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Change Your Life With A Reverse Mortgage

Change Your Life With A Reverse Mortgage. Reverse Mortgage History. 1989 FHA program began 2006 More than 240,000 lives changed through Reverse Mortgages 2007 Fastest growing segment of the mortgage market. Facts From AARP.

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Change Your Life With A Reverse Mortgage

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  1. Change Your Life With A Reverse Mortgage

  2. Reverse Mortgage History • 1989 • FHA program began • 2006 • More than 240,000 lives changed through Reverse Mortgages • 2007 • Fastest growing segment of the mortgage market

  3. Facts From AARP • 65% of senior homeowners plan to stay in their existing home as long as possible • 82% of senior homeowners who require some level of assisted living prefer to remain in their home as long as possible • http://www.aarp.org/ • 1-888-OUR-AARP (1-888-687-2277)

  4. National Council on the Aging The National Council on the Aging prepared an extensive report on how to use a Reverse Mortgage to “Use Your Home to Stay at Home” http://www.ncoa.org/ 1-202-479-1200

  5. Improve Your Life! • A Reverse Mortgage allows you to use the money you have invested in your home for so many years • Afford the things you enjoy and need • Fulfill your dreams • Make life easier and worry free Home Equity Cash Flow Better Life

  6. What are Your Goals? Monthly Cash Flow? Healthcare Costs? Travel? Big Purchase? Home Improvements? Peace of Mind?

  7. Benefits of a Reverse Mortgage Pay off your mortgage No monthly payments ever Tax-free cash flow Generally, there are no restrictions on how you spend your money Does not affect Social Security or Medicare benefits You continue to own your home You/Your heirs keep all remaining equity once the Reverse Mortgage is paid off

  8. Benefits of a Reverse Mortgage You will never pay back more than the home value No credit, income or asset qualifications Repay at any time with no prepayment penalty Government insured – FHA Independent non-profit counseling

  9. How Does it Work? Who Qualifies? • Homeowners with some equity in their home • All people on title must be at least 62 years old • Property must meet lender’s qualifications How much equity is available? • Determined by Age & Home Value • All existing home loans are paid off • Closing costs are financed into the loan

  10. Flexible Payment Options Lump sum • We discourage placing full draws into savings or other investments Credit line • This is the most common method of disbursement Fixed term • Monthly payments for life Tenure • Fixed monthly payments to you guaranteed by the FHA insurance

  11. Repayment Options • When you sell your home • When you leave the home for more than 12 consecutive months for medical reasons • After the passing of the last homeowner • Repay or refinance at anytime during the loan (Details vary by loan program) • If you don’t pay your homeowner’s insurance (replacement coverage) and • Property taxes

  12. Closing Costs Loan Origination Fees Typical mortgage closing costs • Appraisal & related inspections • Credit report • Title & escrow FHA mortgage insurance premium (MIP) on FHA HECM loans No hidden costs • Every cost detailed on the Good Faith Estimate

  13. FHA Protection Feature Principal Limit Lock • Sets the Expected Interest Rate ceiling If the Expected Rate on the Loan Application Date is different from the Expected Interest Rate on the Loan Closing Date, the Client will receive whichever of these Expected Rates that result in a higher maximum amount that may be borrowed.

  14. Obligations During the Loan Maintain the home as primary residence Keep the home in good condition Maintain paying homeowner’s insurance and property taxes Ongoing costs added to loan balance • Interest accrues only on amounts borrowed • Monthly service fee • 1/2% annual FHA mortgage insurance premium (FHA Loans)

  15. You May Need Home Repairs Benefit to ensure safety of the home Repairs can be done after the loan has closed Licensed contractor for bids only 1½ times the bid amount held in the true set aside account 6 months to complete repairs Re-inspection will be done when work is complete Two party check to pay contractor Remaining true set aside account funds returned to you

  16. What are the overall benefits of a Reverse Mortgage? Independence Peace of mind Flexibility Security Additional cash flow Control of your life Happiness Change Your Life! How do you put a price on these?

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