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Introduction
to Reverse Mortgages
Agenda
• Who is Remington Senior Funding?
• What is a Reverse Mortgage?
• Retirement Income
• Frequently Asked Questions
•...
Who is Remington Senior Funding?
    • In Business Since 1993
    • 100% Reverse Mortgages. It's all we do.
    • FHA and ...
What is a Reverse Mortgage?
• Financial tool created by the U.S. Govt. to help
  provide financial relief to homeowners ag...
What is a Reverse Mortgage
• Insured and regulated by the Federal Housing
  Administration (FHA).
• Proceeds are tax free ...
Retirement Income
        Typical            Retirement Income
  Retirement Income       with Reverse Mortgage

          ...
12 Frequently Asked Questions
                                                 1
   Can I get a Reverse Mortgage if I curr...
12 Frequently Asked Questions
                                                  2
   Do I give up ownership of my home whe...
12 Frequently Asked Questions
                                                  3
   When does the Reverse Mortgage come
 ...
12 Frequently Asked Questions
                                           4
   What are my responsibilities as a
   homeown...
12 Frequently Asked Questions
                                            5
   Are Reverse Mortgages only for people with
...
12 Frequently Asked Questions
                                                6
   Can I still leave my home to my heirs i...
12 Frequently Asked Questions
                                            7
   Could my estate or my children be personall...
12 Frequently Asked Questions
                                               8
   Are there any restrictions on what I can...
12 Frequently Asked Questions
                                               9
   Are there any “out of pocket” costs for ...
12 Frequently Asked Questions
                                            10
   Will my children be against me doing a
   ...
12 Frequently Asked Questions
                                             11
   What happens if my spouse passes away?


...
12 Frequently Asked Questions
                                               12
   What if I decide to sell my home after ...
Examples: Using Reverse Mortgage
• 75 years old
• $150,000 home
• $ 80,000 mortgage with
  $ 625 payment
• Fixed income
• ...
Mary   • Mary uses a
         Reverse Mortgage
       • Pays off
         existing mortgage
       • Additional
         $...
Examples: Using Reverse Mortgage
• Both 72 years old
• Home is worth $200,000
• No mortgage
• Want to use money now

• $10...
The Process: Getting a RM



                 Consultant
 Meet with                                                    Clo...
Thank You for your Time!
Remington Senior Funding:  Introduction to Reverse Mortgages
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Remington Senior Funding: Introduction to Reverse Mortgages

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An Introduction to facts about Reverse Mortgages, including the most frequently asked questions and examples of how seniors are using Reverse Mortgages to supplement their income today.

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Remington Senior Funding: Introduction to Reverse Mortgages

  1. 1. Introduction to Reverse Mortgages
  2. 2. Agenda • Who is Remington Senior Funding? • What is a Reverse Mortgage? • Retirement Income • Frequently Asked Questions • Examples of Using Reverse Mortgages • The Process: Getting a Reverse Mortgage
  3. 3. Who is Remington Senior Funding? • In Business Since 1993 • 100% Reverse Mortgages. It's all we do. • FHA and HUD Approved provider of Reverse Mortgages • Reverse Mortgages in Multiple States • Headquartered in Southfield, Michigan • Awarded Accredited Business Seal and A + Rating by the Better Business Bureau • Member of National Reverse Mortgage Lenders Association (NRMLA) – strictly adhere to its Code of Ethics and Professional Responsibility
  4. 4. What is a Reverse Mortgage? • Financial tool created by the U.S. Govt. to help provide financial relief to homeowners age 62 + • Enables senior citizens to convert part of their home equity into cash. • Does not require giving up title, selling home or taking on monthly payment. • Allows seniors to stay in their home for the rest of their lives and access a portion of their home equity without ever having a payment. • If there is an existing mortgage, the Reverse Mortgage will pay it off.
  5. 5. What is a Reverse Mortgage • Insured and regulated by the Federal Housing Administration (FHA). • Proceeds are tax free and can be used for any purpose. • Money can be acquired as: lump sum, monthly payment, line of credit, or any combination thereof. • No effect on Social Security or Medicare benefits.
  6. 6. Retirement Income Typical Retirement Income Retirement Income with Reverse Mortgage Investments, Pension, Investments, Pension, Social Security & CDs Social Security & CDs Reverse Mortgage $ $ $
  7. 7. 12 Frequently Asked Questions 1 Can I get a Reverse Mortgage if I currently have a mortgage or equity loan on my home? Yes. Any existing mortgages or equity loans will be paid off at closing. Getting rid of a monthly payment will free up a large portion of your income to be used for other things.
  8. 8. 12 Frequently Asked Questions 2 Do I give up ownership of my home when I get a Reverse Mortgage? Absolutely not. A Reverse Mortgage is just a lien on the property. The title remains in the name of the borrower(s).
  9. 9. 12 Frequently Asked Questions 3 When does the Reverse Mortgage come due? The Reverse Mortgage does not become due until all borrowers on title have either passed away or moved out of the home permanently.
  10. 10. 12 Frequently Asked Questions 4 What are my responsibilities as a homeowner with a Reverse Mortgage? You are required to pay your property taxes and homeowners insurance and of course to maintain your home.
  11. 11. 12 Frequently Asked Questions 5 Are Reverse Mortgages only for people with financial problems? No. The Reverse Mortgage is an excellent financial planning tool that is used by homeowners from all walks of life to enhance their retirement years. This is evidenced that there are over 10,000 Reverse Mortgages being done each month.
  12. 12. 12 Frequently Asked Questions 6 Can I still leave my home to my heirs if I have a Reverse Mortgage. Yes. The Reverse Mortgage is just a lien on the home. You can leave the home to anyone you choose. They will just have to make arrangements to pay off the loan or refinance into a conventional loan if they want to keep the home or they can sell the home and keep the amount of money that is remaining after the Reverse Mortgage is paid off.
  13. 13. 12 Frequently Asked Questions 7 Could my estate or my children be personally liable with a Reverse Mortgage? No. The Reverse Mortgage is a “non- recourse” loan. What this means that no one can be liable for the loan. Only the house “stands for the debt”. That means only the proceeds from the sale of the home can be used to repay the Reverse Mortgage.
  14. 14. 12 Frequently Asked Questions 8 Are there any restrictions on what I can use the money from a Reverse Mortgage for? No. Its your money. You can do whatever you want with it. It’s common for seniors to use the proceeds to eliminate debt like mortgages and credit cards. Many others use them to supplement monthly income to help pay daily living expenses, health care bills, prescription drugs and make home repairs. Lately, many put the money in the bank for an emergency fund.
  15. 15. 12 Frequently Asked Questions 9 Are there any “out of pocket” costs for me to pay to get a Reverse Mortgage? All of the costs can be financed into the Reverse Mortgage. The only fee you may have to pay for is the counseling fee. FHA requires the borrower to pay the $125 counseling fee directly to the counseling agency. However, the counseling agency may allow you to have it paid out of the closing proceeds.
  16. 16. 12 Frequently Asked Questions 10 Will my children be against me doing a Reverse Mortgage? Experience shows that children are supportive of their parents doing a Reverse Mortgage. Also, a RM offers the freedom to assist your children financially today and avoid the potential of burdening them with your expenses.
  17. 17. 12 Frequently Asked Questions 11 What happens if my spouse passes away? The Reverse Mortgage does not become due until both spouses have passed away or permanently move out of the home.
  18. 18. 12 Frequently Asked Questions 12 What if I decide to sell my home after I get a Reverse Mortgage? Even though you have a Reverse Mortgage, you can still sell your home. The proceeds from the sale will go first to paying off the Reverse Mortgage and the remainder belongs to you.
  19. 19. Examples: Using Reverse Mortgage • 75 years old • $150,000 home • $ 80,000 mortgage with $ 625 payment • Fixed income • Hard time making ends meet • Doesn't want to be a burden to her kids
  20. 20. Mary • Mary uses a Reverse Mortgage • Pays off existing mortgage • Additional $7,500 • Financial independence
  21. 21. Examples: Using Reverse Mortgage • Both 72 years old • Home is worth $200,000 • No mortgage • Want to use money now • $108,000 available • Travel • Fund grandkids college • Make donation to favorite charities
  22. 22. The Process: Getting a RM Consultant Meet with Closing agent Counseling Following helps you Consultant comes directly Session counseling, an complete an to see how to your home. (30-45 appraisal is application. Reverse Proceeds are minutes) done and your Mortgage received a few with a HUD loan file is will work for days later. approved sent to the you. If have existing counselor underwriter mortgage, for approval. payoff will be No credit or sent directly to income that company. requirements.
  23. 23. Thank You for your Time!

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