Reverse Mortgage Basics

Don’t spend any more sleepless nights worrying about money. A safe, secure Reverse Mortgage may provide the peace of mind you need.What is a Reverse Mortgage?
A Reverse Mortgage is a safe secure and easy way for seniors to turn their home’s equity into the cash they need to meet any financial need.
Unlike traditional home equity loans, this product does not require repayment of any kind until the property is sold or the borrower permanently leaves their primary residence. The homeowner is responsible for taxes and home insurance, but there is no monthly mortgage payment obligation.

Who Qualifies?
Qualification is simple. Property owners must be at least 62 years old and occupy the property as their primary residence.

How Are the Loan Proceeds Paid?
A Reverse Mortgage borrower can select from the following choices.
• Lump Sum
• A monthly payment for life
• Payments for a specific period
• A Line of Credit
• A combination of these choices

How “Safe” is a Reverse Mortgage?
Reverse Mortgages are a very safe income option for senior homeowners.
Lenders are strictly regulated by the Federal Government, and must comply with the rigorous standards of industry associations.

Borrower Responsibilities
• Attend a Reverse Mortgage counseling session
• Maintain the property
• Continue to pay taxes and home insurance

Common Misconceptions
There are several misconceptions surrounding the Reverse Mortgage program.
“The lender can take my home”
Nothing can be further from the truth. A Reverse Mortgage borrower retains exclusive title to their home.
“I can be thrown out of my home”
This is untrue. A Reverse Mortgage borrower can stay in their home as long as they wish.
“What happens when I owe more than my home is worth?”
A reverse mortgage borrower is protected by federal mortgage insurance from owing more than the property is worth. This insurance will make up the difference to the lender when the property is sold.

How Can the Funds Be Used?
Reverse Mortgage borrowers may use the loan proceeds for whatever they wish/
• Payoff their current mortgage
• Payoff home equity loans
• Payoff credit cards
• Make home repairs or remodel
• Pay delinquent taxes
• Stop Foreclosure
• Downsize to a new home
• Travel
• Buy a new car

How Much Can I Borrow?
How much a borrower can benefit from a Reverse Mortgage depends upon the borrower’s age, interest rates and the current Value of their home. This is strictly regulated by the federal government to protect the borrower.

Eligible Property Types
• Single Family Owner-Occupied houses
• Condominiums
• Multi-Family Owner-Occupied Property
• Planned Unit Developments

The Process: Simple, Clear Cut
1. The first step is to dicuss your goals and needs with an experienced mortgage loan officer you can trust. You are encouraged to involve family members or professional advisors during the process.
2. When you and your loan officer decide that a Reverse Mortgage is right for you, the next step is an interview with a Federal Government approved Counseling Agency.
3. After the counseling is complete, the loan officer wil arrange for a property appraisal.
4. A brief application will be completed and submitted to the lender for approval.
5. Your loan will be processed and scheduled to close.
6. Sit back and enjoy the peace of mind a Reverse Mortgage will provide.

Testimonial
At first I was not sure about a Reverse Mortgage. Rick Cignoli and his team took the time to explain the program. Rick helped me identify how a Reverse Mortgage would help and how a Reverse Mortgage would help me live comfortably and financially secure in my own home. Robert R.

Reach out to Rick Cignoli @ 860.945.9284 to find out if a Reverse Mortgage is the right mortgage option for your family.