| The Benefits of a Reverse Mortgage |
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verticallend
New Poster
Cash: $ 0.00
Posts: 2
Joined: 05 Aug 2004
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| The Benefits of a Reverse Mortgage |
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What is a Reverse Mortgage?
A reverse mortgage gives homeowners aged 62 or older the opportunity to take a loan against the equity in their home. Unlike a "traditional" mortgage where the loan principal and interest are paid to the lender on a monthly basis, a reverse mortgage defers payments until the maturity event (when the borrower sells the home or leaves the residence permanently) and can provide the borrower with a monthly income stream.
The Benefits of a Reverse Mortgage
No repayment until home is sold or borrower permanently leaves the residence
Unlocks the equity built into the home
No income or credit qualifications
Proceeds received as tax-free income
Interest is paid at time loan is repaid - not during the loan*
FHA insured or Fannie Mae guaranteed
Flexible payment options
No debt passes to heirs
In the case of joint borrowers, payments will continue in the event of the death of one of the parties
Does not affect Social Security or Medicare benefits
Why a Reverse Mortgage is better than a "forward loan" (i.e. 2nd loan or home equity line of credit):
A credit report is not a considerable factor in determining loan approval
The client is not required to document income
Their is no monthly obligation to repay the loan
A growing number of your senior customers and their adult children have been buying these innovative loans in recent years to augment retirement income, pay for long-term health care, or even pay for a dream vacation. According to the U.S. Department of Housing and Urban Development, the number of reverse mortgages issued has more than quadrupled this year alone compared to the early 1990s when these products were first introduced.
It is essential to address the needs of our senior population. Having the tools to assist this growing marketplace is essential to your business. Vertical Lend understands this and now gives you the ability to offer reverse mortgages to your clients.
Quick Links to Reverse Mortgage Topics:
What is a Reverse Mortgage?
The Benefits of a Reverse Mortgage
Myths and Misconceptions of Reverse Mortgages
Reverse Mortgages as a Retirement Planning Tool
Reverse Mortgages and Estate Planning
Case Studies - Profiles of Ideal Candidates
Associate Compensation
What is a Reverse Mortgage?
A reverse mortgage gives homeowners aged 62 or older the opportunity to take a loan against the equity in their home. Unlike a "traditional" mortgage where the loan principal and interest are paid to the lender on a monthly basis, a reverse mortgage defers payments until the maturity event (when the borrower sells the home or leaves the residence permanently) and can provide the borrower with a monthly income stream.
>> Back To The Top
The Benefits of a Reverse Mortgage
No repayment until home is sold or borrower permanently leaves the residence
Unlocks the equity built into the home
No income or credit qualifications
Proceeds received as tax-free income
Interest is paid at time loan is repaid - not during the loan*
FHA insured or Fannie Mae guaranteed
Flexible payment options
No debt passes to heirs
In the case of joint borrowers, payments will continue in the event of the death of one of the parties
Does not affect Social Security or Medicare benefits
Why a Reverse Mortgage is better than a "forward loan" (i.e. 2nd loan or home equity line of credit):
A credit report is not a considerable factor in determining loan approval
The client is not required to document income
Their is no monthly obligation to repay the loan
*The interest rate varies depending on the reverse mortgage program selected. All programs offer adjustable rates and have lifetime caps on the maximum allowable rate. Rates are based on the 1-year T-bill index plus 1%.
>> Back To The Top
Myths and Misconceptions of Reverse Mortgages
Fact: There are no limitations on how proceeds are used.
Borrowers may:
» Pay off debt, including mortgage and credit cards
» Make needed home repairs
» Pay for home health care
» Make retirement investments
» Purchase long-term care insurance
» Travel
» Help grandchild with college expenses
» Pay real estate taxes
Fact: Reverse mortgages are a safe income option for seniors.
» Borrower's name remains on title
» Debt owned on loan does not pass to heirs
» Borrower will never owe more than the loan balance or value of the property - whichever is less
» Reverse mortgages are regulated by government and industry associations like AARP and NRMLA (National Reverse Mortgage Lenders Association)
For more information contact:
Lisa Marie Barnes
Account Executive
631-836-0551
Lisamarie22k@yahoo.com
Last edited by verticallend on Tue Mar 08, 2005 7:14 pm; edited 1 time in total |
Thu Aug 05, 2004 1:44 pm |
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Deen888
Senior Member
Cash: $ 41.60
Posts: 203
Joined: 14 Feb 2018
Location: Los Angeles
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I needed to google "reverse mortgage" to understand what it is, thanks for your posting! I never took a loan in my life, especially I never dealt with online lenderers. A friend of mine took a loan for buying an auto at Lightstream Loan company, here sent me the contacts: lightstream phone number .
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Mon Oct 18, 2021 6:44 am |
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