Reverse mortgages help people in a variety of situations – they are no longer a last resort for the desperate. Today’s reverse mortgages can be used as a strategic financial tool to optimize your retirement.

Here are some thought starters:

• Pay off your current home loan and eliminate mortgage payments

• Supplement your retirement income with tax-free funds

• Avoid cashing out stocks and other investments in down markets

• Pay for medical or long-term care

• Pay off high interest debt

• Pay for major home improvements

• Purchase a more suitable home with no monthly mortgage payments

• Establish a line of credit that you can access as needed

• Start a new business

• Fulfill your travel dreams

In short, a reverse mortgage can allow you to put your equity to work however you wish.

A reverse mortgage is a loan that converts your home equity into cash. The unique benefit is that you don’t need to pay it back month after month. Interest and fees are added to the loan balance over time.

Your accumulated equity allows you to live your retirement comfortably now that your biggest asset is working for you.

Borrowers must continue to pay property taxes and insurance while upholding the terms of the loan.

The loan is payable at the time you leave the home, and it is a non-recourse loan which means that you or your estate cannot owe more than the value of the property.

If your home is paid for, or you have built up a sufficient amount of equity, a reverse mortgage can empower you to access a portion of your equity tax free. You maintain ownership of your home.

Eligibility requirements requirements are fairly simple:

• Be at least 62 years old

• Live in the home as your primary residence

• Have sufficient home equity

• Not be delinquent on any federal debt

• Participate in an independent educational counseling session held by an approved U.S. Department of Housing and Urban Development (HUD) counselor

Today’s reverse mortgages have changed significantly from the old stereotypes.

There are now several built-in safeguards to protect borrowers like you.

Here are the key consumer protections:

• Reverse mortgages are non-recourse loans. This means that when the loan is repaid, you or your heirs will not be responsible for more than what the home is worth. This is true even if your home value goes down.

• HECMs are insured by the Federal Housing Administration (FHA).

• All borrowers are required to attend independent educational counseling to ensure they are fully aware of how their loan works and that their lender has accurately and truthfully presented the terms.

• There is a financial assessment process to help determine if borrowers are willing and able to meet financial obligations, ensuring a reverse mortgage is a viable solution

• Tightened lending limits help borrowers preserve revenue for better, long-term money management.

• You continue to live in your home for the life of the loan.

• All reverse mortgage loans are facilitated by a license loan officer who is approved by the state and will walk you through the process every step of the way.

Today’s reverse mortgages offer borrowers more flexible options than ever before. You can choose to take your loan proceeds as a line of credit; monthly advances for a set period of time; a monthly stream of funds for as long as you live in your home; a single lump sum; or a combination of these options.

Everyone has a unique retirement situation, in addition to standard HECM reverse mortgages we also can provide jumbo reverse mortgage loans up to $4 Million.

Education:

We will help you determine if a reverse mortgage is the right solution for you. To help you make an informed decision, we’ll answer all your questions, assess your individual needs and financial situation, thoroughly explain everything, and prepare you for your independent counseling session. We encourage you to include your family and trusted advisor(s) in your decision-making process.

Independent Counseling:

To ensure that you understand all aspects of a reverse mortgage, you’re required to have a session with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). It usually takes 60 to 90 minutes and can be done in-person or over the phone.

Application:

We will help you complete the application, and advise to which documents you will need to provide.

Property appraisal, loan processing and approval:

We will submit your application for processing. A home appraisal will be scheduled to determine the exact value of your home. Then we request title information and existing mortgage payoff amounts. An underwriter will then review your application for approval.

Closing:

Once the loan is approved and final documents are ready for your signature, we will contact you to schedule your loan closing, which can take place at your home. Any existing mortgages will be paid off with a portion of the proceeds of your reverse mortgage. After the closing and any applicable rescission period, the loan will fund an you will receive your money.

A Home Equity Line of Credit (HELOC) and a reverse mortgage are both popular options for accessing the equity in your home. However., compared to a HELOC, the reverse mortgage offers several key advantages for borrowers in or near retirement.

Here are the advantages:

• No monthly mortgage payments as long as you meet loan obligations

• Your loan will not be called early and/or frozen

• Unused line of credit grows over time

• The loan does not need to be repaid until the home is sold or is no longer your primary residence

• No prepayment penalties or annual fees

• It is a non-recourse loan

• What are the loan costs for a reverse mortgage?

  • Like a traditional mortgage, there are costs associated with a reverse. Along with interest, you may have an origination fee, title fee, credit report fee, property appraisal, closing costs, mortgage insurance premium, servicing fee, and a modest charge for independent counseling. However, most of your upfront costs can be rolled into your loan, minimizing your out-of-pocket costs.

• How much can I borrow?

  • The amount you may borrow will depend on a number of factors. These include the age of the youngest borrower or non-borrowing spouse; your home value and amount of available equity, FHA lending limits, current interest rates, and the option you choose. We can give you an obligation free, detailed quote based on your specific situation.

• How do I receive the proceeds?

  • You can take your funds as a lump sum, a line of credit, or as monthly payments. You can also use a combination of these options.

• Do I have to make monthly payments?

  • One of the greatest benefits of reverse mortgages is that no monthly principal or interest payments are required during the term of the loan, for as long as the terms of the loans are met.

• Will a reverse mortgage affect my Social Security or Medicare?

  • Reverse mortgages typically don’t impact Social Security or Medicare benefits.

• When does the loan get repaid?

  • The loan is repaid when the borrower or qualified non-borrowing spouse no longer lives in the home. Often, the estate will sell the home to pay the loan, but heirs also have the option to pay off the loan through other means and keep the property.