Reverse Mortgages Made Easy

SITUATION

SOLUTION

Bob and Jane Francis, both 68 years old, have retired but would like to purchase a home in an active adult community. Their current home value is $500,000 with no mortgage. They want to purchase a new home for $300,000 and not have required monthly mortgage payments.

The proceeds from the sale of their current home and a reverse mortgage for purchase loan to obtain the home of their dreams. They even have funds left over to meet their other needs.

Rightsizing To A Dream HomeWith a Reverse Mortgage for Purchase

Without HECM for Purchase

With HECM for Purchase

Learn More, Contact:

866.751.2606LibertyHomeEquity.com/FP

Current Home Value $500,000Less 8% for selling costs - $40,000 (commissions, fees, taxes)

Net proceeds from sale of previous home $460,000

New home purchase price - $300,000HECM for Purchase + $144,300Total loan settlement costs - $10,673

Total cash from borrower at closing - $166,373

Net proceeds from sale of previous home $460,000Total cash need from borrower at closing - $166,373

Cash remaining for client use from sale $293,627

Current Home Value $500,000Less 8% for selling costs - $40,000(commissions, fees, taxes)

Net proceeds from sale of previous home $460,000

New home purchase price - $300,000

Borrower Net Cash Proceeds from Sale $160,000

FOR BUSINESS PROFESSIONAL USE ONLY. NOT FOR CONSUMER DISTRIBUTION.

The preceding example and any calculations therein are hypothetical and are for illustrative purposes only. We do not guarantee applicability or accuracy in regard to client’s individual situation or circumstance. Information contained within this strategy is not intended to replace qualified, professional investment and/or tax advice.

This information is not intended for distribution to consumers, as defined by §226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. It is your responsibility to ensure your clients and or applicants understand the loan programs offered and consult appropriate government agencies for legal and compliance guidance. Affiliate partners and broker correspondents are independent entities and do not form legal partnership or agency relationships with Liberty Home Equity Solutions, Inc.

© 2018 Liberty Home Equity Solutions, Inc. All Rights Reserved, is approved to accept Wholesale business in the following states: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY. If you’re interested in expanding your approval status, contact Lender Support at 866-871-1353 or lendersupport@libertyhomeequity.com. NMLS ID # 3313 (www.nmlsconsumeraccess.org) | LIB-R-112818-A

About LibertyFor more than a decade, Liberty Home Equity Solutions, Inc. (Liberty) has been committed to helping seniors gain financial freedom and security through Home Equity Conversion Mortgages (HECMs), commonly known as a reverse mortgage. Liberty is one of the largest and most experienced HECM lenders in the United States having funded over 60,000 HECM loans. We are a direct lender unlike many other HECM loan providers. Liberty has an A+ Better Business Bureau rating and is a member of the National Reverse Mortgage Lenders Association.

This example is based on the youngest borrower, who is 68 years old, a fixed rate HECM for Purchase loan with an initial interest rate of 4.50%. It is based on a purchase price of $300,000, a mortgage insurance premium of $6,000 and other settlement costs of $4,673;amortized over 193 months, with total finance charges of $176,312.24 and an annual percentage rate of 5.00%. Interest rates may vary and the stated rate may change or not be available at the time of loan commitment. The borrower must still live in the home as their primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that results in foreclosure. The current mortgage, if any, must be paid off using the proceeds from your HECM loan.

Federal Housing Administration (FHA) mortgage insurance premiums (MIP) will accrue on your loan balance. You will be charged an initial MIP at closing. The initial MIP will be 2% of the home value not to exceed $13,593. Over the life of the loan, you will be charged an annual MIP that equals .5% of the outstanding mortgage balance.

This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).

Learn More, Contact:

866.751.2606LibertyHomeEquity.com/FP