Reverse Mortgage Lending, Inc.
Our Educational Report
THE MIRACLE MORTGAGE (SM)
“It Pays You!”
Jim Murtha
A Senior HELPING Seniors
Reverse Mortgage Counselor / Specialist
Phone 949 – 690 – 7301 Toll Free 888 – 261 – 5990
jim@reversemortgagefunding.net
Our ONLY business is helping Seniors and their family members understand and acquire the Government FHA INSURED Reverse Mortgage.
Accordingly, we have prepared our EDUCATIONAL REPORT to help you and your family understand this Government Loan Program.
Of course, your loan officer and all of our corporate staff are available to assist you and answer your questions.
The F H A INSURED Reverse Mortgage
Created by an Act of Congress in 1987 solely to help senior citizens with retirement, this loan is ONLY for Senior Homeowners 62 years or older. The name Reverse Mortgage came from the idea that your home should be PAYING YOU instead of you paying monthly for your home.
Thus, your Cash Flow is “ REVERSED”.
This Educational Report is based on the FHA INSURED Home Equity Conversion Mortgage (HECM) commonly called a Reverse Mortgage. Other Reverse Mortgage Programs are available; however, about 90% are FHA INSURED loans.
This REPORT should answer most of your questions, help educate you on how a REVERSE MORTGAGE works and its benefits to you. We think the reverse mortgage is such a miracle for senior citizens that we call our Reverse Mortgage . . .
Do I Qualify For A Reverse Mortgage Loan?
YES , if you are age of 62 or older, own and live in your primary residence, you automatically qualify for a Reverse Mortgage.
The Reverse Mortgage is NOT based on YOUR ability to repay the loan on a monthly basis, as a forward convention loan does. No income documents or debt to income ratios (DTI) are even considered. The Government wants you to get this loan and makes it easy to do so.
- NO credit requirement. Poor Credit is O K !
- If in foreclosure, we can do the loan
- Bankruptcy - Must not be currently in it; Past BK, is OK.
- No Income Requirement.
- We do not need your W-2s, 1099s, payroll stubs, etc ….
- Your property must also qualify per FHA guidelines
- An FHA Appraiser and Pest Company will inspect your home.
What Can I Receive?
- The amount of money you receive is based on your age, long term interest rate (called the Expected Interest Rate based on the 10 year US Government Bond), and the lower of the FHA Loan Limit or appraised value of your home.
- Generally, the older you are the more money you can receive.
- It only takes a few minutes to give you an estimate of your benefit and the funds available at closing or during your life time.
I can customize a combination of payment options to meet your specific needs. Example: take some cash at closing, a credit line for emergencies and the balance paid to you MONTHLY by direct deposit to your bank account.
When and How Do I Receive My Money?
YOUR PAYMENT OPTIONS: Receive a COMBINATION or only ONE of the following. Funds are usually deposited directly to your bank account:
- CASH At Loan Closing
- All or specific amount ( pay off current mortgage, if any)
- CREDIT LINE CASH available when your need it.
- MONTHLY INCOME
- for LIFE as long as you live in your home or
- Select a specific term to increase monthly amount!
- Example: 5, 10, 15 years
- NOTE: You can MODIFY YOUR PAYMENT PLAN in the future.
How Does The REVERSE MORTGAGE Work?
The FHA INSURED Home Equity Conversion Loan Agreement allows ADVANCES from your home’s equity. See Payment Options above: at loan closing, monthly or as needed.
The monthly advances, credit line draws, monthly interest and fees you are charged are all DEFERRED until:
1.) You sell your home - your decision, NOT the Lenders
2.) The last borrower passes away
3.) You move out permanently
Your ONLY obligation during the life of the loan is to pay your property taxes, homeowners insurance and maintain your home.
AND . . . NO monthly mortgage payments are required . . . EVER!
WHO PAYS MY LOAN BACK?
YOUR HOME DOES! And, if necessary FHA will pay off any unpaid balance, when your home is sold by you or your estate.
You will not have to pay back any money from your personal funds.
This is only one of the many benefits of a FHA INSURED loan.
Your heirs / successor trustee will have up to one (1) year to complete the sale of your home (or refinancing, if they want to keep your home).
The Reverse Mortgage is a Non – Recourse Loan to you and your heirs / estate. This means the Lender has only one (1) course of action to be paid. So, neither you or your heirs can owe more than the property is worth.
The Lender can only use your home to satisfy the loan balance. No funds from your checking account or other sources will be required. If sales proceeds are short, then FHA pays the difference. FHA insures there will be no loss to you or the Lender.
Since your home will pay back the loan, a Reverse Mortgage is NOT based on YOUR ability to repay the loan on a monthly basis, as a forward convention loan does. No income documents or debt to income ratios are even considered.
Non- Recourse means your other assets, savings, stocks, etc. are PROTECTED.
YOUR EQUITY - Is YOUR Equity:
Your EQUITY should continue to INCREASE. So you should still have an Estate to give to your heirs. All equity above the loan balance is your, not the lenders or governments. This is NOT a “shared equity” loan.
Your heirs do NOT have to sell your home; they can keep it, by refinancing the reverse mortgage, pay it off with personal funds, other sources of fund, or apply for their own reverse mortgage!
NOT A SALE - You OWN your home:
The Reverse Mortgage is NOT a sale of your home to the Lender.
YOU retain TITLE to your home at all times. You own it.
This is your home and no one can take it away from you.
BENEFITS TO YOU
HELP TO COVER THE COSTS OF HEALTHCARE
For many Seniors, obtaining a Reverse Mortgage will provide funds for IN HOME HEALTH CARE. Statistics tell us that 40% of the population over 65 will require some form of long-term healthcare services. An average stay in a care facility is about three years and can easily exceed $50,000 a year. In-home healthcare may average $40,000 per year. Many seniors are faced with the situation of paying for long-term health care, or drugs, out of savings or current income. With a REVERSE MORTGAGE you can use your EQUITY for these medical and drug expenses, rather than your savings.
HELP SENIORS STAY IN THEIR HOME
Most seniors would prefer to stay in their home where they feel secure and safe in familiar surroundings. It gets more difficult, as we get older, to up-root ourselves and move. The reality is: over 85% of seniors want to remain in the home where they raised their children and where their grandchildren can come back to visit. A REVERSE MORTGAGE gives you tax-free dollars to accomplish these goals.
HELP TO IMPROVE QUALITY OF LIFE
Think about what you’d like to do if you were able to access a large amount of TAX FREE CASH or TAX FREE MONTHLY INCOME. Now, imagine that income not requiring you to make any monthly payments. You could travel, make improvements to your home, purchase a new car, or even assist your grandchildren with college expenses. The money is yours to do with what you want.
Reverse Mortgage Funds do NOT affect your Social Security or Medicare.
HELP TO CREATE YOUR “PEACE OF MIND”
How much is peace of mind worth? With a REVERSE MORTGAGE you can rest assured that your financial future is going to be better. You don’t have to depend on your children or other relatives to help take care of you. A Reverse Mortgage could be your financial solution for CASH FLOW.
Eliminate STRESS!
- Will your next Social Security check arrive on time.
- Will you have enough money to eat and pay bills!
- Will you have money to pay the current mortgage.
Paying off your mortgage, will increase your monthly cash flow.
With a Reverse Mortgage, just think of your Peace of Mind knowing …
NO Mortgage Payments . . . Ever ! ! !
QUESTIONS?
WILL THE LENDER or GOVERNMENT TAKE MY HOME?
No! FIRST concern many people have: “Who gets my home when I pass away?” The simple answer is: Your heirs will.
You (or your Living Trust) keep TITLE to your home.
The Reverse Mortgage is NOT a sale or transfer of ownership.
No person, lender or the government, can ever take your home from you. You can live in your home until the day you die without ever worrying about losing your home or being put out of your home.
Please don’t let uninformed people tell you otherwise.
WHEN IS MY LOAN DUE?
The Loan ONLY becomes due and payable when you:
- Permanently leave the home with no intention of returning
- Sell your home - Loan paid at closing of sale from sale proceeds
- Death of last Homeowner The loan is NOT due if a surviving co-borrower remains living in home.
NOTE: Your heirs / successor trustee will have up to one (1) year to complete the sale of your home to pay off the reverse mortgage.
A Reverse Mortgage is an open ended loan; with no time limit or specific due date. The Lender and you do not know when certain events will happen.
HOW IS THE INTEREST CALCULATED?
ALL Reverse Mortgages are adjustable rate loans, because they are open ended, with no time limit or due date. The Loan is payable when you permanently move out, sell or the last person dies.
Interest is calculated monthly, but is DEFERRED by adding to your principal balance.
For your information, you will receive a Monthly Loan Statement. Interest rates are capped for your protection (they will never exceed a certain amount). The average rate for the last 10 years has been 6.5%.
Also, remember, you are not the one paying back this loan on a monthly basis.
NO Mortgage Payments Required . . . Ever ! ! !
Only your property’s sale proceeds are used to pay the interest and other loan costs when it is sold. History has shown, over the years, that adjustable rate loans actually cost the borrower less than fixed rate loans.
WHY A FHA INSURED REVERSE MORTGAGE?
With the Government / FHA guarantee, the lender is able to provide you with MORE tax free cash or tax free monthly income than a non-insured / private reverse mortgage.
The Loan is a non-recourse to you and your heirs / estate, which means that neither you or your heirs can NEVER owe more than your property is worth.
FHA insures the lender against any financial loss by providing a reverse mortgage to you. This loan would NOT be available without the Government / FHA making this guarantee.
WILL I BE USING UP MY CHILDREN’S INHERITANCE?
This is a valid concern, but not necessarily true for the following reasons.
- APPRECIATION: California real estate has increased in value about 10% per year.
The current interest rate on the FHA Reverse Mortgage is around 6%, so the equity should grow faster than the interest being deferred. That means that there should be plenty of equity left for your children.
- CHILDREN BENEFIT
Of course, your children want nothing but the best for you, but they benefit also. A Reverse Mortgage could relieve the burden on your children should a medical situation arise, such as a nursing home stay.
The Reverse Mortgage will give PEACE OF MIND to your children, knowing your financial future is secure.
- GIVE CHILDREN FINANCIAL GIFT - SEE THE BENEFITS NOW
Use some of your cash proceeds from the Reverse Mortgage to give to your children now. See them enjoy a part of your inheritance while you are living. Why wait till you pass away?
SOME FINAL THOUGHTS
- INCREASE YOUR MONTHLY INCOME!
- Paying off your current mortgage, car loan and credit cards with Reverse Mortgage funds means no more monthly bills or payments. And remember, NO mortgage payment . . . EVER!
- By Eliminating payments - your cash stays in your bank
- Also Increase Monthly Income by Receiving the Monthly Income Option and it’s Tax FREE Income.
- PREPARE FOR THE FUTURE:
- It just makes good sense to at least create a LINE OF CREDIT for which you make no payments. Interest accrues only on the funds you use from your credit line.
- Emergency funds available when needed; who knows when you may have an emergency or critical need?
- Borrowing Power Increases - A unique feature of Revere Mortgage Credit Lines!
- Available Funds will INCREASE based on the unused portion of your Credit Line.
- About REVERSE MORTGAGE LENDING, INC.
- Our ONLY business is helping Seniors understand and obtain a Reverse Mortgage.This is NOT a sideline business for us; we specialize in Reverse Mortgages, and are considered experts in this field.
- There is NO pressure to buy anything! We do NOT sell any financial products, such as life insurance, long term care or annuities!
NOW, You know WHY we call our Reverse Mortgage . . .
THE MIRACLE MORTGAGE (SM)
Download an Adobe PDF copy of this Educational Report
Please contact me to learn more.
Call me direct, toll free at (888) 261-5990, email me at jim@reversemortgagefunding.net or click on the "Request a Quote" button and we will send you a free profile of what you might be able to receive from a reverse mortgage. There is no obligation!