Reverse Mortgage Presentation


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This slide show is to give you a better understanding of the Reverse Mortgage. Please contact me with any questions that you may have.

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Reverse Mortgage Presentation

  1. 1. Let your house support YOU now It’s On the House !
  2. 2. The Reverse Mortgage Timeline 1970 1988 1996 The National Council of the Aging, The Veterans Administration Division of Housing and privately held senior advocacy groups begin feasibility studies to determine the merits of a federally insured Home Equity Conversion Mortgage. The President of the United States signs into law “The Federal Home Equity Conversion Mortgage Insurance Plan” offering Senior Americans the first FHA insured HECM mortgage. FNMA (FannieMae) Creates the Home Keeper” Reverse Mortgage. Wall Street Journal states that they anticipate 16 million households to apply for reverse mortgages in 2010.
  3. 3. Informational Resources AARP FannieMae American Bar Association
  4. 4. Who is American Reverse Mortgage? #6 Reverse Mortgage Company in US (in 14 states) #120 On Entrepreneur Magazine’s HOT 500 List #1230 On INC Magazine’s Top 5000 List 100% A Reverse Mortgage Company Only 2006 $8.4 million in Revenue 2,418 Employees 2006
  5. 5. American Reverse Mortgage Credentials
  6. 6. How Are Some Reverse Mortgages Used? <ul><li>Improve Current Standard of Living </li></ul><ul><li>Help Family Members and Loved Ones </li></ul><ul><li>Stop Making House Payments </li></ul><ul><li>Help with Medical and Prescription Bills </li></ul><ul><li>Set up a College Fund for a Grandchild </li></ul><ul><li>Additions and Repairs to the Home </li></ul><ul><li>Fulfill Lifelong Travel Dreams </li></ul><ul><li>Replace Income From a Deceased Spouse </li></ul><ul><li>Donate to charity </li></ul>
  7. 7. Financial Peace of Mind
  8. 8. What Do You Think About When You Hear the Word “MONEY”? <ul><li>I’ve got too much, I need to give some away. </li></ul><ul><li>If I had more I could do more of the things that I enjoy and get the things that I need. </li></ul>or
  9. 9. What would you do differently if you had more money?
  10. 10. Senior Concerns <ul><li>The cost of day-to-day living is increasing </li></ul><ul><li>Most Seniors find themselves on a fixed income. </li></ul><ul><li>If their income grows, it is not keeping up with their expenses or inflation </li></ul>You want more than just keeping up― You want OPTIONS .
  11. 11. For Most People The Family Homestead Is Their Largest Lifetime Investment.
  12. 12. Many Seniors Have Their Mortgage Paid Off or Almost Paid Off This gives them “ Equity ” Equity = Tied Up Money
  13. 13. Unfortunately Many Seniors Are House Rich But CA$H POOR!
  14. 14. # 1 You could sell your home “ Downsize” ? 2 Main Ways To Get Cash From Your Home
  15. 15. #2 Get a Home Equity Loan <ul><li>Make Payments </li></ul><ul><li>Pass Credit Check </li></ul><ul><li>Risk Foreclosure of Your Home </li></ul>
  16. 16. Now, There’s a 3rd Way... Home Equity Conversion Mortgage “ HECM ” It’s a home equity loan that YOU NEVER PAY BACK As Long As You Live & Keep Your Home As Your Primary Residence
  17. 17. How Does The Reverse Mortgage Differ From A Traditional Mortgage? <ul><li>There are NO PAYMENTS to make, therefore </li></ul><ul><li>You CANNOT lose your home for not making the payments </li></ul><ul><li>There are NO Income Requirements </li></ul><ul><li>There are NO Credit Requirements </li></ul>
  18. 18. How It Works Your Cash goes DOWN as your equity goes UP Your Cash goes UP as your equity goes DOWN Your cash Your cash “ FORWARD” Mortgage “ REVERSE” Mortgage EQUITY
  19. 19. 6% =$7,500 $125,000 - $50,000 = $75,000 When we remove funds from our investments we reduce the INCOME from our investments 6% = $4,500
  20. 20. Reverse Mortgage Funds Benefits $125,000 - $50,000 $125,000 6% = $7,500 6% = $7,500 <ul><li>The house continues to appreciate at its original value </li></ul><ul><li>Income from investments remains untouched and intact </li></ul>
  21. 21. <ul><li>You ALWAYS retain the title to the home </li></ul><ul><li>The loan is HUD designed and FHA insured </li></ul><ul><li>Funds from a reverse mortgage are NON- TAXABLE </li></ul><ul><li>Sell the home at any time with NO pre-payment penalty </li></ul><ul><li>Money can be received in various ways and used for any purpose </li></ul><ul><li>NO DEBT is ever passed to your estate </li></ul><ul><li>ALL RETAINED EQUITY is paid to your heirs </li></ul>Reverse Mortgage Review
  22. 22. Reverse Mortgages Are Safe It is a Non-Recourse Mortgage: The final amount of the loan WILL NEVER exceed the home value! The Lender NEVER Owns Your Home Your Heirs are Protected, Too!
  23. 23. Insured by FHA The Federal Housing Administration This Protects You and Your Heirs
  24. 24. Who Is Eligible For a HECM Reverse Mortgage? <ul><li>Homeowners at least age 62 </li></ul><ul><li>Live in your home as your primary residence </li></ul>
  25. 25. Can I Ever Be Forced Out of My Home? NO ! You will only be required to: 1. Live In YOUR Home 2. Keep The Home Adequately Insured 3. Pay The Property Taxes 4. Maintain The Property
  26. 26. Will The Reverse Mortgage Affect My Taxes Or Social Security ? NO ! Money Received From a Reverse Mortgage Is... Tax Free !
  27. 27. How Much Money Can I Receive? <ul><li>Age of the Youngest Borrower </li></ul><ul><li>The FHA Appraised Value of the Home </li></ul><ul><li>The Current Interest Rate </li></ul>The Amount You Receive is Based on Three Factors:
  28. 28. How Can I Receive My Money ? <ul><li>Lump sum </li></ul><ul><li>Regular monthly payments </li></ul><ul><li>Growing Line of Credit </li></ul><ul><li>A Combination of Above </li></ul>
  29. 29. If You’re Thinking… “This Sounds Great” You are RIGHT