The Reverse Mortgage Group: Who are they and what do they offer?
Since 2008, The Reverse Mortgage Group has focused 100% of its time and attention on working with seniors to provide educational information on today’s reverse mortgages. With over 25 years working in the mortgage industry, Beth Miller-Rowe realized in 2008 that in order to provide the best possible service to seniors, she had to make a choice. She could be average and offer both traditional and reverse mortgages or excel at one or the other. She chose reverse mortgages, and she has never looked back. Now 13 years later, Beth is considered the San Francisco Bay Area’s Reverse Mortgage Specialist. Beth works locally, lives locally, and keeps her business in the San Francisco Bay Area in order to provide personalized service to her clients.
Reverse mortgages are a highly nuanced loan program that requires time and education to ensure it is right for you and your family. It is important to work with an experienced specialist who focuses solely on reverse mortgages. This is your home, your money, your retirement! You deserve the best!
Beth and her team offer in-home consultations, Zoom meetings, phone calls, email, and/or text communication. We have found that people want to communicate in ways they feel most comfortable, and we make ourselves available to do just that.
We find that most clients want to have multiple conversations with us, initially looking for answers to some basic questions and then more detail, including what the numbers look like for them specifically. This is how we operate. We give you the courtesy and respect you deserve when making a decision that will likely affect the rest of your retirement years.
What Is a Reverse Mortgage?
A reverse mortgage is a specific kind of home loan for homeowners who are 60 or older. It draws on the value of the home and pays cash to the homeowner. The amount of money you can take out from reverse mortgages depends on several factors, including the age of the youngest borrower, the interest rate, and the fair market value of your home. The cash payments are tax-free. You may use the proceeds for any purpose you choose, such as home improvement, travel, paying off credit cards, or helping out the family.
You can receive your reverse mortgage loan payments in a variety of ways:
- Tenure means receiving equal monthly payments for your lifetime.
- Term means receiving equal monthly payments for a set number of months that the borrowers choose.
- Line of credit means you request funds when you want them and do not accrue any interest on funds you have not yet drawn.
- Modified tenure means receiving fixed monthly payments for your lifetime, along with a line of credit.
- Modified term means receiving monthly payments for a set number of months along with a line of credit.
With a reverse mortgage loan, the homeowners stay in the home as long as they can meet the loan requirements. The homeowner must live in the home and continue to pay property taxes, homeowner’s insurance, and maintenance on the property. Repayment begins when the last living borrower leaves home, when the house sells, or when the borrower fails to carry out the loan requirements. Best of all, you make no monthly mortgage payments once the reverse mortgage is in place.
Even better, the reverse mortgage allows you to make payments if you choose. If equity preservation is the goal, people may choose to pay the interest or part of the interest on a regular basis. The best part is that you can pay, but you do not have to pay a payment each month. If the borrowers are still working, they may choose to make monthly payments. Or, if the borrowers receive an annual gift or annuity payment, for example, they may choose to use some of that money to pay down the loan balance. The beauty is that it is your choice!
You can find different reverse mortgage loans on the market, but the two most common are the Home Equity Conversion Mortgage (HECM) and the proprietary reverse mortgage for high-value homes. HECMs are insured by the federal government through the Federal Housing Administration and supervised through the Department of Housing and Urban Development. Private reverse mortgages are heavily regulated and monitored by nongovernmental financial compliance entities.
To qualify for a reverse mortgage loan:
- At least one borrower on the loan must be at least 60 years old.
- The home must be your primary residence, and you must live in it.
- You must have enough equity in the house, generally, at least 50%, so that you can pay off the current mortgage loan and still have sufficient funds from which to draw.
- Borrowers must complete an over-the-phone counseling session that includes a financial assessment to ensure they have sufficient residual income to pay the property taxes, insurance, and maintenance costs. The counselor will also review the program to ensure the borrower fully understands the pro, cons, and responsibilities of all parties.
While these are general rules, each lender may have other requirements based on your finances, age, and home value.
What Are the Advantages of a Reverse Mortgage?
Reverse mortgages have some specific advantages for the borrower who is looking to increase income in retirement.
- You may qualify with reverse mortgage lenders even if your home is not entirely paid off. Many borrowers use a reverse mortgage to pay off an existing mortgage so as to improve monthly cash flow by eliminating the monthly payment.
- Reverse mortgages are non-recourse loans. That means that when the last surviving borrower leaves the house and the home sells, if the proceeds aren’t enough to cover the balance, your heirs and estate are not responsible to the lender for the balance. Only proceeds from the sale of the home can go toward paying off the reverse mortgage loan. FHA insurance covers any shortfall.
- The borrower keeps the deed and ownership of the house, not the bank.
- The borrowers can use the loan proceeds in any way they choose.
Why Choose Your Reverse Mortgage?
Beth understands the valuable role a reverse mortgage loan can play in helping seniors enjoy a financially secure retirement. With over 35 years of experience in the business, she has built a team of highly qualified professionals with a combined 100 years working in the mortgage industry. Whether your home is a traditional single-family house, a townhouse, or an owner-occupied multi-unit property, The Reverse Mortgage Group can help you live your best retirement.
Besides our knowledge and experience of these financial products, the crew at Your Reverse Mortgage focuses on customer service that will exceed your expectations. As a full-service reverse mortgage lender, we understand that decisions related to your family home can be emotional and stressful. The Reverse Mortgage Group specialists treat everyone involved with the highest level of respect and honesty. We can help you and your family understand the details of the process and how a reverse mortgage can provide security and enjoyment to your retirement years.
As you approach retirement, you might want to consider whether a reverse mortgage makes sense as part of your retirement plan. Contact us at The Reverse Mortgage Group to schedule a time to learn more. You won’t get any high-pressure sales pitch from our Californiareverse mortgage consultants, only a thorough explanation of the entire process as it applies to you. Even if you’re not ready to decide immediately, as your reverse mortgage specialist, we want you to have all the information up front so you have the time to mull it over and make sure it is right for you. When it is the right time, we are here for you.