2. The Reverse Mortgage Timeline 1970 1988 1996 The National Council of the Aging, The Veterans Administration Division of Housing and privately held senior advocacy groups begin feasibility studies to determine the merits of a federally insured Home Equity Conversion Mortgage. The President of the United States signs into law “The Federal Home Equity Conversion Mortgage Insurance Plan” offering Senior Americans the first FHA insured HECM mortgage. FNMA (FannieMae) Creates the Home Keeper” Reverse Mortgage. Wall Street Journal states that they anticipate 16 million households to apply for reverse mortgages in 2010.
4. Who is American Reverse Mortgage? #6 Reverse Mortgage Company in US (in 14 states) #120 On Entrepreneur Magazine’s HOT 500 List #1230 On INC Magazine’s Top 5000 List 100% A Reverse Mortgage Company Only 2006 $8.4 million in Revenue 2,418 Employees 2006
14. # 1 You could sell your home “ Downsize” ? 2 Main Ways To Get Cash From Your Home
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16. Now, There’s a 3rd Way... Home Equity Conversion Mortgage “ HECM ” It’s a home equity loan that YOU NEVER PAY BACK As Long As You Live & Keep Your Home As Your Primary Residence
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18. How It Works Your Cash goes DOWN as your equity goes UP Your Cash goes UP as your equity goes DOWN Your cash Your cash “ FORWARD” Mortgage “ REVERSE” Mortgage EQUITY
19. 6% =$7,500 $125,000 - $50,000 = $75,000 When we remove funds from our investments we reduce the INCOME from our investments 6% = $4,500
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22. Reverse Mortgages Are Safe It is a Non-Recourse Mortgage: The final amount of the loan WILL NEVER exceed the home value! The Lender NEVER Owns Your Home Your Heirs are Protected, Too!
23. Insured by FHA The Federal Housing Administration This Protects You and Your Heirs
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25. Can I Ever Be Forced Out of My Home? NO ! You will only be required to: 1. Live In YOUR Home 2. Keep The Home Adequately Insured 3. Pay The Property Taxes 4. Maintain The Property
26. Will The Reverse Mortgage Affect My Taxes Or Social Security ? NO ! Money Received From a Reverse Mortgage Is... Tax Free !