Reverse Mortgages

Seniors seeking a way to increase monthly cash flow, remove mortgage payments, or fund financial ventures can utilize a Reverse Mortgage from Next Generation Financial Services (NGFS) to achieve financial independence and increased cash flow for life. Reverse Mortgages allow consumers to safely convert the equity built up in their home into cash while maintaining ownership.

A Reverse Mortgage is a special type of private home loan that lets homeowners convert the equity in their home into cash. You can use your equity to receive a lump sum, monthly payment, or a line of credit that is tax-free and does not affect Social Security or Medicare benefits. The best part is there are never any payments throughout the life of the loan. You retain full ownership of your home and all repayments of the loan are deferred until after you permanently vacate your home.

A Reverse Mortgage is a loan, but in reverse. You still retain title, ownership, and control of your home. With a Reverse Mortgage you can never be forced from your home and there is no time limit on the loan. The lender sends cash to you and you never have to make a payment for as long as you live in the home.

A Reverse Mortgage is a 'non-recourse' loan. The Federal government guarantees all Reverse Mortgages and the lender can only look to the home to satisfy the loan. This means there is 'no personal liability' to you or your heirs. Repayment is due after all homeowners permanently vacate the home (pass away, sell, or permanently move out).

A Reverse Mortgage does NOT affect the appreciation of your home. Your home will continue to increase in value while you enjoy your Reverse Mortgage. Click here to learn about the Reverse Mortgage process.

You can choose how to receive the money from a Reverse Mortgage. The options are: a lump sum; monthly payments (for life); a line of credit; or any combination of these. The most popular option, chosen by more than 60 percent of borrowers, is the line of credit, which allows you to draw on the loan proceeds at anytime.

The amount of money you get from a Reverse Mortgage depends on several factors, including: your age, type of Reverse Mortgage selected, appraised home value, current interest rates, and the location of your property. In general, the older you are and the more valuable your home (and the less you owe on your home), the more money you get. The 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.

Next Generation Financial Services will provide you with a no-cost, no-obligation, Free Reverse Mortgage quote. We will only need basic information about you and your property and will be able to offer an instant estimate and analysis regarding a Reverse Mortgage.

Below is the process for starting and learning about how Reverse Mortgages work. See how a Reverse Mortgage is started by following the below procedures.

Homeowner learns about the Reverse Mortgage program from a news article, Internet advertisement, word-of mouth, etc.

If necessary, homeowner seeks additional information and documentation by contacting Next Generation Financial Services or a Reverse Mortgage loan officer, HUD, Fannie Mae, AARP, NCOA (National Counsel of Aging), or the National Center for Home Equity Conversion.

Homeowner seeks counseling from a HUD-approved counseling agency. Counseling is Mandatory regardless of which Reverse Mortgage product you choose. HUD would prefer that all counseling be done face to face, however, with the exception of North Carolina and Massachusetts, counseling maybe done by telephone as long as the lender representative has conducted a face to face meeting with the Homeowner. The counselor provides supplemental information on Reverse Mortgages, determines whether you're eligible to get a Reverse Mortgage, and discusses other options that may be available to assist you with your daily living. The homeowner will be given a certificate to give to the lender as proof they were counseled.

Homeowner fills out loan application and selects payment option: 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. Lender collects money for home appraisal. Homeowner provides lender with required information, including photo ID, verification of Social Security number, copy of deed to home, information on any existing mortgage(s) on property, and counseling certificate.

Next Generation Financial Services orders appraisal, title work, lien payoffs, etc. An appraiser comes to your home. The appraiser assigns a value to the home and determines the physical condition of the property. If the appraiser uncovers structural defects that require repair, the homeowner must hire a contractor to complete the repairs after the Reverse Mortgage closes.

Following approval, closing (signing) of loan is scheduled. Closing papers and exact figures are prepared. Closing costs are normally financed as part of the loan.

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. During the life of the loan, the loan "servicer" disburses monthly payments to the homeowner (if this option is chosen), advances line of credit funds upon request, collects any repayments on the line of credit, and sends periodic statements.

Starting a Reverse Mortgage is an easy task. Simply contact us or fill out the Free Reverse Mortgage quote form. We will answer any questions you may have and provide you with the necessary documentation and paperwork to begin a Reverse Mortgage.

Source: ReverseMortgage.org