financial planning reverse mortgages
DESCRIPTION
Review of several benefits for utilizing a reverse mortgage as part of long term retirement financial planning strategy.TRANSCRIPT
Help your clients make the most of retirementWith reverse mortgages in your financial planning tool box
Chris Beard, NMLS# 353274
Reverse Mortgage Specialist
9822 Montague Street
Tampa, FL 33626
Cell: 813-857-1254
Toll Free: 866-684-7868
www.GoLocalReverseMortgage.com
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1. Consult a tax advisor
Reverse mortgage solutions
A reverse mortgage can be a key element of a comprehensive
retirement plan. The proceeds can be used for any purpose, including:
• Planned giving
• Estate planning
• Life insurance
• Long-term care
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Reverse mortgage prospects
Are at least 62 years old:
• Own their home as their primary residence
• Own the home free and clear or have a mortgage balance that
can be paid off by the reverse mortgage
• Are looking for a way to manage
expenses or fund retirement
goals
Reverse mortgage advantages
• Enables senior homeowners to convert their home equity into
tax-free proceeds1
• Borrowers can receive payments instead of making them
• Borrowers retain ownership and continue to live in the home,
provided all program requirements are met
• Proceeds are not considered income and
will not affect Social Security or
Medicare benefits2
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1. Your clients should consult a tax advisor. Some restrictions may apply.2. Your client's monthly reverse mortgage advances may affect their eligibility for some other programs. They should consult either a local program office or their attorney to determine how, or if, monthly reverse mortgage payments might affect their specific situation.
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How can a reverse mortgage benefit you and your clients?Qualification
• Senior homeowners age 62 years or older
• No credit score, income or employment restrictions3
Loan payments
No payments required, as long as all program requirements are met. Please ask a reverse mortgage consultant when repayment may be due.
Interest rate
Variable-rate mortgage or fixed-rates available4
3. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are alsostrongly encouraged to participate in these informative sessions. Call for more detailed program information.4. Fixed-rate reverse mortgages must use a lump sum disbursement option.
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Credit line Growth
Unused credit line grows at the same rate as the outstanding loan balance
Disbursement Options
• Fixed monthly payments
• A line of credit
• Lump sum cash advance
• Or a combination of any of these options
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Typical closing costs
• A deposit for the appraisal is required to be paid at the time of application.
• There are additional closing costs, such as an origination fee, title
insurance, a mortgage insurance premium and attorney fees which can
be financed into the loan.
• Beyond that, the customer is expected to continue maintaining the
property and paying the real estate taxes and homeowners insurance
premiums.
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Counseling requirements
Counseling session from a FHA-approved counseling agency required.3
Tax guidelines
• Proceeds are considered tax-free
• Interest deduction occurs only when
the loan is paid in full
3. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions. Call for more detailed program information.
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Advantages of Reverse Mortgage Using a reverse mortgage as a financial planning tool, your clients can
convert their home equity into tax-free proceeds they can use to fund their retirement goals.
Unlike a conventional mortgage, with a reverse mortgage, a homeowner can choose to receive
payments instead of making them. The incoming cash can help pay credit card debt, medical bills or unexpected expenses — even purchase a home!
Customers do not need to repay the loan as long as they continue to live in the house, keep the taxes and insurance current, and maintain the property to FHA standards.
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This information is for financial planning and legal professionals only and is not intended for distribution to consumers. This information is accurate as of date of printingand is subject to change without notice.
Allow me to assist you and your clients with a Reverse Mortgage:
Chris Beard, NMLS# 353274
Reverse Mortgage Specialist
9822 Montague Street
Tampa, FL 33626
Cell: 813-857-1254
Toll Free: 866-684-7868
www.GoLocalReverseMortgage.com