Remarkable Mortgage

How Much Reverse Mortgage Money
Are We Talking About? (Including Costs)

How We Calculate The Benefits & Cost

Your Homes Value

Your Age

The Details Of Your Reverse Mortgage Loan

Two Topics Always Come Up…

When I talk with someone about A Reverse Mortgage loan, two topics always come up, First, “how much money can I get?” Second, “how much will this deal cost me?” With those questions in mind, I’ve put together a basic illustration of approximately how money is available in a Reverse Mortgage, and about how much the loan will cost. (The only way to know your benefit and cost is to talk with me)

 

About The Illustrations

These illustrations are for the FHA HECM (home equity conversion mortgage) ARM. (adjustable rate mortgage) The illustrations were generated in Reverse Vision, which is the software I use to originate Reverse Mortgages. You would get a similar illustration from any licensed Mortgage Loan Originator or company. 

 

To Offer You A Better Deal, I Need To Know More About Your Deal

One of the reasons for working with me is that I can offer you a deal that most other companies or Mortgage Loan Originators can’t or won’t.  That deal may include a significant reduction in your loan costs and a tidy increase in the money available to you in a Reverse Mortgage. And, you get to work with me, personally and honestly. 

 

Mark Schmidt 720-206-4539  (phone or text)  remarkablemortgage@gmail.com


Contact Mark

The following illustrations are for informational purpose only- they are not a commitment to lend or a quote on a loan or the associated costs 

How I’m Calculating The Benefit & The Cost

Home Value

I’ve used two different home values; $225.000 & $425,000.

Age

I’m using two ages; 65 & 75 years old.

The Details Of The Reverse Mortgage Loan Illustrations (listed below)

#1 loan illustration:

  • Age of youngest borrower: 65.
  • Home value is $225,000.
  • Loan program: 1 year LIBOR Cap 5.
  • The Margin: 2.250%.
  • Current mortgage payoff (how much is owed): $75,000

#1 Explanation of the Pie chart, benefits & costs

  • Benefit: Equity Reserves is the amount of equity that remains in your home ($128,025
  • Benefit: Line of Credit: This is how much cash is available to the borrower. ($10,880)
  • Benefit: Mortgage payoff: The $75,000 is what the borrower owed, that amount is paid off in the Reverse Mortgage loan.
  • Cost: Financing fees: The appraisal, origination fee, the standard closing costs.
  • Cost: Insurance fees: The biggest cost of a Reverse Mortgage, the FHA, (MIP) upfront mortgage insurance, one time fee. Everyone pays the same, 2% of the homes appraised value. 

#2 loan illustration:

  • Age of youngest borrower: 75.
  • Home value is $225,000.
  • Loan program: 1 year LIBOR Cap 5.
  • The Margin: 2.250%.
  • Current mortgage payoff (how much is owed): $75,000

#2 Explanation of the Pie chart, benefits & costs

  • Benefit: Equity Reserves is the amount of equity that remains in your home ($114,300)
  • Benefit: Line of Credit: This is how much cash is available to the borrower. ($24,605)
  • Benefit: Mortgage payoff: The $75,000 is what the borrower owed, that amount is paid off in the Reverse Mortgage loan.
  • Cost: Financing fees: The appraisal, origination fee, the standard closing costs.
  • Cost: Insurance fees: The biggest cost of a Reverse Mortgage, the FHA, (MIP) upfront mortgage insurance, one time fee. Everyone pays the same, 2% of the homes appraised value. ($4500)

#3 loan illustration:

  • Age of youngest borrower: 65.
  • Home value is $425,000.
  • Loan program: 1 year LIBOR Cap 5.
  • The Margin: 2.250%.
  • Current mortgage payoff (how much is owed): $150,000

#3 Explanation of the Pie chart, benefits & costs

  • Benefit: Equity Reserves is the amount of equity that remains in your home ($241,825)
  • Benefit: Line of Credit: This is how much cash is available to the borrower. ($15,960)
  • Benefit: Mortgage payoff: The $150,000 is what the borrower owed, that amount is paid off in the Reverse Mortgage loan.
  • Cost: Financing fees: The appraisal, origination fee, the standard closing costs.
  • Cost: Insurance fees: The biggest cost of a Reverse Mortgage, the FHA, (MIP) upfront mortgage insurance, one time fee. Everyone pays the same, 2% of the homes appraised value. ($8,500)

#4 loan illustration:

  • Age of youngest borrower: 75.
  • Home value is $425,000.
  • Loan program: 1 year LIBOR Cap 5.
  • The Margin: 2.250%.
  • Current mortgage payoff (how much is owed): $150,000

#4 Explanation of the Pie chart, benefits & costs

  • Benefit: Equity Reserves is the amount of equity that remains in your home ($215,900)
  • Benefit: Line of Credit: This is how much cash is available to the borrower. ($41,885)
  • Benefit: Mortgage payoff: The $150,000 is what the borrower owed, that amount is paid off in the Reverse Mortgage loan.
  • Cost: Financing fees: The appraisal, origination fee, the standard closing costs.
  • Cost: Insurance fees: The biggest cost of a Reverse Mortgage, the FHA, (MIP) upfront mortgage insurance, one time fee. Everyone pays the same, 2% of the homes appraised value. ($8,500)

  • At 65: About 38% of your homes value in benefit.
  • Cost of the deal: About 4-5% of your homes value
  • At 75: About 44% of your homes value in benefit.
  • The cost of the deal, about 4-5% of your homes value

This bottom line is based on a retail deal without lender credits or other financial incentives. Always get illustrations from competing lenders.   (these numbers are only estimates)

Call me and we can discuss your situation and determine the best scenario to pursue. Every deal is different just as every family and person is unique. Mark Schmidt In Colorado: 720-206-4539

Financial Professionals, give me a call if you have a specific scenario you’d like to discuss. It is good to know the numbers and the situation so you can better serve your clients.

And, you don’t need to give me any personal information, or violate any confidentiality with your people.

Mark Allen Schmidt Owner & Broker

Call or Text Mark

720-206-4539

remarkablemortgage@gmail.com