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REVERSE MORTGAGES

REVERSE MORTGAGES. Bobby Donaldson www.bobbydonaldson.com 980-722-5487. TO HELP SENIORS STAY IN THEIR HOMES. To qualify, you must be a least 62 years old, own your home as your primary residence and have equity in it.

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REVERSE MORTGAGES

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  1. REVERSE MORTGAGES Bobby Donaldson www.bobbydonaldson.com 980-722-5487

  2. TO HELP SENIORS STAY IN THEIR HOMES • To qualify, you must be a least 62 years old, own your home as your primary residence and have equity in it. • A reverse mortgage allows you to access a portion of the equity in your home tax free and without ever making another mortgage payment as long as you live in your home. • Almost too good to be true.

  3. ADVANTAGES OF A REVERSE MORTGAGEYou continue to own your home and the equity in it.You and your spouse can stay in your home as long as you wish.There are no prepayment penalties if you ever decide to move.The reverse mortgage is a non-recourse loan. There is no liability to you, your family or your estate.

  4. YOUR HOME FOR LIFE • FHA administers the HECM (Home Equity Conversion Mortgage) program and guarantees these loans, for the borrowers and lenders. • Since there are no required mortgage payments, you can never lose your home as long as you pay the property taxes, homeowners insurance and live in the house as your primary residence.

  5. MYTHS VS. FACTS • Myth # 1: The bank takes title to your home. • Fact: You own your home and the equity in it. • Myth # 2: The home cannot have a mortgage. • Fact: The mortgage or equity line of credit is paid off by the reverse mortgage at closing. • Myth # 3: There are restrictions on the use of the money I receive from a reverse mortgage. • Fact: There are no restrictions.

  6. MYTHS VS. FACTS • Myth # 4: When you die or move out of your home permanently, the bank takes title and sells your home. • Fact: When you die or move out of your home permanently, you or your estate sells the home, pays off the loan balance and keeps the remaining cash. The bank does not own your home and cannot sell it.

  7. MYTHS VS. FACTS • Myth # 5: The money received from a reverse mortgage will affect your social security income and Medicare benefits. • Fact: The money you receive from a reverse mortgage does not affect your social security income and Medicare benefits. • Myth # 6: The money you receive from a reverse mortgage is taxable. • Fact: The money you receive is not taxable.

  8. TAX FREE RETIREMENT • The senior retains title to your home. • The seniors’ savings are preserved and their cash flow is increased. • The senior enjoys financial security and peach of mind. • The senior never makes another mortgage payment as long as the remaining spouse lives in the home.

  9. USE OF YOUR FUNDS • The existing mortgage is paid off and cash flow improves. • Purchase a new home with a fractional down payment. • Purchase long term care insurance. • Pay for home improvements. • Pay for health expenses or in home care.

  10. USE OF FUNDS • Pay for grandchildren’s weddings, college expenses or help with a down payment for their first home. • Set up a trust fund for children. • Take that “important” trip. • Buy a second home or a new car. • Your choices are unlimited.

  11. TYPES OF REVERSE MORTGAGES • Lump sum, fixed rate, standard or saver: If you receive the full amount of funds available at closing, you can do so with a fixed interest rate. You have the choice of borrowing less funds than the maximum available and paying a much smaller mortgage insurance premium.

  12. TYPES OF REVERSE MORTGAGES • Line of credit with variable rate based on LIBOR, standard or saver. You can have some funds advanced at closing and a line of credit for the remainder. The interest rate is variable and is based on LIBOR. You have the choice of borrowing less funds than the maximum available and paying a much smaller mortgage insurance premium.

  13. TYPES OF REVERSE MORTGAGES • Reverse purchase. You can purchase a home with a reverse mortgage. The down payment is in the range of 40 to 45% and the reverse mortgage covers the rest of the purchase price. You will never have a mortgage payment as long as you live in your home. You do not have to use all of your cash to purchase a home or you can purchase a more expensive home with a reverse mortgage.

  14. REQUIREMENTS • You have to be at least 62 years old. • You have to live in your home as your primary residence. • You have to pay your property taxes. • You have to maintain hazard insurance. • You have to pay homeowners dues, if any. • You have to maintain your home in a reasonable living condition.

  15. HOW TO PROCEED • Meet with a reverse mortgage consultant who will give you a proposal and a list of HUD approved reverse mortgage counselors. • Meet with a counselor to obtain certificate. • Provide copies of drivers license, social security or Medicare card, the counseling certificate and a few other documents to your reverse mortgage consultant.

  16. HOW TO PROCEED • Sign GFE (Good Faith Estimates) and other documents to start the process. • The only out of pocket cost will be for the appraisal which is collected when you sign the GFE documents. • The appraisal is ordered through FHA and takes about one week. • Review the appraisal with your consultant.

  17. HOW TO PROCEED • Loan processors will be in touch to obtain any other necessary documents. • Then you close on the loan. • Closing costs include title insurance, various fees and recording costs plus the FHA mortgage insurance premium of 2% of the appraised value. These are taken out of the loan proceeds at closing.

  18. BOBBY DONALDSON • NMLS # 287209 MLO # I-149533 • bobbydonaldson@carolina.rr.com • www.bobbydonaldson.com • Cell Phone: 980-722-5487

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