Reverse Mortgages反向抵押贷款.pptVIP

Reverse Mortgages Adam Nimmer Anders Erickson Russ Sperry Phoebe Fields reverse mortgage a non-recourse loan against home equity providing cash advances to a borrower and requiring no repayment until a future time Phoebe Fields Reverse Mortgage vs. “Forward” Mortgage Falling Debt, Rising Equity your debt decreased; and your home equity increased. Rising Debt, Falling Equity your debt increases; and your home equity decreases. Two Important Notes Exception to Falling Equity Your home value grows at a higher rate. Maximum Debt You can never owe more than what your home is worth at the time the loan is repaid. Phoebe Fields Who’s Eligible Individual at least 62 year of Age The home must be the principal residence Single family residence Some 2-4 unit owner-occupied Some condos, PUD, and manufactured homes Mobile homes and co-ops not eligible Phoebe Fields Lump Sum or Credit Line Loan Calculator Calculator: / Limits: /idapp/html/hicostlook.cfm Phoebe Fields 3 Major Types Single-purpose Federally insured Proprietary Single-Purpose Federally Insured Lump Sum: HECM vs. Proprietary Monthly Advances: HECM vs. Proprietary Proprietary 3 Forms of Payments Received Lump Sum Credit Line Annuity Phoebe Fields What do you pay? Application Fee - $300 appraisal, $60 credit check Origination Fee – limit of 2% Closing Costs - $2,000 Servicing Fee - $30 monthly Interest Rates Monthly and Annually Adjustable Interest Repayment All reverse mortgages become due and payable when the last surviving borrower dies, sells the home, or permanently moves out of the home. Fail to pay your property taxes Fail to maintain and repair your home Fail to keep your home insured Declaration of bankruptcy Summary reverse mortgage a non-recourse loan against home equity providing cash advances to a borrower and requiring no repayment until a future time 3 Types 3 Forms of Payments Repayment Eligibility Recommendations Phoebe Fields Single-purpose reverse mortgage