JUST THE FAQs:Answers to Common Questions About
Reverse Mortgages
STEPHEN VOGTTrusted Reverse Mortgage Specialist & Senior Advocate| NMLS#190082
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Licensed Mortgage Bankers NJ Banking Dept. | 50 Broadway New York, NY 10004 | NMLS# 7103
MYTH #1
Reverse Mortgages Are Only For Desperate Seniors
STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
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• The Reverse Mortgage is an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years.
• While some have needed the cash from a Reverse Mortgage more than others, the product is growing in popularity every year.
The Truth
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
MYTH #2
Your home must be debt-free to qualify for a Reverse Mortgage
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
The Truth• Even Seniors with an outstanding first mortgage, second mortgage, tax liens or some other debt on their home may qualify for a Reverse Mortgage.
• The proceeds from the Reverse Mortgage, though, must first be used to pay off such debts.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
ANNOUNCEMENT
You do NOT makeMonthly Payments.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
NO MONTHLY PAYMENTS!
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
MYTH #3
The Bank owns your home after you get a Reverse Mortgage
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
The Truth
• You own your home and retain title throughout the life of the reverse mortgage.
• Once you permanently move out of your home or pass it to your estate, the loan must be repaid.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
MYTH #4
When a Reverse Mortgage comes due, the Bank sells your home.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
The Truth When the loan becomes
due, you or your heirs can either pay the balance on the Reverse Mortgage and keep the home, or sell the home and use the proceeds to pay off the Reverse Mortgage.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
Additionally….• If the value of your home drops or the Reverse
Mortgage exceeds the value of your home, HUD insures this mortgage and you leave no burden or debt for your heirs.
• When the mortgage becomes due, HUD also allows your heirs six months to reconcile the estate and satisfy your Reverse Mortgage without payment.
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
How do I qualify?• You must be 62 years of age or older• You must be a homeowner• You must receive HUD counseling prior to making
application (free service)• Most every type of home is eligible• You must have an appraisal to determine your home’s value
STEPHEN VOGT Senior Advocate
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How long does it take to complete?
Typical processing time for a
Reverse Mortgage is 30 – 45 days after receiving your HUD Counseling Certificate.
STEPHEN VOGT Senior Advocate
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What are my payment options?1. An upfront lump sum payment
2. A line of credit
3. Fixed monthly payments
STEPHEN VOGT Senior Advocate
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Will I pay tax on my money?
• Funds from a Reverse Mortgage are tax free!
• A Reverse Mortgage does not affect regular Social Security or Medicare Benefits
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
Age 62 - $200,000 Home with no mortgage$132,700 Available Equity
Age 72 - $200,000 Home with no mortgage$154,500 Available Equity
Age 82 - $200,000 Home with no mortgage$178,600 Available Equity
Sample ScenariosSample Scenarios
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
• Keep you in your home• Pay back property taxes• Help with your prescription
drugs• Buy a vacation home with
no mortgage payment• Help your loved ones in
emergencies• Help yourself to enjoy your
most precious time• Live debt free
Remember. A Reverse Mortgage Can…
STEPHEN VOGT Senior Advocate
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• Copy of your Social Security Card or Medicare Card
• Original Counseling Certificate • Copy of a Picture or Photo I.D. (Drivers
License, Passport)• Copy of a document containing your
birthdate • Copy of your Homeowner’s Insurance
Policy or declaration sheet• Important Numbers for your Reverse
Mortgage Counseling Certificate.• Reverse Mortgage HUD Counseling• Consumer Credit Counselor Service – 1-800-989-2227
Some Helpful Suggestions
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STEPHEN VOGT Trusted Reverse Mortgage Specialist & Senior Advocate
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