Presentation on Reverse Mortgages

1. What is a Reverse Mortgage?

2. • Federally insured mortgage, convert
home equity into cash!
• You do NOT give up title to the home!
A Reverse Mortgage is…

3. • No monthly payments as long as you
live in the home!
• Youngest person on title must be 62
years or older.

4. • No Income or Credit Requirements.
• Borrower must maintain the home,
pay the taxes and pay the homeowner
insurance.

5. • Closing Costs.
• FHA Insured
• 3rd
party Counseling by HUD approved
counselors.

6. • Borrower does not pay taxes on
money they receive
• Borrower does not deduct interest
from their taxes

7. What types of payment plans are
available?
There are five different payment plans
Line of Credit: Borrower draws cash (up to
maximum benefit) in the amounts of their
choosing.
Tenure: Borrower receives equal monthly
payments for as long as home is occupied as
their principle residence.
Term: Borrower receives equal payments for
the fixed period of time that they select.

8. Why should I know about
Reverse Mortgages?

9. Boomers & Seniors!
• The largest and fastest growing
demographic in America!
• Don’t turn away business! You need
to learn about Senior Issues!

10. Boomers & Seniors!
38,000,000 Senior Citizens in the
USA!
78,000,00 Baby Boomers started to
turn 62 last year!

11. Boomers & Seniors!
• 1 Baby Boomer turns 50 every 10
seconds!
• That’s 12,000 each day!
• That’s 4,ooo,ooo each year…for a
decade!

12. Boomers & Seniors!
• By 2030 the 60 & over market will grow by
81%
• Ages 18 – 59 will only grow by 7%
• Projected population of people 60 and older
in 2030 is 73,000,000!
• Projected to be 21% of the population!

13. Be the trusted Associate with
the best solutions, who cares
about their clients and their
families!

14. Purchases!
Reverse Mortgages are now
available for Purchases!

15. Purchases!
• What do Seniors do now?
• 1-Sell home & Move in with Family
• 2-Sell home & move to Subsidized Housing
• 3-Sell home & buy cash

16. Example!
Buyer sells current home and nets: $350,000
New Home Purchase Price $300,000

17. Example!
Cash Buyer
• Net from sale of current home = $350,000
• Cash to Close on new home = $300,000
• Borrower lives on $ 50,000

18. Example!
Reverse Mortgage for Purchase!
• Purchase Price on New Home = $300,000
• Proceeds from Reverse Mortgage = $180,000
• Cash to Close on new Purchase = $120,000

19. Cash in Hand!
• Net from Sale of current home = $350,000
• Cash to Close on new home = $120,000
• Borrower keeps Cash to live on = $230,000

20. Listings!
• Many consumers who inquire about a
Reverse Mortgage do not take one!
• As Borrowers move or pass away, those
families call you to list the home or
refinance!

21. Example:
• 15% were turned into Applications
• 25% are likely to sell their home, due to
financial stress
• 60% will neither sell or apply for a Reverse
Mortgage….YET!

22. A few scenarios!
 Give Sellers funds to renovate or upgrade
curb appeal for the sale of their home!
 Funds to relocate while you market the
home!
Down Payment assistance to your First
Time Homebuyers!

23. Refinances!
• Many of these Consumers just need a Home
Equity Line or a Cash Out Refi.
• Transfer Title to parents-save family home with
Quit Claim Deed!
• Save Tax Sales and Foreclosures.

24. I know someone who may need to learn
about Reverse Mortgages, who do I contact?
Contact your Office GSM!!