisions take place. 14
    15. 15. The reverse mortgage loan process§ Upon approval, a closing is scheduled with all of the required parties, which may include your lender, your attorney and the title company representative Depending on your state’s laws, you can choose where you would like the closing to take place, the closing can take place in the title office, or your home. After the 3 day right of rescission, and any existing debt on your home is paid in full with proceeds from your new reverse mortgage loan, your remaining loan proceeds are disbursed. 15
    16. 16. What have we learned?Who owns the home?Can the bank take my home? 16
    17. 17. What have we learned?Are there restrictionson how I can use myreverse mortgageproceeds? 17
    18. 18. What have we learned?Will receiving my reverse mortgage proceeds in monthlypayments affect my Social Security or Medicare benefits?If you opt to receive monthly payments, they will not affect your SocialSecurity or Medicare benefits.However, your eligibility for need-based programs such as Medicaid orstate assistance programs may be impacted. We recommend that youconsult a tax or legal advisor and your local Area Agency on Aging formore information. 18
    19. 19. Count on our capabilities FirstBank is Tennessee’s largest independently owned and operated bank, with more than $2 billion in total assets. FirstBank has mortgage bankers in 19 locations across the entire Southeast. Reverse mortgage loans are insured by the Federal Housing Administration (FHA), part of the U.S. Dept of Housing and Urban Development. 19
    20. 20. Reverse mortgage loansI’m ready to listen to your needs and help you understand your reversemortgage loan options, so you can make an informed decision.Chris Beard, NMLS# 353274Reverse Mortgage Specialist9822 Montague StreetTampa, FL 33626Cell: 813-857-1254Toll Free: 866-684-7868 FirstBank Mortgage provides a variety of loan products with different rates,cbeard@firstbankonline.com payments and fees. Please discuss financing alternatives with your mortgage consultant so that you can select the financing you determine is the most advantageous for you. The information in this presentation is accurate as of the date of printing and is subject to change without notice. 20

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