Reverse Mortgages 4 Seniors

SUPPLEMENTAL INCOME! Federally insured program. No income, credit or medical requirements. No repayment as long as you live in your home. No taxes on proceeds. No transfer of title. Use the equity NOW that you put into your home in past years to make life better & easier. For married couples, singles, widows & widowers, age 62+, who live full time in their permanent FLORIDA homes. Call Marilyn Jacobs for a free, confidential interview, at 561-988-0070 or email marilynfjacobs@gmail.com.

Friday, March 14, 2008

TYPICAL COSTS TO GET A REVERSE MORTGAGE

ORIGINATION FEE: goes to lender to cover their operating expenses for preparing and processing your loan ("originating" a loan). Fee is limited to 2% of your home's value or 2% of your county's 203-b limits; if less than $2000, a lender may charge up to $2000. The origination fee may be financed as part of the mortgage
3rd PARTY CLOSING COSTS: The mortgage starts on the day of the closing. Services may include appraisal fee, title search and insurance, home owners insurance, surveys, inspections, recording fees, mortgage taxes, flood certification fee, escrow, settlement or closing fee, document preparation fee, credit checks and a monthly servicing fee to cover projected costs of servicing your account which is added to your loan balance and based on "present value" of the monthly fee from closing until borrower would reach age 100 - limited to $30/month if annually adjusted interest rate or $35 if adjusted monthly.
INTEREST RATES:
MORTAGE INSURANCE PREMIUM ("MIP"): 2% of your home's value (or 2% of the 203-b limit in your area, whichever is less) is charge "up front" as part of the loan; 0.5% is added to the interest rate charged on your rising loan balance.

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WHY GET A REVERSE MORTGAGE?

Supplement your social security and other current income with a reverse mortgage that sends you monthly TAX FREE checks for life, as long as you live in this permanent residence, without you ever having to make mortgage payments.

The reverse mortgage has earned its name because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you. The money from a reverse mortgage can be used for anything including daily living expenses, home repairs, home modifications, medical bills or for any other purpose. If you apply for a reverse mortgage, you will have government counseling to help determine if this is the right path for you to take.

REVERSE MORTGAGE BENEFITS

USE THE EXTRA FUNDS FROM A HOME EQUITY CONVERSION MORTGAGE (HECM) FOR:

...Health Care Expenses

...Repairs and/or Modifications to your home

...Pay off existing debt

...Create an income stream providing cash and peace of mind

...Purchase life insurance or an annuity

...Pay off an existing mortgage

...Travel expenses

...ANY PURPOSE

YOU WANT

HOW YOU CAN TAKE REVERSE MORTGAGE FUNDS
· Single lump sum, all at once
· Regularly monthly cash advance
· Creditline (like home equity loan) where cash is available to you when you want it
A combination of the above methods

Stay Home, Make Money - With a reverse mortgage, seniors can cash out without moving out!

If you're retired with no plans to downsize and no desire to add loan payments to your budget, how can you benefit from your real estate wealth?

Enter the reverse mortgage -- a loan that lets home owners age 62 and older take money out of their home and never have to move out or worry about paying it back.

DETAILS YOU MAY WANT TO KNOW ABOUT HECM REVERSE MORTGAGES

All HECM lenders must follow HUD rules and many of the loan costs, including the interest rates, will be the same no matter which reverse mortgage lender you choose.

You, and any other current owners of your home, must be

aged 62 or older
home must be your primary residence
may be either a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Though some manufactured housing is eligible, most cooperatives and most mobile homes are not.
home must be at least one year old and meet HUD's minimum property standards*.
you must agree to discuss the program with a counselor from a HUD-approved counseling agency.

If the house is not up to HUD's standards, you may use the HECM loan to pay for repairs that may be required to bring it up to their standards.
The size of a HECM loan depends on the maximum lending limit, which varies by county and is adjusted annually. For 2006, the FHA loan limit varies from a low of $200,160 (for rural areas) to a high of $362,790 (for high-cost metropolitan areas). Go to HUD's web site To see the lending limit for your particular area.
a HECM line of credit continues to grow over time, increasing the amount of cash available to you until you withdraw all of it. That is possible because the remaining balance in your line of credit grows by the same total rate that is charged on your loan balance.

HECM rates are based on the variable T-Bill (U.S. Treasury bills) interest rate plus margin. It is adjusted either monthly or annually.

DETAILS YOU MAY WANT TO KNOW ABOUT FANNIE MAE HOME KEEPER REVERSE MORTGAGES

· Home types eligible for Home Keeper reverse mortgages include single-family homes, condominiums, and units in qualified planned unit developments.

· Home Keeper reverse mortgages can be larger than HECMs because Fannie Mae's maximum lending limit – $417,000 for 2006 – is larger than the highest locally applied FHA mortgage limit.

· You may receive money from a Home Keeper reverse mortgage in the same way you may receive funds from a HECM loan:

o fixed monthly payments for life (i.e., for as long as the borrower occupies the home as his/her principal residence

o as a line of credit with no growth

o or a combination of monthly payments and line of credit)

HECM interest rates are based on the variable CD (Certificate of Deposit) interest rate plus margin and is adjusted monthly.

DETAILS YOU MAY WANT TO KNOW ABOUT PROPRIETARY JUMBO REVERSE MORTGAGE PRODUCTS

programs are offered through a private banks and investors
usually for homeowners looking for loan amounts over and above the HECM and Home Keeper loan Limits
broad range of choices to access their home equity
require no income qualification
loan amount is a function of the home value and the borrower's age
loan does not mature until the borrower sells or permanently moves out of the home (does not live in the home more than twelve consecutive months).
Jumbo Products provide the borrower with a higher available loan amount, there are virtually no loan limits for this product
Jumbo Products Credit Line Option reverse mortgage offers borrowers an open-ended revolving line of credit. The unused line of credit usually grows by 5% per year.
The origination fee on these reverse mortgages is 2% or $2,500, whichever is greater, of the Initial Advance Limit (the maximum amount that is available to you on this loan).
The minimum amount of any draw after closing is $500. The unused line of credit grows by 5% per year. *These options vary depending on Jumbo Product chosen.
The following home types are eligible for Jumbo Cash Account Plan reverse mortgage:

Single-family detached homes
Manufactured homes (must be built after June 1976)
Condominiums
Planned Unit Developments (PUDs)
1 to 4 rental unit (one must be owner occupied)

(co-ops apply in New York State only)

ASK YOUR LENDER WHAT THE APR IS FOR YOUR INTEREST RATE

CONSUMER SAFEGUARDS

Independent Counseling: The prospective borrower meets with an independent counselor approved by HUD. The counselor reviews the transaction, answers questions, and may suggest alternative options.
Limitation on Fees: Origination fees are capped and may be financed as part of the reverse mortgage.
NO maturity date: During the homeowners lifetime, as long as they live in their permanent home, there are no required payments.
NO prepayment penalties: The loan CAN BE paid off by the homeowner at any time with no additional fees or costs, for an FHA HECM. But some conventional reverse mortgage programs will charge a prepayment penalty if you try to pay off the loan within the first year - be sure to check on this!
Cancellation Period: Up to 3 days after loan closing you can cancel the transaction for any reason.
A "Non-Recourse" Loan: The amount due can never exceed what the home is worth. Title remains with the borrower. WHen due, the lender is reapid the sum of funds advanced plus accrued interest, but not more than the value of the house; any remaining value or appreciation goes to the homeowner or estate.
Standard and Capped Interest Rates: Either fixed or adjustable (monthly or annually) rates can be chosen by the borrower. Calculations are based on either the 1-year US Treasury Constant Maturity Rate (published weekly by the Federal Reserve) or (for most conventional programs) the London Interbank Offered Rate - LIBOR - plus a margin charge from the lender. Both have lifetime caps.

THINKING ABOUT INCREASING YOUR RETIREMENT INCOME?

THINKING ABOUT INCREASING YOUR RETIREMENT INCOME?

Marilyn offers retirement assessments to her neighbors in the Boca Raton area at no cost or obligation. It’s never “too early” or “too late,” and you’re never “too young” or “too old” to receive a free consultation. Whether you are looking ahead to retirement, or are retired and could use a review of your goals and plans, I’m here to help. You don’t have to be a financial expert to receive a steady stream of income invested safely during your retirement so that you can be living the lifestyle you want to, not the lifestyle you have to.

MORE WAYS WE CAN HELP YOU WITH RETIREMENT PLANNING:

MORE WAYS WE CAN HELP YOU WITH RETIREMENT PLANNING:

· Provide a steady source of income for your entire retirement · Guarantee 100% of your principal against loss* · Lock in growth year after year · Defer your income tax liability on all interest earned · Or possibly just offer you a second opinion! I can also provide you information about CD’s vs. tax deferred annuities - earn interest on your money, on your interest, on the money you do NOT pay for taxes, or 401k rollover options and advantages. Call Marilyn at 561-988-0070 for a confidential review.