Hi welcome to my reverse mortgage expose videos!
in these videos we will get into some of pitfalls to avoid
and some other bad things about reverse mortgages that you must be aware of.
So let's start out with something they never tell you in the TV commercials.
A reverse mortgage is similar to a regular mortgage except instead of
making payments on the loan the interest is added on to the end of the lone.
That's important to understand. So reverse mortgages give you money NOW, while allowing you to postpone payment of the interest to later, you can use all of your income for living expenses
and none for interest.
They're designed to help you use the equity in your home to help you stay in your home for a longer period of time, where you are comfortable, and allows you the financial ability to stay independent.
Pay for Health at home where you may need it, and postponed the need of uproot
yourself from your home in order to get the care you need.
So aside from your loan balance going up, doesn't sound too bad.
So let me get this straight, each month the amount you owe goes up.
Horrible right? So you end up owing more and more and more until they come in and
take your home away, right? WRONG! Owing too much is never a trigger for repayment of the loan, in fact you could live to be two hundred years old never be asked to pay a dime of interest.
As long as you live in the home, pay your taxes and insurance, maintain your home.
and there's one more than all talk about it next video.
So those are your obligations and as long as you do those things the lenders under contract to not require you to pay any interest as long as you live in the home.
One of the best things about reverse mortgages is that you remain the legal owner. You can sell your house or refinance it as long as you pay off the reverse mortgage.
This can be challenging though because the longer you have the reverse mortgage
the higher the balance gets. So you should not look at a reverse mortgage
as a short term solution. You should use as a way to tap into your equity
without having to make mortgage payments. Way to live off your equity
without having to sell your home. and reverse mortgages don't require that you
promise to pay the money back. You're not personally guaranteed the repayment of the loan. I bet you're thinking why would lenders do this? Why would they lend money and not
ask for payments?
Well actually they wouldn't! Not unless our federal government ensured that they
wouldn't loose money. Our government wants to help seniors many of whom are more vunerable
financially. and so they ensure lenders against loss so they can continue to offer
the program. Otherwise reverse mortgages probably wouldn't exist.
So you can thank our federal government for your reverse mortgage!
It's Great to be an American.
Butt what if you die right away after getting a reverse mortgage
think take a letter to the right wrong you still have a lot of the equity in your home
of money that you haven't spent yet, and the lenders only entitled to the
interest was built up on the long think you got the loan. Your kids would inherit the home.
Either sell it re finances than pay off the balance owed.
They would keep the remaining equity, just like they would if you didn't have a reverse mortgage
But What if you live forever? Eventually you'll spend all the money
and if you're actually doesn't increase money you could end up owing more than
your house is worth.
What Then? Well your kids would inherit the home as usual.
if they determine that there is no equity in the home
they can simply walk away with no liability. since you don't sign a personal guarantee, they cannot come after you, nor your assets nor your kids to satisfy the loan.
Only the house can satisfy the debt and if it doesn't, then FHA steps in and pays the lender the difference.
So after your equity is gone, everyday you live in that house is like a free pass. Even though you owe more than their house is worth you don't have to pay it
Government Picks up the Tab.
I guess that's not so bad after all.
So here's how it works: if you're over 62, lenders will lend you a percentage of your home's value
based on your age. I can tell you how much that would be with a simple phone call.
In our next video we'll talk about one other way you can lose your home to a reverse mortgage, and I'll also talk about the Costs involved.
Stand Up! take control, you're in charge!
Decide right now to stop suffering.
A reverse mortgage from Legend Reverse Mortgage may be the answer to your
Contact Mark Hammond, the financial planners to Choice, today!
I'm not just some person on the phone five states away, that you'll never meet, I
actually live in Utah. We've been in business for twenty years
you have a good reputation in the community!
Call Mark Hammond, Your Utah Reverse Mortgage specialist. 801-277-5100. Based in Salt Lake City, Utah.