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As seniors continue to live longer, outliving their assets is now their #1 concern.
That growing fear has been fueled by recent investment losses that most people – young and old alike – have experienced, by the volatility of financial markets, by ridiculously low yields in safe investments, and by a generally uncertain economic outlook. And frankly, many seniors have been forced to retire early before they were prepared for retirement, or many have just not had the luxury of being able to save enough money to ensure a comfortable retirement.
While about 80% of all seniors say that they want to remain in their home for as long as possible, many are finding this financially challenging – especially if they still have a mortgage.
The good news is that we may be able to help! If you are at least 62 years old, or close to it, and have equity in your home, then you may be able to benefit from a powerful retirement tool that is precisely designed to help you “age in place” – a reverse mortgage!
A reverse mortgage is a special type of home equity loan.
The loan proceeds available to the borrower can be used any way, at the borrower’s discretion.
Many borrowers tell us that they would be able to continue to live in their home or, in fact, to live a much more comfortable life if they simply did not have a mortgage payment. We may be able to pay off your mortgage with a reverse mortgage.
Most seniors just want the security, independence and peace of mind that a Reverse Mortgage can often provide.
A reverse mortgage, well planned out and carefully used, can help seniors for many years into the future. It can help them remain independent and stay financially fit provide for a surviving spouse, or cover routine or extraordinary expenses – all while keeping the seniors in their beloved home.
A reverse mortgage is a powerful financial tool that brings peace of mind and security. There is simply nothing else like it on the market.
Reverse Mortgage Basics
How much money can I get
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Today, reverse mortgages are becoming an increasingly popular way for homeowners to supplement their retirement by offering a secure option for accessing cash based on the equity in their homes. Here are answers to common questions you may have:
A reverse mortgage is a special type of home equity loan (usually a government-backed FHA loan) which enables homeowners aged 62 or older to access a portion of the equity in their home. The home must be the primary residence.
NO! The borrower always retains the title to the home and cannot lose the home under normal circumstances. The borrower must, of course, always continue to pay their real estate taxes and homeowners insurance or be subject to foreclosure.
The amount of money available to the borrower is based on the age of the youngest borrower, the value of the home, and current interest rates.
Different reverse mortgage products have different payout options. If the borrower chooses a product with a credit line option, the available money can be taken as a credit line, as monthly payments, as a lump sum, or a combination.
No. The proceeds (the money you receive) are a loan to you – not income.
Maybe. After the calculation is made which determines how much money the borrower has available, the lender has to first be able to pay off any existing mortgages or liens before the reverse mortgage can be approved.
With a reverse mortgage, the borrower does not have to qualify for the loan,i and never makes a monthly payment – unlike with a home equity loan. In addition, the reverse mortgage line of credit is GUARANTEED and can never be terminated as long as the borrower complies with the terms of the loan. This is not the case with a regular home equity loan. In addition, a reverse mortgage that has a credit line option also has a CREDIT LINE GROWTH RATE. This means that the line of credit INCREASES, based on a pre-determined formula so over time the reverse mortgage line of credit will provide the borrower with access to more equity – regardless of (continued on next page)
how long the borrower continues to live in the home; regardless of what happens to the balance of the reverse mortgage; regardless of what happens to the value of the home.
A reverse mortgage is a refinance so the normal refinance charges apply. A reverse mortgage is also an FHA loan so FHA insurance charges also apply. But the answer to this question actually is: “Compared to what?” There is no other product on the market like a reverse mortgage.
No. Reverse mortgages can actually be used as powerful financial planning tools. A successful retirement strategy includes identifying and maintaining income streams. Putting a reverse mortgage in place now (with a line of credit and it’s accompanying line of credit growth rate) may provide an additional income stream for future use. Other retirement planning strategies, such as deferring social security benefits or postponing or reducing draw-downs of taxable, invested retirement savings, can involve using a reverse mortgage.
Yes. We have various fixed rate programs as well as various adjustable rate programs. We focus in on the needs and goals of the borrower and, based on their particular situation, we help them determine which program is best for them.
A reverse mortgage does not affect eligibility for Social Security or Medicare. However, some needs-based government programs, like Medicaid and Supplemental Security Income (SSI) may be affected. Consult with a qualified professional to determine what the impact to you may be if you are using any of these programs.
Most single-family or 2-4 unit owner-occupied dwellings or townhouses are eligible. Condos MAY or MAY NOT be eligible. The home must meet minimum FHA property standards.
Yes! More and more seniors are taking advantage of a reverse mortgage at purchase to help them preserve cash or to purchase a more suitable home, without having to make monthly mortgage payments.
The reverse mortgage allowed me to bring my father home from a nursing home to the home he wanted to be in. We were able to pay for the at home nursing care with the funds from the reverse mortgage. He was able to stay at home and be with his dog.
Art, Newark, De.
I have a great sense of peace. With no one to take care of me, I was able to pre-pay my funeral expenses and do repairs to my home. All my concerns were taken care of.
Ellen W., Philadelphia
We were able to stop the foreclosure on our home. We couldn’t pay the taxes on our home and it was going up for sheriff’s sale. Working with Dick we were able to stop the sheriff’s sale. When we closed on the reverse mortgage our taxes were paid up and we had money to pay them in the future.
Ron and Lois, West Chester, Pa.
Working with Dick helped us feel confident we were doing the right thing. We were unsure if a reverse mortgage was right for us. He took the time to explain how the program worked and answered all our questions. Even after the loan closed he was there to answer any questions we had. We would recommend working with Dick to anyone who is interested in reverse mortgages.
Don and Janie, New Castle, De.
I felt like a boulder had been lifted off my chest. I had worked hard all my life and paid the bills to take care of my wife and 3 daughters. Mostly it had been living paycheck to paycheck. Now with the reverse mortgage, we have the money to do the things we want to do and a cushion for any emergencies. Budget pressures have been taken away.
Bill, Pittsburgh, Pa.
When my husband passed away my financial planner brought Dick in to work with me. My husband’s pension was gone and so was my social security income. Rather than drawing down our savings and investments at a rate where I would run out of money eventually, I took a monthly income from a reverse mortgage. I can stay in our home and live a normal life.
Janet, Trevose, Pa
When I was having trouble with the appraisal on my home, Dick was able to use his experience to get a fair value for my home. I was able to proceed with the reverse mortgage and to get the money I deserved.
Gerri Easton, Pa
The reverse mortgage line of credit is a wonderful solution. Dick had explained the difference between a home equity loan and a line of credit with a reverse mortgage. After years of accessing the line of credit and not having to make payments, I am glad I chose the reverse mortgage. It should be something everyone who is retired should do.
Tom, Devon, Pa
Nan was absolutely fantastic to work with! I decided to finally go through with a reverse mortgage after I met her. I had complete confidence in her and she made me feel very secure through the whole process. I use my reverse mortgage to pay my real estate taxes and it’s a great emotional security knowing that money is there if I need it.
M.E.B., Reading, PA
The reverse mortgage was the best thing we ever did! We had thought about doing a reverse mortgage for 3 years and finally decided to do it after Nan explained everything to us and gave us the information and assurances we needed. She was always straight-forward with us. I only wish we had done the reverse mortgage sooner so my husband, who passed away a few months later, would have been able to enjoy the peace of mind that I enjoy today.
Rita G., Sharon Hill, PA
The reverse mortgage helped us with our financial needs, which were many. It helped us stay in our home and to maintain it. Nan was a blessing. She met with us and our son and spent time explaining everything to us and giving us the confidence to proceed.
Mr. & Mrs. H., Edgewater, NJ
Nan is one of my favorite people! She hung in there and fought for us until we were finally able to get the reverse mortgage done (we needed a short payoff to prevent us from being foreclosed on). Because of Nan’s hard work, our family home was saved for my whole family, including my wife who is very ill. I can’t say enough about the relief and peace of mind that has been given to my family with the reverse mortgage.
W.M. Conshohocken, PA
Nan was referred to my son-in-law by a business associate of his. She met with us and we came up with a plan that would provide me with the extra monthly income I needed and also give me access to a large credit line for future needs. Now I will be able to pay my own expenses when the whole family travels out of state for my grandson’s wedding.
D.M., Levittown, PA
Because of Nan’s hard work in dealing with the unexpected title issue which developed, I was finally able to get a reverse mortgage which paid off my existing mortgage just in time! I was getting close to foreclosure and I knew that I would be OK if I could just get my mortgage paid off. I was able to keep my home.
Maria, Willow Grove, PA
The reverse mortgage saved me a lot of headaches. And Nan was a pleasure to work with.
Nadene, Toms River, NJ
Nan was very helpful. A friend of mine who had done a reverse mortgage with Nan had urged me to talk to her which I finally did. I didn’t know anything about reverse mortgages and Nan explained everything to me in a way that I could understand. I now have great peace of mind and less stress at bill time.
Frances, Ewing, NJ
Nan was an excellent representative for her company. She presented me with many different loan scenarios and happily met with my financial advisor and accountant and even my attorney. We all decided that taking out the reverse mortgage was the best thing for me because it put to work some of the large amount of equity I had in my home. This meant that I could draw down less of my investment accounts.
Joe F., Wilmington, DE
My wife and I were separated and working on a divorce. I had been unable to figure out how I could buy out her equity from our home so I could continue to live there. I simply did not have enough money to do so. A mortgage loan officer who knew Nan recommended that I contact her to find out whether or not a reverse mortgage might be able to provide the needed cash. It did! I am so relieved to have this challenging and very difficult part of my life behind me and so thankful that I can now remain in my home.
Mr. W., Morrisville, PA
The confidence I soon gained in Nan helped me ‘take the leap’ after much thinking and many anxious moments. She helped make the process of getting a reverse mortgage much easier and I thank her for that and for her efforts and patience. It was a pleasure working with her as well.
Greg, Red Lion, PA
By using the reverse mortgage to purchase a new home, I was able move into a quieter neighborhood and into my dream home. I now have plenty of room for my new library and I have a garage so no more problems with parking! My realtor recommended Nan. I never could have purchased this home without the reverse mortgage and without Nan’s tireless efforts to ‘get it done’!
D.L., Philadelphia, PA
A previous loan officer had not been able to get the required FHA approval for our condominium. But Nan worked hard on tying up the final loose ends which gave us the approval we needed to get the reverse mortgage done. We are now without a mortgage payment for the first time in our lives! And we will now be able to put money aside from our monthly income so we will be able to travel.
Mr. & Mrs. T., Ocean City, NJ
I needed a fair amount of work done to my home which I could not afford. Nan worked closely with me on the repair issues and we got the reverse mortgage approved with the repair money ‘set aside’ in an escrow account. I will now be able to have the work done in the spring and paid for by the proceeds from the reverse mortgage. I could not have accomplished this without her help and the reverse mortgage!
Gerald, Fairless Hills, PA