Welcome to our educational videos page. This collection of short videos is designed to provide a quick introduction to many Reverse Mortgage topics. Before or immediately after you watch these videos we strongly recommend you continue down the page to a more comprehensive explanation of Reverse Mortgage details or visit our Reverse Mortgage page. Also, please call us at 1-866-840-0279 or Contact Us to connect with a GoodLife Reverse Mortgage Specialist who can answer any questions for you. Our goal is to make sure that a reverse mortgage is the right loan, for the right person, at the right time, and for the right reason. The videos are helpful, but the only way to make sure a reverse mortgage is right for you is to call us so we can see if a reverse mortgage is suitable and appropriate for your situation.
This video explains how a reverse mortgage lends you money against the value owned in your home.
This video shows the types of homes that may qualify for a reverse mortgage
This video compares how reverse mortgages and home equity loans both use equity as collateral.
As this video shows, reverse mortgages do NOT encumber heirs or estates with debts.
Learn about the importance of education in all stages of the reverse mortgage process.
This short video explains the factors on which reverse mortgage loan amounts are based.
Payment schedules and restrictions for a reverse mortgage are explained in this short video.
This video goes over why it is important to plan ahead for retirement.
As this video explains, you may qualify for a reverse mortgage with an existing mortgage on the
Learn how reverse mortgage payments bear on Social Security, Medicare, SSI and Medicaid.
Learn how GoodLife works to determine if a reverse mortgage is right for you.
Understand the circumstance in which you might consider alternatives to a reverse mortgage.
Get a clear picture of reverse mortgage interest from this short video.
Get a clear picture of the events upon which a reverse mortgage is called and payable.
The most common type of reverse mortgage is known as the Home Equity Conversion Mortgage, or HECM. We use the term reverse mortgage and HECM interchangeably on our website. Please understand, these very brief videos do not provide a full explanation of each of the subjects they portray and are intended only as an introduction. You should understand that there are many factors to consider before deciding whether a HECM is right for you and we encourage you to contact our GoodLife Reverse Mortgage Specialists to answer any questions you have.
A reverse mortgage is a loan and as is the case of any loan, there are borrower and property eligibility, and financial assessment requirements that must be met.
As a Borrower you must:
*You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
The following eligible property types must meet all Federal Housing Administration (FHA) property standards and flood requirements:
In addition, a financial assessment of your willingness and ability to pay property taxes and homeowner’s insurance, and any other obligation that could become a lien on the property, will be conducted. As part of the financial assessment:
Depending upon whether you choose an adjustable interest rate or fixed rate reverse mortgage, you may have options on how you receive your reverse mortgage loan proceeds. For adjustable interest rate reverse mortgages, you can select one of the following payment plans:
The amount you are able to borrower under the reverse mortgage will depend on:
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
As you get money through your reverse mortgage, interest is added onto the balance you owe each month and in turn accrues interest. That means that the amount you owe grows over time.
You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you. A HECM loan includes the following common fees and charges:
You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2%. Over the life of the loan, you will be charged an annual MIP that equals 0.5% of the outstanding mortgage balance. The mortgage insurance guarantees that you will receive expected loan advances.
Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.
You will pay an origination fee to compensate the lender for processing your HECM loan. A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate or has a fixed interest rate. The lender may charge a monthly servicing fee of no more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.
A reverse mortgage becomes due and payable when:
A reverse mortgage is a non-recourse loan, which means the sole recourse for collecting the loan is a legal action against the property itself and neither the borrower, the borrower’s estate or the borrower’s heirs have personal responsibility for payment of any deficiency (or the difference between the value of the home and the full amount of the reverse mortgage debt).
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