Enjoy Your Life With A Reverse Mortgage

Everyone’s needs are unique, but no matter what they are we all want to take pleasure in life and have peace of mind.

For most seniors, often this means having enough money to cover expenses from meeting their mortgage payments to making their retirement years more comfortable and enjoyable.

Many seniors looking for ways to supplement fixed incomes and cope with daily living expenses are increasingly finding the answer in their homes –It’s called a Reverse Mortgage.

Reverse mortgages are loans designed for seniors 62 years or older that enable them to access the equity they’ve earned and turn it into tax free income. The wealth in their homes has helped seniors live the lives they deserve – from being able to remain in their homes, fund healthcare and prescription drugs, pay for home repairs and renovations to traveling, paying for their grandchildren’s education, purchasing a second home, or simply having the peace of mind of having access to extra cash when needed.

Best of all, with a reverse mortgage, seniors are able to stay in their homes for as long as they wish without having to sell their home or take on a new monthly mortgage payment. Seniors will never under any circumstances resulting from a reverse mortgage, be forced to leave their homes providing they make their real estate property tax and insurance payments and keep the home in acceptable condition.

Also, unlike other retirement tools or conventional loans, there are no income or credit qualifications with a reverse mortgage. Borrowers will make no monthly mortgage payments on a reverse mortgage throughout the life of the loan. The loan becomes repayable when the last borrower on title sells the home or permanently moves out. In addition, the repayment amount will never exceed the fair market value of he home.

Answers to Common Questions About Reverse Mortgages:

Am I Eligible for a reverse mortgage?

To qualify for a reverse mortgage, you must:

1  -    Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if their names appear on the title to the home.

2 -    Be a homeowner with equity in your home. You may qualify even if you have an outstanding balance on your existing mortgage.

3 -    1-4 family homes and qualified condominiums, townhouses, and manufactured homes are eligible.

4 -    All Island Mortgage also has a reverse mortgage program for second homes.

How Much Money Can I get?

This depends on a few factors, including your age, the value of your home, the amount of built-up equity, and interest rates at the time of origination.

You can contact one of the reverse mortgage specialist at All Island Mortgage & Funding Corp.and ask for an exact calculation of the amunt of money the bank is willing to lend you. We would just need your address, date of birth of all persons on title, and the approximate value of your home. We d not need your Social Security #. You can contact us at 888-660-3033 or write your info on the “contact us” link on the home page. or you can e-mail your request at aimfc@aol.com. All information is kept strictly confidential.

What Are My Payment Options:

You decide how to receive the money generated by a reverse mortgage. Your payment options are:

o       An upfront lump sum payment.

o       A line of credit that will be accessible for life.

o       Fixed monthly payments for as long as you remain in your home. Or a fixed monthly payment for a specific number of years. Or if you choose,

o       A combination of monthly income and a line of credit.

How Much Does A Reverse Mortgage Cost?

Many of the same cost associated with a regular mortgage apply to reverse mortgages. You will be charged an origination fee, a mortgage insurance fee premium (for FHA reverse mortgages), an appraisal fee, and certain other standard closing cost. In most cases these fees and cost are capped and may be financed as part of the reverse mortgage, so that you incur little out-of-pocket expense.

Am I required To Receive Counseling Before I Get a Reverse Mortgage?

Yes. Counseling is required for all reverse mortgages. The counselor’s job is to make sure you are informed about reverse mortgages. An All Island Mortgage specialist will arrange a counselor to contact you. All the counseling is performed by phone, and all counselors are HUD and FHA approved.

Are Reverse Mortgage Proceeds Taxable Income, and Can They Affect My Social Security or Government Benefits?

Funds from a reverse mortgage are tax-free; it’s your money, not additional income. A reverse mortgage does not affect regular Social Security or Medicare benefits. However, if you receive a lump sum payment from a reverse mortgage, any amount retained the month after you get it would count as a resource and could affect Medicaid eligibility. We recommend Medicaid recipients to take the line of credit.

Who Owns Title To My Home While My Reverse Mortgage Is Outstanding – the Bank or Me?

You retain title to your home, ALWAYS, the title to the property never changes. You have full control.

Am I Required To Pay Anything During The Course Of The Reverse Mortgage Loan?

No. The flow of payments is reversed during the term of the reverse mortgage – the lender pays you. However, you are responsible for keeping up payments on your homeowner’s insurance and property taxes, and to maintain the condition of your home.

Are There Any Limits On How I Can Use The Funds From A Reverse Mortgage?

No. Borrowers have used reverse mortgages for a variety of purposes, such as paying health care expenses, supplementing retirement income, financing home repairs or modifications, or visiting friends and family. Some have used a reverse mortgage to purchase recreational vehicles, start a small business, and travel. The only limit on how you use a reverse mortgage is your imagination.

How Much Will Be Owed When My Reverse Mortgage Comes Due?

The amount owed to the lender typically includes the amount borrowed to date, the amount of accrued interest, accrued mortgage insurance premiums (FHA), servicing fees, and any other cost and fees financed as part of the loan amount. In no event will the repayment amount exceed the value of the home at the time the loan comes due. There is never a pre-payment penalty with reverse mortgages.

What Happens If I Move Out Of My House After I Get A Reverse Mortgage?

You may live outside your home for up to 12 consecutive months before the loan must be repaid. In general, a reverse mortgage comes due when the borrower dies, permanently moves out, or sells the home.

What Happens When My House Gets Passed To My Heirs?

Once your home is passed to your heirs, the reverse mortgage comes due. Your heirs may either pay the balance due on the reverse mortgage and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage. If they sell the home, they get to keep any excess sales proceeds.

How Can I Start The Process?

All Island Mortgage & Funding Corporation will make the entire process of a reverse mortgage extremely smooth. We are members of the National Reverse Mortgage Lenders Association and we adhere to a strict code of ethics. We are eager to answer any and all questions you may have. We also would be more than happy to come sit with you and your family at your convenience in the comfort of your home to discuss the details of obtaining a reverse mortgage. If you would like a brochure and a free dvd mailed to you just e-mail us at aimfc@aol.com and request our 28 page reverse mortgage catalog along with the DVD. Or call us at 888-660-3033.

We are looking forward to helping you and enhancing your life.

Thank You & God Bless,

                                             Bob Schiano, Pres.