Reverse Mortgage WebClass

This class is a recording of Cameron and another nationally recognized home finance expert, Carl White, explaining the reverse mortgage product and discussing it's strengths and weaknesses.  This class is a 149.99 VALUE, and is FREE to you as a vistor to this website!

Please fill out the form below to gain access to this information-packed class conducted by trusted experts in the reverse mortgage industry.

Basics of a Reverse Mortgage

What it is: A reverse mortgage is a loan that is taken out by a homeowner (who must be 62 years of age or older) based on the equity value in his or her home. It is essentially an advance to the homeowner on the future sale value of the property.

How it works: A maximum loan amount is calculated simply by looking at the borrower's age and home value along with prevailing interest rates. The borrower can access as much or as little of the loan proceeds as he or she may want, at any time. The borrower can take the proceeds as a line of credit, or in monthly installments or as a lump sum.

What about repayment? The loan only comes due when the last remaining borrower moves out of the home permanently or when the home is sold. At that point, the loan comes due. The payment amount can NEVER be worth more than the home itself is worth at sale. Since there are no payments until this point, the the borrower always has possession of title and of the home.

Types of Reverse Mortgages:  There are an ever-increasing variety of reverse mortgage products out there.  The one that everyone has heard about and is insured by the federal government is called the Home Equity Conversion Mortgage (HECM for short).  Over 90% of all reverse mortgages are based on this Federal Housing Administration (FHA) product.  Beyond that, Fannie Mae has created a product called the HomeKeeper.  Also, many large lenders like Financial Freedom, Wells Fargo, Seattle Mortgage and others have created JUMBO reverse mortgage products from high value homes that have home values larger than the FHA maximum.

These are just the basics. Reverse mortgages are a powerful tool available to seniors. The proceeds come tax free and do not affect medicare or social security payments. These proceeds can be used for most anything the homeower desires, from paying off their current mortgage to travel to gifts for children and grandchildren. It is also an excellent tool to preserve and manage wealth.

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