Getting the Retirement She Deserves
Patti H., A Real-Life Reverse Mortgage Success Story
Patti H., age 62, wanted to be able to enjoy her retirement in her own home with less worry and financial concern. Many people in her situation who are looking for an additional source of funds choose to refinance their home through a home equity loan, take out a line of credit, or take out a reverse mortgage, which is a special type of home equity financing specifically for homeowners age 62+. (Plus, there is a new lower cost option for homeowners age 60 and older, Equity Elite! Find out more about this product below.) Patti decided on a reverse mortgage from Reverse Mortgage Funding LLC (RMF), which allowed her to eliminate her monthly mortgage payment and have funds left over. As with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowners insurance and any homeowners association (HOA) fees, and keeping your home in good condition. In this case, however, the experience became—in her words, when we spoke with her afterwards—more than just about “eliminating a house payment,” it became about “humanity.” In a conversation with Patti after her loan closed, she told us,
“I worked hard all my life. I worked hard the majority of the time I lived in my home. Maybe it’s about time to make my life a little bit easier.”
When Patti first heard about a reverse mortgage a few years prior to turning 62, it seemed like a great way to eliminate her monthly mortgage payment and have more funds available for other things. Of course, she knew that as with any mortgage, she must meet her loan obligations, keeping current with property taxes, insurance, maintenance and any homeowners association fees. When she turned 62 and was eligible for a reverse mortgage, she visited Lending Tree looking for a reverse mortgage provider and found a few different lenders that she evaluated. When she contacted RMF and spoke with her prospective loan officer, Joyce, she knew she had an instant connection. Throughout the process, Patti’s loan officer gave her the assurances she needed, which gave her confidence that she was making the right decision. Her loan officer showed through her actions a sense of compassion and understanding that set RMF apart from other reverse mortgage companies. The most important differentiator was the overwhelming support that Patti got from not only her loan officer, but from the whole team at RMF. Said Patti:
“It seemed like everybody in the office, for whatever reason, took a special interest in me. By ending one chapter, I was able to start another chapter. And I wouldn’t have been able to do that without Joyce.”
Patti was able to get a reverse mortgage that covered the amount that she still owed on the house. In fact, her house appraised for more than she expected, and after refinancing her existing mortgage she had enough funds left over to open a line of credit—so she has a “rainy day fund” to draw against in case of emergencies. Expressing her liking of this feature of her reverse mortgage, Patti said, “By having that line of credit, if I do have major things come up, at least I know I’ve got some money to draw against if I need to.”
But most importantly, after the death of her husband, the reverse mortgage helped Patti to make her house a home again. She was able to leverage the equity in her home so that she can enjoy retirement in the home that she loves, with much more financial flexibility and peace of mind.
A reverse mortgage from RMF helped Patti stay in her home so that she could live the retirement that she wants and deserves. Using the flexible repayment feature, Patti was able to eliminate her monthly mortgage payment and create a line of credit that is there for her to tap into in case of emergencies. As with any mortgage, she must meet her loan obligations, keeping current with property taxes, insurance, maintenance and any homeowners association (HOA) fees. In addition, RMF once again fulfilled its commitment to going beyond the loan process to bring honesty, integrity and most of all, caring to the customer experience, setting it apart from other reverse mortgage providers. Patti’s experience is just one example of why RMF has a 96% customer satisfaction rating.1
“I truly believe it does start with the company,” said Patti. “If you’ve got great people, then you’ve got a great product, and you build upon that trust. And of course, if I run across anybody that would be eligible for a reverse mortgage the first company I’m going to say is RMF.”
To experience financial peace of mind like Patti described here, call RMF at (888) 277-1567 to speak to a licensed reverse mortgage specialist. RMF offers multiple options to leverage your home equity in retirement, including our new loan product for those age 60+ with higher-value homes, as well as those who live in or want to buy a condominium: Equity Elite. Our reverse mortgage specialists are dedicated to paying close attention to your individual financial situation and helping you meet your retirement needs.
SEE WHAT FUNDS YOU MAY HAVE AVAILABLE
If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.
Equity Elite Reverse Mortgage (“Equity Edge”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who may also be eligible for HUD, FHA’s HECM program or are seeking loan proceeds that are higher than HUD, FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have 90 days to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, HOA dues or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity event, as specified in the Security Instrument, occurs.