Change your life with a Reverse Mortgage

Brought to you by Michael Pinter
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Change Your Life With A Reverse Mortgage

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

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)

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

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

What are Your Goals?
Monthly Cash Flow?
Healthcare Costs?
Travel?
Big Purchase?
Home Improvements?
Peace of Mind?

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

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

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

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

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

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

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.

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)

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

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?

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Change your life with a Reverse Mortgage

by Michael Pinter on Jun 28, 2010

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Change your life with a Reverse Mortgage — Presentation Transcript