Dance your way to a successful reverse mortgage

Dance Your Way To A Successful Reverse Mortgage Admission Admission Do you have sufficient equity Are you at least 62 years old? in your property? START HERE 3 Then & Now Average Property Value G For Reverse Mortgage $250,000 (Average Borrower Age) STEP 1: Get Ready to Dance Prepare Your Finances $150,000 76.7 years old in 1990 • Set a monthly budget. 71.9 years old in 2013 2000 2013 • List out your assets & liabilities. More Equity = Ability to borrow more • Project your monthly retirement cash flow. Slippery When Wet: Don't Lose Your Home • Budget For Property Taxes and Maintenance 2 STEP 2: Choose Your Favorite Dance Select How You Receive Money Ways to Receive $ • Lump Sum Lump Sum - The only method you can take with a fixed interest rate. 2 60% Use to pay off current mortgage or major house repairs. Be careful that you leave yourself enough equity in the house for future needs. 2% 2009 2013 2 • Line of Credit The funds are available to be used whenever Line of Credit you need the money. 89% Unused funds do not accrue interest. Instead, the line of credit available to you will grow at the interest rate of the loan plus 0.5%. 34% This option offers you the most flexibility and provides a rainy day fund. 2009 2013 • Monthly Draw 2 Term and Tenure (include Combos) A fixed monthly amount can be deposited into your account for a predetermined time or for the rest of your life. 2 This option offers you a steady stream of income. Make sure it is enough to cover your monthly housing and living expenses. 2 2009 - 2013 • Combination 2 You can choose a combination of the 3 methods, using some of the money upfront to pay for urgent expenses (or to pay off a mortgage). Carefully consider all methods before choosing the one that's best suited for your needs. STEP 3: Get on the Floor! Choosing a Reverse Mortgage 3 3 • Do Your Research 3 • Get a Quote / Shop around • Get Counseling 3 bills.com 3 STEP 4: Make Your Reverse Mortgage Move! 2013 Bills.com LLC. All Rights Reserved. Data courtesy of the U.S. Department Of Housing And Urban Development 2. ||