1. Answers to your reverse
mortgage questions
Presented by
<RMC Name>
Reverse Mortgage Consultant
MetLife Bank
Presented by
Castulo Romero
Reverse Mortgage Sales Manager
MetLife Bank
2. Would you like to live better today, and be more
prepared for the future?
A reverse mortgage could help...
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3. What you should know
• Reverse mortgages are an important financial option
• Reverse mortgages can be an important part of living with less
worry and fewer restraints
• It’s to your advantage to get all the facts so you can make an
informed decision
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4. What is a reverse mortgage?
A reverse mortgage can help many seniors with their financial needs:
• A loan that allows homeowners age 62+ to tap into their home equity
• You can use the proceeds for what you need
• It is not advisable to use reverse mortgage proceeds to make a
financial investment since the costs of the loan may exceed the
investment return
• You can even use a reverse mortgage
to purchase a single-family home to be
occupied as your principal residence*
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*HECM for Purchase program, rates, fees, terms, and conditions are not available in all states and are subject to change.
5. Reverse mortgage facts
• You continue to live in and own your home
• The bank makes payments to you—that’s why it’s called a “reverse”
mortgage
• You remain responsible for property taxes, homeowner’s insurance,
and maintenance of the home, but you do not make monthly mortgage
payments; interest still accrues on the
portion of the loan amount disbursed
• Your loan does not need to be repaid
until the last borrower permanently
moves out or passes away, as long
as the terms of the loan have been met
• There are no income qualifications
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6. Home Equity Conversion Mortgages (HECMs)
• The vast majority of all reverse mortgages are HECMs
• Federally insured—when the loan becomes due, HUD will pay
the lender any shortfall between sale proceeds and amount owed,
provided that the sale is an arm’s length transaction in accordance
with HUD guidelines
• Variable rates are tied to an
established index—fees and
interest rate margins are
capped for your protection
• Available as a HECM Standard
or HECM Saver to meet a
variety of needs
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7. A MetLife Bank HECM Standard
• Allows you to borrow the maximum amount
of money available to you from a HECM
reverse mortgage
• Requires higher up-front costs as
compared to our HECM Saver
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8. A MetLife Bank HECM Saver
A lower-cost reverse mortgage, as compared to our HECM Standard:
• Required up-front costs are greatly reduced—
this may save you thousands of dollars,
depending on your home’s value
• Maximum amount of money that can be
borrowed is less than with our HECM Standard,
but the lower up-front costs of our
HECM Saver may make it an attractive option
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10. HECM for Purchase
• Designed to help you purchase* a home using the proceeds from
a reverse mortgage on that home
• You can be qualified, regardless of income or credit history
• One transaction with one closing
simplifies the process
• Only applicable for the purchase of
a single-family-unit dwelling to be
occupied as your principal residence
*Program, rates, fees, terms, and conditions are not available in all states and are subject to change.
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11. Who is eligible to apply?
To qualify for a reverse mortgage, you must:
• Be age 62 or older
• Own your home—if you have an existing mortgage, your reverse
mortgage proceeds will first be used to pay off any existing mortgages
• Live in your home as your principal
residence
• Meet U.S. Department of Housing
and Urban Development (HUD)
minimum property standards
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12. How does the program work?
• You choose how you want to receive your funds:
– Single lump sum of cash
– Monthly income for as long as you live in your home or,
if you prefer, for a specified time period
– Line of credit you draw on as needed
– Any combination of these
• Closing costs can be rolled into the loan
• You continue to live in and retain the title to your home while you use
your reverse mortgage proceeds, as long as the terms of the loan are
met
• When you leave the home, you or your heirs repay the loan, including
accrued interest on the money you took and any accumulated monthly
servicing fees, mortgage insurance premium, and origination fees (if
applicable)
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13. How much can you get?
The amount you can borrow depends on:
• Your age
• The type of reverse mortgage you select
• Current interest rates
• Location of your home
• Appraised value of your home
• Federal Housing Administration
(FHA) lending limits
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14. How can you use the funds?
• Pay your monthly bills
• Fix up your home
• Pay for prescriptions and healthcare
• Retire your existing mortgage
• Make a major purchase or
needed expenditure
• Help your children or grandchildren
• However, it is not advisable to use
reverse mortgage proceeds to make
a financial investment, since the
costs of the loan may exceed the
investment return
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15. What about your government benefits?
• Reverse mortgage funds usually do not affect regular Social Security
or Medicare benefits
• Needs-based benefits, such as Medicaid and Supplemental Security
Income (SSI), may be affected
• Contact a tax professional about your particular situation
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16. When does the loan become due?
• All borrowers permanently move out of the home,
or don’t live in it for 12 months
OR
• You sell the home
OR
• The last surviving borrower passes away
OR
• You fail to pay taxes or homeowner’s insurance,
or to maintain the home
OR
• Other conditions of the term have not been met
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17. What about your heirs?
• The loan can be repaid by selling the property, refinancing, or using
other assets—the choice is up to you or your heirs
• Any sale proceeds in excess of the loan balance belong to you or
your heirs
• The lender can never claim from
you or your estate more than the
fair market price received if you
sell the home—even if the loan
balance exceeds the fair market
value at the time of sale—provided
that the sale is an arm’s length
transaction in accordance with
HUD guidelines
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18. A review of the facts
• FACT: The bank will not own your home—you continue to be
responsible for paying property taxes, homeowner’s insurance,
any home maintenance, and the terms of the loan as agreed
• FACT: You do not need to make monthly mortgage payments—
interest accrues on the portion of the loan amount disbursed
• FACT: There is no income qualification
• FACT: Your Social Security and Medicare benefits will generally
not be affected
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19. Required independent counseling
• Ensure that you have the information you need to make the reverse
mortgage decisions that are right for you
• HUD-approved counselors are available nationwide and locally—
you can meet face-to-face or receive your counseling by phone,
it is your choice; you will be presented with a list of local and
nationwide HUD-approved counselors for you to choose from*
• Counseling is regulated for your protection, and required before
you can apply for a HECM reverse mortgage
• The service is designed to help you review your alternatives,
consider the financial implications, and more
*Counselors are not employed by MetLife Bank; therefore, your MetLife Bank reverse mortgage consultant or any other associate of MetLife Bank
cannot provide guidance on the selection or scheduling of counseling appointments.
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20. Why MetLife Bank
• MetLife Bank is a MetLife company
– For more than 140 years, MetLife has been helping
individuals and families
– MetLife is a trusted name in the financial services industry
• Reverse mortgage professionals to help with every
step of the process
• Identity Theft Resolution Services, currently at no
additional charge*
*Identity Theft Resolution Services are provided by Identity Theft 911®.
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21. Identify Theft Resolution Services
• MetLife Bank is among the first to offer this service to reverse mortgage
customers
• One-on-one assistance should you become an identity theft victim
• Help in restoring your credit and regaining control of your identity
• Ongoing monitoring services to watch for recurrences
Identity Theft Resolution Services are provided by Identity Theft 911®.
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22. The next step is up to you
I can help you with all of the process steps:
• Answering your questions
• Providing you with a list of HUD-approved local and nationwide
independent counselors so that you can set up your independent
counseling
• Completing your application
• Preparing for your closing
Let’s start with an informal
conversation
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23. For more information
Call me at any time:
<RMC Name>
<RMC Phone Number>
I’m here to help!
23
Castulo Romero
(800) 287-2616
