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A Reverse Mortgage enables homeowners who are age 62 or older to convert their primary home equity into income without having to sell the home, give up title or take on a new monthly obligation. They have the option of taking the funds as a lump sum, a line of credit, monthly income or any combination. This Tax Free* cash can be used for virtually any purpose. They make no monthly payments during the life of the loan, which becomes payable when the borrower sells the home or permanently moves out. Counseling is available from a government approved third party company. | |
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| What is A Reverse Mortgage? Many Seniors have found that daily living expenses have soared since they have retired. Flood and Hazard Insurance, Property Taxes, Medical Expenses, etc. have increased to the point where many people are forced to consider selling their homes or drastically changing their lifestyles. A Reverse Mortgage may provide the additional income to cover these and other expenses enabling you to continue living in your home for years to come. Consider just a few of the ways this additional income could help secure your peace of mind by paying for: - Health care and long-term care insurance
- Estate Planning
- Family needs
- Travel and leisure activities
- Home renovations
- Daily expenses
- Payoff existing mortgages or other loans
- Hiring help to postpone going to a nursing home
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| Advantages of A Reverse Mortgage
The tax free* proceeds of your Reverse Mortgage may be used to purchase Life Insurance to provide more control over your estate and assure the legacy you leave behind retains its value.
Many people have elected to leave a significant amount of money to either their heirs or favorite charity upon their death. How satisfying would it be to take out a Reverse Mortgage, disburse those funds and live to see the results of your philanthropy while still alive, without it affecting your monthly cash flow? Historically, the only way to get equity out of your home was to either sell the house and incur significant expenses doing so, or to obtain a Cash Out Mortgage which obligated the borrower to make monthly payments. Today you may have the opportunity to create income out of your home equity without obligating yourself to a monthly payment or giving up title to your home. Some have called it “The Magic Loan” for good reason. | |
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| How to Qualify Qualifying for a Reverse Mortgage could hardly be easier. You do not have to provide us with income nor do you have to meet any credit score requirements. Remember, you will never have to make a payment. To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age. There are no minimum income or credit requirements, but there are other requirements and homeowners should make sure that they qualify for the loan before they invest significant time or money into the process. | | | |
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| Q&A While Reverse Mortgages have been around for many years there are a number of misconceptions and questions about this product. Here are just a few: If I get a reverse mortgage, will the bank take Title to my home?
No, Title remains in your personal name or approved Trust. Throughout the life of the loan, you own the home. Are Reverse Mortgages only for desperate seniors or for the “house rich, cash poor?”
No, a Reverse Mortgage is an exceptional financial planning tool for many seniors from all walks of life. If I sell my home will the bank be able to collect a portion of the appreciation?
No, the bank will collect only the amount due to payoff the disbursed balance and accrued interest. There are No Prepayment Penalties of any kind. The loan is also a Non-Recourse Mortgage which means that the payoff can NEVER exceed the Market Value of the home. Must I have good credit to qualify for a Reverse Mortgage? No, the lender will run a credit report to check for tax and federal liens only. All recorded liens and unpaid property taxes due must be paid at the time of closing. Am I allowed to change my payment plan after closing?
Yes, you may contact your Loan Servicer to change your plan for a small fee. What determines the amount of money I can get?
The amount is based on current interest rates, the age of the borrower(s), the value of the home and in some cases the number of borrowers on the loan. The older you are the more you can borrow. Are Reverse Mortgages available to Purchase a home?
Yes. | |
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| Real Life Examples
While there are many reasons for taking a Reverse Mortgage the following are three true stories of people who had very different needs and desires. Mom and Dad retired about eight years ago owning their home free and clear but on a very limited Fixed Income. While Dad was working they would go on a Cruise every 6-12 months which they loved to do with family and friends. When they retired they figured that they might be able to afford one or two more cruises during their remaining years. About four years ago I found out about Reverse Mortgages and gave Dad a call. They were more than willing to look into it. They soon closed on a Line of Credit Reverse Mortgage and since then have gone on two or three cruises every year. For them, it meant that they could truly spend their Golden Years doing what they loved. | | At a Reverse Mortgage Closing a few years ago, the elderly lady came to closing with her daughter and when all the closing documents had been signed we said to her, “You know today is Senior’s Day at Bealls, now you can go shopping if you want to.” With tears in her eyes she patted our hand and said, “No dear, now I can buy groceries.” Needless to say, everyone in the room soon had tears in their eyes.
We also closed a loan for a widow in Coral Gables who owned a large home on the ocean worth several million dollars. However, her Real Estate taxes had increased to $50,000 a year and had difficulty keeping up with all of the expenses. She walked away from the closing table with five million dollars and was assured that she could live out her days in the home that she had lived in for so long.
Of the thousands of Seniors that have taken Reverse Mortgages each one had a different need or use for the monies they were able to access from the equity that they had built up over time. How could you change your life with this type of loan? | |
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|  Daniel Grahl Reverse Mortgage Specialist
239-573-3716
239-573-9000 x7323 800-214-6850 x7323 FAX: 239-573-3771
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Michelle Fair Reverse Mortgage Specialist 239-573-3758
239-573-9000 x7329 800-214-6850 x7329 FAX: 239-573-3771 | |
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| *Borrowers are advised to consult their tax advisor and appropriate governmental agencies. While Reverse Mortgage proceeds do not affect regular Social Security or Medicare benefits they may impact Medicaid or other federal or state assistance. | |
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MEMBER FDIC / EQUAL HOUSING LENDER |
Reverse Mortgage