1. Securing Retirement Through Knowledge
Lock In Your Retirement
Using A Reverse Mortgage
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2. Securing Retirement Through Knowledge
What Is A Reverse Mortgage?
Reverse mortgages enable homeowners age 62 or older
to convert their home’s equity into available cash.
A lender advances the money based upon the equity in
your home. The loan amount you are eligible to receive
depends upon the amount of equity in your home and
your age at the time you get the loan.
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3. Securing Retirement Through Knowledge
Reverse Mortgage Questions
Why Use A Reverse Mortgage ?
To Provide Monthly Payments, Lump Sum Cash
Payments or Eliminate Monthly Mortgage Payments
With No Tax Implications
Who Uses These ?
Homeowners From All Income Brackets and
Demographic Backgrounds Find Reverse Mortgages
Extremely Useful To Benefit Their Retirement
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4. Securing Retirement Through Knowledge
Reverse Mortgage Benefits
No Payments Due…………Ever
Lump Sum and/or Monthly Payments Paid To You
Professional Counseling Appointments
You Still Own Your Home
Little or No Closing Costs
Payoff Anytime or Not Till You Are Done With The
Home
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5. Securing Retirement Through Knowledge
Financial Example Of Reverse Mortgage
Bill and Wendy Smith Owe $140,000 On Their Home
The Home Is Valued At $300,000
They Are 65 and 68 Years Old
They Have A $1206 Dollar Monthly Mortgage Payment
They Live On $2763 A Month From Social Security
They Have $30,000 In Cash Reserves
____________________________________________
After They Close Their Reverse Mortgage
They Have No Mortgage Payment
Still Receive $2763 From Social Security
They Have $75,000 In Cash Reserves
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6. Securing Retirement Through Knowledge
Reverse Mortgage Qualifications
Youngest Homeowner Must Be 62
Requires Roughly 30% Equity
No Foreclosure In Last 3 Years
No Income or Asset Restrictions
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7. Securing Retirement Through Knowledge
Reverse Mortgage Options
Cash Proceeds Can Be Received
In A Lump Sum
Guaranteed Monthly Payments
As A Credit Line
A Combination Of These
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8. Securing Retirement Through Knowledge
Reverse Mortgage Alternatives
Sell The Home
Rent It Out Or Lease It
Traditional or Conventional Financing
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9. Securing Retirement Through Knowledge
Reverse Mortgage Counseling
Borrowers Meet With A Licensed Loan Officer and A
Licensed Reverse Mortgage Counselor Prior To
Completing The Loan Application
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10. Securing Retirement Through Knowledge
Reverse Mortgage Budgeting
Monthly and Annual Budgeting Worksheet Completed
Covering Before and After Financial Scenarios
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11. Securing Retirement Through Knowledge
Reverse Mortgage Timing
The Reverse Mortgage Process Is Much Easier Then
The Traditional Mortgage Process. These Loans May
Close As Quickly As 3 Weeks Once The Application and
Counseling Appointments Have Been Completed
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12. Securing Retirement Through Knowledge
Reverse Mortgage Real Estate
Most Types Of Real Estate Are Eligible For Reverse
Mortgage Financing:
Residential Homes
FHA Approved Condominiums
Manufactured Homes
2-4 Unit Properties
Detached Homes
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13. Securing Retirement Through Knowledge
Reverse Mortgage Due On
Reverse Mortgages Balances Are Not Due Until The
Homeowners Move Out Of The Home And The
Amount Due Will Never Be More Then The Value Of
The Home
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14. Securing Retirement Through Knowledge
Reverse Mortgage Expiration
Reverse Mortgages Do Not Expire Or Become Due and
Payable Unless The Homeowners Move Out
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15. Securing Retirement Through Knowledge
Reverse Mortgage Payments
The Homeowner Is Never Required To Make A
Monthly Or Annual Payment However They Can Make
Payments Or Payoff The Loan In Full Anytime
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16. Securing Retirement Through Knowledge
Reverse Mortgage Cash Limits
The Reverse Mortgage Loan Limit Is Decided By The
Age Of The Borrower and The Property Value.
The Loan Amount May Be As High As The FHA Loan
Limits - $625,500 In King County
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17. Securing Retirement Through Knowledge
Reverse Mortgage Process
The Reverse Mortgage Process Is Much Simpler Then
The Traditional Mortgage Loan
Application Appointment
Counseling Appointment
Paperwork
Appraisal
Documents and Signing
Closing
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18. Securing Retirement Through Knowledge
Reverse Mortgage Payoff
The Eventual Loan Payoff Is Not Due Until The
Homeowners Move Out and Is Based On The Original
Loan Amount, Any Additional Withdrawals and
Accrued Interest
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19. Securing Retirement Through Knowledge
Reverse Mortgage Reasons
To Provide Additional Monthly Income
To Eliminate Monthly Mortgage Payments
To Withdraw A Lump Sum Of Cash
To Establish A Credit Line For Emergencies
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20. Securing Retirement Through Knowledge
Reverse Mortgage Advantages
Simple Qualifying
You Continue To Own The Home
Multiple Cash Options
Credit Line Limit Increases Annually
Cash Drawn Can Be Used For Any Purpose
No Payment Due
Appointment and Counseling Sessions
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21. Securing Retirement Through Knowledge
Reverse Mortgage Credit
Credit Requirements For A Reverse Mortgage Are
Much Simpler Then A Conventional Loan Or Line Of
Credit – No Credit Score Required
Credit Is Checked Simply To Verify There Has Been No
Foreclosures In The Past 3 Years
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22. Securing Retirement Through Knowledge
Reverse Mortgage Eligibility
The Primary Eligibility Requirements Are
Youngest Homeowner Must Be 62 Or Older
Property Must Conform To Previously Mentioned
Property Types
Borrowers Must Be Foreclosure Free For Previous 3
Years
Homeowners Must Complete Loan Application and
Counseling Session
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23. Securing Retirement Through Knowledge
Reverse Mortgage Tax Implications
Money You Receive From A Reverse Mortgage Is Tax
Free and Will Not Impact Your Tax Bracket
You Will Also Be Eligible For Your Full Social Security
and Medicare Benefits
If Proceeds Are Used For Investment You Will Need To Consult Your Tax
Professional
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24. Securing Retirement Through Knowledge
MortgageRetirement@Gmail.com
http://www.MortgageRetirementPlan.com
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