The Truth About Reverse Mortgages

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Many homeowners believe that a reverse mortgage means giving up ownership of their home or leaving debt for their heirs. However, the reality is often different.

Here are a few key facts:

✅ You remain the owner of your home and can sell it at any time.
✅ Your heirs will never owe more than the home’s value when the loan becomes due.
✅ You do not need to have an existing mortgage to qualify.
✅ Funds can be used for virtually any purpose, including healthcare expenses, home improvements, daily living expenses, or paying off higher-interest debt.
✅ There are no required monthly mortgage payments. The loan is typically repaid when you move out of the home, sell the property, or pass away.
✅ Reverse mortgages can be a strategic tool to improve retirement cash flow.
✅ They can even be used to purchase a new home.

As with any financial product, reverse mortgages aren’t right for everyone. Borrowers must continue to live in the home as their primary residence, maintain the property, and stay current on taxes and insurance.

If you’re 62+ (55 in CA) and want to explore whether a reverse mortgage fits your retirement goals, I’d be happy to answer your questions.  Also, if you would like to apply for a reverse or review options, please go here.

Rob McCarthy – Senior Mortgage Advisor
101 Loan – Financing that Builds Wealth

📞 650-465-8957
📧 rob@101loan.com
🌐 https://101loan.com

CA DRE #01165697 NMLS #121019
101 Loan – 99 South Almaden Blvd, # 600. San Jose, CA 95113

Make Better Real Estate Decisions…

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I recently finished a four-part series on the following topics, as it relates to Real Estate locally and abroad, helping you make better decisions in buying, selling or exploring the world of real estate. 

Click below for more info…

In addition, if you are looking to buy, sell and trade-up or trade-down real estate, please see the following:

Lastly and Important…

Did you know that the CalHFA loan (Zero Down Loan) is only available until the end of the month.  If you have a client, colleague, friend or family member that wants to buy in California and has no down payment the CalHFA program may help.  To learn more, go here or follow the instructions below and then contact me.

Do This First: For the CalHFA program, you first need to complete a registration application for a Voucher thru the CalHFA website.  CalHFA will then have a random drawing for a Voucher for the program.  Please be sure to register asap as the registration window closes April 29th.

Any questions, please contact me.  Thanks.

Best Regards,

101 Loan
Senior Mortgage Advisor
www.101Loan.com
650-465-8957 c  408-377-4123 o
CA DRE #01205444  NMLS #326829
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

  • Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  • Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  • Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  • Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google and Linkedin.
  • Over 30 years of lending experience with over $2b in closed loan volume.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Don’t Qualify for Conventional Loan or a Reverse Mortgage? Check Out the New EQUITYAVAIL!

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Are your Mortgage Payments too High?  Are your Debt’s Eating Away at Your Savings?  Has the Stock Market Hurt your Portfolio?

Check out our New Reverse Hybrid Program…EQUITYAVAIL!

We have a new product that focuses on homeowners in CA, that are 55 years of age and above.  If the homeowner is having financial challenges in affording their current home or lifestyle and they don’t qualify for a reverse mortgage or forward mortgage (a conventional loan), due to recent rate hikes and loan to value adjustments, this loan program may be the right option for them.

It offers a substantially lower payment than a traditional forward mortgage for 10 years then after that, disappears until they sell or vacate the property.

About…

  • To qualify you must be 55 years of age or older and a homeowner. You must occupy your property as a primary residence with an existing forward mortgage and not qualify for a reverse mortgage (we can help you determine this).
  • EquityAvail requires partial interest payments for the first 10 years.  After that**,there are no monthly mortgage payments required for the remaining life of the loan. The borrower is responsible for all property tax and insurance obligations.
  • Free up cash flow without downsizing or committing to a traditional 30-year mortgage(with a much higher payment)

Details:  *The borrower is required to make non-amortizing payments for the first ten years of the loan term. These payments will not cover the full amount of interest accruing & interest will be added to the principal balance of the loan. When the payment period ends, interest and fees continue to be added to the loan balance over time. Borrower is required to pay taxes & insurance. This loan will reduce the borrower’s equity in the home which may make it more difficult to refinance the loan or to or to obtain cash upon a sale of the home. By refinancing an existing loan, the borrower’s total finance charges may be higher over the life of theloan. Primary occupancy only. Not available in all states. Additional terms & conditions apply. Subject to review of credit and/or collateral; not all applicants will qualify for financing.

**The borrower must meet all loan obligations, including living in the property as the principal residence & paying property charges, including property taxes, fees, &hazard insurance. The borrower must maintain the home. Otherwise, the loan must be repaid when the last borrower passes away or sells the home.

See attached for more information at:

EquityAvail Flyer

Contact me with any questions or to qualify for this program.  Thanks.

101 Loan

Senior Mortgage Advisor

www.101Loan.com

650-465-8957  hello@101loan.com

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

GENERAL MORTGAGE CAPITAL CORPORATION CA DRE- 01509029 NMLS- 254895. 101 LOAN IS AN ASSOCIATE OF 101 LOAN LLC – CA DRE #01205444  NMLS #326829.  INTEREST RATES AND LOAN PROGRAMS QUOTED ARE SUBJECT TO CHANGE WITHOUT NOTICE OR UNTIL LOCKED ANDAPPROVED BY LENDER.

 

What’s Wrong with Reverse Mortgages?

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Over the last 30+ years, I have been providing 3 types of financing to clients… Residential Financing, Commercial Financing and Reverse Mortgage Financing.

In that time, I have seen all 3 improve and evolve but the one category that has improved the most is Reverse Mortgages.  In the past, when a customer applied for one, they were really throwing the dice, so to speak, on what they would end up paying rate and fee wise, what they were told from the lender and the worse part, what they signed often relinquishing the rights of the property to the lender…Yes you heard right.  If the borrower passed away, the lender kept the house (if your parent or loved one has one from 10 years ago or longer, have them review their promissory note for such language and if applicable, refi out of it!).

Today, Reverse Mortgages are a Different Animal, so home owners 55 and above in age can enjoy their home, age in place, even if they don’t have the income to afford their home, just as long as they have enough equity in their home.  In addition, 10 years ago, it was commonplace, to see closing costs on reverses equal to $10k or 20k (or higher) and today on a Jumbo reverse they can cost $1000 to a max of $9000 depending on the rate and program chosen (most of ours are around $4k to $6k).  Lastly, today the home is yours when you sell, not the lender.

Before a client can even start a reverse mortgage application they must sit down with a qualified individual like myself and review their options, pros and cons and then take a mandatory (online/over the phone) class.   Then after a 7 business day cooling off period are they able to proceed with the application.  Lastly, while they have improved exponentially, there are some things to still consider.

You’re retired! The stock market just had a major correction (q1 and q2 of 2022) and your wondering if you have enough money to live on, long term?  Often times a Reverse Mortgage is exactly what you need as it eliminates:

– Mortgage Payments
– Monthly Medical Costs
– Credit Cards and Installment Debts

So…What’s Wrong with a Reverse Mortgage?

A Few Things…

– A Band-Aid…Really?  They can be Band-Aid to a more pressing issue in relationship to one’s Burn Rate or Lifestyle!
– Expensive…They can be Expensive, especially if you don’t spend the time to educate yourself on them and compare one option to another!
– They Can Take a While to Close. Don’t Wait until you Run Out of Money to Get one, Plan Ahead!

For more information, please contact me.  Thanks.

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Navigating Forward & Reverse Mortgages for Senior Homeowners (60+)

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Are you over 60, own a home and would like to eliminate your monthly mortgage payment and do the following?

  • Pay off the Current Mortgage

  • Pay off Monthly Debts

  • Obtain Monthly Income

  • Pull Cash Out to Invest

  • Pay Medical Expenses

  • Renovate your Home For “Age in Place”

  • Get Cash or a HELOC for a Rainy Day

We offer every type of Reverse Mortgage and can help a homeowner (that is 60 years of age of older) determine if a Reverse Mortgage is right for them.

To Determine Your Options, Please Complete the Short Questionnaire at:

https://101loan.com/reverse/

Please also note, we have been in the business of helping clients for over 30 years and have over 200 “5 Star” Review on Yelp. Be assured we will go out of our way to ensure you make the right financing choice, keeping in mind your long term goals and short term needs.

If you’d like to learn more, check out our video or contact us for more info.

What is a Reverse Mortgage?

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What is a Reverse Mortgage?

When you hear the word mortgage the first thing many people think of are traditional mortgages for buying or refinancing a home. Traditional mortgage loans are used to purchase property or to borrow money against the equity in your home. The borrower and lender come to an agreement that the borrower will pay back the borrowed sum of money plus interest in an agreed upon time window until the borrower is able to pay off the loan. 

In contrast, a reverse mortgage is a loan that allows a homeowner to borrow money utilizing the equity in their home where no payments are made monthly. Unlike traditional mortgages, reverse mortgages do not involve monthly mortgage payments back to the lender. Instead, the lender will pay the borrower a lump sum, monthly payments, or a line of credit to the borrower collateralized by equity in the home. The borrower will retain title to their home and the reverse mortgage loan will be paid back upon selling the home, leaving the home as a primary residence or if the borrower passes away. If married and one spouse passes away, the other spouse can stay in the home until they vacate the property.

What to Look Out for…

While reverse mortgages can be a very smart decision for the educated homeowner, they can be complicated and have been an area where scammers have taken advantage of retirees looking to make ends meet. It is important to work with upstanding lenders or brokers like 101 Loan that have experience with this type of mortgage and a proven track record as evidenced by their online reviews (yelp and google) and by professionals like financial planners, tax planners and estate planners that refer clients to reverse mortgage experts like 101 Loan.

How does a Reverse Mortgage work and How does one Qualify? 

Traditional mortgages that are called “Forward mortgages” require monthly payments all with the premise that the loan will eventually be paid off in a given period of time in the future.  Reverse mortgages don’t require monthly mortgage payments and as a result accumulate interest over time with the mortgage balance growing each month as payments to the mortgage are not paid.  

In addition, there are qualifying conditions the borrower must meet to qualify for a reverse mortgage.  First and foremost, the property that will be used for the reverse mortgage must be their primary residence of the borrower and have at least 50% equity in the property. Next the borrowers must be at least age 62 to qualify and have some lever of residual income to afford such costs as home insurance and property tax.  (There are exceptions to this)

Types of Reverse Mortgages

The most common type of reverse mortgage is known as a home equity conversion mortgage or HECM. HECM’s are insured by the Federal Housing Administration and have an upper loan limit set by the FHA. 

Jumbo reverse mortgages are necessary for borrowers looking to borrow more than the HECM limit. There are also single-purpose reverse mortgages which are a reverse mortgage in which the funds are used for a specific purpose, for example home upkeep or maintenance projects. Proprietary reverse mortgages are similar to a HECM. The major differences are that proprietary reverse mortgages are secured through private lenders and are not insured by the FHA.  For more info, see our Reverse Mortgage page. 

How can 101 Loan @ 101 Loan help?

If you are looking into a reverse mortgage for the purposes of freeing up cash, paying off outstanding bills, covering future expenses, or any other reason you deserve to have assurance that you are getting the best deal possible.  If it’s your very first time learning about what is a reverse mortgage, you will quickly learn small differences in rates, loan amounts, or loan conditions will make significant differences in your future finances. 101 Loan and the team at 101 Loan are reverse mortgage experts and have a long track record of supporting their clients to find the best reverse mortgage for their unique situation. 

Working with 101 Loan, you will have the opportunity to meet with a lending professional who will break down the type of reverse mortgage that will fit your specific goals and needs. They will then go to work gathering information through their connections with over 50 top lenders to make sure they are able to find the lowest possible rates and fees for your reverse mortgage. Finally, they will provide you with an easy to understand document that details your various loan options, rates, costs, amortization schedule and next steps to move forward. All through the process, 101 Loan will be there to answer any questions you might have to ensure you have the peace of mind you deserve.

There are many different options and possibilities when it comes to finding the reverse mortgage or any mortgage that is right for you. Having 101 Loan walk alongside you will take out the guesswork. 101 Loan also offers a full suite of services including Purchasing, Refinancing, Reverse Mortgages, and Commercial Loans.

 

For More Info, please contact:

101 Loan
Senior Mortgage Advisor
www.101Loan.com 
408-377-4123 o  650-465-8957  c   408-608-1921 f
101 Loan is located at: 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014
CA DRE #01205444  NMLS #326829

With the Downturn of the Stock Market, We Have a Solution for you!

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With a significant decline in the stock market, Retirees may have depleted a great deal of their reserves.  If over the age of 62 and a Home Owner, why not consider a Reverse Mortgage?  This may free up cash, pay off bills, cover future expenditures and provide those reserves that make us all sleep better at night!

Learn More about our Conforming or Jumbo Reverse Mortgage, both available with HELOC’s that provide:

  • No Monthly Mortgage Payments
  • Payment Free Equity Line of Credit
  • Cash-out with No Monthly Payments
  • Cash to Reinvest to Replenish Losses from Dow Dropping

For more info, please complete the following:

  1. What are your full name(s)?
  2. List your mobile number and property address?
  3. What is your birth-date (month and year only)?
  4. Please provide your homes estimated value and current mortgage balance?
  5. If you have a line of credit or fixed 2nd, what is the balance?
  6. What is your monthly income?
  7. Do you have any debts you would like paid off?
  8. Would you like cash out to invest or save?
  9. How would you describe your credit?

Note:  No credit report will be run and information will remain confidential.

If you have any questions or if you’d like to discuss the above, please contact me.  Thanks.

BTW…For more info, go here: https://101loan.com/reverse-mortgage-start/

All the Best, 

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.