How the Reverse Mortgage Process Works

Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender.

Here are the steps you can expect to go through when you apply for your reverse mortgage:

1.Initial Discussion
The first thing we like to do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. We talk about the pros and cons, how it works, how much money you might receive and anything else you’d like to know about. Then you decide whether you want to take the next step and we provide you with an estimate of funds available.

2.Counseling
If you decide that a reverse mortgage is the right choice, you receive free independent counseling from a certified, HUD-approved counselor to make sure that you have had all your questions answered and that there’s been no confusion. A list of available counselors is available from me for your use. It’s a protection device that the government has built into the process of obtaining a reverse mortgage.

3.Appraisal
Then we arrange for an appraisal to determine the objective market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines.

4.Inspection
In many cases an inspection is required to make sure that the home is structurally sound and that there’s no extensive termite or dry rot damage. Sometimes repairs may be required and the costs can be rolled into your reverse mortgage.

5.Underwriting
After the appraisal and inspection reports come in we go through all the normal processing procedures that you might find in any mortgage.

6.Closing
The final step is the closing where you receive the money, or proceeds, from your reverse mortgage. You can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit.

If you are looking into a reverse mortgage , contact our specialists at iReverse Home Loans. We have helped many seniors find peace of mind in their retirement. Call 800-486-8786 ext 813. In The Villages, Florida.

 

 

Reverse Mortgage May Be Best Option For Elderly Homeowner

A reverse mortgage would enable an 82-year-old woman who needs cash to tap the substantial equity in her home.

By Liz Weston, Money Talk

Dear Liz: My healthy and active 82-year-old mother is faced with having to sell her home this year because she’s running out of money. She has lived a very minimal lifestyle for many years as her savings dwindled, and her income is now basically Social Security. She owes $25,000 on a home worth more than $700,000 in a top school district. We don’t know if we are jumping the gun with this sale. I could move in with her and pay rent for a year or two, although that would mean a longer commute for me and would just put off the day she has to sell. There are things that must be done to the house for upkeep, and her being cash-poor puts her in a crunch. My brother will help pay for minor sprucing up depending on what the real estate agent says we need to do to make the house presentable, but if Mom remains in the home there are other things to be done. We are assuming that we should sell it and find an apartment for her to rent until she needs more assisted living at a later age. Are we right to take action now?

Answer: Your family needs to take action, but setting your mother up for not just one but possibly two future moves probably isn’t the best course. Moving is terribly disruptive, and AARP surveys show that the vast majority of older people prefer to “age in place” rather than leave their homes.

Investigate reverse mortgages as one option. With a reverse mortgage, your mom could pay off her small mortgage and tap the substantial equity in her home. She could get a lump sum, a stream of monthly checks or a line of credit that could allow her to fix her home and live more comfortably. She wouldn’t have to make payments or pay income taxes on this loan, and it wouldn’t have to be paid off until she dies or moves out.

 

At iReverse Home Loans we understand that you have questions about how a reverse mortgage works and how it can help you. Call and speak to Bob for all of the answers! 800-486-8786 ext 813. In The Villages, Florida.

 

 

Senior Home Owners Find Financial Resource in Reverse Mortgages in The Villages, Florida
Source: Longtermcarelink.net

For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home equity loan. But a conventional loan really doesn’t free up the equity because the money has to be paid back with interest.

Reverse mortgages are a risk-free way of tapping into home equity without creating monthly mortgage payments and without requiring the money to be paid back during a person’s lifetime (as long as the house is the primary residence).. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title “reverse mortgage”.

Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, pay off debt or help pay for home repairs, remodeling or long term care needs.
Call iReverse Home Loans about reverse mortgages and how we can help you stay comfortably in your home, 800-486-8786 ext 813.

 

 

About A Reverse Mortgage in The Villages, Florida
Excerpt from longtermcarelink.net
The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish:

• daily living expenses
• home repairs and improvements
• medical bills and prescription drugs
• pay-off of existing debts
• education, travel
• long-term care and/or long-term care insurance
• financial and estate tax plans
• gifts and trusts
• to purchase life insurance
• or any other needs you may have.

The amount of reverse mortgage benefit for which you may qualify, will depend on

• your age at the time you apply for the loan,
• the reverse mortgage program you choose,
• the value of your home, current interest rates,
• and for some products, where you live.

As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.

Have you considered how to pay for care if you should need it? What if you need home care?  Reverse Mortgages from iReverse Home Loans have helped many seniors live stress free in their golden years by using the equity in their homes!   If you would like information about a reverse mortgage in The Villages, Florida, contact our team at 800-486-8786 ext 813.

 

A Reverse Mortgage in The Villages, Florida Can be Beneficial, If You Know How to Use It
By Harvey S. Jacobs, http://www.washingtonpost.com

As the country’s home-owning population ages and baby boomers hit their mid 60s, it is time to take another look at the once-popular mortgage product known as the reverse mortgage.

In a reverse mortgage, the bank loans you cash in a lump sum, in monthly installments, a line of credit or some combination of all three. Unlike a typical mortgage, the bank pays you and so long as you are alive and continue to live in your home, you do not have to repay the bank. The bank gets repaid solely from the sale or refinancing of your home when you sell your home, move out or die.

In years past, reverse mortgages got a bad reputation, primarily for their relatively high upfront fees, the negative amortization and the many misconceptions about how they work. Nearly all reverse mortgages these days are insured by the Department of Housing and Urban Development’s Federal Housing Administration — meaning that if the reverse lender does not get repaid in full, FHA insurance will cover their losses.

To learn more about getting a reverse mortgage in The Villages, Florida, contact Bob at iReverse Home Loans. Call 800-486-8786 ext 813 today!

 

More seniors use reverse mortgages to raise cash
By Mark Koba, cnbc.com

Finding themselves financially strapped, more seniors at an earlier age are trying to get reverse mortgages on their homes in order to survive, according to a new report.

The study says the percentage of people aged 62 to 64 applying for reverse mortgages has increased 15 percent since 1999.

The reason for the dramatic upswing among “younger” seniors is simple, the report concludes: They need the money.

“The average age for taking out reverse mortgages has been around 71,” explains Sandy Timmerman, director of the MetLife Market Institute who conducted the survey with the National Council on Aging.

“But with job losses, higher debt and living costs, more and more of the ‘younger’ seniors are looking at reverse mortgages as a way to pay their bills and keep their homes,” Timmerman adds. “It shows the devastation some seniors have gone through since the financial downturn.”

Reverse mortgages — which allow homeowners to borrow against the value of their homes — have been around since the early 1960s, but have grown in popularity. TV commercials with celebrities such as Henry Winkler, Robert Wagner and Fred Thompson promoting reverse mortgages, are rampant during weekends and late night viewing hours.

But whether it’s the ads, the financial necessity, or both — reverse mortgages have become attractive to more seniors. In 2010 alone, more than 80,000 Americans over 62 years old finalized a reverse mortgage. That’s up from 25,000 in 1995.

Reverse mortgages from iReverse Home Loans have helped many seniors live stress free in their golden years by using the equity in their homes! We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs.  If you would like information about reverse mortgages in The Villages,Florida contact our team of specialists at 800-486-8786 ext 813.

Shannon Hicks April 30, 2016

The Implications for Financial Professionals Warrant a Second Look

It’s one of the biggest game-changers for financial professionals: the expanded definition of a fiduciary by the Department of Labor under the ERISA act. The rule extends beyond those managing assets to include those giving  investment advice for a fee or other compensation.

What does this mean for financial professionals?

• Transactions involving ‘qualified’ retirement plans are covered by the rule (IRAs, 401(k)s, etc)
• Expanded definition of fiduciary goes into effect April 2017
• Increased disclosures of costs & fees when moving money from one company to another
• Insurance-based products will be under increased scrutiny
• Advisers should present all options that are in their client’s best interests

Home Equity Warrants Consideration

According to the U.S. Census Bureau, the typical married couple entering retirement has $92,000 in non-equity assets and $192,000 in home equity. With that in mind does it really make sense to advise a client to sell securities in a down market to maintain their retirement cash flow without mentioning home equity?

In Jamie Hopkin’s  recent article in Investment News Hopkins says “Far too many financial advisers overlook home equity as part of a retirement income plan. With heightened regulatory concerns about doing what is in the best interest of the client, it would be prudent to explore and discuss home equity strategies with clients.”

Consider a client over age 62 with $300,000 in home equity. If the market is down 25% is it truly in the client’s best interest to sell stocks at a loss without at least considering what may be their largest asset? Such oversights could potentially raise red flags in the future.

Reverse Mortgages, Not a Silver Bullet but a Potential Tool

The Home Equity Conversion Mortgage (HECM), better known as the reverse mortgage, is an FHA-insured mortgage for homeowners 62 or older which allows them to access a portion of the equity in their home without requiring monthly mortgage payments.

One strategy touted in several financial publications is the ‘standby reverse mortgage’. This approach allows the homeowner to secure a HECM line of credit. This credit line is unique in that the unused portion grows each year, no payments are required and the credit line cannot be frozen or reduced if housing values were to fall as long as the borrower meets the ongoing obligations of the loan.

Utilizing the ‘standby reverse’ strategy one could access a portion of the HECM line of credit to meet income needs in years when the market is down allowing the portfolio to recover. A great way to overcome sequence of returns risk. Several Monte Carlo simulations have shown this approach to substantially increase the longevity of the portfolio and sustainable withdrawals.

Hopkins wrote in his recent article “Although a fiduciary standard might not explicitly touch on housing wealth, there will be added regulatory muscle to consider all of a client’s available assets in the development of their specific plan.”

The information provided in this article should not be regarded as investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are strictly those of the author.

iReverse Home Loans is an organization of honest, ethical, knowledgeable professionals who will give you the straight answers. Reverse Mortgages are our only business. Call Bob Gersh Today (352) 561-3096 or 1-800-486-8786 ext 813, in The Villages, Florida.

Reverse Mortgage The Villages, Florida: An Introduction To Reverse Mortgages
By Brian Aird, Senior Report

A reverse mortgage is a financial option that you can consider to help supplement your income as you grow older. In order for you to understand this process it is important to know what the process is, how you can qualify, how the amount is determined and the benefits.

What Is A Reverse Mortgage?

A reverse mortgage is a loan that is leveraged against the equity in your home. Additionally, you do not need to pay back the money received until one of two things happens.

One of those events is that you move out of your home. The other event is upon your death.

Following either one of these two events, you or your estate have six months to financially settle the loan or sell the asset and pay back the reverse mortgage.  If you have any equity remaining above the amount received it will belong to you or your estate.

How to Qualify

The primary prerequisite for obtaining this funding is you need to be at least 62 years of age. You also need to own the home. Therefore, if you have a lien or are still paying the mortgage, you cannot qualify for this program.

If you have a home mortgage, the only qualifying factor would be the ability to pay the mortgage in full with the awarded reverse mortgage. Unlike other mortgages, you generally do not have to go through the process of credit scores or show proof of income.

iReverse Home Loans is an organization of honest, ethical, knowledgeable professionals who will give you the straight answers. Reverse Mortgages are our only business. Call Bob Gersh Today 781-202-7475 or 1-800-486-8786 ext. 813.