for You and Your Family

Transcription

1 (800) AN INFORMATIONAL GUIDE for You and Your Family ENJOY your best YEARS

2 1... WHAT S INSIDE WHAT IS A REVERSE MORTGAGE & HOW DOES IT WORK? HOW IS IT USED? REVERSE MORTGAGE PROCESS PROCESS DETAILS LOAN OPTIONS A FAMILY DECISION FREQUENTLY ASKED QUESTIONS WHY ONE REVERSE MORTGAGE? MEET A FEW SPECIALISTS MEET A FEW CLIENTS FAMILY OF COMPANIES Copyright 2017 One Reverse Mortgage, LLC. All Rights Reserved.

3 2... WHAT IS A REVERSE MORTGAGE & HOW DOES IT WORK? What is it? A reverse mortgage, known as a conversion mortgage, lets you convert the equity in your home into available funds to use as you wish. It is similar to a traditional mortgage in the following ways: You borrow money based on the equity in your home. You remain the owner of your home. But do not forget, like all homeownership, you are still responsible for paying property taxes, homeowners insurance and maintaining the home. You can sell the home or pay the loan off with no prepayment penalty. In addition, the conversion mortgage comes with a few unique features: You can make payments if you like; however, no monthly mortgage payments are required.** The amount of funds available to you in the line of credit option may increase over time. You also have the ability to receive money as a lump sum or monthly payments. You have protection against declining home values because it is a non-recourse loan.* It is a government insured loan program. Who is eligible? To be eligible, you must be a homeowner who is at least 62 years old. You can own your home free and clear or still have an existing mortgage on the home. You must also have enough equity in your home to qualify. * Non-recourse means that if the loan is not paid when due, and the sale of the home does not cover the balance, then the lender has no recourse against the borrower or their heirs. **Homeowners remain responsible for property taxes, homeowners insurance, and home maintenance. How does a conversion mortgage work? A conversion mortgage works similar to a traditional mortgage with just a few differences. The amount you qualify for is based on the equity in your home, your age, and current interest rates. If you have a current mortgage on your home, your conversion mortgage will pay that loan off. You are not required to make a monthly payment on a conversion mortgage. If you decide not to make a monthly mortgage payment, the interest for that month gets added to the balance of the loan.** The loan comes due when the last borrower vacates the home or passes away The loan is then repaid by selling the house or the heirs purchasing the home. The loan also comes due if you do not pay your property taxes, insurance, or maintain the property. How is the government involved? The government does not actually offer the conversion mortgage, but it regulates mortgage lenders and sets reverse mortgage requirements. The Department of Housing and Urban Development (HUD) protects clients by setting standards that lenders must follow. It also requires conversion mortgage counseling to ensure clients know all of their options before getting the loan. The Federal Housing Administration (FHA) insures the conversion mortgage. If your home appraises for less than what you owe at the time you leave the home, you only owe the appraised value. The FHA pays the difference.

4 ... HOW IS IT USED? 3 way1 Plan for the Future Conversion mortgages can be useful in retirement and financial planning. With a conversion mortgage, you can: Supplement your income to allow other assets, investments or benefits more time to increase in value. Allow the funds available in your line of credit to increase in value by not using the money right away. Take advantage of the line of credit product, which some financial advisors recommend. It allows your available funds to increase annually even if home values decline. This gives you access to even more money later. It allows you to prepare for unexpected expenses in the future. way 2 Fulfill an Immediate Need Conversion mortgages can help you enjoy retirement in the home you love, and increase your financial options. If you have immediate needs, a conversion mortgage can help you: Eliminate your monthly mortgage payments** to increase your monthly cash flow. Pay healthcare expenses and other debts. Make home improvements. Purchase a home with no monthly mortgage payments.** Consolidate debt. Do more in your retirement. ENJOY your best YEARS

5 4... REVERSE MORTGAGE PROCESS step Educational Session This first step will help you decide whether a conversion mortgage is right for you. Your licensed specialist will educate you on the loan and your product options. During this step, you will: Call to talk about your situation, get your questions answered and determine if you qualify. Attend an educational counseling session with a HUD-approved counselor. This is required by HUD. step 1 3 Closing and Disbursement Application and Review During the application and review, you ll have the opportunity to learn more about the value of your home and your finances. During this time, you will: Receive your application and review it with your licensed specialist. Undergo a financial review to ensure you can uphold the financial responsibilities of the loan. Have your home appraised by an independent FHA-approved appraiser. Have all of your application documents reviewed and finalized. This may be everyone s favorite step - the closing of your loan and disbursement of your funds! For this step, you will: Sign the final documents and close your loan in the comfort of your home. Receive your funds after the three day rescission period. Receive your funds as a lump sum or monthly payment. Or, draw money when you need it from a line of credit. Start enjoying your conversion mortgage! step 2

6 ... PROCESS DETAILS 5 Counseling Information During your counseling session, a HUD-approved, third-party counselor will review your financial situation and ensure you understand how the loan program works. Counseling sessions usually last about an hour and, in most states, can be done over the phone. You must complete counseling before you can apply for a conversion mortgage. HUD-Approved Counselors Below are just a few of the HUD-approved national counselors. You can find these and others by visiting hud.gov. National Foundation for Credit Counseling (866) ClearPoint Financial Solutions (877) National Council on Aging (800) Greenpath (888) Money Management International (877) Neighborhood Reinvestment Corporation (888) Financial Assessment A financial assessment was put in place by HUD to ensure people are in the best position to meet the obligations that come with a reverse mortgage. We will review your income, assets, and credit history (credit scores are still not a requirement). Based on this review, we may set aside an estimated amount of funds to pay your property taxes and homeowners insurance, similar to an escrow account. Appraisal Information An appraisal determines the market value of your home. Since the amount of equity in your home (along with your age) determines how much money you qualify for, appraisals are a necessary part of closing your loan. To get an accurate market value, a licensed FHA appraiser in your area will perform an inspection in your home and compare prices of similar homes in your area. What happens after closing and disbursement? While you enjoy your new conversion mortgage, you are still obligated to pay your property taxes, homeowners insurance, and home maintenance costs. If you fail to do so, the loan may come due. Aside from this, the loan only comes due when the last borrower vacates the home or passes away. Your heirs will never assume the debt, but have the option to keep the home by paying off the loan balance or 95% of the appraised value of the home, whichever is less. They can also sign the deed over to the lender and not be responsible for payment.

7 6... LOAN OPTIONS At One Reverse Mortgage, we offer government-insured reverse mortgage (HECM) products, and we have three loan options to best help you with your retirement goals. While each option has a variety of different features, find out which option is best for you. Adjustable Refinance You can receive your funds in a lump sum, monthly payments, a line of credit, or a combination of these three. Line of Credit The financial flexibility gained with the line of credit is one of the many reasons some financial advisors recommend this type of conversion mortgage. The line of credit can be utilized in the following ways: You can take a lump sum amount at closing or receive monthly disbursements so you can delay the use of other retirement assets and benefits* - giving them more time to grow. You can also start the line of credit and not take any funds. By doing this, your available money will increase over time, which would give you even more available funds later. The line of credit gives you the flexibility of a traditional HELOC (Home Equity Line of Credit) without the monthly mortgage payment requirement.** Fixed Refinance The fixed rate loan pays one lump sum amount and locks the interest rate in place at the time of closing. Many clients use the fixed option to: Pay off such debts as mortgage balances, property liens, and medical bills. Make home improvements or make a big purchase. Keep the same interest rate from the time the loan closes until the time the loan comes due. Purchase This option allows seniors to buy a home without having to make a monthly mortgage payment** as long as they live there. This loan requires a large down payment. The down payment amount is determined by age, purchase price, and current interest rates. Clients use this product to: Move closer to friends and family or to warmer climates. Downsize or move into a home that better suits their physical needs. DOLLARS in thousands Line of Credit Growth Chart Home Value Line of Credit AGE of borrower Each loan option is insured by the Federal Housing Administration. Our licensed specialists can customize the loan to each client s individual wants and needs. If you would like to learn more about purchasing a home with a conversion mortgage, call (800) today to request a guide that gives more detail about this product. *Please consult your financial advisor. **Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home. Hypothetical Line of Credit scenario assumes no withdrawals and an initial 1-Year LIBOR index from Future interest rate and home value assumptions derived from Moody s Analytics. The index can change at any time. The unused line of credit funds will compound at the current market growth rate throughout the life of the loan. Results may vary.

8 Including Loved Ones... A FAMILY DECISION Whether you are interested in getting a conversion mortgage for yourself or you are looking for information for a loved one, choosing to get a conversion mortgage is a big decision. We understand if you want to include others in your decision. At One Reverse Mortgage, we encourage loved ones to be involved. Our licensed specialists can include others in phone conversations with you. Everyone is able to learn about the conversion mortgage products, ask questions, and understand the process. We even offer a few tips for involving others in your decision: Prepare for the conversation by first educating yourself on the qualifications, process, and how a conversion mortgage could benefit you. Share educational materials like this guide and DVD. Or, have them visit onereversemortgage.com. Be open to speak about your finances and why you believe a conversion mortgage could help you with your finances Invite your family members to participate in a phone call with your One Reverse Mortgage specialist. Be prepared to address any concerns by knowing the facts versus the myths. Addressing a Common Concern Many heirs are concerned with what will happen when the loan comes due. If the loan comes due because you pass away, heirs have a number of options. If you pass away and your heirs wish to keep the home, they must pay the lesser of the loan balance or 95% of the appraised value of the home. If they wish to sell the home, the proceeds of the sale will first pay off the conversion mortgage. Any money left over is theirs to keep. It may also be good to let them know that if they want nothing to do with the home after you pass away, they simply sign the deed over to the lender and will not be responsible for repayment.

9 8... FREQUENTLY ASKED QUESTIONS Q1 Can I get a conversion mortgage if I already have a mortgage? A You can get a conversion mortgage if you already have a mortgage. In fact, many people get a conversion mortgage to pay off their existing mortgage! While you are still responsible for paying property taxes, homeowners insurance, and home maintenance costs, you are not required to make a monthly mortgage payment with a conversion mortgage.* Q2 Will my children be left paying for the loan if I pass away? A Your heirs have a few options. They can sell the home to pay off the loan and keep any remaining money from the sale or they can keep the home. If they decide to keep the home, they can pay the lesser of the loan balance or 95% of the appraised value of the home. Q3 Will the lender own my home? A You still own your home.* Just like any other mortgage, your name remains on the title. Q4 Do I need a good credit score for a conversion mortgage? A To qualify for a conversion mortgage, you need to be at least 62 and have enough equity in your home. There is no credit score requirement to get a conversion mortgage. Throughout the loan process, we review your credit history to determine if there are additional requirements. Q5 Are there limits on how I can spend the money from my conversion mortgage? A It s your money to use however you wish! While some people use it to pay off medical bills, others may use it to plan for retirement or save for a rainy day. Q6 Why are you checking my credit history? A A requirement for someone getting a conversion mortgage is to go through a financial assessment. This process helps us determine if you are willing and able to manage your debt and meet your financial obligations such as paying property taxes, homeowners insurance, and home maintenance costs. The purpose of this requirement is to set you up to succeed with your conversion mortgage. Q7 What if my home sells for less than what I owe on the loan? A A conversion mortgage is a non-recourse loan. That means you will not owe more than your home is worth. If your home sells for less than what is owed on the loan, FHA insurance pays the difference not you and not your heirs. * Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home.

10 ... WHY ONE REVERSE MORTGAGE? 9 Our Mission: At One Reverse Mortgage, our licensed specialists are here to answer questions and help with your decision. One of the great advantages of working with us is that your licensed specialist is with you throughout the entire process. We do this by living our core philosophies, such as: Every Client. Every Time. No Exceptions. No Excuses; Responding with a Sense of Urgency; and Always Do the Right Thing. One Reverse Mortgage Is one of the largest reverse mortgage companies in the nation.* Is a Quicken Loans company, which means we know the mortgage business. Is licensed in all 50 states (currently operating in 47). Has a team of close to 100 licensed mortgage specialists that are highly trained and experienced to build a mortgage solution for seniors. Can assist people 24 hours a day, 7 days a week. Provides the highest level of client service. Our 98% client satisfaction rating is proof.** Credentials We are approved by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD). We have an A+ rating with the Better Business Bureau. We are a proud member of The National Reverse Mortgage Lenders Association (NRMLA). BBB Where You May Have Seen Us *U.S. Department of Housing and Urban Development Fiscal Year 2016 HECM Endorsement Reports (10/1/16), based on active lenders. **Satisfaction rating is based on reviews from

11 10... MEET A FEW specialists Here at One Reverse Mortgage, we care deeply about people and it shows in the high level attention our clients receive. We have close to 100 licensed specialists ready to work with you and they focus exclusively on conversion mortgages. Conversion mortgages are all we do! Our licensed specialists are with you throughout the entire process of getting your conversion mortgage and will answer all your questions along the way. AARON SHAW Since 2009 Helping and serving others is a passion of mine. I love giving our clients the freedom and flexibility to enjoy retirement on THEIR terms. VENUS GREEN Since 2004 I connect with my clients to understand what their goals are with their finances. It is so rewarding for me to be able to empower my clients financially with the reverse mortgage program. BRUCE OLSEN Since 2005 Years ago, I served our country in the Marine Corps. Today, I have the privilege of serving our clients here at One Reverse. I m grateful that I get to make a positive impact, not just today, but for the rest of their lives. JERRY JONES Since 2010 I understand that you have worked hard your whole life and you shouldn t have to struggle now. Allow me to show you how a reverse mortgage can make the most of your retirement. TODD PIECHOWSKI Since 2014 I am fortunate and grateful for the opportunity to work with my clients. The difference I am able to make in my clients financial well-being is very rewarding. KATE BRONSON Since 2010 I believe in treating each of my clients like family. I take the time to get to know my clients on a personal level as well as understand their financial situation to help align the program with their goals.

12 ... MEET A FEW clients 11 We Have Many Happy Clients Every client has their own unique story and each has their own reason for getting a conversion mortgage. These are just a few of our clients and their stories.* To see what other One Reverse Mortgage clients have to say, visit onereversemortgage.com/reviews. MIKE B. Age: 63 Georgia... I was able to retire 12 years earlier! Mike turned 63 and was still working. He reviewed his finances and did some math. With his current amount of debt and a 30-year mortgage, he didn t think he would be able to retire until he turned 75, which is when his mortgage would be paid off. He remembered a television commercial that said take control of your retirement today. This made him call One Reverse Mortgage to get the details. When he found out he was approved for his loan, he gave notice at his job and retired immediately. He continues to thank One Reverse Mortgage for changing his life and allowing him to retire earlier than he planned. JOAN Age: 72 New Jersey JAQUI Age: 69 New Mexico At 72 and retired, Joan wanted to be closer to her friends, so she moved into a new house. After some time, she realized she couldn t handle the payments. It quickly became a problem that put her in what she describes as a dire situation. She had seen many advertisements about a reverse mortgage and chose to call One Reverse Mortgage. It was most important for her to know the house remained in her name. She was happy to find out it did! Joan said the reverse mortgage eliminated my mortgage payment** and gave me the ability to meet my expenses at the end of the month with no anxiety. One Reverse Mortgage literally changed my life and I am so thankful.... One Reverse Mortgage literally changed my life! the person I worked with at One Reverse was AMAZING! Jaqui and her husband were dealing with some medical issues that resulted in unexpected medical expenses. They had to explore all of their financial options. Their goal was to eliminate some of their monthly debts and keep their home.** Jaqui saw a One Reverse Mortgage commercial and it piqued her interest. She called to get some information and didn t initially think they would move forward with a reverse mortgage. Jaqui said, As I went along, my confidence built and that was primarily due to the person I worked with at One Reverse amazing! Once we were approved, we had instant relief. The reverse mortgage basically saved our lives we would not be in our home today without it. *Individual circumstances may vary. Standard compensation and expenses paid. **Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home.

13 12... FAMILY OF COMPANIES Welcome to the Family! One Reverse Mortgage is one of the largest reverse mortgage lenders in the country.* We are also proud members of the larger Quicken Loans family of companies. We re thrilled to welcome you to the family, where you ll benefit by association! As a valued part of our family, you get more than just great home finance options we also provide you access to an array of products and services to support your retirement lifestyle. Quicken Loans makes it easy and fast to refinance or buy a home.** quickenloans.com The largest independent provider of title insurance, property valuations and settlement services in the nation. titlesource.com The preferred real estate partner of Quicken Loans and your go-to for the best real estate agents across the country. inhouserealty.com Pioneer of wireless home security and one of the fastest growing companies in the industry. protectamerica.com Provides a unique sense of security for older Americans, with a medical alarm. connectamerica.com Officially licensed in every major sport and entertainment property, Fathead offers life-size, high-def wall decals of your favorite athletes, entertainers and characters, along with custom graphics for your home or business. fathead.com *U.S. Department of Housing and Urban Development Fiscal Year 2016 HECM Endorsement Reports (10/1/16), based on active lenders. **Quicken Loans is an Equal Housing Lender. Licensed in all 50 states. NMLS #3030

14 (800) Eastgate Mall, Suite 320 San Diego, CA Woodward Ave Detroit, MI These advertisements and materials are not provided nor approved by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA) One Reverse Mortgage is a licensed mortgage lender. The following states require disclosure of licensing information. (If your state is not listed, it doesn t require a specific license disclosure or we are not currently licensed in that state.) AZ: One Reverse Mortgage, LLC, North Pima, Suite 200, Scottsdale, AZ, Mortgage Banker License # ; AR: One Reverse Mortgage, LLC, 4445 Eastgate Mall, Ste 320, San Diego, CA, Mortgage Lender/Mortgage Broker License # 42785; CA: Licensed by the Department of Corporations under California Finance Lenders Law License # and Residential Mortgage Lending Act License # ; GA: Residential Mortgage Licensee (#23385) 4445 Eastgate Mall, Ste 320, San Diego, CA; IL: Residential Mortgage Licensee #MB Department of Financial and Professional Regulation, 122 S. Michigan Ave 19th Floor, Chicago, IL (312) , 4445 Eastgate Mall, Ste 320, San Diego, CA; ME: One Reverse Mortgage, LLC, Supervised Lender License #SLM10965; KS: Licensed Mortgage Company, One Reverse Mortgage, MC ; MA: One Reverse Mortgage, LLC, Mortgage Lender License #MC 2052; NV: One Reverse Mortgage, LLC 8275 South Eastern Avenue, Suite 200, Las Vegas, NV 89123, License #1984; NH: Licensed by the New Hampshire Banking Department #10940-MB; NJ: Licensed Mortgage Banker NJ Department of Banking, first (and/or second) mortgages only; NY: Licensed Mortgage Banker, N.Y.S Banking Department, License #107328; OH: One Reverse Mortgage, MB ; Oregon License #ML-3511; PA: Licensed by the Department of Banking License # 21860; RI: Rhode Island Licensed Lender; TX: One Reverse Mortgage, LLC 4445 Eastgate Mall, Ste 320, San Diego, CA; VA: One Reverse Mortgage, LLC., NMLS ID #2052 ( WA: Consumer Loan Company License CL Equal Housing Lender, One Reverse Mortgage Nationwide Mortgage Licensing System Number 2052 One Reverse Mortgage LLC, 4445 Eastgate Mall, Ste 320, San Diego, CA Copyright 2017 One Reverse Mortgage, LLC. All Rights Reserved.