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Enjoy Life!  See how a Reverse Mortgage can help!

· Helping Seniors Nationwide

 

· Conventional mortgage specialist also available

 

· Cash available to you within 2-4 weeks

 

Facing foreclosure?Learn how a reverse mortgage can save your home!

Reverse Mortgage Myths

 

There is a lot to learn about Reverse Mortgages

before you decide if it is the right option for you.

Reverse mortgages are becoming more and more

popular for seniors who wish to have a qualitative

retirement life with increased financial independence,

yet there are quite a few misconceptions. We would

 like to dispel those myths right now.

 

1.The lender will take my home.
This is the most common misconception. A Reverse Mortgage is secured by a deed of trust or mortgage, much like a traditional mortgage. The lender does not have the authority to take you off title. The Reverse Mortgage loan creates a lien against your property (just like a traditional mortgage) that is paid off when you decide to no longer occupy the home, or when the last surviving borrower passes away.

 

2. My children will lose their inheritance.
Since the home will always remain in your name you have the opportunity to bequeath the property to whomever you choose. Historically, we know that most homes continue to appreciate over time and a high percentage of houses still have enough equity in the home to pass down as an inheritance. There are many factors that will determine the amount owed once you no longer reside in the home; however neither you nor your heirs will ever owe more than the value of the property. If there is equity remaining, your children will likely elect to refinance and keep the home for themselves or sell the home to pay off the balance owed on the Reverse Mortgage and keep any remaining equity for themselves. If by chance, the amount owed on the Reverse Mortgage exceeds the value of the home, the additional amount is forgiven by the lender.

 

3. I am going to owe more than what my house is worth.
A Reverse Mortgage is known as a non-recourse loan. This means that you will never have to repay more than what your home is worth, nor will your heirs. Historically, homes have appreciated over the long-term and we expect the same to be true, which would allow equity to remain in the home after the Reverse Mortgage is paid. If the loan balance does exceed the property value, neither you nor your estate will ever be obligated for more than the property value.

 

Facts and Questions about Reverse Mortgages

Some of the most commonly asked questions are:

· What is a Reverse Mortgage?

· Is it possible for my loan balance to become greater than the value of my home?

· How does a Reverse Mortgage differ from a home equity loan?

· What is a counseling certificate?

· What are the costs involved with a Reverse Mortgage?

· Does the lender take ownership of my home?

· Why Should I Choose You My Reverse Mortgage ?

 

 

 

 

 

 

 

 

 

What is a reverse mortgage?
A reverse mortgage is a loan that enables seniors, age 62 and older, to convert a portion of their home equity into tax free income without ever having to make mortgage payments (as long as they live in the home), without having to sell their home, or give up title.

 

Is it possible for my loan balance to become greater than the value of my home?
No. A Reverse Mortgage is known as a non-recourse loan. What this means is that you can never owe more than what the home is worth. If the mortgage balance does become greater than the value of the home, it becomes the responsibility of the bank to assume the difference, not you or your estate. The lender may never seek repayment from your income or other assets.

 

How does a Reverse Mortgage differ from a home equity loan?
A Reverse Mortgage and a home equity loan both convert the equity in your home to useable money. With a home equity loan you are obligated to make monthly payments as long as you have an outstanding balance; whereas with a Reverse Mortgage you never make a monthly payment as long as you live in the home and there are no income or credit qualifications.

In addition, a HECM line of credit, the most popular type of Reverse Mortgages, allows the unused portion of the credit line to grow over time at a rate of ½ % higher than the rate charged to withdraw money. This feature increases the amount of cash available to you!

 

What is a counseling certificate?
Before finalizing your commitment to apply for a Reverse Mortgage, it is federally mandated that you speak with a counselor from an independent government approved agency before completing the application. This process is designed for your own protection. The purpose of the counseling session is to discuss the pros and cons of all your Reverse Mortgage alternatives to ensure that a Reverse Mortgage is the right product for your financial needs.

 

What are the costs involved with a Reverse Mortgage?
The fees for a Reverse Mortgage typically include the cost for an appraisal, title insurance, loan origination fees, payment for homeowner’s insurance and the payment of property taxes if they are currently due, recording fees and FHA insurance. These costs do not have to be a burden to the borrower since they can be added to the amount of the mortgage and paid when the loan is due.

 

Does the lender take ownership of my home?
A Reverse Mortgage lender can never take ownership of your home, nor can the loan require repayment prior to you moving out of the house or settlement of your estate. You will always retain title to your home. The lender places a lien on the home just like a lender would do with a conventional mortgage. The filing of the lien assures that the loan is repaid when the last surviving borrower passes away or if you sell the home.

 

Why Should I Choose You For My Reverse Mortgage ?
You do have choices when you decide to take a Reverse Mortgage. Our Senior Lending Advisors have had extensive training and we are committed to guiding seniors throughout the process. Our goal is to make the experience educational and informative, encouraging interaction with you, family members and trusted advisors. We want you to be completely comfortable with your decision and confident that a Reverse Mortgage will allow you to gain greater financial independence, allowing you to improve your lifestyle and make your golden years the very best they can be.