Introduction

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Deciding whether a Reverse Mortgage is the right decision should not be taken lightly. Knowledge and preparation are the pillars to making any important decision. This leads to peace of mind. We know that peace of mind comes not only in getting the Reverse Mortgage you need but also having the confidence in knowing you made the right decision.

There are many things that you need to consider BEFORE making your decision. The first place to start is dispelling many common myths you may have heard about Reverse Mortgages. These include:

• The bank will own my home. False!
• I will have to make monthly payments for this loan. False!
• My home must be paid off to qualify. False!
• I will end up owing more than my home is worth. False!
• I will be forced out my home. False!
• I can only use the money for specific purposes. False!
• I need good credit to qualify. False!
• Reverse Mortgages are only for desperate financial situations. False!

As you will discover in our Reverse Mortgage guide, many of the negative things you thought you knew about Reverse Mortgages are just not true. You will also find the answers too many questions you may have. We want to take the ...

Section 1: Identifying Your Needs

                                        

 As all of us reach our retirement years our needs begin to change dramatically. Soaring health care costs, reduced monthly income, and desire for financial independence are all issues that become more important as time goes by. Each need and the circumstances surrounding it are as unique as the individual. There are many ways to address these needs but the most effective way is the use of financial resources. Money will never buy anyone happiness, but money can be used as a tool to reduce the stresses that are common in every senior’s life.

In the following 5 steps, we will look at the most ...

2 - Eliminating Mortgage Payments

The goal of every homeowner is to someday be mortgage payment free. The most immediate benefit of a Reverse Mortgage is that it eliminates any current mortgage payment you may have.

A Reverse Mortgage not only pays off any existing mortgage(s), but it also allows you to receive additional income based on the equity in your home. A common misconception is that a Reverse Mortgage will pay off your mortgage(s) and then create another monthly payment for you. It does not. As long as you remain in your home you will never have another mortgage payment.

A Reverse Mortgage can financially help you to:

•  Eliminate worries of being unable to make your current payments

•  Stop a bank or tax foreclosure

•  Offset the decrease in ...

3 - Gain Financial Independence

In counseling and talking with seniors, our experience has taught us one thing: the amount of independence a senior feels he or she has can be influenced by the relationships with their family members.

As individuals grow older there is often a feeling of entitlement to certain things in life. The many experiences and relationships we encounter and survive, give us the right to entitlements such as independence. Independence, with the support of family members, gives us peace of mind and helps us enjoy the fruits of our labor.

Family Relationships and Reverse Mortgages – Their Stories

Judy N.--

Judy had heard about Reverse Mortgages and wanted some more information ...

4 - Achieve a Better Lifestyle

How much of your life have you spent working hard and saving for retirement? Now that retirement is here, how much of that savings are you actually enjoying? Remember the old refrain, "you gotta live?"

Too often we focus on the needs in our lives that a re practical but many times unfulfi lling. What typically gets left out is the need for fun, excitement, personal enjoyment, and rewarding experiences. The ability to engage in these requires not only money but the peace of mind in knowing its ok to spend the money.

We want to help you plan to take the steps necessary for a better lifestyle. Here are some ...

5 - Family Needs

The most overlooked step in the Reverse Mortgage decision process is failing to discuss these matters with close family members. Your loved ones want to see that you get only the best advice and that you live your life the way you want too. Family members are concerned for your well being. This is why we actively encourage our clients to speak with and consult their friends and family. There is no substitute for getting outside help from others.

Once you have included others in your decision process we invite you to have them specifically review Section 4 of this guide, Finalizing Your Decision . This section answers many of the most common questions family members and friends have about Reverse Mortgages. The section also gives additional links and guidance in understanding the process you are going ...

Section 2: Learn About Reverse Mortgages

1 - What is a Reverse Mortgage?

Simply, a Reverse Mortgage is a loan against your home that pays you money from the built up equity and requires no monthly payments for as long as you remain in your home.

Reverse Mortgage Basics

To illustrate, let’s compare a Reverse Mortgage to the traditional regular mortgage you are probably more ...

2 - Questions about Title and Home Ownership

Some of the biggest misconceptions about Reverse Mortgages concern the ownership of your home. Who legally has title, and how does a Reverse Mortgage affect your beneficiaries?

Question: Will I give up or lose ownership and title in my home if I get a Reverse Mortgage?

Answer: No.

A Reverse Mortgage works the same way your regular mortgage did. You will continue to maintain ownership and title to your home. The bank will hold a lien against your property for the balance of the Reverse Mortgage but the ownership and title of your home will remain as it is.

Full story

2. Learn About Reverse Mortgages

3 - Qualifying For a Reverse Mortgage

The qualifications for a Reverse Mortgage are very simple. You must own your home and be at least 62 years of age. There are no credit or income qualifications. There is not a minimum amount of money you need in the bank.

Regular loans qualify a borrower by factoring in credit score, monthly income, cash reserves, etc. Qualifying for a Reverse Mortgage is not based on any of these factors. You could have bad credit, no money in the bank, no monthly income, and still qualify for a Reverse Mortgage.

The amount of money available to you however is dependent on factors that include your home's value, the zip code you live in, your age, and any current mortgages you may have. Depending on the ...

4 - Reverse Mortgage Products

Prior to 2009 and the severe economic downturn there were a wide variety of Reverse Mortgage products available. These ranged from products offered by Fannie Mae to Jumbo products from Financial Freedom. However, over 90% of all Reverse Mortgages originated are the FHA HECM products. The reasons for this are simple. HECM products offer the most flexibility and the most stability.

Reverse Mortgages not insured by the FHA as well other similar types of products are referred to as proprietary products. We will offer a few examples of some proprietary products and will refer to them as ...