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Selections
A reverse mortgage could make all the difference in your well-being.
Chances are, you've spent a lot of time over the years thinking about your financial future. You've likely made many wise choices and, perhaps, missed out on others. Now may be a good time to step back and reflect on the decisions you've made and reconsider some that you may have overlooked.
This is an excellent time to ask yourself a few simple questions: A fast-growing number of seniors are taking care of these and many other financial concerns with a reverse mortgage. An added bonus: By using this innovative financial tool to take the worry out of their retirement years, their adult "kids" can stop fretting about their parents' well-being. "Unfortunately there are many seniors – and their adult children – who still aren't aware of this product and its potential benefits," says Peter Bell, president of the National Reverse Mortgage Lenders Association. "They don't yet know that reverse mortgages can have a dramatic impact on seniors' quality of life by increasing their income, enhancing their financial security, and letting them fully enjoy their retirement."
• Is your home in need of repairs or "sprucing up"?
• Have prescription drugs become a major part of your daily life? Has
the cost of healthcare caused you to give up other necessities and
some of life's small pleasures?
• Have property taxes and homeowner's insurance shot up as well?
• Would some physical changes to your home help you live more
comfortably and securely?
• Are there things you would like to do for your family, or yourself, if
you just had a little more cash?
A reverse mortgage goes well beyond a home equity loan to work to your advantage
• A reverse mortgage is only available to homeowners 62 years or older.
• There are no income qualifications.
• The borrowers retain title to the property and can continue to live in and
own the home for as long as they choose.
• There are no monthly mortgage payments during the life of the loan.
• Proceeds are tax-free** and can be used for any purpose; they may be
paid out as a lump sum, in monthly payments, as a line of credit, or a
combination.*
• The loan amount depends on the borrower's age, appraised value of the
home, current interest rates and the type of reverse mortgage selected.
It's good to know that lending limits have just gone up at the beginning
of 2005 and interest rates have stayed surprisingly low.
• A reverse mortgage isn't repaid until the borrower moves out of the
home permanently.
• The repayment amount cannot exceed the value of the home, regardless
of the loan balance.
• Once the loan is repaid, any remaining equity is distributed to the
borrower or the borrower's heirs/estate. Note: This is great way to
reduce the estate tax burden on your heirs.**
• The home doesn't have to be owned free and clear to qualify for a
reverse mortgage.
With benefits like these, it's no surprise that reverse mortgages continue to grow by leaps and bounds. In fact, our 2004 year-end total is 19,850 funded loans, which is a 44% increase over 2003.
If you think a reverse mortgage may be just what you need to make your retirement years more enjoyable, call toll-free 1.800.750.0306. We'll give you an estimate of how much tax-free cash may be available to you.
* Not all products and options are available in all states.
** Consult your tax advisor.
Why choose Financial Freedom as your reverse mortgage provider?
Financial Freedom is the largest originator and servicer of reverse mortgage loans in the nation. In fact, our only business is reverse mortgages.
Based in Irvine, California, Financial Freedom currently offers reverse mortgages in all 50 states. In 2004, we originated reverse mortgages totaling $1.7 billion. This is a 75% increase over the prior year and we have a portfolio of more than 50,000 loans serviced.
With half of America's reverse mortgages in our portfolio, we're able to provide a broad array of product options to meet your individual needs, and a level of service second to none.
It's reassuring to know that Financial Freedom has over 600 employees serving seniors nationwide.
How a reverse mortgage changed the Fletchers' lives
When Southern Californians Bill and Maggie Fletcher invited a Financial Freedom Reverse Mortgage Specialist into their home a couple of years ago, they didn't know much about reverse mortgages and how they work.
Like many people, Bill and Maggie thought they'd be signing away their home. In addition, they figured they'd have to make monthly mortgage payments. At their age, they didn't want that. They also thought they would have to pay taxes on the money they would receive, and that how they used the money would be restricted.
The Fletchers were pleased to learn that these were all myths and misconceptions.
They found that they would retain title to their home. That the loan must only be paid in full when the last living borrower died, sold the home, or permanently moved away. And that the total they or their estate would owe could never be more than the actual value of their home.
"We were drawing against the equity in our home," Maggie Fletcher said. "It was like our home was paying us back."
They both liked the fact that the money they received wasn't considered income, so they didn't have to pay Federal or state taxes on it.
Best of all, the Fletchers learned that what they did with the money was up to them. They were able to use it to pay bills, spruce up the house, buy a new car, and help out their grandkids.
Financial Freedom, America's largest provider of reverse mortgages, has a reverse mortgage that suits virtually any need. To learn more, call 1.800.750.0306 toll-free.
What can you use your reverse mortgage money for?
Just about anything!
A variety of benefits:
• Reverse mortgages are non-recourse loans, meaning the borrower can
never owe more than the value of the home, regardless of the loan
balance
• Title of the home remains in the name of the borrower; lender is only
repaid the loan balance or the home value — whichever is less
• Borrower retains ownership and occupancy of home
• Easy access to built-in home equity
• Tax-free equity release
• No monthly mortgage payments
• Cash advances based on borrower's age and home value
• No income qualification required
• Lender has no claim on borrower's income or assets other than the value
of the home
• The loan matures when all borrowers have died or moved out of the
home — the home is usually sold and the loan is paid
Not all products and options available in all states.
Consult your tax advisor.
® 2005 Registered trade/service marks are property of Financial Freedom Acquisition LLC © 2005 Financial Freedom Acquisition LLC. FF S17 05.05