Reverse Mortgages

Financial Security in Retirement Can Be Yours with a Reverse Mortgage

What Are Your Retirement Goals?

Pay off your existing mortgage*

Make necessary home repairs or renovate your home

Take a dream vacation

Fund a major purchase

Take up hobbies or sports

Create a “safety net” emergency fund
Are you on track to meet your needs and satisfy your wants, now and in the future?

* Your current mortgage, if any, must be paid off before obtaining any funds from a reverse mortgage; you can use proceeds from the reverse mortgage for this purpose

What Is a Reverse Mortgage?

A loan that to homeowners 62 years and older

Government insured by the FHA = predictability and security

Loan amount is based on:

current interest rates

age of youngest borrower

appraised home value*

Loan repayment isn’t generally due as long as you:

live in your home

maintain your home according to FHA requirements

pay property taxes and homeowners insurance*up to certain limits


How Can a Reverse Mortgage Help You?

A Reverse Mortgage can give you the peace of mind to enjoy retirement to the fullest

Pay off your mortgage and other debts

No restrictions on how you use your proceeds

Make home improvements or repairs

Provide cash for travel and leisure activities

Use for medical expenses or long term care insurance premiums

Establish a fund for emergency expenses


Reverse Mortgage Benefits


Tax-free cash to pay off your mortgage and more

No credit score, income or asset qualifications

You continue to own your home (not the bank)

Government insured = low risk

No monthly loan payments

No restrictions on how you spend your money

Typically does not affect Social Security or Medicare benefit eligibility

Repayment of the loan is generally capped at the loan value

Eligibility

No income or credit score requirements.

Must be age 62 or older to qualify

Have sufficient equity in your home

Must pay off existing mortgage with loan proceeds and/or other cash

Eligible home types:–Single-family home–Approved condos–2-4 unit owner-occupied residences–Some manufactured homes


Borrower Requirements

Live in home as primary residence

Continue to pay property taxes and homeowners insurance

Maintain residence according to FHA requirements


 Costs and Fees

No hidden fees –all costs disclosed to you up front!

All fees can be financed into the loan = no up-front lender costs

Loan origination fees –capped by FHA

Appraisal, credit report, title and escrow fees (make clear)

FHA mortgage insurance premium (MIP) –2%


Safeguards

Independent Reverse Mortgage Counseling (HUD required)

Repayment of the loan is generally capped at the value of the loan

Interest rate cap

Full disclosure of rates and fees

Right of Rescission –may cancel up to 3 days after loan closes


Disbursement Options

Lump sum

Monthly payments

Credit line

Combination of all three options


Loan Repayment Is Typically Due When

You decide to sell your home

You vacate your home for more than 12 months (medical or other reasons)

The last borrower on the title passes away

You fail to pay property taxes or homeowners insurance

You do not maintain home according to FHA requirements


Achieve Peace of Mind

A Reverse Mortgage can help you achieve your dream of a fulfilling retirement by providing the immediate cash, financial safety net and peace of mind you need