Your Loan Officer

---

There are many things that both your parents and your family should understand before deciding if a Reverse Mortgage is the best decision for everyone.

Sometimes the words “Reverse Mortgage” can be scary to people. It is our goal to educate, inform, and answer any and all questions you may have to help you better understand what these words actually entail. By doing so, we’ll make sure that your parents not only understand what will happen in the event that they pass away unexpectedly, but they’ll be able to see what their options are, what a Reverse Mortgage would look like in their lives specifically, and are agreeable with the loan terms provided, all before making a decision!

An educated discussion in terms of how Reverse Mortgage might benefit your parents is an important part of the process.

If you find yourself with additional questions regarding what your family should know about the Reverse Mortgage product, please contact us by filling out our contact form or calling us, and we will send you more information on PRMG’s Reverse Mortgage product.

The amount of equity available with a Reverse Mortgage is based on the age of the youngest borrower, the interest rate, lending limit and the property’s value. How much of that equity that is available as cash to your parents will depend on their unique situation. Contact a PRMG Reverse Mortgage specialist today to go over your parent’s unique situation and get important information to help your family make an educated decision on if a Reverse Mortgage is right for you. 

If one of your parents passes, eligible non-borrowing spouses can continue living in the home and accessing benefits as long as they meet their specific loan’s obligations, such as property maintenance, taxes or related expenses. Reverse mortgages only become due once both borrower(s) are no longer living in the home. If your parents leave their house to you as an inheritance, you’ll have multiple options available to you in terms of how the loan will be paid back, and choosing an option that is in line with your plans for the house at that time.

In most cases, a borrower’s estate allows the home to be sold in order to repay the lender. In some cases, the family chooses to pay off the loan in order to prevent selling the house. What’s important to know is that you have the flexibility and time to make a decision as you see fit!

When it comes to Reverse Mortgage, the offerings of old have evolved toward what’s provided anew via the Home Equity Conversion Mortgage—also known as HECM.  Rare is the case to have perfected, a model that’s been fully structured and operating out of in its initial phases. The Reverse program underwent careful sowing to see realized a fully grown, working fruition.

A look back to the first reverse transaction:  

In 1961, reveals evident the program’s survival through the test of time.1 The original vision for a better Reverse is what continually led its authors back to their drawing boards. And for decades, much effort went into the production of a uniquely great lending model that would allow for a work-in-progress malleability.

An unfortunate reality presented itself through the disappointments of past borrowers and their families. Detrimental outcomes, resulting from poor regulation, left a sticky reputational residue that was difficult to shake.  In theory, the Reverse had proposed a solid, viable retirement option; in reality, it under delivered a lifespan practicality. The post-Reverse, ‘non-recourse’ HECM, has stricken from the record a grandfathered fear: ‘that by outliving one’s predetermined expectancy, eventual home loss would ensue.’

The HECM is not solely a desperate last means to some needed ends, nor a ‘second hand’ approach to a secured retirement. However, the protections and oversight imposed through 2017’s regulation overhaul, created for need-based and savvy borrowers alike, a security to explore the HECM’s reformed offerings and advantages. What’s now obtainable is a custom-friendly retirement option that’s increasingly accommodating elders of all circumstances.

Many would be surprised to discover that there isn’t a uniformed nor characterized ideal when it comes to the HECM borrower demographic. The HECM’s advantage benefit applies to a range of borrowers on several fronts. The old narrative pegged the HECM as merely a needs-based, last resort loan—at best, this only attributed to the program a half-truth of justice.

While the HECM and its products certainly offer financial relief potential to many struggling seniors, the flip side of the same coin proposes to borrowers a financial planning tool. HECM candidates at large can choose a tailored program based upon their individual needs, desires and financial positioning.

• Seniors aged 62 or over.
• Seniors on a fixed income looking to supplement income gaps.
• Affluent and/ or financially savvy seniors looking to maximize their resource(s) benefit.
• Seniors seeking to Age in Place while enjoying a ‘No Mortgage Payment’ Living Flexibility.
• Seniors Interested in a ‘Line of Credit’ (LOC) Emergency Cash Access Back-Up Plan.
• Seniors desiring a ‘Right Size’ move adjustment into a new home..

• HECM Loan/ Line of Credit — Fixed and Variable Rate Options
• HECM for Purchase
• HECM Refinance

The new HECM reality is gradually paving the way toward greater consumer awareness and interest.  And it’ll be only a matter of time before retirees begin to believe in the value of mortgage return, where they’re able, with confidence, to convert their largest assets into income. *