During the past the mortgage industry only concentrated on folks who had cash or were looking out for a home to grow their families. The FHA and VA were the programs that were introduced to the general public that would permit someone who wanted a home to buy with very little cash down. These programs are different in the FHA is an insured mortgage which doesn't look at credit in a fairly similar way as a standard mortgage. The VA is for vets from the army and is a warranted loan back by the GI bill. There are essentially three different types of Reverse Home-loan home loans.
Reverse Home Loans needn't be paid back unless owner of the home moves, sells the home, or in the eventuality of death. Given out by governmental agencies and also non-profit organisations. It's also usually utilised for particular purposes like repairs and home enhancements and in a few cases, dearth of property taxes. They either could be the monthly or the yearly rate added to the margin or it could be a fixed rate. The varied firms also have exclusive programs which will call them under a particular name but they fall under the FHA guide lines and have the same makeup here are the plans. HECM Fixed is a non-variable rate that's consistent for the term of the loan. Elements of the Loan You'll find the following terms on the Reverse Homeloan Comparisonsheet : Primary Rate Of Interest : this rate relies on the one year Treasury Bill and margin points.
This could be the rate of interest for the 1st month of the loan. After you qualify for the HECM, you may then select a payment schedule. If you would like to withdraw a specific quantity, it is going to be based dependent on the value of the home or a maximum withdrawal limit for a touch more than $600,000. First, the term plan permits you to set the quantity of months whereby you are going to receive equal payments. Other payment options There are 4 types of payment options to select from , for example : term plan, credit line plan, reign plan and altered term plan. The credit line plan, from the other perspective, involves installment and unscheduled payments and gives you the opportunity to borrow any amount you need till the entire fund is withdrawn. The Fundamentals of a Reverse Home Loan Your reverse home-loan advisor will help you across the process of getting a loan for your house, but there are one or two basics you can expect. Credit counselling is typically free, and can be finished domestically inside only a few hours time.
As an example, everybody who acquires a reverse homeloan loan is necessary by Fed. laws to attend credit counselling. You'll find the counselling session will also address your future, and aid you in planning to leave something for your youngsters or other selected successors.
Before diving into the deep end of a reverse home loan, you have got to make sure you understand what it is, if you're admissible, and what's going to be anticipated if you settle on one. Reverse homeloans have been about for a bit and the Dept of Housing and Urban Development ( HUD ) under the Fed. Housing Administration ( FHA ) was one of the first to supply them. A reverse homeloan is a house loan that permits you to borrow against the equity you have built up in your house over time. The important differences between a reverse home loan and a rather more normal mortgage are the loan isn't paid back till you now do not live in the crib or on your death, and you will never owe more than the home’s value.
A reverse homeloan isn't for everybody, and not many are suitable. After you qualify for the HECM, you may then select a repayment schedule. There are a few options to get payments from the reverse homeloan programme. If you would like to withdraw a specific amount, it's going to be based dependent on the value of the home or a maximum withdrawal limit for a touch more than $600,000. First, the term plan permits you to set the quantity of months whereby you are going to receive equal payments. So these are some things which will help you if you're on the lookout for info on Reverse Home Loans : The PROS of Reverse Home Loans : ( also called senior mortgages ) Tax free revenue assured by the Central Government which continues so long as your house is your first residence. The credit line plan, from the other standpoint, involves installment and unscheduled payments and gives you the opportunity to borrow any amount you would like till the entire fund is withdrawn.
The leftover Credit line grows every month at half % over the present IR. You can change your intention at any point from a credit line, money out, monthly checks, or a combo ( dependent on what remains ). Unlike an equity loan there's no earnings, credit, or health qualification. These mortgages are a good way to make money on your investment while you're still living. For those ages sixty-two and older, this mortgage can ease the money problems regularly faced during retirement, so that you can enjoy your twilight days.
You can even be in a position to get a reverse home-loan if you owe on your house, particularly if there's a big quantity of equity attached. The Fundamentals of a Reverse Homeloan Your reverse homeloan specialist will help you across the process of getting a loan for your house, but there are one or two basics you can expect. Reverse Home-loans needn't be paid back unless owner of the home moves, sells the home, or in the eventuality of death. For instance, everybody who acquires a reverse home-loan loan is necessary by Fed. laws to attend credit counselling. There are three different types of Reverse Home Loan home loans. Given out by official agencies and also non profit organisations. Single Purpose Reverse Home Loan Unavailable in each town and said to be an inexpensive loan.
Don’t Let Your Clients Lose Anymore Home Equity –
Do A Strategic Reverse Mortgage.
We have approximately 79 million Baby Boomers, looking
down the barrel of retirement.
In terms of preparedness, the overall attitude of boomers
nearing retirement is pessimistic, with 6 out of 10
expressing concern about outliving their retirement
savings.
7 out of 10 are “afraid” that their household is not saving
enough to cover future needs and more than one-third of
pre-retirees did not know the age at which they would
retire.
It looks like Baby Boomers are lacking the confidence
that they will enjoy a financially secure retirement.
That is where you come in as the financial pro to educate
your clients — and potential clients — about the importance
of holistic retirement planning.
Don’t overlook the importance of using the Reverse Mortgage
to shore up your Baby Boomer clients retirement and put
them on a path to a secure financial future.
I Specialist in Reverse Mortgages and can be your resource
to look and see if a Reverse Mortgage is the right fit for your
clients.
Timing is everything.
If you have a client or are not sure, just ask me for a free
Reverse Mortgage Quote. (Download Quote Form Here:
Repossessions are a massive problem influencing a major percentage of householders. Because of the monetary emergency faced by many we have opted to present some possible answers to handle repos. This calls for a measure to be drawn not only to handle that issue but to contain it. For owners with equity in their houses, particularly those aged 62 years and over. Reverse Home-loans needn't be paid back unless owner of the home moves, sells the home, or in the eventuality of death. Erroneous statements have shown up in print scaring away senior owners who'd have benefited significantly from this excellent programme. If you have questions, contact your local Office For the ageing or log onto HUD.gov and look for a Reverse Homeloan advisor. Take care about accepting info from those that aren't professionals in the field. Also, be at liberty to call me any time from nine am to ten pm 7 days every week.
I'm here to help. But there's much more work to do to spread the word and expel or the fables which have been connected with the programme. This is terrible to the true pro! The Govt has realized this an instituted some of the most constrictive instruments to give protection to the senior, and God knows they have to be shielded from the blood sucking vultures. The Reverse Home Loan of today isn't even close to what it was only a few years back. First, the term plan enables you to set the quantity of months whereby you are going to receive equal payments. The reign plan is the basic payment option, which enables you to receive equal payments each month so long as you use the home as your principal residence. Ultimately , the altered term plan is just the blend of the credit line plan but with the addition of standard payments paid out for a particular span of months.
No matter what payment option you select, you are given the privilege to unreservedly change it whenever you need. Reign lets you receive equal regular payments for the duration that 1 borrower occupies the property as the first residence. HECM offers 5 different payment plans for you to get your reverse home-loan loan amount – Reign , Term, Credit line, Changed Reign and Altered Term. Term permits equal standard payments over an agreed-upon cited number of months. Credit line lets you take out occasionally amounts at your preference till the amount is reached.
How to grasp the comparisons charts for a Reverse Home Loan. The Most significant thing for a senior to realise is the comparison charts of a Reverse Home-loan, before they make a selections as to which programme they're going to choose. After they make a variety this is a fixed programme. It's crucial that they know the variances between every one. First reverse home loans don't require any regular payments or repayment of any sort, so long as the senior lives in the home. Hence , you might never lose your house to foreclosure for shortage of payment.
The actuality is that many seniors have saved their houses from foreclosure by getting a reverse homeloan to replace a conventional forward mortgage they had a tough time remitting payments on. The individual that benefits the most from this HECM Saver reverse home loan is the individual that does not want all of the cash that can be found to them. So long as you maintain your property and pay your property taxes, your house is just about foreclosure explanation if you take out a govt. insured reverse home loan loan. That could be a lot of money to have available.
Often this is the person that owes little or less on their home. Second , the less mortgage you have left to pay, the more cash it's possible to get. If they only need $75,000, using the HECM Saver would scale back the costs $7,000, and since they did not want the ‘extra’ money, there's no reason to pay the charges on the bigger loan. How Can You Get What You Borrow? A reverse home loan bank gives you cash in numerous ways : one. All at the same time, in a single bit of money two. As a line of credit, whereby you can decide how and when lots of the money available is paid to you three. All the time, with the amount and schedule of payment fixed four. To have eligibility for a reverse home loan, you need to be at least 62 years old and must live in your own house. Now you are past the age of 62 and you are relied on Social Security, and perhaps if you're one of the fortunate ones a savings or pension that still exists you're confronted by the most important monetary collapse of your lifetime. So what are you about to do to help in replacing the monies that you assumed you would need to enjoy your retirement years, think my home can pay me back. Yes with all the changes that have taken place in the Reverse Home Loan industry it is developing as a really doable answer to your problem, if you looked at it before or you simply paid close attention to the media you want to look once more. The Reverse Home Loan will be the allowance of the new century it's the only safe bet for the senior, just because of it really is the safest instrument available to the biggest group in history. In a survey most seniors asserted they would rather stay in their houses till the end of time.
Because of the finance emergency faced by many we have chosen to present some potential answers to handle repos. Repossessions are a massive problem influencing an overall majority of owners. The primary solution debated in this post is commonly known as Reverse Homeloan. For householders with equity in their houses, particularly those aged 62 years and over.
The reign plan is the basic payment option, which permits you to receive equal payments each month so long as you use the home as your principal residence. No matter what payment option you select, you are given the privilege to readily change it whenever you need. Ultimately , the changed term plan is just the blend of the credit line plan but with the addition of regular payments paid out for a particular span of several months. You can change your scheme at any point from a credit line, money out, monthly checks, or a combo ( dependent on what remains ). So next time you would like to help a relative afford a Coral Gables property, do not forget you can thru HECM. Unlike an equity loan there is not any earnings, credit, or health qualification. A nice choice for seniors who would like to remain in familiar environment and in the same community where they have lived for a long time.
Moving may cause emotional chaos for many senior owners, memories were made in your ‘home sweet home’. Credit counselling is commonly free, and can be finished regionally inside just one or two hours time. These mortgages are more than simply a loan, it'll also remain current after dying. Credit counselling will help you enormously in understanding finances, and the mortgage process. The balance of the mortgage will be given to successors in the eventuality of your death. Planning for Your Reverse Home-loan Your reverse homeloan specialist will also provide some basic info regarding what will occur in the case of a premature death. Now you are past the age of 62 and you are relied on Social Security, and perhaps if you're one of the fortunate ones a savings or pension that still exists you are confronted by the most important money collapse of your lifetime. So what are you intending to do to help to replace the monies that you presumed you would enjoy your retirement years, think my home can pay me back. Yes with all the changes that have taken place in the Reverse Homeloan industry it is developing as a terribly practicable answer to the issue, if you looked at it before or you simply paid close attention to the media you want to take another glance. With an increasing issue in this country of where will all of the folk go when they want care or housing there isn't really enough places for them.
Reverse homeloans have been about for some time and the Office of Housing and Urban Development ( HUD ) under the Fed. Housing Administration ( FHA ) was one of the first to supply them. Before diving into the deep end of a reverse home-loan, you have to make sure you understand what it is, if you're qualified, and what is going to be anticipated if you choose one. A reverse home-loan is a house loan that enables you to borrow against the equity you have built up in your house over time.
You may also employ a reverse home loan to get a different principal residence by utilizing the money available after you pay off your present reverse homeloan. Medicaid might be influenced, and you may not qualify for benefits unless you spend down your Reverse Home Loan proceeds each month. ( Check with your solicitor and Medicaid to talk about Medicaid’s parameters. ) When NOT to get a Reverse Homeloan : An equity loan might be a less expensive technique to get money out of your house as closing costs are lower. If your first goal is fixing up your house and a community loan is sufficient, a Reverse Homeloan isn't the only option. If you're sick and managed living or a retirement home is close, don't select a Reverse Homeloan. For those ages 62 and older, this mortgage can ease the finance problems frequently faced during retirement, so that you can enjoy your golden days. You can even be in a position to get a reverse home loan if you owe on your house, particularly if there's a huge quantity of equity attached.
For instance, everybody who acquires a reverse home-loan loan is necessary by Fed laws to attend credit counselling. The Fundamentals of a Reverse Home Loan Your reverse home loan expert will help you across the process of getting a loan for your house, but there are 1 or 2 basics you can expect. Now you are above the age of 62 and you are relied on Social Security, and perhaps if you're one of the fortunate ones a savings or pension that still exists you are confronted by the largest fiscal collapse of your lifetime. So what are you intending to do to help to replace the monies that you assumed you would enjoy your retirement years, think my home can pay me back. Yes with all the changes that have taken place in the Reverse Home Loan industry it is developing as an extremely doable answer to your problem, if you looked at it before or you paid close attention to the media you want to take a second glance. With an expanding problem in this country of where will all of the folk go when they want care or housing there isn't really enough places for them. In a survey most seniors stated that they would rather stay in their houses till the end of time. Reverse Home Loans needn't be paid back unless owner of the home moves, sells the home, or in the eventuality of death.
For house owners with equity in their houses, particularly those aged 62 years and over. There are three different types of Reverse Home-loan home loans. Single Purpose Reverse Home Loan Unavailable in each town and thought to be a cheap loan.
The FHA and VA were the programs that were introduced to the general public that would permit somebody who wanted a home to get with little cash down. During the past the mortgage industry only targeted on folk who had money or were searching for a home to grow their families. The VA is for vets from the army and is an assured loan back by the GI bill. Both these programs help millions of men and women become house owners with little money down. Parts of the Loan You'll find the following terms on the Reverse Homeloan Comparisonsheet : Primary Rate : this rate is founded on the one year Treasury Bill and margin points. For the life of the loan, the borrower is assured never to pay 10 points more than first rate of interest.
This guarantee is named the rate cap. The balance of the mortgage will be given to successors in the eventuality of your death. Predicted IR : this rate is based upon the ten year Treasury Bill and establishes the quantity of proceeds the borrower will receive. Planning for Your Reverse Homeloan Your reverse homeloan advisor will also provide some basic info about what will occur in the case of a premature death. Since it's a duty you have to be age 62 or older to get one, it is a smart idea to plan your future with successors and family in order that they understand what will occur in times to come. Your house is a useful source of earnings in retirement age.
So these are some things which will help you if you're searching for info on Reverse Home Loans : The PROS of Reverse Home-loans : ( also called senior mortgages ) Tax free revenue assured by the Government which continues so long as your house is your first residence. You can change your intention at any point from a credit line, money out, monthly checks, or a combo ( dependent on what remains ). The leftover Credit line grows every month at half % over the prevailing rate of interest. Unlike an equity loan there isn't any earnings, credit, or health qualification. Exclusive Reverse Homeloan Owned or backed by non-public corporations, this is the most costly of the three loans available. This sort of loan is comparable to that of the Fed Insured reverse home loan. Sometimes called home equity conversion mortgage or HECM, it may light the way to a high cost ( more than single purpose loans ) if householders don't stay for extended periods. Fed Insured Reverse Home Loan Backed by the US Office of Housing and Urban development ( HUD ), it is attractive to the lower income group as there isn't any need for medical and revenue necessities.
The FHA and VA were the programs that were introduced to the general public that would permit an individual who wanted a home to buy with little cash down. During the past the mortgage industry only concentrated on folks who had cash or were looking out for a home to grow their families. Both these programs help many millions of people become householders with no money down. These programs are different in the FHA is an insured mortgage which doesn't look at credit in a rather similar way as a standard mortgage. These mortgages are more than only a loan, it'll also stay in effect after you die. A new age is dawning in this country, with a new group of voters that need a programme which will help them live life in a serious fashion. Planning for Your Reverse Homeloan Your reverse home loan expert will also provide some basic info regarding what will occur in the case of an untimely death. Since it's a duty you have got to be age 62 or older to get one, it is a very good idea to plan your future with successors and family in order that they understand what will occur in days to come.
Your house is a good source of revenue in retirement age. When you qualify for the HECM, you may then select a repayment schedule. Other payment options There are 4 types of payment options to select from ,eg : term plan, credit line plan, reign plan and changed term plan. If you would like to withdraw a specific quantity, it's going to be based dependent on the value of the home or a maximum withdrawal limit for a touch more than $600,000. First, the term plan permits you to set the quantity of months whereby you are going to receive equal payments. This sort of loan has similarities to that of the Fed Insured reverse home loan. The credit line plan, from an alternative perspective, involves installment and unscheduled payments and gives you the opportunity to borrow any amount you need till the entire fund is withdrawn. Fed.
Insured Reverse Homeloan Backed by the US Office of Housing and Urban development ( HUD ), it is appealing to the low income group as there's no need for medical and earnings needs. Another workable option is balloon payments. A. K. A home equity conversion mortgage or HECM, it could lead to a high cost ( more than single purpose loans ) if householders don't stay for lengthy periods. The standard payments are low and if paid within just a few years, one can refinance their home to avoid balloon payments.
FHA sets a lending limit of $417,000 nevertheless the county limit shave been done away with and isn't an element. Line Of Credit Rate Of Growth : the rate that the gains in the credit line grows. P.c. : the proportion of the borrower’s conjectured home price that could be utilised for the reverse home loan. Principle Limit : the quantity of the borrower’s home price that'll be utilized in the reverse homeloan. This amount will be used to cover the monthly service charge, closing costs, pay what's left of your home loan, and given to the borrower in proceeds.
If you're meaning to buy another property, like a Coral Gables property home, an HECM is an excellent option to afford the price. The HECM or Home Equity Conversion Mortgage is a loan programme offered by the HUD to permit house owners to turn their equity into money. The programme nonetheless, is held in reserve for older citizens who've totally paid the mortgages of their principal property or are left with only a little balance on their loan. Credit counselling is sometimes free, and can be finished regionally inside just one or two hours time. Nonetheless , the HECM is a great programme to help prepare for retirement or offer assistance to a relative. Credit counselling will help you enormously in understanding finances, and the mortgage process. These mortgages are more than simply a loan, it'll also stay current after you die.
You'll find the counselling session will also address your future, and help you in planning to leave something for your youngsters or other selected successors. Planning for Your Reverse Home-loan Your reverse homeloan specialist will also provide some basic information regarding what will occur in the case of an untimely death. For a $20 charge, you can change your payment options. Banks recover the price of the loan and interest on your death or when you now don't live in the home and your house is sold. Since the FHA insures the loan, if the results of the sale of your house aren't enough to cover the loan, FHA pays the bank the difference. Bear in mind that the FHA charges borrowers insurance to cover this provision. The amount you are able to borrow, with IR charged, depends upon many considerations, and all that's determined before you submit your loan application. You cannot be forced out of your house so long as your property taxes and householder's insurance are paid and so long as you maintain your house. On the sale of your property you cannot owe more than the house is worth. Nonetheless if you select to repay your debt and live in your house or if your successors choose to pay the debt on your passing and keep the home, repayment of the full mortgage debt will be due. Your assets can't be attached to reimburse the mortgage debt, and the debt doesn't pass to your successors or your estate.
Exclusive Reverse Home Loan Owned or backed by personal corporations, this is the most costly of the three loans available. It is in general given out with the objective of milking money and isn't backed by any government or non-profit associations. Sometimes called home equity conversion mortgage or HECM, it could well lead to a high cost ( more than single purpose loans ) if owners don't stay for extended periods. This kind of loan is equivalent to that of the Fed. Insured reverse homeloan.
During the past the mortgage industry only targeted on folks who had cash or were looking out for a home to grow their families. The FHA and VA were the programs that were introduced to the general public that would permit somebody who wanted a home to buy with little cash down. The VA is for vets from the army and is a warranted loan back by the GI bill. Both these programs help millions of men and women become householders with minimal money down. When family members or trusted counsels suggest that a senior Mortgage isn't a great option, consider their proposals and keep an unprejudiced mind as they have your own interests at heart. If your kids invite you to move in with them, this might be the ideal alternative choice to staying in your own residence.
Keeping an unprejudiced attitude about senior mortgages is a total must. Do not waste time attempting to get approved. The reign plan is the basic payment option, which lets you receive equal payments each month so long as you use the home as your principal residence. Finally , the altered term plan is just the mix of the credit line plan but with the addition of standard payments paid out for a particular span of months. So next time you wish to help a relative afford a Coral Gables real estate, do not forget you can thru HECM. Irrespective of what payment option you select, you are given the privilege to readily change it whenever you desire. It is in general given out with the objective of milking money and isn't backed by any government or non-profit associations.
Exclusive Reverse Home Loan Owned or backed by personal firms, this is the costliest of the three loans available. Fed. Insured Reverse Homeloan Backed by the US Office of Housing and Urban development ( HUD ), it is attractive to the lower income group as there isn't any need for medical and revenue wants. A. K. A home equity conversion mortgage or HECM, it could well lead to a high cost ( more than single purpose loans ) if householders don't stay for extended periods. Conditions for the property require that it be a single-family dwelling, a 1-4 unit property whereby the borrower occupies one of the units, a condo accepted by HUD or a made home.
Without regard for the kind of dwelling, the property must meet all FHA building standards and flood wants. HECM offers 5 different payment plans for you to get your reverse home loan loan amount – Reign , Term, Credit line, Altered Reign and Changed Term. Term permits equal standard payments over an agreed-upon stipulated number of months.
One question I hear from my Reverse Mortgage Clients is, “What is the process to get a Reverse Mortgage?”
Below I have listed in general a detailed list on how the steps will occur in setting up your Reverse Mortgage.
Step 1. Action
You contact us to get the information you need, to decide if the Reverse Mortgage is right for you.
Step 2. Counseling
We give you the information on receiving the mandatory third party counseling that must be provided by a HUD approved agency. A Counselor will call you to set up a time to get your counseling session completed. Counseling must be completed prior the Step 4.
Step 3. Application/Documentation
Once you decide that a Reverse Mortgage is beneficial for you, together we fill out and sign the application disclosures and select the payment option: Monthly payments, credit line, lump sum payment or combination thereof, your choice.
Step 4. Processing
The we process your Reverse Mortgage loan, order the appraisal (to determine value of home) title report, lien payoffs and credit report (Good Credit Not Required). After receiving all pertinent information and data, we will then finalize the loan parameters, package loan and submit it for underwriting and final approval.
Step 5. Underwriting
An analysis of the processed documentation (per HUD Guidelines) happens in underwriting; any conditions must be cleared before the granting of the Reverse Mortgage.
Step 6. Closing
The loan is approved and the final in home signing is scheduled. Closing papers and final figures are prepared and signed by you the borrower.
Step 7. Funding
You then have three business days after closing to cancel the Reverse Mortgage. After this period the funds are disbursed. The Reverse Mortgage repays any previous debts/liens on the property and you begin receiving payments according to you selected option or personal situation.
Step 8. Repayment
You do not make any monthly mortgage payments to the lender during the life of the Reverse Mortgage. The Reverse Mortgage becomes due and payable upon; the death of all borrowers, the sale of the home, or if the borrower no longer uses the home as a primary residence. Upon the death of the borrower, the heirs/estate may repay the loan from the sale of the home and cash out on the remaining equity, or refinance the home.
If you want or need assistance in this process, please call 866-309-6626 or fill in the form on the right and we can make this a painless as possible.
The title company I use to do my Reverse Mortgage Loans had one of their clients who did not speak much English; a very sweet lady that had been praying every day that the title company would be able to clear up her title issues.
Her coverage area has some tough parts of town right on the border that had a high number of bankruptcies, foreclosures, vesting issues and low values. The client had a hard time with her youngest son over the years. He kept getting arrested and she and her husband bailed him out many times thru the same bonding company.
They were taken advantage of by a bondsman who tricked them into signing over the rights to their home. Aside from him being on title – and holding (2) bonds against the home; he had since gone out of business and no one could track him down.
The title company has been working on it since 3/1/11 – and somehow; the borrower’s son was able to find a local attorney who knew of the bondsman – and they were able to track him down to get him to sign a deed back to them; along with releases.
He has been running from the law – same story, many different people that were coerced into the same situation.
After 60 days of processing, the loan funded and the client was able to stay in her home.
The people in the Reverse Mortgage business are good and help many seniors remain in the homes.
Why Price Should Not Matter, Get Your Reverse Mortgage Now!
I had a Senior Couple located in the Central Valley of California. A very nice couple that could be my parents. We hit it off very well and they were interested in doing a Reverse Mortgage. They wanted to stop the monthly payments on a few small debts, part of the debt is a line of credit from their bank. This would have increased their cash flow by about $700.00 dollars per month.
As we were discussing the Reverse Mortgage Loan it came out that they had looked into the HECM Reverse Mortgage about 3 years ago (that would be 2008) BUT they thought it was way to expensive and opted for the cheap line of credit.
This is where I part ways with most everyone, when it comes the price or cost of the Reverse Mortgage Loan. This couples home was valued at over $700,000.00 dollars back in 2008 but when we appraised it in Mar 2011 the value was $110,000.00.
Not doing the Reverse Mortgage cost them somewhere north of $300,000.00 dollars. Plus they still have to shell out that $700.00 per month and that cheap line of credit is dragging them down. Which over the last 3 years would have been an extra $25,200.00 dollars cash flow into their pockets.
I hear you saying, but the money they owe would be over $400,000.00 dollars and counting and I say SO WHAT. The home stands for the debt and this nice couple would not be liable for that amount. They would be able to live in the home for the rest of their lives (80% of Seniors want this), have over $300,000.00 cash (Cash is King) and keep that pesky $700.00 in their pockets. Plus they would have peace of mind.
To bad all of the experts out there kept saying that the Reverse Mortgage is bad and cost to much. Many Seniors fell for that advice and now the price they are paying does matter.
If someone tells you that the Reverse Mortgage Scam, ask them how many Reverse Mortgages have they done.
I have done over 300 Reverse Mortgages, I have seen the great it has done for people. Call me or fill out the form on this page and lets compare the costs. It is Free to find out but it might cost you to not.
As to the Couple above, they can’t do the Reverse Mortgage because there is not enough value in their home anymore. Thanks to all the experts everyone was looking at the price that should not have mattered.
Reverse mortgage funds are available in several options. You may receive:
An immediate lump sum in cash.
A monthly cash payment as long as you reside in the home as your primary residence (or tenure plan).
A term plan, for a term of months you select.
A line of credit.
A combination of the above.
Before making your disbursement decision, be sure to weigh the pros-and-cons of each option. Every situation is different. You may change your plan at any time, but a nominal fee may be charged.
If you select an immediate lump sum, you may receive all of your available reverse mortgage funds in one payment. If you take all of your available funds in a one-time lump sum payment, you will not receive any additional funds under the reverse mortgage program, even if the value of your home increases.
If you opt for a tenure plan, you will receive a pre-determined amount of funds every month until you no longer occupy the home as your primary residence. If you plan on living in your home for the remainder of your life, you will receive the monthly payments as long as you live. You may receive your monthly payment as a check or deposited directly into your checking account.
A term plan provides equal monthly payments every month for a specific number of months. For example, you may want to receive all of your reverse mortgage funds over the course of 7 months or 7 years. You decide the length of the term.
A credit line allows you to use your reverse mortgage funds whenever you desire-without scheduled payments or installments-until the credit line is exhausted. The amount of cash you withdraw from your credit line is the amount of debt determined in your loan (plus fees and interest).
With some reverse mortgage products, the unused funds in your credit line will have a monthly or annual growth rate. The unused funds are not actually making money; the growth rate allows you access to more of your home’s equity.
If the outstanding balance on your credit line reaches the credit limit, your lender may refuse to make additional extensions of credit. This is similar to reaching your credit limit with a credit card.
You may also combine disbursement plans to suit your particular needs. For example, you might need an immediate lump sum payment that does not use the total amount of funds available to you. You may combine the two options by taking the lump sum payment and placing the remaining funds in a credit line.
A few years ago I help a husband and wife in Citrus Heights, CA get a reverse mortgage loan.
Their goal was to pay off a small current mortgage and make some needed repairs to the home they had lived in for around 30 years and finally take a dream vacation.
They did pay off their mortgage with the new reverse mortgage loan and for the first time in their lives they were able to live in their home with no monthly payments.
They also did make some needed and desired home improvements which made living in their home much more comfortable.
The thing that really made the difference in their lives was the dream vacation, they had always dreamed of taking a cruise to Alaska and during their working lives had never had the time and in retirement they never had the extra money.
The reverse equity mortgage gave them the money they wanted to take the vacation of their dreams.
When they returned they told me all about it and you could see the joy in their eyes as they spoke.
A few months after they returned they found out that the wife had cancer and they spent the next year fighting that terrible illness.
The husband told me of one of their visits to the doctor where they were told that the treatment would cost them $100.00 per pill after their health insurance deductible.
The wife commented that they could not afford her treatment, but the husband pointed out they could not before the reverse mortgage but they now had access to funds that would allow them to treat her.
They did get the treatment but in the end his wife passed on, his comment to me was that the reverse mortgage program allowed his wife to die in dignity.
They did not have to worry about money at a time when they needed to focus on her health and end of life needs.
For me as a reverse mortgage lender I feel sense of satisfaction in knowing that I made a big difference in their life, that the reverse mortgage allowed them to enjoy each other on their dream vacation and it offered them some personal dignity in death.
We all know that we will die and I encourage my elderly clients to embrace life while you are still healthy enough to enjoy it.
The equity in your home is yours to use just like any other money you may have accumulated, you can use it for your benefit and enjoyment or you can leave it to someone else to spend for their enjoyment.
To find out how much enjoyment you can spread around, call a live person or fill out the Reverse Mortgage Free Quote Form on the right of this page…
There is so much bad information and misconceptions about what is a reverse mortgage that they take on a life of their own and become urban legends and myths. This myths cause good people to miss out on a great opportunity. In addition the reverse mortgage gets a bad rap because of the products that are sold in conjunction with the reverse mortgage. Yes there are side effects to everything we do but the cure may be worth it.
Below are some of the the most common myths I hear when I am out talking to my clients.
Shedding light on these urban legends and myths will give you a new perspective on this great opportunity and give you the confident to access some of the wealth you have accumulated over the years.
The Reverse Mortgage Lender owns my home!
No! You maintain your home as long as you continue to use it as your primary residence. The lender only gets paid when you leave the home, at which time it may go to your estate. Your estate may refinance the reverse mortgage, or just simply give it back to the lender, letting the lender dispose of the home. Any moneys above what is owed on the note will go back to your estate.
If the loan amount exceeds the value of the home I will owe more money!
No! You can never owe more than the value of your home. Reverse mortgages are Non-Recourse loans meaning the balance due will never be more than the value of the home, regardless of the amount borrowed.
My Social Security, Medicare, Medicaid and other benefits will be affected!
No! A reverse mortgage does not affect benefits earned by seniors so long as the funds are not accumulated. Programs vary by state and specific dollar amounts vary also and you can check with your local “Agency on Aging”, or similar organization.
My heirs are burdened
No! Actually by replacing or using the reverse mortgage over a traditional mortgage or refinance will unburden your heirs from having to make house payments and risking foreclosure. In addition, once you vacate the house, the heirs have the choice of selling, refinancing or walking away from the home without any obligation or penalty in which they would be held personally responsible for. Generally the lender gives a six month reprieve plus two 90 day extension before taking any action. Should the lender have to take the home back and foreclose upon it, the heirs are not held responsible for any funds that may not cover the balance.
I must be debt free to qualify for a Reverse Mortgage
No! You may have a mortgage and other debts on your home as long as these debts can be paid off with some or all of the proceeds of the reverse mortgage and/or other available funds.
I must be in good health to qualify
No! Reverse Mortgages have nothing to do with your health and there are no health requirements
I need to have good income and credit to qualify
No! A reverse mortgage loan has no income or credit requirements and will help by giving you more cash flow, it may even make your credit better if you payoff any high interest balances.
Only cash poor or desperate seniors can benefit from a Reverse Mortgage
No and this is the biggest missed opportunity for regular seniors! Because there is virtually no restrictions on how the funds can be used from your reverse mortgage, all seniors will benefit by accessing an asset that is dormant without risking losing that asset because of tradition borrowing and lending but this all really depends on your goals.
I will owe Taxes on the Income
No! Money received from a reverse mortgage is classified a loan and not as income so you are not taxed but ask your tax professional if you are still unsure.
It is going to cost a lot of money
Not Really! If you are going to borrow money from any source available then you are going to have to pay for the use of that money so the cost really comes down to the difference between the other sources. If you would to find out if it makes sense to do the reverse mortgage use the form on the right or…
With this economy retirees have taken notice and the reverse mortgage with guaranteed positive cash flow and no monthly payments has become an increasingly popular tool. .
A typical mortgage refinance involves either a cash-out mortgage refinance or a home equity loan.
Times change quickly and older American property owners just don’t have the time available to grow out of this downturn.
Since everyone’s 401(k) balances and pensions plans have decreased in size, people near retirement are looking at other financial options like reverse mortgages, the federal government’s Home Equity Conversion Mortgage program.
Don’t use your nest-egg, use your home equity first!
The recent trouble in the banking industry and the shakiness of the economy has left many of us feeling jittery and strapped for cash.
The reverse mortgage loan secured by the value of your home, requires no repayment of the loan until the borrower leaves the property.
In essence, you’re able to tap your home’s equity without having to make any payment.
This great for older borrowers who don’t want to use their Social Security funds too early.
You will also avoid making taxable withdrawals from their IRA and 401(k) accounts.
Advantages start in being able to stay home
The reverse mortgages biggest benefit is homeowners can enjoy their current lifestyles and remain in their homes.
The amount owed will be paid when the property is sold and if money remains after the sale the remaining balance is returned to the property owner or heirs.
You can receive payments as a lump sum, or a stream of regular payments to supplement a monthly income.
Many programs allow homeowners to change payment options as often as they wish.
We shop many different lending institutions to offer the best reverse mortgage for you and your loved ones.
