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

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Change your life with a Reverse Mortgage

  1. 1. <ul><li>Brought to you by Michael Pinter </li></ul><ul><li>718-906-6132 </li></ul><ul><li>[email_address] </li></ul>Change Your Life With A Reverse Mortgage
  2. 2. Reverse Mortgage History <ul><li>1989 </li></ul><ul><li>FHA program began </li></ul><ul><li>2007 </li></ul><ul><li>Fastest growing segment of the mortgage market 2009 </li></ul><ul><li>More than 527,000 lives changed through Reverse Mortgages </li></ul>
  3. 3. Facts From AARP <ul><li>65% of senior homeowners plan to stay in their existing home as long as possible </li></ul><ul><li>82% of senior homeowners who require some level of assisted living prefer to remain in their home as long as possible </li></ul><ul><li> </li></ul><ul><li>1-888-OUR-AARP (1-888-687-2277) </li></ul>
  4. 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” 1-202-479-1200
  5. 5. Improve Your Life! Better Life Home Equity Cash Flow <ul><li>A Reverse Mortgage allows you to use the money you have invested in your home for so many years </li></ul><ul><li>Afford the things you enjoy and need </li></ul><ul><li>Fulfill your dreams </li></ul><ul><li>Make life easier and worry free </li></ul>
  6. 6. What are Your Goals? <ul><li>Monthly Cash Flow? </li></ul><ul><li>Healthcare Costs? </li></ul><ul><li>Travel? </li></ul><ul><li>Big Purchase? </li></ul><ul><li>Home Improvements? </li></ul><ul><li>Peace of Mind? </li></ul>
  7. 7. Benefits of a Reverse Mortgage <ul><li>Pay off your mortgage </li></ul><ul><li>No monthly payments ever </li></ul><ul><li>Tax-free cash flow </li></ul><ul><li>Generally, there are no restrictions on how you spend </li></ul><ul><li>your money </li></ul><ul><li>Does not affect Social Security or Medicare benefits </li></ul><ul><li>You continue to own your home </li></ul><ul><li>You/Your heirs keep all remaining equity once the </li></ul><ul><li>Reverse Mortgage is paid off </li></ul>
  8. 8. Benefits of a Reverse Mortgage <ul><li>You will never pay back more than the home value </li></ul><ul><li>No credit, income or asset qualifications </li></ul><ul><li>Repay at any time with no prepayment penalty </li></ul><ul><li>Government insured – FHA </li></ul><ul><li>Independent non-profit counseling </li></ul>
  9. 9. How Does it Work? <ul><li>Who Qualifies? </li></ul><ul><li>Homeowners with some equity in their home </li></ul><ul><li>All people on title must be at least 62 years old </li></ul><ul><li>Property must meet lender’s qualifications </li></ul><ul><li>How much equity is available? </li></ul><ul><li>Determined by Age & Home Value </li></ul><ul><li>All existing home loans are paid off </li></ul><ul><li>Closing costs are financed into the loan </li></ul>
  10. 10. Flexible Payment Options <ul><li>Lump sum </li></ul><ul><li>We discourage placing full draws into savings or other investments </li></ul><ul><li>Credit line </li></ul><ul><li>This is the most common method of disbursement </li></ul><ul><li>Fixed term </li></ul><ul><li>Monthly payments for life </li></ul><ul><li>Tenure </li></ul><ul><li>Fixed monthly payments to you guaranteed by the FHA insurance </li></ul>
  11. 11. Repayment Options <ul><li>When you sell your home </li></ul><ul><li>When you leave the home for more than 12 consecutive months for medical reasons </li></ul><ul><li>After the passing of the last homeowner </li></ul><ul><li>Repay or refinance at anytime during the loan (Details vary by loan program) </li></ul><ul><li>If you don’t pay your homeowner’s insurance (replacement coverage) and </li></ul><ul><li>Property taxes </li></ul>
  12. 12. Closing Costs <ul><li>Loan Origination Fees </li></ul><ul><li>Typical mortgage closing costs </li></ul><ul><li>Appraisal & related inspections </li></ul><ul><li>Credit report </li></ul><ul><li>Title & escrow </li></ul><ul><li>FHA mortgage insurance premium (MIP) on FHA </li></ul><ul><li>HECM loans </li></ul><ul><li>No hidden costs </li></ul><ul><li>Every cost detailed on the Good Faith Estimate </li></ul>
  13. 13. FHA Protection Feature <ul><li>Principal Limit Lock </li></ul><ul><li>Sets the Expected Interest Rate ceiling </li></ul><ul><li>If the Expected Rate on the Loan Application Date is different </li></ul><ul><li>from the Expected Interest Rate on the Loan Closing Date, the </li></ul><ul><li>Client will receive whichever of these Expected Rates that </li></ul><ul><li>result in a higher maximum amount that may be borrowed. </li></ul>
  14. 14. Obligations During the Loan <ul><li>Maintain the home as primary residence </li></ul><ul><li>Keep the home in good condition </li></ul><ul><li>Maintain paying homeowner’s insurance and </li></ul><ul><li>property taxes </li></ul><ul><li>Ongoing costs added to loan balance </li></ul><ul><li>Interest accrues only on amounts borrowed </li></ul><ul><li>Monthly service fee </li></ul><ul><li>1/2% annual FHA mortgage insurance premium (FHA Loans) </li></ul>
  15. 15. You May Need Home Repairs <ul><li>Benefit to ensure safety of the home </li></ul><ul><li>Repairs can be done after the loan has closed </li></ul><ul><li>Licensed contractor for bids only </li></ul><ul><li>1½ times the bid amount held in the true set aside </li></ul><ul><li>account </li></ul><ul><li>6 months to complete repairs </li></ul><ul><li>Re-inspection will be done when work is complete </li></ul><ul><li>Two party check to pay contractor </li></ul><ul><li>Remaining true set aside account funds returned </li></ul><ul><li>to you </li></ul>
  16. 16. Change Your Life! <ul><li>What are the overall benefits of a Reverse </li></ul><ul><li>Mortgage? </li></ul><ul><li>Independence </li></ul><ul><li>Peace of mind </li></ul><ul><li>Flexibility </li></ul><ul><li>Security </li></ul><ul><li>Additional cash flow </li></ul><ul><li>Control of your life </li></ul><ul><li>Happiness </li></ul>How do you put a price on these?