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Florida Reverse Mortgage
Florida Mortgage Reverse
Fl Reverse Mortgage
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Reverse Mortgage Payment Calculator
What would a Reverse mortgage mean to you?
All reverse mortgages—whether the government-insured Home Equity Conversion Mortgage or a
conventional product—share a set of common characteristics, which include the following:
- You must be at least 62 years old and own a home. (Note: There are some conventional
- reverse mortgages that have differing age requirements.)
- You ALWAYS retain title (ownership) to the home. The lender never, at any point, owns
- the home, even after you (or last surviving spouse) permanently vacate the property.
- You must still pay property taxes and insurance, and keep the home well maintained.
- If you are unable to pay your property taxes and insurance, then a special set-aside
- from your reverse mortgage can be created.
- Repayment of the loan occurs when you (or last surviving spouse) permanently vacate
- the home. You or your heirs (estate) then must facilitate the pay back of the loan using
- either private funds or selling the home. After the loan is repaid, all leftover proceeds
- from the sale of the home go to you or the estate.
- The amount of funds you are eligible to receive depends on your age (or age of the
- youngest borrower in the case of couples), the value of the home, the interest rate
- and the upfront costs. With the HECM product, the county lending limit is a factor.
- With all products, the older you are, the more proceeds you are eligible to receive.
- Loan fees can be financed, or paid out of the available loan proceeds. This means you
- incur very little out-of-pocket expense to get a reverse mortgage. In most cases, you
- only have to pay for the appraisal, which costs roughly $350 depending on your market.
- The loan balance (amount owed) grows each time you access funds from your line of
- credit or receive a monthly payment. In addition, the lender is charging you interest on
- the outstanding loan balance as well as a monthly servicing fee.
- Repayment of the loan is not required until you (or the last surviving spouse) permanently
- leave the home as a primary residence. For the HECM program, you can live up to 12
- consecutive months outside the home, but this may vary for other products.
- All reverse mortgages have a "non-recourse" feature, which means that the total amount
- owed can never exceed the appraised value of the home. If the amount owed exceeds the
- home's appraised value, then the lender or the federal government (in the case of the
- HECM product) will absorb that loss..
Buy a Home with a reverse mortgage. - Never have a home payment again!
The NRMLA Guide to Aging in Place
NRMLA, in partnership with the National Council for Aging In Place, has created this booklet on design ideas, useful products and how to find them, and professionals who can help plan and implement home modifications.
Just the FAQs: Answers to Common Questions About Reverse Mortgages
This guide lists the most common questions asked by consumers about reverse mortgages—with the answers.
Using Reverse Mortgages for Health Care: A NRMLA Guide for Consumers
This guide helps explain how reverse mortgages can be used to help pay for your health care needs and preserve your financial security.Talk to One of our Approved Reverse Mortgage Consultants. NRMLA Approved Consultant
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Steps to Getting a Reverse Mortgage
1. Awareness
Homeowner learns about reverse mortgages from a news article, advertisement, word-of mouth, etc. 2. Upfront Education
Homeowner contacts a reverse mortgage lender or the National Reverse Mortgage Lenders Association to learn more about reverse mortgages.3. Counseling
Homeowner seeks counseling from a local HUD-approved counseling agency, or a national counseling agency, such as AARP (800-209-8085), National Foundation for Credit Counseling (866-698-6322), or Money Management International (877-908-2227). Counseling is required for all reverse mortgages and may be conducted face-to-face or by telephone. By law, a counselor must review (i) options, other than a reverse mortgage, that are available to the prospective borrower, including housing, social services, health and financial alternatives; (ii) other home equity conversion options that are or may become available to the prospective borrower, such as property tax deferral programs; (iii) the financial implications of entering into a reverse mortgage; and, (iv) the tax consequences affecting the prospective borrower’s eligibility under state or federal programs and the impact on the estate or his or her heirs.
4. Application/Disclosure
Homeowner fills out a loan application and selects a payment plan, whether fixed monthly payments, lump sum payment, line of credit, or a combination of these. Lender discloses to homeowner the estimated total cost of the loan, as required by the federal Truth in Lending Act. Homeowner provides lender with required information, including verification of Social Security number, copy of deed to home, information on any existing mortgage(s), and counseling certificate.
5. Processing
Lender orders an appraisal, which the homeowner pays for, to place a value on the home. The appraiser makes sure the physical condition of the property meets FHA guidelines. If any structural defects are found, the homeowner must hire a contractor to complete the repairs.6. Underwriting
After receiving all pertinent information and data, lender finalizes loan parameters with homeowner (i.e., determining payment option, frequency of loan interest rate adjustments) and submits loan package for final approval. It can take anywhere from 4-8 weeks (sometimes sooner, sometimes longer) to underwrite a loan package.
7. Closing
If the loan package is approved, closing (signing) of loan is scheduled. Interest rates are calculated. Closing papers and final figures are prepared. Closing costs are normally financed as part of the loan. Lender or title company has homeowner sign loan papers.
8. Disbursement
Homeowner has three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed. Homeowner accesses the funds in the form of the payment option selected. Any existing debt on the home is paid off. A new lien is placed on the home. The homeowner may use the loan proceeds for any purpose. The loan "servicer" manages the account and is responsible for disbursing monthly payments to the homeowner (if this option is chosen), advancing line of credit funds upon request, collecting any repayments on the line of credit, and sending periodic statements. 9. Repayment
Homeowner doesn’t make any monthly mortgage payments during the life of the loan. The loan is repaid when the homeowner ceases to occupy the home as a principal residence. The loan may be repaid by the homeowner or the heirs/estate, with or without a sale of the home. The repayment obligation can’t exceed the home’s value or sales price.
Talk to One of our Approved Reverse Mortgage Consultants. NRMLA Approved Consultant