B2 c hecm pres


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B2 c hecm pres

  1. 1. Answers to your reverse mortgage questions Presented by <RMC Name> Reverse Mortgage Consultant MetLife Bank Presented by Castulo Romero Reverse Mortgage Sales Manager MetLife Bank
  2. 2. Would you like to live better today, and be more prepared for the future? A reverse mortgage could help... 2
  3. 3. What you should know • Reverse mortgages are an important financial option • Reverse mortgages can be an important part of living with less worry and fewer restraints • It’s to your advantage to get all the facts so you can make an informed decision 3
  4. 4. What is a reverse mortgage? A reverse mortgage can help many seniors with their financial needs: • A loan that allows homeowners age 62+ to tap into their home equity • You can use the proceeds for what you need • It is not advisable to use reverse mortgage proceeds to make a financial investment since the costs of the loan may exceed the investment return • You can even use a reverse mortgage to purchase a single-family home to be occupied as your principal residence* 4 *HECM for Purchase program, rates, fees, terms, and conditions are not available in all states and are subject to change.
  5. 5. Reverse mortgage facts • You continue to live in and own your home • The bank makes payments to you—that’s why it’s called a “reverse” mortgage • You remain responsible for property taxes, homeowner’s insurance, and maintenance of the home, but you do not make monthly mortgage payments; interest still accrues on the portion of the loan amount disbursed • Your loan does not need to be repaid until the last borrower permanently moves out or passes away, as long as the terms of the loan have been met • There are no income qualifications 5
  6. 6. Home Equity Conversion Mortgages (HECMs) • The vast majority of all reverse mortgages are HECMs • Federally insured—when the loan becomes due, HUD will pay the lender any shortfall between sale proceeds and amount owed, provided that the sale is an arm’s length transaction in accordance with HUD guidelines • Variable rates are tied to an established index—fees and interest rate margins are capped for your protection • Available as a HECM Standard or HECM Saver to meet a variety of needs 6
  7. 7. A MetLife Bank HECM Standard • Allows you to borrow the maximum amount of money available to you from a HECM reverse mortgage • Requires higher up-front costs as compared to our HECM Saver 7
  8. 8. A MetLife Bank HECM Saver A lower-cost reverse mortgage, as compared to our HECM Standard: • Required up-front costs are greatly reduced— this may save you thousands of dollars, depending on your home’s value • Maximum amount of money that can be borrowed is less than with our HECM Standard, but the lower up-front costs of our HECM Saver may make it an attractive option 8
  9. 9. HECM Standard vs. HECM Saver 9
  10. 10. HECM for Purchase • Designed to help you purchase* a home using the proceeds from a reverse mortgage on that home • You can be qualified, regardless of income or credit history • One transaction with one closing simplifies the process • Only applicable for the purchase of a single-family-unit dwelling to be occupied as your principal residence *Program, rates, fees, terms, and conditions are not available in all states and are subject to change. 10
  11. 11. Who is eligible to apply? To qualify for a reverse mortgage, you must: • Be age 62 or older • Own your home—if you have an existing mortgage, your reverse mortgage proceeds will first be used to pay off any existing mortgages • Live in your home as your principal residence • Meet U.S. Department of Housing and Urban Development (HUD) minimum property standards 11
  12. 12. How does the program work? • You choose how you want to receive your funds: – Single lump sum of cash – Monthly income for as long as you live in your home or, if you prefer, for a specified time period – Line of credit you draw on as needed – Any combination of these • Closing costs can be rolled into the loan • You continue to live in and retain the title to your home while you use your reverse mortgage proceeds, as long as the terms of the loan are met • When you leave the home, you or your heirs repay the loan, including accrued interest on the money you took and any accumulated monthly servicing fees, mortgage insurance premium, and origination fees (if applicable) 12
  13. 13. How much can you get? The amount you can borrow depends on: • Your age • The type of reverse mortgage you select • Current interest rates • Location of your home • Appraised value of your home • Federal Housing Administration (FHA) lending limits 13
  14. 14. How can you use the funds? • Pay your monthly bills • Fix up your home • Pay for prescriptions and healthcare • Retire your existing mortgage • Make a major purchase or needed expenditure • Help your children or grandchildren • However, it is not advisable to use reverse mortgage proceeds to make a financial investment, since the costs of the loan may exceed the investment return 14
  15. 15. What about your government benefits? • Reverse mortgage funds usually do not affect regular Social Security or Medicare benefits • Needs-based benefits, such as Medicaid and Supplemental Security Income (SSI), may be affected • Contact a tax professional about your particular situation 15
  16. 16. When does the loan become due? • All borrowers permanently move out of the home, or don’t live in it for 12 months OR • You sell the home OR • The last surviving borrower passes away OR • You fail to pay taxes or homeowner’s insurance, or to maintain the home OR • Other conditions of the term have not been met 16
  17. 17. What about your heirs? • The loan can be repaid by selling the property, refinancing, or using other assets—the choice is up to you or your heirs • Any sale proceeds in excess of the loan balance belong to you or your heirs • The lender can never claim from you or your estate more than the fair market price received if you sell the home—even if the loan balance exceeds the fair market value at the time of sale—provided that the sale is an arm’s length transaction in accordance with HUD guidelines 17
  18. 18. A review of the facts • FACT: The bank will not own your home—you continue to be responsible for paying property taxes, homeowner’s insurance, any home maintenance, and the terms of the loan as agreed • FACT: You do not need to make monthly mortgage payments— interest accrues on the portion of the loan amount disbursed • FACT: There is no income qualification • FACT: Your Social Security and Medicare benefits will generally not be affected 18
  19. 19. Required independent counseling • Ensure that you have the information you need to make the reverse mortgage decisions that are right for you • HUD-approved counselors are available nationwide and locally— you can meet face-to-face or receive your counseling by phone, it is your choice; you will be presented with a list of local and nationwide HUD-approved counselors for you to choose from* • Counseling is regulated for your protection, and required before you can apply for a HECM reverse mortgage • The service is designed to help you review your alternatives, consider the financial implications, and more *Counselors are not employed by MetLife Bank; therefore, your MetLife Bank reverse mortgage consultant or any other associate of MetLife Bank cannot provide guidance on the selection or scheduling of counseling appointments. 19
  20. 20. Why MetLife Bank • MetLife Bank is a MetLife company – For more than 140 years, MetLife has been helping individuals and families – MetLife is a trusted name in the financial services industry • Reverse mortgage professionals to help with every step of the process • Identity Theft Resolution Services, currently at no additional charge* *Identity Theft Resolution Services are provided by Identity Theft 911®. 20
  21. 21. Identify Theft Resolution Services • MetLife Bank is among the first to offer this service to reverse mortgage customers • One-on-one assistance should you become an identity theft victim • Help in restoring your credit and regaining control of your identity • Ongoing monitoring services to watch for recurrences Identity Theft Resolution Services are provided by Identity Theft 911®. 21
  22. 22. The next step is up to you I can help you with all of the process steps: • Answering your questions • Providing you with a list of HUD-approved local and nationwide independent counselors so that you can set up your independent counseling • Completing your application • Preparing for your closing Let’s start with an informal conversation 22
  23. 23. For more information Call me at any time: <RMC Name> <RMC Phone Number> I’m here to help! 23 Castulo Romero (800) 287-2616
  24. 24. Thank you for your time All loans are subject to property approval. Certain conditions and fees apply. Mortgage financing provided by MetLife Home Loans, a division of MetLife Bank, N.A., Equal Housing Lender. © 2010 METLIFE, INC. R1010134251[exp1011][All States][DC] © 2008 PNTS 24