A Smart Reverse is the first FHA HECM reverse mortgage loan enhanced by technology. With Smart Reverse your clients are in control, they can access their funds easily through an online portal that is created for them after the loan is closed.
When borrowers sign up for a Smart Reverse loan, management tools will be available through the Smart Reverse web page & mobile application, providing active management of the loan post origination.
Home Equity Conversion Mortgage is a non-recourse loan. Only the home equity is responsible to pay off the mortgage--- not your clients, not their heirs, not their trust, not their estate or any of their other assets. Once the borrower is no longer living in the property, there is 12 months to make the decision.
1. Lump Sum Payment
2. Reverse Mortgage Purchase
3. Reverse Mortgage Line of Credit
4. Monthly Payments
5. Combination of Lump Sum payment + Line of Credit + Monthly Payments
A Reverse Mortgage could create liquidity for an otherwise illiquid asset.
What is more valued, equity or cash? Cash is the most important ingredient for retirement.
For a typical person, their home equity can be valued at 30%-50% of our net worth.
Clients must be able to understand the fundamental difference between their homes, the most intimate object of their financial lives, and the equity in their home.
Payments during borrower's lifetime, while living, are optional. * 33% of people over 62 years old are making mortgage payments when they may not need to!
* Must maintain home as primary residence, and keep property taxes, homeowners insurance and HOA dues current
At AdvisorMortgage we believe that the Reverse Mortgage is the best option for clients who own a home and need the financial backstop that a Reverse Mortgage provides
Home Equity Conversion Mortgage (HECM) Introduction
The Reverse Loan Process
Reverse Items Needed
Talking to Children About Reverse Mortgages
Reverse Mortgage Tenure Payments
Reverse Mortgage Term Payments