{"id":2239,"date":"2024-05-02T03:26:00","date_gmt":"2024-05-02T03:26:00","guid":{"rendered":"https:\/\/remarkablemortgage.com\/?p=2239"},"modified":"2024-05-10T13:49:58","modified_gmt":"2024-05-10T13:49:58","slug":"you-get-some-money-and-the-bank-gets-you-home","status":"publish","type":"post","link":"https:\/\/remarkablemortgage.com\/?p=2239","title":{"rendered":"\u201cYou get some money and the bank gets your home.\u201d"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2239\" class=\"elementor elementor-2239\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-182ad5b3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"182ad5b3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5770726f\" data-id=\"5770726f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a98b094 elementor-widget elementor-widget-video\" data-id=\"a98b094\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/9D-mxxpAcjo&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37d2c1b7 elementor-widget elementor-widget-text-editor\" data-id=\"37d2c1b7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<!-- wp:paragraph -->\n<p><em><strong>\u201cYou get some money and the bank gets your home.\u201d<\/strong><\/em><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>When I started in this business, that statement was the most common misconception about a Reverse Mortgage. Now most of the curious have learned the truth, the bank only gets what is owed. (The Loan Balance)<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If your loan balance is less than the value of your home when you\u2019re gone, your estate decides what to do with your home. The estate can pay off your loan, or sell your home and distribute the equity. (According to your wishes)<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>About five years ago I got a call from a single lady who was interested in doing a Reverse Mortgage on her Condominium.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cHi, this is Mark.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cHi Mark, my name is _____, you did a Reverse Mortgage with my friend________. Now, I\u2019m interested in a Reverse Mortgage.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>We talked about things for a while, she had done some serious homework and was rather well informed about the details of the HECM (the FHA home equity conversion mortgage) program.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I asked her, \u201cWhat do you plan on doing with your home when, you know when\u2026\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cYou mean when I die?\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cYes, that\u2019s what I was trying to say.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cWell, since I don\u2019t have any family, and the bank will take my home when I\u2019m gone, I\u2019m not concerned about that right now.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cInteresting, is that what you think will happen?\u201d I said.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cWell yes, I\u2019ll die one day, till then I plan on living here.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cNo, what I mean is, do you think the bank will take you home when you\u2019re gone?\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cYes, isn\u2019t that how a Reverse Mortgage works?\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cNo, the bank doesn\u2019t take your home. And it looks like your equity will likely grow faster than the interest. You\u2019re gonna need to work on your estate plan for this property a bit more.\u201d<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cGladly!\u201d She exclaimed!<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>The Details Of Her Reverse Mortgage<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>-Her homes value was around $245,000, she had a mortgage of around $90,000.  <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>-Her principal limit (money available in her Reverse Mortgage) was around $143,000.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>-We paid off her existing mortgage, ($90,000) her loan costs were around $7,500.  <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>-Her loan balance was about $97,500, leaving her with a credit line of about $45,500.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>The Update On Her Home &amp; Life<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>About a year after we closed her HECM we were talking and she said, \u201cI wouldn\u2019t be in my home today without a Reverse.\u201d&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>She called me in late 2023 and said, \u201cHow are things looking for a refinance? I could really use some more line of credit money.\u201d&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I looked over her numbers and called back, \u201cWe\u2019re not quite there yet, but let\u2019s keep this on the back burner.\u201d&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>We will refinance her when her value goes up about $40,000 and the interest rate goes down about 1%.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Over the years I have refinanced about 70% of the Reverse Mortgages I\u2019ve originated. She is one of the reasons why I do Reverse Mortgages.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A Real Reverse Mortgage Story.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Thanks for stopping, looking &amp; listening<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Mark Schmidt<\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>\u201cYou get some money and the bank gets your home.\u201d When I started in this business, that statement was the most common misconception about a Reverse Mortgage. Now most of the curious have learned the truth, the bank only gets what is owed. (The Loan Balance) If your loan balance is less than the value [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2242,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2239"}],"collection":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2239"}],"version-history":[{"count":13,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2239\/revisions"}],"predecessor-version":[{"id":2376,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2239\/revisions\/2376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/media\/2242"}],"wp:attachment":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}