A Guide for Consumer Choice in Your Next Mortgage

Linda Begley

Linda is a long time educator, turned financial specialist. Her expertise in teaching guides her through the process of educating the public on the benefits of Reverse Mortgages. She knows them, inside and out, and is willing to help you learn as well. Contact her through here or her website below for more from Linda!

Recent Posts

I'm 62 Years Old. Why Would I Consider a Reverse Mortgage Loan?

Posted by Linda Begley on Mon, Aug 29, 2016 @ 02:33 PM

Once you know about the reverse mortgage loan programs, you will be quite impressed. Right now you don't realize how much you don't know!  First we have to make certain that you qualify.  As long as you are 62 years old (and older) and have at least 50% equity in your home--that is a good start.  If your home is totally paid for, you will be absolutely AMAZED at the growth in your line of credit that you can generate tax free.  But let's back up just a little.  In addition to age and equity, you must also be "credit worthy."  Maybe you don't have great credit;  sometimes an explanation is needed.  You must prove that you can afford to remain in your home (pay your property taxes and insurance) as well as maintain your property.

Now if you are still with me and see that you DO qualify, let's move forward.  Let's answer the WHY in this question!  A reverse mortgage loan benefits many seniors.  Like I said, most seniors  just don't know enough about it.  Like in a line of credit, you have access to your money at all times.  If you do not use your line of credit, it keeps on growing tax free.

And here is the best part of it all--no more mortgage payments, assuming this is your primary residence.  You can live in Florida during the winter, but your primary residence is the home with the reverse mortgage loan in place.

However, what if you still owe on your home?  You simply want to get rid of your mortgage payments.  You definitely plan to remain in your home for as long as you can.  How can YOU benefit by having a reverse mortgage loan?  Let's assume you owe $100,000 and the value of your home is a little more than $200,000.  You can get a reverse mortgage loan just to eliminate future payments--if that is your goal.

I have a friend who has a home valued at more than $625,500.   Since these are FHA insured loans, and FHA limits are $625,500--I showed her what she can earn by getting a reverse mortgage loan and allowing the line of credit that she can access ($321,000) grow.  Her FHA insurance, closing costs, origination fees, etc. came  out to be about $10,000.  Her financial planner said  "NO WAY.   It costs too much."  But then my friend showed him how much her line of credit grows the very first year (over $20,000).  Since my friend is only 63 years old, if she is able to let that line of credit continue to grow (without removing any of the money), in just 15 years (she will be 78) it will grow to $497,000+ tax free.  Her financial planner wanted a second look!

Another client has a Chapter 13 Bankruptcy.  In August, he made his 13th payment to the Trustees and became eligible for a reverse mortgage loan.  He is only 62 and plans to pull money out of his line of credit to modify his home so that his wife (she has had 3 strokes and is in a wheel chair) can get around the home more easily.  His wife is 58 years old.  She will be a "non-borrowing spouse" because she is too young to be on a reverse mortgage loan.  If her husband dies first, she can remain in the home but cannot access any money from the line of credit.  If she wants to remain in the home and access the line of credit, she would need to put another reverse mortgage loan on the home.

These are AWESOME LOANS.  Learn all about them! 

The next step is yours--register for our seminar by following the link below. I would love to see you there!

Click for More Here!

Topics: reverse mortgage, reverse mortgage loan

Exactly HOW Do Reverse Mortgages Work?

Posted by Linda Begley on Thu, Jun 16, 2016 @ 06:12 PM

HOW does a reverse mortgage loan work? Where do I begin? Let’s say that you are curious as to how they work so you call your favorite mortgage company (which just happens to be Winterwood Mortgage Group) and ask if anyone there knows about reverse mortgage loans. AHA, yes. Winterwood Mortgage Group has a reverse mortgage loan department.

Let’s say you get me on the phone (reverse mortgage specialist) and ask me to explain exactly how these reverse mortgage loans work. I am most likely going to ask you some questions because there are so many scenarios on reverse mortgage loans—different families have different wants and needs. So I am going to ask you if you are 62 or over (you answer YES). Then I am going to ask you if you own at least half of your home! You tell me that you have NO MORTGAGE at all on your home.

So my next question to you is probably: What do you know about reverse mortgage loans—what event has brought you to me? Was it a commercial that peaked your interest? Was it a neighbor who got a reverse mortgage loan and told you they really are a good thing for senior citizens?

I only need 4 pieces of information from you at this point so that I can answer the rest of your questions. (1) Date of birth of the youngest homeowner. (2) Address along with the zip code. (3) What is the approximate value of your home? And (4) Do you have any liens against your home?

From there it takes me about 5 minutes to enter this information into a program that gives me the answers to nearly every question that you could ask! But I will tell you that it is easier to “show” you than it is to explain it on the phone—but it is your choice. So let’s say you are really seriously considering a reverse mortgage loan; we sit down and go over the numbers. From there, I refer you on to a HUD counselor (third party; reverse mortgage loans are FHA insured). I provide you with a list of HUD counselors and their phone numbers. Most people have their “counseling session” by phone. You call and set an appointment. The counselor has access to the material that I just reviewed with you. The HUD counselor then goes over it with you and discusses reverse mortgage loans as well as other programs that might fit your needs. Once that counselor feels that you understand what a reverse mortgage loan is all about, you are issued a “certificate of completion.” The counseling session costs around $125 that you pay “out of pocket.”

Once you have the certificate that shows you have completed the HUD counseling session, the next step is the application. An appraisal is then ordered. This is your second (and final) out-of-pocket expense. Appraisals cost between $475 and $495.

From there we proceed by selecting a lender (we are BROKERS meaning that we can work with any lender that we choose). You do not pay our fees—the lender does. We find the lender that best suits your needs.

In your case, where your home is already paid for, you tell us if you want any money at closing and if you want set up for monthly payments—or a line of credit that keeps growing at 6% plus per year TAX FREE on any amount that remains in the line of credit. You always have access to your money in the line of credit. You never have a mortgage payment; however, you must continue to pay your taxes and insurance and maintain your home as your primary residence. In your case, you are putting your equity to work for you!

Do you see why we have to ask questions? The person who has a mortgage balance—it is a completely different set up. That’s why it is so important that we talk and that you ask questions!

This is a great program for senior citizens (62+) who own their own homes (with approximately 50% to 100% equity). You continue to own your home.

Spread the word. Let seniors know what is available to them. Call and ask questions!

Click for More Here!

 

Topics: reverse mortgage, reverse mortage loans

About Our Authors

tony.jpg

Tony Gregory regularly contributes to this blog. He is an experienced loan officer in both residential and commercial lending from a commercial banking background. He participates daily in the economic and political activities that continue to shape this industry. You can email him directly at:

tonylends1960@gmail.com

Joel Asbury is Sr. Vice President of Compliance Operations for Winterwood Mortgage Group, LLC as well as a licensed Loan Officer. He regularly consults potential clients for the Sales Team while maintaining relationships with former ones via multiple marketing channels as well as developing new business through new lending channels. You can contact him directly:

jasbury@winterwood.net

Linda_Begley.jpg

Linda Begley regularly contributes to this blog as a Reverse Mortgage Commentator. She has been a teacher in the Public School and Private School sectors, but then after retirement decided she could no longer take not being able to teach! It is her life passion to educate, which she carries on with her Reverse Mortgage seminars for not only the Public Sector, but the Financial Planning and Accounting business sectors as well. Linda has recently rejoined Approved Mortgage A Winterwood Mortgage Group as a Reverse Mortgage Consultant. Email her today at:

lbegley@approvedmortgage.com

We will do everything we can to help you succeed in your next home mortgage endeavor.

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