Reverse Mortgage Information

Here's a customer story about one womans reason for a reverse mortgage. I met with a young senior last week, (only 65) who completed her reverse mortgage counseling and will be able to utilize the reverse mortgage to quit her part-time job, payoff her mortgage AND spend more time with her 80+ year old mother while she still has her.

Divorced, with no children, she will use the adjustable rate reverse mortgage and access a little over $2200.00 in cash to do some home repairs.   She will also payoff her existing mortgage, saving over $500 per month in cash flow, establish a line of credit of over $52,000 AND receive $500.00 per month in tax free reverse mortgage tenure payments for the rest of her life as long as she lives in the home.  This will increase her cash flow by $1,000 per month, establish a growing line of credit for any emergencies, and along with her two pensions and social security, allow her to leave her part time job, spend more time with her mother and siblings, time she may never have been able to take were it not for the reverse mortgage.

With the current pricing of zero origination fee and zero servicing fee, her costs are reduced by $6,000 up front and she is able to access about $10,000 more in her line of credit than she would have in February!

I love it when a plan comes together!!

 

 

 

 

I've been pleased for my clients that most of the big lenders, my employer included, have reduced or eliminated the lender fees for clients in obtaining reverse mortgages.  With interest rates low, now may be the best time.  Skip Frenzel (www.AgapeLongTermCare.com) from Agape Long Term Care, forwarded this to me, Please take a look at this article from the WSJ

Article Link:  http://bit.ly/9qjVC2

Two of my clients this week saved over $10,000 in upfront costs and life of loan expenses!  And one client who is purchasing with a reverse will be able to buy for less cash up front. 

Nice!

Before you start talking to lenders, consider consulting a HUD-certified reverse-mortgage counselor to learn more about the options and mechanics. Until the end of April, the National Council on Aging and other nonprofit groups are offering free counseling to homeowners regardless of their income.

You can find a directory of reverse-mortgage counselors at www.hud.gov.

Click on "Talk to a Housing Counselor," link & then "Search online for a housing counseling agency near you."  The counseling is essential in preparing a senior homeowner or homebuyer in making an informed decision. 

There are links to great free information sources here on my blog page too. Help yourself - knowledge is power.

 

Hi All,

Another story about a great couple using a reverse mortgage to improve their golden years.

Although they were high school sweethearts, this couple has only been married just a few years.  The home they live in is 30 years old and in great shape.  A single story it is a perfect place to stay for the long haul.  And that is just what they want to do.

With a very small mortgage on the property now, and the blessing of all the adult children, they will use the reverse mortgae will payoff the existing loan. That will increase their monthly cash flow by $500.  But the best part is the emergency funds that will be available for them in the line of credit.  They plan to use the line of credit in the event that either one of them requires in home care for the future, or to replace lost retirement income in the event of one of them preceding the other in "graduation".

For the next few years, while they continue to work, they will be making mortgage payments on the reverse mortgage, (yes you can do that) write off the interest they will pay, AND increase the available line of credit. 

They are especially excited because, with the cushion provided by the reverse they can leave their other assets invested where they can grow with the economic recovery.  People are so smart!

I was tickled to call them right after our meeting to let them know that the company I work for is at this time waiving the origination fee!  Nice.

Hi All, I found this video to be very good and recommend it to seniors considering a reverse mortgage. The video clearly explains what homeowners can expect from the required reverse mortgage counseling. The video is only 4 minutes long so will even inform those of who like to surf with the remote. Check it out!