Reverse mortgages
Download
1 / 21

Reverse Mortgages - PowerPoint PPT Presentation


  • 312 Views
  • Uploaded on

Reverse Mortgages. Your Company Logo. SAMPLE – NOT FOR PUBLIC USE. Learn how a reverse mortgage can help increase your retirement income and give you a better quality of life. Presented By: Your Name Your Company Name Phone Number. What Is A Reverse Mortgage?. SAMPLE – NOT FOR PUBLIC USE.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Reverse Mortgages' - dugan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Reverse mortgages l.jpg

Reverse Mortgages

Your

Company

Logo

SAMPLE – NOT FOR PUBLIC USE

Learn how a reverse mortgage can help increase your retirement income and give you a better quality of life.

Presented By:

Your Name

Your Company NamePhone Number


What is a reverse mortgage l.jpg

What Is A Reverse Mortgage?

SAMPLE – NOT FOR PUBLIC USE

A reverse mortgage is a way to receive cash from the equity in your home.

It is designed for homeowners ages 62 and over.

You retain full ownership of your home and can not lose your home to the bank!


Traditional ways to get money from your home l.jpg

Traditional Ways to get Money From Your Home

SAMPLE – NOT FOR PUBLIC USE

Sell your home

Refinance the existing mortgage to take out extra cash

Take out a home equity loan and make payments


How does a reverse mortgage provide money l.jpg

How Does a Reverse Mortgage Provide Money?

SAMPLE – NOT FOR PUBLIC USE

It lets you get immediate cash out of the equity in your home

You never pay it back for as long as you live in your home

The income is 100% tax-free


Typical uses for a reverse mortgage l.jpg

Typical Uses For a Reverse Mortgage

SAMPLE – NOT FOR PUBLIC USE

Supplement your retirement income

Buy a new car

Make home repairs

Use it as a financial planning tool

Travel more frequently

Help pay for a grandchild’s education

Cover medical expenses.


How you get the cash l.jpg

How You Get the Cash

SAMPLE – NOT FOR PUBLIC USE

In a lump sum

As a series of monthly payments

As a home equity line of credit (with possible annual increases)

Any combination of the above methods


When is the loan paid back l.jpg

When is the Loan Paid back?

SAMPLE – NOT FOR PUBLIC USE

When you pass away

If you sell your home

If you convert the home to a rental property

If you permanently move out of the home

If you fall behind on your property taxes

If you let your homeowners’ insurance policy lapse

Let the condition of your home deteriorate


Additional payback criteria l.jpg

Additional Payback Criteria

SAMPLE – NOT FOR PUBLIC USE

You rent out your home or a portion of it

You add another person to the title of the home

You change the zoning classification of your home

You take out another loan and use your home equity as collateral on the loan


What happens to the borrowed money l.jpg

What Happens to the Borrowed Money?

SAMPLE – NOT FOR PUBLIC USE

The debt grows as you take out more cash and as interest is added to the balance

As the amount you borrow gets bigger, your remaining equity gets smaller

Your equity can increase if the value of your property goes up at a faster rate

Initial Home Value: $300,000Amount of Loan: $200,000Appreciation Rate: 6%Mortgage Interest Rate: 6%


Example of a reverse mortgage l.jpg

Example of a Reverse Mortgage

SAMPLE – NOT FOR PUBLIC USE

Your home is worth $200,000

Your existing mortgage balance is $50,000

You receive $120,000 as a lump sum from the reverse mortgage

Your new equity is now $30,000


How do you qualify for a reverse mortgage l.jpg

How Do You Qualify for a Reverse Mortgage?

SAMPLE – NOT FOR PUBLIC USE

You and any other co-borrower must be at least 62

You need to own your home (there can still be a mortgage on it)

There needs to be significant equity in your home (you can’t take out cash if you have a high LTV mortgage)

You need to live in your home at least 6 months out of the year

You must agree to accept mortgage counseling from a HUD-approved counseling agency.

Outstanding liens and existing mortgage balances must be paid off at closing

Mobile homes typically are not eligible


How much money can i get l.jpg

How Much Money Can I Get?

SAMPLE – NOT FOR PUBLIC USE

Available cash is based on:

Age (more cash to older home owners)

The value of your home

The condition of your home

Available equity in your home

Current interest rates

How you choose to take your money (lump sum, payments or credit line)


Credit line example l.jpg

Credit Line Example

SAMPLE – NOT FOR PUBLIC USE

Age: 77

Home Value of $312,895 or more

Interest Rate: 6.48%

You get a credit line of approximately $218,000*.

The unused balance credit line increases at the current interest rate

Amount is based on standard guidelines of the HECM program at the time this presentation was developed, and may change at any time.


How much will i owe l.jpg

How Much Will I Owe?

SAMPLE – NOT FOR PUBLIC USE

You will owe the amount of money borrowed plus the total accrued interest

You will never owe more than the value of the home

Your heirs will have no payment liability if you owe more than the home is worth (the lender assumes the risk)

The lender can NEVER take your home from you!


How much does it cost l.jpg

How Much Does it Cost?

SAMPLE – NOT FOR PUBLIC USE

The only out of pocket fees are an appraisal (average cost of $350) and perhaps a credit check

Other costs and fees are typically financed in the loan amount

The financed costs are included in the loan balance


What are the financed costs l.jpg

What Are the Financed Costs?

SAMPLE – NOT FOR PUBLIC USE

The costs are typically the same as those in a traditional mortgage:

Lender fee

Loan origination fees

Title search and title insurance

Loan escrows of taxes and insurance

Recording fees

Annual mortgage insurance premium

Annual service fee (added to your loan balance)


Home equity conversion mortgage l.jpg

Home Equity Conversion Mortgage

SAMPLE – NOT FOR PUBLIC USE

The HECM is insured by the federal government

The FHA tells the lenders how much they can lend to you, based on your age and the value of your home

The amount you or your heirs will owe can not exceed the value of your home

If you home is worth more than the amount owed, you or your heirs keep the difference

If your mortgage balance exceeds the value of your home, the FHA insurance pays back the lender


The 5 types of hecm payment options l.jpg

The 5 Types of HECM Payment Options

SAMPLE – NOT FOR PUBLIC USE

1) Term Option: You will receive equal monthly payments for a fixed period of time selected by you.

2) Tenure Option: You will receive equal monthly payments for as long as you occupy your home as a principal residence.

3) Line of Credit Option: You may draw up to a maximum amount of cash at times and in amounts of your choosing, as long as you occupy your home as a principal residence. (Option not available in Texas.)

4) Modified Tenure Plan: Allows you to set aside a portion of loan proceeds as a line of credit and receive the rest in the form of equal monthly payments.

5) Modified Term Plan: Allows you to set aside a portion of loan proceeds as a line of credit and receive the balance as equal monthly payments for a fixed time period as specified by you.


How do hecm payments affect my benefits l.jpg

How Do HECM Payments Affect My Benefits?

SAMPLE – NOT FOR PUBLIC USE

HECM payments do not affect your Social Security or Medicare benefits because those benefits are not based on your assets, and the payments are not considered to be income.

For the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits. If you do not spend HECM advances in the month received, then such funds are considered part of your liquid resources and may adversely affect your eligibility for SSI.


Take the next step l.jpg

Take the Next Step

SAMPLE – NOT FOR PUBLIC USE

Learn how much cash you qualify for

Let us help you put together a financial analysis worksheet to see how you will benefit from a reverse mortgage

Schedule an appointment with family members so we can educate them on how you will benefit from a reverse mortgage

Obtain a copy of the Fannie Mae publication- Money from Home: A Consumer's Guide to Reverse Mortgage Options


Conclusion l.jpg

Conclusion

SAMPLE – NOT FOR PUBLIC USE

A reverse mortgage can provide you with cash to improve your quality of life

A reverse mortgage can eliminate the current mortgage payments you may be making on your home

You can never lose your home to the bank or lender with a reverse mortgage

You or your heirs can never owe more than your home is worth


ad