reverse mortgage faqs

JUST THE FAQs:Answers to Common Questions About

Reverse Mortgages

STEPHEN VOGTTrusted Reverse Mortgage Specialist & Senior Advocate| NMLS#190082

Stephenvogt.tumblr.com| 609-626-2150

Licensed Mortgage Bankers NJ Banking Dept. | 50 Broadway New York, NY 10004 | NMLS# 7103

MYTH #1

Reverse Mortgages Are Only For Desperate Seniors

STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate


• The Reverse Mortgage is an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years.

• While some have needed the cash from a Reverse Mortgage more than others, the product is growing in popularity every year.

The Truth



MYTH #2

Your home must be debt-free to qualify for a Reverse Mortgage



The Truth• Even Seniors with an outstanding first mortgage, second mortgage, tax liens or some other debt on their home may qualify for a Reverse Mortgage.

• The proceeds from the Reverse Mortgage, though, must first be used to pay off such debts.



ANNOUNCEMENT

You do NOT makeMonthly Payments.



NO MONTHLY PAYMENTS!



MYTH #3

The Bank owns your home after you get a Reverse Mortgage



The Truth

• You own your home and retain title throughout the life of the reverse mortgage.

• Once you permanently move out of your home or pass it to your estate, the loan must be repaid.



MYTH #4

When a Reverse Mortgage comes due, the Bank sells your home.



The Truth When the loan becomes

due, you or your heirs can either pay the balance on the Reverse Mortgage and keep the home, or sell the home and use the proceeds to pay off the Reverse Mortgage.



Additionally….• If the value of your home drops or the Reverse

Mortgage exceeds the value of your home, HUD insures this mortgage and you leave no burden or debt for your heirs.

• When the mortgage becomes due, HUD also allows your heirs six months to reconcile the estate and satisfy your Reverse Mortgage without payment.



How do I qualify?• You must be 62 years of age or older• You must be a homeowner• You must receive HUD counseling prior to making

application (free service)• Most every type of home is eligible• You must have an appraisal to determine your home’s value

STEPHEN VOGT Senior Advocate


How long does it take to complete?

Typical processing time for a

Reverse Mortgage is 30 – 45 days after receiving your HUD Counseling Certificate.



What are my payment options?1. An upfront lump sum payment

2. A line of credit

3. Fixed monthly payments



Will I pay tax on my money?

• Funds from a Reverse Mortgage are tax free!

• A Reverse Mortgage does not affect regular Social Security or Medicare Benefits



Age 62 - $200,000 Home with no mortgage$132,700 Available Equity



Sample ScenariosSample Scenarios



• Keep you in your home• Pay back property taxes• Help with your prescription

drugs• Buy a vacation home with

no mortgage payment• Help your loved ones in

emergencies• Help yourself to enjoy your

most precious time• Live debt free

Remember. A Reverse Mortgage Can…



• Copy of your Social Security Card or Medicare Card

• Original Counseling Certificate • Copy of a Picture or Photo I.D. (Drivers

License, Passport)• Copy of a document containing your

birthdate • Copy of your Homeowner’s Insurance

Policy or declaration sheet• Important Numbers for your Reverse

Mortgage Counseling Certificate.• Reverse Mortgage HUD Counseling• Consumer Credit Counselor Service – 1-800-989-2227

Some Helpful Suggestions



reverse mortgage faqs

Real Estate

reverse mortgage

senior advocate

reverse mortgage

stephenvogt

mortgage

copy

pay

truth