All the time in the world
To visit, travel, fish, golf, upgrade the home, do all the maintenance you’ve been putting off, plan that once in a lifetime European Cruise, invest in a few rental houses.
Time to start thinking about how to build the long term health care plan for you and your wife that you’ve been too busy working, earning a living, to give any serious thought.
All the time you need.
Wait a minute…….
where is all of this money going to come from?
You’ve just retired, or been retired just long enough to realize retirement is not progressing quite the way you planned.
You’ve probably noticed that it’s become increasingly difficult to meet your financial obligations.
Everything from rising health care costs to increased home maintenance expenses are beginning to take a larger bite out of your available funds, while at the same time your income may be less than you are accustomed to.
This Wasn’t Supposed To Happen!
When you started out life’s journey, you bought your home, placed a mortgage on it, made steady payments each month to substantially reduce the balance on the mortgage by the time you retired and at the same time you intended to set aside a sum of money each and every month for the future. A very good plan.
But there were lots of expenses in raising a family and getting through life... so the savings plan really didn’t grow to the amount of money you thought you would achieve.
You retired…..if you’re like most of us, you’re income stream was reduced and you can see what savings you have dwindling daily. You have no way of putting together a long-term health care plan or doing any of the many things you dreamed of doing in retirement.
The one financial step that you did right is that your home grew and grew in value as you paid down the mortgage and you now have a very large equity in your home…..
This is real money…..
This is your money….
You’ve earned it….
This money can solve many if not all of the problems you are dealing with today, losing sleep over, problems you can see increasing in the future…..and the future is not that far away.
The solution is right under your feet.
The problem is, this large amount of equity, (your savings in your home) is difficult to use. It’s difficult to get to… Your credit may have suffered as your income was reduced causing you to not qualify to the banks standards for a new mortgage. Even if your credit did not suffer, because your income has been reduced, you may not qualify for the money you need …. banks seem to love to say “No”!
Even if you do qualify…..there are some disturbing problems with just borrowing more money from the bank.
Let’s assume you can qualify for a new mortgage on your home, giving you cash to pay off any credit card debts, auto loans and the remainder of any mortgage that you now have….You borrow as much money as you can, place the unused balance in an interest bearing savings account to supplement your income. Great plan……
problem is…..Payments Must Be Made on a
Monthly Basis, the same way you have always made them.
So what’s wrong with that?
Because you’re income is now lower, and you’re new mortgage is much higher, you will need to take money from the savings account you just set up to make the payments. As you go forward, you will now be using your savings to supplement your life style to make life easier for you, while at the same time you will be using that same savings to make the payments on the mortgage….it won’t last forever….that’s pretty obvious.
Do the math…..divide the proceeds of the loan by the amount of money you must withdraw to maintain your lifestyle including the new mortgage payments….
You will find you most likely can’t afford to be around for very long.
You could do the same type of income supplement using a Home Equity Line of Credit…..but the results are the same….the more money you use, the higher your payment becomes, so you need to use more and more money from your Home Equity Line of Credit just to repay your Home Equity Line of Credit which in turn makes the payments higher each month. It becomes a vicious circle that becomes even more vicious every year.
You could sell your home.
Pay off debts, move into a small rental and….wait a minute…. Isn’t this just what you are trying to avoid???? This is the last thing you want to do……
You love your home….
You feel secure in your home….This home is far more than just a roof over your head….It is a big part of who you are!
Especially if you’ve raised your children in your home… there are lots of sentimental feelings and strong ties to this home that go far beyond the wood and nails that built this house….
This is your home! You worked hard to buy a house for you and your family… then spent many years turning it into a home filled with family and friends…..Everything you’ve worked for, lived for and loved is right here in this home….. and this is where you want to spend your retirement…..right here, in your home!
You are not alone….you are no different in your wants and needs than millions of other Senior Homeowners….
85% of Seniors want to remain in their own home during their retirement years.
There is a solution…..
A financial product made just for you….. Homeowners, aged 62 or older.
You don’t need income to qualify….
You don’t need credit to qualify…..
You don’t need to make payments on the loan……EVER!!!!
You don’t need to pay taxes on this money….It’s Tax Free!!!!
All you need is to be 62 years old or older and occupy your home or condominium as your primary residence.
What could be easier than that?
Let’s talk about this wonderful financial instrument.
Sounds almost too good to be true doesn’t it….
But I assure you……It Is TRUE… It Is Real…..And it has already made retirement the enjoyable worry free life it was intended to be for tens of thousands of Senior Citizen Homeowners just like YOU.
In fact….in the last two years alone the number of Senior Citizens benefiting from this loan have quadrupled (4X) because the benefits of this loan are finally getting out to the public.
This loan requires NO CREDIT….
This loan requires NO INCOME….
This loan requires NO MONTHLY PAYMENTS…..NOT EVER!
And the money is TAX FREE!
This financial instrument simply allows you to have access to a part of the equity in your home, convert that equity into cash for you to use for today’s needs…
All without making any payments on the loan.
The cash from this loan is NOT TAXABLE….NOT STATE Taxable…. NOT FEDERAL Taxable…NOT NOTHIN’!
The income from this loan does not effect your Social Security Benefits.
The income from this loan does not effect your Medicare Benefits.
The Principal from this loan does not need to be repaid in any way shape or form until you:
a.) Move out of your home.
b.) Sell your home
c.) Vacate your home in some other way….(The last borrower passes away)
YOU are always 100% the Titled Owner of Your Home!
The cash from this loan can be used for Anything You Want….
THIS IS YOUR MONEY!
Use this money to Supplement Your Monthly Income.
Use this money to Travel.
Use this money to Consolidate Your Debts.
Use this money to Improve the Quality of your life.
Use this money to Make Home Improvements.
Use this money to Help the Grandkids through college.
Use this money to Start an investment plan.
Use this money to Establish a Long Term Health Plan.
Use this money for In Home Health Care.
Did you know that over 65% of people who today are 62 years old will need Long Term Health Care? We are talking BIG MONEY at this point! Do you know how many of them are prepared for this? Take a guess……………….
If your answer is NOT VERY MANY…You are correct.)
It’s YOUR MONEY….. YOU Earned It….Use it in any way you like….
It comes from the best, most important investment most people made in their lives…..their home.
Think of the money this way…..
If you had invested say $20,000 in a mutual fund 30 years ago…
And the value today was around $400,000…..you wouldn’t hesitate to use this money to supplement your income and your life style…..that’s why you invested the money….that’s what it’s there for.
Your home is No Different….you invested in it….you worked hard for it…
you cared for it….in return it has provided shelter for you and your family and it has faithfully gone up and up in value…
NOW is the time to use the investment equity in your home, money that you earned over many years of hard work to benefit you, your spouse, your family and your life….
Best of all……you do not make any payments on this money. Ever!
You can Never Lose your home because of this financial tool…
It is the House that will eventually pay for itself!
How do many homeowners feel?
Secure, confident, able to live on their own terms.
Like being reborn….The things you want to do….you can do.
Remain in your home…with confidence.
Have an additional income….
Live your life without worrying about finances….
I’ve told you a lot of good stuff about this loan…..
By now you probably have a zillion questions…..
Let’s see if we can answer a bunch of them right here and now.
Just the Facts……
As more people learn about the benefits of the Reverse Mortgage, this financial planning tool has gained strong popularity. Today, record numbers of homeowners are using Reverse Mortgages to remain in their homes, to supplement their retirement incomes, to Reduce their taxable estate, Access large amounts of Tax Free Cash, establish a long term health care plan, make home modifications or simply to establish a cash reserve for emergencies.
Misconceptions and Questions…
The most common misconception is:
“A REVERSE MORTGAGE IS WHERE THE BANK GIVES YOU SOME MONEY AND THEN TAKES YOUR HOUSE!”…
NOTHING COULD BE FURTHER FROM THE TRUTH! You cannot lose your home because of this loan. Not ever!
Follow along with me as we explore these common misconceptions, answer your questions and give you the facts about this amazing financial tool.
These FACTS provide answers to the most common questions asked by Senior Homeowners and misconceptions experienced by Senior Homeowners.
REVERSE MORTGAGES ARE ONLY FOR DESPERATE
SENIORS, OR FOR THE “HOUSE RICH, CASH POOR.”
Incorrect…..The reverse mortgage is an excellent financial planning tool that is used by homeowners from all walks of life, the very well off to the not so very well off to enhance their retirement years. While some have need of a reverse mortgage more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.
1. Am I eligible for a reverse mortgage?
To qualify for a reverse mortgage, you must:
a.) Be at least 62 years old. In the case of a couple or co-owners, both must be *62 if both their names appear on the title to the home.
b.) Have Equity in your home.
*(If one spouse or co-owner is under the age of 62, that person’s name can be removed from the title so that the other person can qualify for the reverse mortgage by themselves.)
2. How much money can I get?
This depends on a few factors, including your age, the value of your home, the amount of built-up home equity, and interest rates at the time the loan is made.
A calculator that can help estimate how much you could receive is available through MBI and can be accessed with a simple phone call to me at
YOUR HOME MUST BE DEBT-FREE TO QUALIFY FOR A REVERSE MORTGAGE.
Incorrect….Even seniors with a first mortgage or other debt on their home may qualify for a reverse mortgage. The proceeds of the reverse mortgage, though, must first be used to pay off such debts.
Many times by simply changing from your present mortgage which includes sizable monthly payments to a Reverse Mortgage which includes No Monthly Payments you can make a huge turn around in your monthly cash flow…..now that’s real relief!
3. Do I have any choices on how I receive this money?
You decide how to receive the money that is available to you. Your choices are:
a. An up-front lump sum payment.
b. A Line of Credit that you can write checks on as needed.
c. A fixed monthly income paid each month to you for as long as you remain in your home.
d. A combination of monthly income, line of credit or lump sum.
4. How much does a reverse mortgage cost?
Many of the same costs associated with a regular mortgage apply to a reverse mortgage. You will be charged an origination fee, a mortgage insurance premium (for FHA home mortgages) an appraisal fee, and certain other standard closing costs In most cases these fees and costs will be financed as part of the reverse mortgage, so that you incur little out-of-pocket expense.
5. Do I need to get an appraisal of my home to get a reverse mortgage?
Yes…. Since the value of your home is one of the factors in determining how much money you can get from a reverse mortgage, an appraisal is required. Normally the lender will order the appraisal, which is paid for by the homeowner before the appraisal takes place.
6. Do I need a lawyer to apply for a reverse mortgage?
Legal counsel in not required.
However, MBI encourages you to seek the advice of legal, tax or financial advisors before committing to any kind of a mortgage.
We also suggest that if you have a son, daughter or other relative that helps you with your financial decisions please share this report with them.
The Bank Owns the Home After You Get A Reverse Mortgage.
Incorrect….You own your home and retain title to your home throughout the life of the reverse mortgage. Once you permanently move out of your home or your home is past on to your estate, the loan must be repaid…normally through the sale of your home.
7. Am I required to receive counseling before I get a reverse mortgage?
Yes…. Counseling is required for reverse mortgages. The counselor’s job is to make sure you understand the reverse mortgage and what options are available to you. These counselors are independent of the lender and are available to you to be sure you understand the process and the benefits of the loans available to you. It’s nothing tough…..in fact it’s easy and assures you that you are making the right decision.
8. Is the money from a reverse mortgage taxable income?
Will it affect my Social Security or other government benefits?
No and No again…The money you receive from a reverse mortgage is Tax Free. It’s your money….
It is not considered additional income. A reverse mortgage does not affect regular Social Security or Medicare benefits. However….if you receive a lump sum payment from a reverse mortgage, any cash amount your retain could count as a resource and could affect Medicaid eligibility. To be safe, consult a Medicaid expert and/or a financial planner on the most beneficial way to receive any cash proceeds.
9. Who owns title to my home while my reverse mortgage is in affect?
The Bank? Or ME?
YOU retain title to your home during the period when you have a reverse mortgage, just the same as you have all along.
10. Am I required to pay anything during the course of the reverse mortgage loan?
NO…. The payments are reversed….The lender pays you. However, you are responsible for keeping up payments on your homeowner’s insurance and your property taxes. On the other hand….you now have the money to pay them each year.
And….If you would like the lender to pay them for you…..just say so.
When a Reverse Mortgage comes due, the bank sells the home.
INCORRECT….The loan never comes due until the last person on the loan permanently moves out of the house for whatever reason. When the loan must be repaid, you or your heirs can either pay the balance due and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage and retain the equity that remains.
11. Are there any limits on how I can use the funds from a reverse mortgage?
NO! Borrowers have used reverse mortgages for a variety of purposes including paying health care expenses, supplementing retirement income, home improvements, re-modeling, paying a grandchild’s college tuition, starting investments, visiting friends and family, taking that once in a lifetime European Cruise, visiting the Holly Lands, purchasing recreational vehicles, building an airplane, start a small business, eliminating expenses by paying off their current mortgages or paying off credit card debt.
The only limit on how you use your money is your own imagination..
12. What is the interest rate on a reverse mortgage?
The interest rate varies by the type of reverse mortgage.
We will go into this as we determine the reverse mortgage that is best for your individual needs.
13. How much money will be owed when I decide to sell my home, move out permanently, or….the last borrower is no longer here?
The amount owed to the lender includes the amount of money borrowed, the amount of accrued interest, any accrued mortgage insurance premiums, servicing fees and any other costs and fees financed as part of the loan amount. In NO EVENT will the repayment amount exceed the value of the home or the above total, whichever is less….
There are no prepayment penalties.
14. What happens if I move out of my house after I get a reverse mortgage?
A reverse mortgage comes due and must be repaid when the borrower permanently moves out of the home. (Including passing away) It’s OK if you have a 2nd home somewhere that you visit from time to time or winter in as long as this home is your primary residence. Similarly, if you sell your home, the mortgage comes due.
15. What happens when my house gets passed on to my heirs?
Once your home is passed on to your heirs, the reverse mortgage comes due. Your heirs may either pay the balance due on the reverse mortgage and keep the home. (They may do this with a re-finance or other methods) or they may choose to sell the home and use the proceeds to pay off the mortgages. If they choose to sell the home, they keep any funds over and above the mortgage.
While your new mortgage is accruing interest (going up while you have it) the value of your home is also increasing in value the same as it always has.
WHAT SAFEGUARDS ARE BUILT INTO THIS MORTGAGE?
1. Advance counseling by an independent counselor whose job is to review the loan you have chosen and answer any questions you may have about the reverse mortgage as well as suggest alternative loans or alternatives to borrowing anything (Such as Selling Your Home.) These counselors are independent of the lender and are there for the sole purpose of making sure you are well informed, well educated and making the best decision to improve your financial circumstances.
2. There are Federal Limits on the interest rate and origination fees.
3. A ceiling on the repayment amount…. What you owe can never exceed the value of your home.
4. Advance disclosure so that you are made fully aware of the cost incurred in obtaining your loan.
I hope this report has helped and I look forward to hearing from you soon.
“Your Personal Lender for Life”
P.S. I’m glad you called for this report. It allows me the opportunity too not only save you money and time, it gives me the additional opportunity to show you how to actually have fun in a process many people find stressful.
So, what do you do next?
Pick up the phone and call (503) 585-5223 We’ll be happy to talk
with you, answer any questions you have, and if you’re ready, collect the
information needed to suggest the best possible mortgage plan for you.
If you have access to a computer you can go to www.OregonsBestLoans.com to learn a little more about us. While you’re at our web site, look around, have fun, you’ll find it’s full of information on home loans that you can’t afford to be without.
And then call 503-585-5223…..Let’s make retirement the relaxing pleasure is was meant to be.