Mike’s Real Estate Show

  Currently, seniors age 65 and above own more than $2 trillion in home equity. Yet less than 1% of this total has been engaged by a reverse mortgage. That’s untapped money that seniors on limited budgets could use to meet daily expenses, pay off bills, travel, remodel, fund a new property purchase or a grandchild’s college education, or use in dozens of other discretionary ways.*

In 2007, seniors took out 107,000 reverse mortgages compared to just 7,000 in 2000, according to AARP. Applicants must be 62 or older.

A reverse mortgage may be a good choice for some of your clients or family members. Let them know that:

A reverse mortgage converts home equity into cash that can be distributed as a lump sum, line of credit, life payments or any combination of payments.
 
If they continue to live in their home, they will never have to repay their reverse mortgage. In fact, they will retain title to their home and cannot be forced to leave as long as they pay their property taxes and insurance and maintain their home in reasonable condition.
 
Their loan amount will depend on the applicant’s age, available home equity, house condition and current interest rates.
 
As part of the application process, they must speak with an independent HUD-approved counselor. Although their mortgage proceeds are tax-free, they should consult a financial advisor before proceeding to ensure that a reverse mortgage will not affect medical or other public assistance benefits.
* Ensure your applicants understand that they should consult their financial advisor on the consolidation of short-term debt into long-term debt.
 
 
    Click here to visit my website and apply online:
 www.pphillippe.imbhomelending.com