Is a Reverse Mortgage Right for You?
|
|
- Roger Moore
- 8 years ago
- Views:
Transcription
1 The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. Any examples shown on this website are purely hypothetical and have been included for demonstration only. Is a Reverse Mortgage Right for You? By: Leslie J. Lammers Riverstone Advisors, LLC (914) On Joe Greene s 84 th birthday, he had only $22,000 remaining in his retirement savings. He was happy to still be living in his own home and taking care of himself but he worried about how he would cover his ongoing expenses. His house needed a new roof and a paint job. His wife of many years had passed on five years before. He wanted to stay in his home as long as possible. A friend suggested he might benefit from a reverse mortgage. He was able to arrange one. He contacted two lenders through the mortgage website nrmlaonline.org. This is the National Reverse Mortgage Lenders Association. Click on the Locate A Lender box on the top right. Joe met with a counselor to complete the required counseling. Counselors are found on the HUD site: Put reverse mortgages into the search box on the site. The lender agreed to a mortgage of $200,000. Joe spent $40,000 on home repairs. The remaining $160,000 he left untouched to provide for his future needs. He thought he might live another ten years as both his parents had lived into their 90s. The remaining money would allow him to draw $16,000 a year to supplement his social security and small pension. The original mortgage that Joe and his wife had used to buy their home had been paid off long ago. If it had not, proceeds of the reverse mortgage would be used to pay off in full any existing mortgage and any outstanding home equity line. The reverse mortgage must have the first claim on the house. During the life of the reverse mortgage, Joe continues to own and hold title to his home. He pays his property taxes and makes home repairs. The terms of the reverse mortgage require him to stay current on his property tax payments. There are no interest or principal payments on the reverse mortgage. Interest accrues until the homeowner moves, sells or passes on. Joe would make
2 payments to the federal insurance agency that guarantees that the bank will be repaid. There are upfront closing costs and fees. These might total 3% of the value of the house. These fees may make a reverse mortgage unattractive depending on how much one wants to borrow against a house. Borrowing a small amount relative to the value of the house may make the reverse mortgage unattractive. In this case, a home equity line would be more attractive. Joe had no heirs. At his death, he planned to give his remaining estate to his local senior center and town library. At his death, his home would be sold. The bank would be repaid the principal and accrued interest on the loan. If the sales price of the house was less than that owed the bank, the Federal Housing Administration would pay the bank the shortfall. The insurance premium that Joe had paid went to provide insurance to cover any shortfall. Joe cannot be forced to sell the home to pay off the mortgage, even if the mortgage balance grows to exceed the value of the property. An FHA-insured reverse mortgage need not be repaid until the borrower moves, sells, or dies. When the loan is due and payable, if the loan exceeds the value of the property, the borrower (or the heirs) will owe no more than the value of the property gained from a sale. If the sale of the home produces more than the loan amount, the excess goes to Joe s estate. In another case, Stephanie and John Hanlon were able to use a reverse mortgage to improve their quality of life. They had both been widowed in their 50s. They married each other in their 60s. They wanted to start their marriage in a fresh home without any memories. They bought a home together using a 7% fixed rate 15 year mortgage. All was good until their investment portfolio declined in the 2008 market correction. John had some margin debt on his portfolio. He was forced to sell some bond holdings to pay off the margin debt which came due when his stocks declined. The sale of the bonds reduced their income by 20%. As they entered their 70s, they found their mortgage payment had become too much as a percent of their living expenses. They wanted to enjoy their retirement by traveling and socializing. They knew that their mortgage interest rate of 7% was much higher than the current mortgage rates of around 5%. They talked with their lender about re-
3 financing into a lower rate mortgage. The lender wasn t comfortable committing to a new, longer loan. Instead, Stephanie and John arranged a reverse mortgage. In their case, their indebtedness rose slightly at the start of the reverse mortgage because they chose to finance the upfront costs of the mortgage by adding the costs to the amount borrowed. The reverse mortgage was large enough to cover the fees and costs of the reverse mortgage and also to pay off their existing mortgage. By entering into the reverse mortgage, they eliminated their monthly mortgage payment. Essentially, they kicked the can down the road. Stephanie s daughter was a very successful software entrepreneur who did not need an inheritance. John had had six children with his deceased wife. His children did not expect an inheritance. Elizabeth Allen was 64 when her husband, Alex, died after a long illness. Like many couples, Alex had been the financial decision maker. He had insisted that they pay off their mortgage early. Elizabeth thought that Alex had been tight with money. Elizabeth was not used to making financial decisions. Her property taxes had risen dramatically as her town upgraded their schools. She traveled and remodeled her home the way she had always wanted. It wasn t long before Elizabeth began to have trouble making ends meet. Elizabeth confided her troubles to her friend, Patricia. Patricia had heard about reverse mortgages. Elizabeth met with a reverse mortgage counselor. The counselor explained that with Elizabeth now at the relatively young age of 65, the percent that she could borrow against her home would be relatively low. Since the amount of the loan grows over time as interest is added to the loan, the beginning amount is low relative to the house value when the borrower is young. The value of Elizabeth s home was $250,000. She found that she could borrow $129,000 on a reverse mortgage. Her thought was that she would use a set amount each month to supplement her income. Her parents had lived into their 70s and 80s. At 65, she expected to live another 20 years. Using this expectation, she planned to draw down the $129,000 mortgage line of credit over 20 years. Dividing $129,000 by 20 and then 12, she found that she would only be able to gain $500 a month from the loan.
4 She doubted this would solve her cash flow problems. She then met with a fee only financial planner named Susan. Susan required her to make up a detailed budget of her monthly expenses. Susan then explored with Elizabeth what her options were at this point. As they talked, it became apparent that Elizabeth did not like living alone and thought she might want to move into an assisted living facility when she was older. Susan pointed out that encumbering her home now with a reverse mortgage would make it less likely that Elizabeth could later sell her home to finance a move to assisted living. Susan suggested that Elizabeth think about finding a housemate to share the expenses of her home. Elizabeth s cousin, Ann, had been interested in moving back to their home town. She moved in with Elizabeth. Ann paid rent of $800 a month to Elizabeth. Ann also took over the gardening, minor home repairs and paid half of the electricity and gas bills. When is a Reverse Mortgage Not the Answer? If you are considering a reverse mortgage for yourself or another, start by examining why it might not work. The youngest borrower must be 62 or older. The borrower must be the homeowner, live in the home and own the home outright (or have a low mortgage balance that can be paid off with proceeds from the reverse mortgage loan). The property must be a single family home; a 1-4 unit home with one unit occupied by the borrower; a HUD-approved condominium; or a manufactured home that meets FHA requirements (i.e., a mobile home). In order for a reverse mortgage to be helpful, any existing debt against the property must be low relative to the value of the house. If it isn t, the amount of money that can be accessed may not be enough to justify the exercise. I use 35% as a guideline. If the total of any existing mortgage and any equity line outstanding is more than 35% of the value of the home, I doubt the reverse mortgage will be very compelling. A lender or counselor can give you more specific guidance as to amounts. Families differ. Some families view the house as a family asset. The children expect to inherit the house or the proceeds from a sale after the parents pass on. Other families have more distinct financial lines drawn. The parents assets are the parents assets and the children don t have a sense of ownership.
5 In the former case, the children will resent the use of the reverse mortgage as they may be left with little proceeds from the house at the end. Think about the emotions surrounding this. The best approach in this case is to open up a discussion as to how to support mom and dad. Perhaps the children should buy the house from mom and dad in order to provide the cash for living expenses. Most children can t swing this financially. Perhaps the house should be sold now to provide the cash for the parents living expenses. The younger the borrower, the less likely it is that a reverse mortgage will be the answer. This is because the interest accrues during the life of the mortgage. With a longer life expectancy, more interest will accrue. This reduces the amount that the lender will lend. There is a cushion in the loan to house value in order to allow for the interest. The interest is tax deductible for the borrower in the year it is paid. The shorter the borrower s life expectancy, the larger the loan to home value will be. Generally, the more valuable a home is, the older the owner and the lower the interest rate, the more one can borrow. Under current limitations, the home must be valued at less than $625,500. The mortgage loan can be repaid in full if the borrower chooses to do so later. The homeowner should carefully consider all other alternatives. These are: 1) take on a housemate; 2) cash in or sell a life insurance policy; 3) sell the house and either buy a condo or rent a place to live; 4) get a home equity line if one can make the interest payments or borrow from one s children; 5) go on Medicaid. Comparing a Reverse Mortgage to a Bank Home Equity Loan There are three major differences. First, with a traditional second mortgage, or a home equity line of credit, you must have sufficient income to qualify for the loan. Second, with a home equity line, you are required to make monthly interest payments. Third, with a home equity line, you can be foreclosed or forced to vacate your house because you missed a mortgage payment. With a reverse mortgage, the bank can neither foreclose on you nor demand payment
6 until you sell, move out of the home, pass on, fail to pay property taxes or let the home s upkeep decline dramatically. More about the Mandatory Counseling Reverse mortgages are regulated by the federal government through the Department of Housing and Urban Development (HUD). Almost all reverse mortgages made in the U.S., especially since the credit crunch of 2008, are insured by the Federal Housing Authority (FHA). An FHA insured reverse mortgage is called a Home Equity Conversion Mortgage (HECM). Note that the FHA is not the lender. As with standard mortgages, a bank or other financial institution will be the actual lender. The FHA s role is to insure that the bank will be repaid. A review with a loan counselor is required as part of the qualification process. HECM loan counselors are third-party providers (i.e. they are not affiliated with the lender or with the FHA). HECM loan counseling can be obtained for free or at a low cost. Counselors can be found on HUD s website or by calling HUD at (800) During the reverse mortgage counseling session, the counselor will explain how reverse mortgages work, the financial and tax implications of taking out a reverse mortgage, payment options, and costs associated with a reverse mortgage. Upon completion of the counseling session, the prospective borrower will be issued a certificate of participation that will be required by the lender in order to obtain a reverse mortgage loan. Another Alternative The new HECM Saver loan, which debuted in October 2010, charges only 1% of a home's value up front. This loan has some restrictions, however. The HECM Saver usually carries a higher interest rate and you can't borrow as much as you can with the HECM Standard. The amount you're allowed to borrow depends on your age. Both HECM Saver and HECM Standard loans require borrowers to pay mortgage insurance premiums on an ongoing basis equivalent to 1.25% annually of the outstanding loan balance. For More Expensive Homes, Consider A Non-FHA Reverse Mortgage The Federal limit on an insured reverse mortgage is $625,500. A jumbo reverse mortgage may be available on a more expensive home. This type of loan comes
7 from a private lender, like a bank. Private company reverse mortgages will go as high as $6 million. The interest rate will probably be 2 to 3% higher, and the loanto-value will be lower than with a HECM. There will be no FHA insurance on this loan. More Information WHEN researching reverse mortgages online, consumers should focus on information published in 2009 or later. Information from 2008 and earlier may be outdated due to the many changes in the marketplace since the credit crunch of FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA lender. FHA provides this information for free, and HECM housing counselors are available for free or at very low cost, to provide information, counseling, and a free referral to a list of FHA-approved lenders. Search online or call (800) toll-free, for the name and location of a HUD-approved housing counseling agency near you. You can read up on reverse mortgages on the AARP website at Put reverse mortgages in the search box on their site. Their document Borrowing Against your Home (located at ires_nocrops.pdf) is particularly informative. The National Reverse Mortgage Lenders association is at nrmlaonline.org. They have a find a lender button on their site. Receipt and Use of proceeds: Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for up to life), or line of credit, or as a combination of monthly income and line of credit. No mortgage payments are due during the life of the loan. The five payment options are: (1) tenure, by which the borrower receives monthly payments from the lender for as long as the borrower lives and continues to occupy the home as a principal residence; (2) term, by which the borrower receives monthly payments for a fixed period selected by the borrower;
8 (3) line of credit, by which the borrower can make withdrawals up to a maximum amount, at times and in amounts of the borrower's choosing; (4) modified tenure, by which the tenure option is combined with a line of credit; and (5) modified term, by which the term option is combined with a line of credit. Fees for Reverse Mortgages There are substantial upfront fees (i.e., mortgage insurance premiums, loan origination fees and closing costs) with these loans, as well as ongoing fees (mortgage premiums, interest and servicing fees), during the course of the loan. Before you take out the loan, you will have to consider how much you will shell out in fees so that you will have enough to cover your expenses. For example, the standard HECM loan charges a 2% mortgage insurance premium up front on the home value not the amount borrowed as with regular forward mortgages. For example, if you own a $400,000 home, the upfront MIP would be $8,000 whether you borrow $30,000 or $200,000. A reverse mortgage loan counselor can give you a break down of the expected fees.
Guide to Reverse Mortgages
Guide to Reverse Mortgages Prepared by Steve Juetten, CFP Juetten Personal Financial Planning, LLC. www.finpath.com 425-373-9393 Disclaimer: the information in this report was prepared from reliable sources;
More informationReverse Mortgage Information Guide
Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage
More informationThere are no asset or income limitations on borrowers receiving HUD's reverse mortgages.
DEPARTMENT OF HUD REVERSE MORTGAGE INFORMATION Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage
More informationMaggie O'Connell Reverse Mortgage Store 800-489-0986
The Essentials: Reverse Mortgages For many homeowners age 62 and over, a reverse mortgage could be an important tool for financial flexibility. It can provide a way to access part of your home equity to
More informationConverting Home Equity into Income: A Reverse Mortgage Review
Converting Home Equity into Income: A Reverse Mortgage Review Are you interested in the possibility of converting equity in your home into cash without having to move or assume debt that has to be currently
More informationEnhance Your Financial Security
Enhance Your Financial Security With a Home Equity Conversion Mortgage Many homeowners across the nation have chosen a Home Equity Conversion Mortgage (HECM) to help them meet financial and personal goals.
More informationNationwide Mortgage Licensing System #222955
Nationwide Mortgage Licensing System #222955 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications,
More informationReverse Mortgage Presented by Ian MacGillivray, NMLS #638502 American Capital Corporation, NMLS #264422 Phone: 505-690-1089 Website:
Reverse Mortgage American Capital Corporation, Phone: 505-690-1089 Website: http://mortgagepartners-santafe.com Contents I. What Is a Reverse Mortgage? II. Benefits and Typical Uses III. Is the Home at
More informationEnhance Your Financial Security. With a Home Equity Conversion Mortgage
Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 925-258-0386 1 Unlock Your Home s Equity We understand that you want to transition easily into the
More informationA GUIDE TO. reverse mortgages. Live the retirement you dreamed
A GUIDE TO reverse mortgages Live the retirement you dreamed Guide Content 14What Is A Reverse Mortgage? 24How Do I Qualify? 34 What Can A Reverse Mortgage Be Used For? 44How Much Money Could I Qualify
More informationConverting Home Equity into Income: AReverseMortgageReview
Converting Home Equity into Income: AReverseMortgageReview Are you interested in the possibility of converting equity in your home into cash without having to move or assume debt that has to be currently
More informationSource: Genworth Financial Home Equity Access, Inc. Reverse Mortgage Study- 10/2008 2
REVERSE MORTGAGES 1 Source: Genworth Financial Home Equity Access, Inc. Reverse Mortgage Study- 10/2008 2 Benefits of a Reverse Mortgage Senior will receive money without having to leave their home No
More informationWhat You Need to Know Before Considering a. Reverse Mortgage. Fair Housing Legal Support Center & Clinic
What You Need to Know Before Considering a Reverse Mortgage Fair Housing Legal Support Center & Clinic Reverse Mortgage Pros and Cons Pros A reverse mortgage may allow senior homeowners to age in place
More informationReverse Mortgage Counseling 101
THE ESSENTIALS REVERSE MORTGAGES The MetLife Mature Market Institute Celebrating its 15-year anniversary in 2012, the MetLife Mature Market Institute is Metropolitan Life Insurance Company s (MetLife)
More informationFHA Reverse Mortgages for People 62 Years and Older
FHA Reverse Mortgages for People 62 Years and Older If you are age 62 or older you may want to participate in FHA's Home Equity Conversion Mortgage (HECM), better known as the Reverse Mortgage, program.
More informationWhat You Should Know About Reverse Mortgages
What You Should Know About Reverse Mortgages The FHA s Program Reverse mortgages are becoming popular in America. HUD's Federal Housing Administration (FHA) created one of the first. The Home Equity Conversion
More informationReverse. Mortgage. Presentation
Reverse Mortgage Presentation Copyright 2004, 2005, 2006 by National Reverse Mortgage Education Center All rights reserved Overview Enables homeowners age 62 and older to turn a portion of their home s
More informationReverse Mortgage Information
Reverse Mortgage Information A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with
More informationU.S. Department of the Treasury Information Guide Regarding Reverse Mortgage
U.S. Department of the Treasury Information Guide Regarding Reverse Mortgage Federal Housing Administration U.S. Department of Housing and Urban Development Basics about Reverse Mortgages What is a reverse
More informationSenior Concerns. Will you outlive your money?
NMLS #64997 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications, etc. Fixed income with
More informationA Guide to Reverse Mortgages
A Guide to Reverse Mortgages You may have heard about reverse mortgages on television or from a friend and are not quite sure what they are, or you may already know what a reverse mortgage is and are not
More informationU.S. Department of the Treasury Information Guide Regarding Reverse Mortgage
U.S. Department of the Treasury Information Guide Regarding Reverse Mortgage Federal Housing Administration U.S. Department of Housing and Urban Development This Consumer Advisory on Reverse Mortgages
More informationThe Effective Use of Reverse Mortgages in Retirement
Page 1 of 8 Copyright 2009, Society of Financial Service Professionals All rights reserved. Journal of Financial Service Professionals July 2009 The Effective Use of Reverse Mortgages in Retirement by
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association Published by THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse
More informationWELCOME. To the Wonderful World Of Reverse Mortgages
WELCOME To the Wonderful World Of Reverse Mortgages Reverse Mortgage Loans Borrowing Against Your Home Basic Questions: 1. Do you really need a reverse mortgage? -- Why are you interested in these loans?
More informationReverse Mortgage Guide
Reverse Mortgage Guide Reverse Mortgage Answers, LLC Find out why 25 years of experience makes a difference (800) 420-5515 www.rmanswers.com What is a Reverse Mortgage and How does it Work? A Reverse Mortgage
More informationComplete Guide to Reverse Mortgages
Complete Guide to Reverse Mortgages Contents I. What Is a Reverse Mortgage? 2 Reasons for taking out a reverse mortgage 2 Differences between reverse and traditional mortgages 2 II. Where to Get Reverse
More informationReverse Mortgage Is it right for you?
Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,
More informationUSA Reverse. Learn the Facts about Reverse Mortgages. Danny Glover - Human Rights Activist
Learn the Facts about Reverse Mortgages Danny Glover - Human Rights Activist Single-purpose Reverse Mortgages Single-purpose reverse mortgages are the least expensive option. They re offered by some state
More informationConcierge Financial Planning, LLC Prepared for: December 01, 2014
Concierge Financial Planning, LLC Ann Minnium, CFP Principal 1371 Cooper Road Scotch Plains, NJ 07076 Tel: 908-756-3553 Fax: 908-756-1197 ann@conciergefp.com www.conciergefp.com Reverse Mortgages Prepared
More informationEnhance Your Financial Security. With a Home Equity Conversion Mortgage
Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 888.732.1005 1 Unlock Your Home s Equity We understand that you want to transition easily into the
More informationHow To Get A Reverse Mortgage
Reverse Mortgage Credit Union Mortgage Association 9693-A Main Street Fairfax, VA 22031 Toll Free: (800) 231-8855 Ext. 128 Local: (703) 425-1204 Ext. 128 www.cumortgage.net Summary What is a Reverse Mortgage?
More informationIntroduction to Reverse Mortgages...
Introduction to Reverse Mortgages... A reverse mortgage is a loan that allows you to access a portion of the available equity in your home. The proceeds from the loan may be *tax-free and you choose how
More informationREVERSE MORTGAGE GUIDE
REVERSE MORTGAGE GUIDE Retire comfortably with a Reverse Mortgage CRAIG MINTON - AMERICAN NATIONWIDE MORTGAGE - 757-254-1331 Introduction Hello my name is Craig Minton, Regional Manager and Reverse Mortgage
More informationU.S. Government Guaranteed HECM Reverse Mortgage Information Guide
To learn more please call our Reverse Mortgage Department at 302-283-4687 or toll free at 1-888-WSFSBANK (1-888-973-7226), or visit www.wsfsbank.com/reversemortgages. U.S. Government Guaranteed HECM Reverse
More informationHow HECMs Work. Prepared by Genworth. Reverse Mortgages: A Financial Planning Tool
How HECMs Work Prepared by Genworth Reverse Mortgages: A Financial Planning Tool What is a HECM? A Home Equity Conversion Mortgage (HECM) is a FHA-insured non-recourse loan that allows homeowners, age
More informationIs A Reverse Mortgage Right for You?
Is A Reverse Mortgage Right for You? NewRetirement s Guide to Reverse Mortgages www.newretirement.com (877) 394-1305 Table of Contents What is a Reverse Mortgage? Are You Eligible For a Reverse Mortgage?
More informationThe Facts. About Reverse Mortgages. without the hype
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationEnjoy Retirement In Your Dream Home. Home Equity Conversion Mortgage for Purchase Guide
Enjoy Retirement In Your Dream Home Home Equity Conversion Mortgage for Purchase Guide At Towne, we recognize the unique financial needs of the senior community. A Home Equity Conversion Mortgage (HECM)
More informationHiggins Capital Management, Inc.
Higgins Capital Management, Inc. Deborah M. Higgins President and Founder 2223 Avenida de la Playa Suite 210 La Jolla, CA 92037 800-716-6510 858-459-7451 debbie@higginscapital.com www.higginscapital.com
More informationThe Facts About Reverse Mortgages. without the hype
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationSecure your financial future with a Reverse Mortgage today!
Secure your financial future with a Reverse Mortgage today! 1 What Are Your Retirement Goals? Are you on track to meet your needs and satisfy your wants, now and in the future? Pay off your existing mortgage*
More information2005 National LTCi Producer Summit
2005 National LTCi Producer Summit As Reverse Mortgage Popularity Soars, How Can You Tap the Growing Market? Adrian Prieto, Key Account Manager Financial Freedom Senior Funding Corp. Financial Freedom
More informationIs a Reverse Mortgage. the right answer for you or a loved one? Get the facts.
Is a Reverse Mortgage the right answer for you or a loved one? Get the facts. H ome is a special place. Whether it s been in your family for generations or you ve lived there only for a short time, you
More informationUnderstanding Home Equity Conversion Mortgages
Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Reverse Lending Experts What Are Your Financial Goals? Are you on track to meet your retirement needs and satisfy
More informationIs a Reverse Mortgage. the right answer for you or a loved one? Get the facts.
Is a Reverse Mortgage the right answer for you or a loved one? Get the facts. H ome is a special place. Whether it s been in your family for generations or you ve lived there only for a short time, you
More informationSENIOR BULLETIN: MEDICAID. Reverse Mortgage Loans
VOL. 05-2 DATE: March 8, 2005 1 FROM: Joanna Otero 2 SENIOR BULLETIN: MEDICAID Reverse Mortgage Loans A reverse mortgage loan allows a homeowner to convert equity 3 in a home to cash. It is unlike a standard
More informationThe New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking
The New Tool For Retirement Income Planning Presented by: Becky Bell, Regional VP, Mortgage Banking Why Consider a Reverse Mortgage? Allows Clients to Take a Dormant Asset (Home Equity) and Put it to Work
More informationL.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.
L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.com Reverse Mortgages Page 1 of 6, see disclaimer on final
More informationHouse Rich and Cash Poor: Ways to Unlock Your Home s Value
House Rich and Cash Poor: Ways to Unlock Your Home s Value Avenidas Housing Conference, March 10, 2012 Barbara Krimsky Binder, CFP, BKB Financial Advisors Does This Describe Your Situation? - You bought
More informationYour Reverse Mortgage Guide. Reaping The Rewards Of A Lifetime Investment In Homeownership
Your Reverse Mortgage Guide Reaping The Rewards Of A Lifetime Investment In Homeownership Contents Make The Most Of Retirement!...3 Program Overview...3 4 What Is A Reverse Mortgage? Why Get A Reverse
More information10/22/2014. Securing Retirement with Home Equity Conversion Mortgages. Retirement Planning Using Home Equity. What is a HECM?
Securing Retirement with Home Equity Conversion Mortgages 2013 Liberty Home Equity Solutions, Inc. All rights reserved For business professional use only. Not intended for distribution to the public..
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage
More informationTHE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION
THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage Lenders Association is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued
More informationReverse Mortgages: A Guide for Consumers. A New Report from THE AMERICAN ADVISORY COUNCIL
Reverse Mortgages: A Guide for Consumers A New Report from THE AMERICAN ADVISORY COUNCIL This publication is designed to provide accurate and authoritative information regarding the subject matter covered.
More informationUnderstanding Home Equity Conversion Mortgages
Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Stephen Gargano Manager NMLS # 64495 Reverse Mortgage Dept SEFCU MORTGAGE SERVICES 1131 Rte 55, Suite 4 Lagrangeville,
More informationA Guide To Reverse Mortgages
A Guide To Reverse Mortgages What is a Reverse Mortgage? A Home Equity Conversion Mortgage (HECM) is a program designed for seniors that is ensured by the Federal Housing Authority (FHA). The program was
More informationSecure your financial future with a Reverse Mortgage today!
Steve Rivas President Call me with any questions always here to help. (888) 944-6262 steve@wphomeloans.com www.wphomeloans.com Secure your financial future with a Reverse Mortgage today! 1 What Are Your
More information1-800-290-3521 Extension 415 A Connecticut Company. Providing Our Clients With Excellent Opportunities... Outstanding Results
Reverse Mortgage Basics What is a reverse mortgage? The reverse mortgage is a safe and easy way for seniors to turn their home s equity into an additional source of income to meet any financial need. It
More informationJanuary 28, 2015 Kauffman Conference Center
January 28, 2015 Kauffman Conference Center Changing Housing Needs for Older Adults Reverse Mortgages: Opportunities and Challenges Pete Mendenhall, CRMP, CAPS North American Savings Bank Understanding
More informationReverse Mortgage Education
Reverse Mortgage Education Preface As people are continually living longer, they must plan financially to make sure their money outlives them, instead of outliving their money. As pension plans get cut
More informationHELPING YOUR CLIENTS USE THEIR HOME TO STAY AT HOME REVERSE MORTGAGES AND ESTATE PLANNING
HELPING YOUR CLIENTS USE THEIR HOME TO STAY AT HOME REVERSE MORTGAGES AND ESTATE PLANNING Presented By Doni Dolfinger Reverse Mortgage Specialist UNDERSTANDING REVERSE MORTGAGES Your client s home is many
More informationSeniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions
Seniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions A public information service from Access Reverse Mortgage 1-888-340-0305 2014 Access Reverse Mortgage Corp.. All rights reserved.
More informationGovernment Insured Reverse Mortgage
Government Insured Reverse Mortgage HECM (Home Equity Conversion Mortgage) Independence & Peace of Mind for Seniors From the company providing Mortgage options Since 1968. What is a HECM or Reverse Mortgage
More informationReverse Mortgages. Federal Trade Commission ftc.gov
Reverse Mortgages Federal Trade Commission ftc.gov If you re 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for
More informationFrequently asked questions for advisors
1. How does your client qualify for a reverse mortgage? To become eligible for a reverse mortgage, the borrower must be at least 62 years old and own their home And have enough equity in the house to pay
More informationReverse Mortgage. Work With a Local Expert
Reverse Mortgage Work With a Local Expert I offer a variety of reverse mortgages (HECM FHA, Jumbo, Purchase and Fixed Rate) designed to eliminate current mortgage payments and give borrowers easier access
More informationTable of Contents. Enjoy your retirement years 1. Loan App: Checklist 7
Table of Contents Enjoy your retirement years 1 Program Overview Why get a HECM? 1 HECM vs. Traditional Mortgages 1 HECM Benefits 1 Loan App: Checklist 7 Contact Information 8 Q and A 2 HECM SAVER Overview
More informationPut your home to work for you
Put your home to work for you Sara A. Cornwall 2507 Post Road, Southport CT 06890 Phone: 203-319-5014 Email: Sara.Cornwall@WellsFargo.com What is a reverse mortgage It s a home loan that enables you to
More information<Servicer Logo> Questions and Answers About Reverse Mortgages. If you have questions or need our help, call <8XX-XXX-XXXX>.
Questions and Answers , If you have questions or need our help, call . What is a reverse mortgage? A reverse mortgage is a loan
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage
More informationREVERSE MORTGAGES EXPLAINED
REVERSE MORTGAGES EXPLAINED Thank you for considering a reverse mortgage loan. As you may know, a reverse mortgage loan is a very special type of loan that permits borrowers to convert some of the equity
More informationReverse Mortgage Counseling Checklist
Reverse Mortgage Counseling Checklist Have these items available for your counseling session... - Loan Comparison Page The calculator loan results is an estimate of available reverse mortgage programs
More informationModule 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care. Posted 5/31/05
Module 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care Posted 5/31/05 Answers to Key Questions What LTC financing options are available other than insurance? What are the differences
More informationReverse Mortgages. Chapter 20 SYNOPSIS. Doni Dolfinger Paulette Wisch, CML Universal Lending Corporation. 20-1. What Is a Reverse Mortgage?
Chapter 20 Reverse Mortgages Doni Dolfinger Paulette Wisch, CML Universal Lending Corporation NOTE: The Federal Housing Administration has delayed implementation of upcoming changes to the HECM (reverse
More informationA Smart Choice Learn How The New Reverse Mortgage May Fit Into Your Retirement Plan.
A Smart Choice Learn How The New Reverse Mortgage May Fit Into Your Retirement Plan. Retire With Confidence For years you ve planned for your retirement. Along the way, you ve made lots of smart decisions,
More informationHow To Get A Home Equity Conversion Mortgage
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationReverse Mortgages - What Are The Advantages?
Money from Home A Guide to Understanding Reverse Mortgages Our Business Is The American Dream At Fannie Mae, we are in the American Dream business. Our Mission is to tear down barriers, lower costs, and
More informationThe following information is provided to you by U.S. Department of Housing and Urban Development.
The following information is provided to you by U.S. Department of Housing and Urban Development. Attachment C: Resources for Clients C.1 Important Information about Reverse Mortgage Counselors C.2 Reverse
More informationEquity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.
Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National
More informationChapter 16: Squeezing the Last Drop Additional Material
Chapter 16: Squeezing the Last Drop Additional Material In my original manuscript, I had a more extensive discussion on reverse mortgages. Here s the full version. What about reverse mortgages? These are
More informationhousing information www.housing-information.org Reverse Mortgages A project of Consumer Action
housing information www.housing-information.org Reverse Mortgages A project of Consumer Action One of the major benefits of buying a home is the opportunity to build equity, or ownership, in the property.
More informationReverse Mortgages: Reversal of Fortune?
Reverse Mortgages: Reversal of Fortune? Certainly The Fonz would not lead us astray. Nor would Senator Fred Thompson. After all, he ran for President of the United States and played the President in several
More informationTurn the equity in your home into an income you can t outlive
Turn the equity in your home into an income you can t outlive What Is a Reverse Mortgage? A reverse mortgage is a loan designed for senior homeowners age 62 or older, that allows them to convert some of
More informationReverse Mortgage Facts & Answers to Frequently Asked Questions
Reverse Mortgage Facts & Answers to Frequently Asked Questions Access Reverse Mortgage Corporation 1-888-340-0305 Toll-Free 2999 Tyrone Blvd N St. Petersburg, FL 33710 www.accessreversemortgage.com NMLS
More informationReverse Mortgages Overview
Reverse Mortgages Overview An Overview of Reverse Mortgages In 1987 President Ronald Reagan authorized the Department of Housing and Urban Development (HUD) to create the Home Equity Conversion Mortgage
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association Published by THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse
More informationAbout Mortgage Market Corp
About Mortgage Market Corp Mortgage Market Corp. works with a variety of lenders and with this being one of the largest financial decision s that you will make, selecting the right mortgage program to
More informationCONSUMER ALERT REVERSE MORTGAGES
CONSUMER ALERT MIKE COX ATTORNEY GENERAL The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance
More informationReverse Mortgage Basics. Norma P. Garcia Senior Attorney Consumers Union May 28, 2012
Reverse Mortgage Basics Norma P. Garcia Senior Attorney Consumers Union May 28, 2012 What is a reverse mortgage? It s a loan against the equity in an elder s home Instead of making monthly payments to
More informationReverseMortgages.com, Inc. A Guide to Reverse Mortgages
ReverseMortgages.com, Inc. A Guide to Reverse Mortgages Table of of Contents Introduction Introduction Our Commitment to You Is a Reverse Mortgage Right for You? Getting Your Reverse Mortgage: Questions
More informationHome Equity Conversion Mortgage (HECM) for Home Purchase
Home Equity Conversion Mortgage (HECM) for Home Purchase A Guide to HECM s Home Equity Conversion Mortgage (HECM) for Home Purchase A Home Equity Conversion Mortgage for Purchase can be life-changing for
More informationReverse Mortgage Lending Now in Fast Forward
Reverse Mortgage Lending Now in Fast Forward Brian King BenchMark Consulting International The Reverse Mortgage business has been discovered! According to the National Council on Aging, over 80% of people
More informationCONSUMER. Spending Down the House: A Quick Guide on Reverse Mortgages for Elder Advocates
CONSUMER Information for Advocates Representing Older Adults N a t i o n a l C o n s u m e r L a w C e n t e r CONCERNS Spending Down the House: A Quick Guide on Reverse Mortgages for Elder Advocates At
More informationBy the end of today s meeting you will be able to do the following
1 By the end of today s meeting you will be able to do the following 1 2 3 4 Explain the basics of the Home Equity Conversion Mortgage (HECM). Define what a HECM for Purchase is. Identify key terms, features
More informationGet the facts. What every homeowner who is at least 62 years of age should know about reverse mortgage loans
Get the facts What every homeowner who is at least 62 years of age should know about reverse mortgage loans Dino Guadagnino Reverse Area Sales Manager PHL Federal Reserve Meeting December 1, 2010 1 What
More informationinfo sheet Selecting a Reverse Mortgage
info sheet Selecting a Reverse Mortgage Many older people are house-rich and cash-poor. They own a home, free and clear, that may be worth hundreds of thousands of dollars. Yet they have little income
More information1-800-555-5555. 800-818-2946 www.com
Call our our Senior Senior Helpline Call Helplinetoday: today: 1-800-555-5555 800-818-2946 www.com Advisor: Stuart Hindemit Please consult with your tax advisor. Borrower must continue to pay for property
More informationReverse Mortgage Loans: Learn how and why a reverse mortgage may be a useful option to help you stay in your home
Reverse Mortgage Loans: Learn how and why a reverse mortgage may be a useful option to help you stay in your home In 2010, over 80 percent of individuals 65 and over owned a home according to the U.S.
More information