Change your life with a Reverse Mortgage

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SImple Presentation to someone interested in finding out if a Reverse Mortgage is right for them

SImple Presentation to someone interested in finding out if a Reverse Mortgage is right for them

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  • 1.
    • Brought to you by Michael Pinter
    • 718-906-6132
    • [email_address]
    Change Your Life With A Reverse Mortgage
  • 2. Reverse Mortgage History
    • 1989
    • FHA program began
    • 2007
    • Fastest growing segment of the mortgage market 2009
    • More than 527,000 lives changed through Reverse Mortgages
  • 3. Facts From AARP
    • 65% 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
    • http://www.aarp.org/
    • 1-888-OUR-AARP (1-888-687-2277)
  • 4. National Council on the Aging The National Council on the Aging prepared an extensive report on how to use a Reverse Mortgage to “Use Your Home to Stay at Home” http://www.ncoa.org/ 1-202-479-1200
  • 5. Improve Your Life! Better Life Home Equity Cash Flow
    • A 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
  • 6. What are Your Goals?
    • Monthly Cash Flow?
    • Healthcare Costs?
    • Travel?
    • Big Purchase?
    • Home Improvements?
    • Peace of Mind?
  • 7. Benefits of a Reverse Mortgage
    • Pay off your mortgage
    • No monthly payments ever
    • Tax-free cash flow
    • Generally, there are no restrictions on how you spend
    • your money
    • Does not affect Social Security or Medicare benefits
    • You continue to own your home
    • You/Your heirs keep all remaining equity once the
    • Reverse Mortgage is paid off
  • 8. Benefits of a Reverse Mortgage
    • You will never pay back more than the home value
    • No credit, income or asset qualifications
    • Repay at any time with no prepayment penalty
    • Government insured – FHA
    • Independent non-profit counseling
  • 9. How Does it Work?
    • Who Qualifies?
    • Homeowners with some equity in their home
    • All people on title must be at least 62 years old
    • Property must meet lender’s qualifications
    • How much equity is available?
    • Determined by Age & Home Value
    • All existing home loans are paid off
    • Closing costs are financed into the loan
  • 10. Flexible Payment Options
    • Lump sum
    • We discourage placing full draws into savings or other investments
    • Credit line
    • This is the most common method of disbursement
    • Fixed term
    • Monthly payments for life
    • Tenure
    • Fixed monthly payments to you guaranteed by the FHA insurance
  • 11. Repayment Options
    • When you sell your home
    • When you leave the home for more than 12 consecutive months for medical reasons
    • After the passing of the last homeowner
    • Repay or refinance at anytime during the loan (Details vary by loan program)
    • If you don’t pay your homeowner’s insurance (replacement coverage) and
    • Property taxes
  • 12. Closing Costs
    • Loan Origination Fees
    • Typical mortgage closing costs
    • Appraisal & related inspections
    • Credit report
    • Title & escrow
    • FHA mortgage insurance premium (MIP) on FHA
    • HECM loans
    • No hidden costs
    • Every cost detailed on the Good Faith Estimate
  • 13. FHA Protection Feature
    • Principal Limit Lock
    • Sets the Expected Interest Rate ceiling
    • If the Expected Rate on the Loan Application Date is different
    • from the Expected Interest Rate on the Loan Closing Date, the
    • Client will receive whichever of these Expected Rates that
    • result in a higher maximum amount that may be borrowed.
  • 14. Obligations During the Loan
    • Maintain the home as primary residence
    • Keep the home in good condition
    • Maintain paying homeowner’s insurance and
    • property taxes
    • Ongoing costs added to loan balance
    • Interest accrues only on amounts borrowed
    • Monthly service fee
    • 1/2% annual FHA mortgage insurance premium (FHA Loans)
  • 15. You May Need Home Repairs
    • Benefit to ensure safety of the home
    • Repairs can be done after the loan has closed
    • Licensed contractor for bids only
    • 1½ times the bid amount held in the true set aside
    • account
    • 6 months to complete repairs
    • Re-inspection will be done when work is complete
    • Two party check to pay contractor
    • Remaining true set aside account funds returned
    • to you
  • 16. Change Your Life!
    • What are the overall benefits of a Reverse
    • Mortgage?
    • Independence
    • Peace of mind
    • Flexibility
    • Security
    • Additional cash flow
    • Control of your life
    • Happiness
    How do you put a price on these?