REVERSE MORTGAGES For Seniors

Reverse Mortgages

What is a reverse mortgage?

A reverse mortgage is a home loan, used for any purpose, where seniors 62 and older can access the equity (cash) / (difference between the current market value and existing loan amount) built up in their home.

Link To HUD'S Web Site on Reverse Mortgages www.fha.gov/reverse/index.cfm

There are several different reverse mortgage programs available. Fannie Mae Home Keeper®, Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM) are three such programs. As demand increases, more reverse mortgage programs from different organizations will become available.

It is called a reverse mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, when the home is eventually sold and the borrower no longer lives in the home.

What are some of the benefits of a reverse mortgage?

You keep your Medicare or Social Security benefits.
You can use it as a credit line and draw upon it as needed.
You can get all your cash right away -- in a lump sum.
You can get money to help pay for health care or other needs.
You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
Or you can get the best of both—get cash now and have a balance in reserve to use as a credit line.
No Income Requirements: The homeowner does not need to be working and is not qualified based on income.
Email questions about Reverse Mortgages to Steve Snyder s1261@earthlink.net or Call (260) 485-5555 or Cell # (574) 457-6643.

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

Assumptions*

Regular monthly advances	$500
Annual interest rate	7.0 %
Monthly interest rate	.583% (.07 / 12)

Month	Beginning Balance	Interest	Ending Balance	Cash Disbursement
0	0	0.00	0.00	$500.00
1	$500.00	$2.92	$502.92	$500.00
2	$1,002.92	$5.85	$1,008.77	$500.00
3	$1,508.77	$8.80	$1,517.57	$500.00
4	$2,017.57	$11.77	$2,029.34	$500.00
5	$2,529.34	$14.75	$2,544.09	$500.00
6	$3,044.09	$17.76	$3,061.85	$500.00
7	$3,561.85	$20.78	$3,582.63	$500.00
8	$4,082.63	$23.82	$4,106.44	$500.00
9	$4,606.44	$26.87	$4,633.31	$500.00
10	$5,133.31	$29.94	$5,163.26	$500.00
11	$5,663.26	$33.04	$5,696.29	$500.00
12	$6,196.29	$36.15	$6,232.44	$500.00

*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.

Please contact Community Mortgage for a detailed report on the many options of Reverse Mortgages. We can take phone applications or in home applications. Please call us toll-free so we can help you ~877-829-7161.

EMAIL Questions s1261@earthlink.net

For additional info check HUD's website for Reverse Mortgage Info www.fha.gov

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