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Laura Gaida
Reverse Mortgage Originator

A Reverse Mortgage Solution
That Works For You

Reverse Mortgage Loans are an innovative way to give you peace of mind when entering retirement.

There are many components to a Reverse Mortgage.  Below we explain the Who/When,  What, and Why, of this mortgage.  Our goal is to help you understand the entire process, financial elements, and benefits of a Reverse Mortgage – to make an INFORMED decision if it is the right mortgage for you and everyone involved.

WHAT IS A REVERSE MORTGAGE?

Technically, it’s labeled as a Home Equity Conversion Mortgage (HECM). You can read more about it on the U.S. Department of Housing & Urban Development’s website here

A Reverse Mortgage is a Federal Housing Administration (FHA) insured loan that enables you to access a portion of your home’s equity without having to make monthly mortgage payments.    Just like a regular mortgage, you are still responsible for the payment of your property taxes and homeowner’s insurance; however, with a Reverse Mortgage – borrowers are not required to make payments of principal and interest.  You can even purchase a NEW home with a reverse mortgage.

Two Types of Reverse Mortgage Loans

1. Reverse Mortgage Loan on Existing Home with Equity

Borrowers can choose from a fixed-rate (lump sum payout) or adjustable-rate loan. The adjustable rate is based on the Constant Maturity Treasury Rate (CMTR).

2. Reverse Mortgage Loan for New Home Purchase

The Reverse Mortgage for Purchase requires a down payment. When you take out a conventional Reverse Mortgage, the loan proceeds are based on the equity in your home; with this product, you put the equity in your home by means of the down payment. 
The down payment amount is approximately 50% and 67% of the purchase price, depending on the buyer’s age. Your portion of the down payment can come from savings, the sale of a home, or a gift from a family member – it cannot be borrowed.

Your Disbursement Options in Reverse Lending

Fixed-rate Reverse Mortgage Loan: you receive one lump sum payout.
Adjustable-rate Reverse Mortgage Loan, you can select 1 of the 4 options listed:
  • Tenure: Equal monthly payments.
  • Term: Equal monthly payments for a fixed period of months selected by the borrower.
  • Line of Credit: Draw at any time and in any amount of your choosing, until the line of credit is exhausted.
  • Modified Tenure: Combination of line of credit plus scheduled monthly payments.

Who Is Eligible?

Key requirements include:
  1. One of the borrowers must be at least 62 years of age.
  2. Live in your home as your primary residence (6 months + one day) and have sufficient equity.
  3. Cannot be delinquent on Federal debt.
  4. Property must be a single-family residence, an owner occupied 2–4-unit home, condominium approved by the Department of Housing and Urban Development (HUD), or a manufactured home on land you own (not rented).
  5. Meet financial assessment requirements established by HUD. 

Why Should You Consider a Reverse Mortgage?

The New Reverse Mortgage loans have built-in safeguards to protect you and your home.

We advise our clients to invite whomever they feel needs to be informed of this decision to the counseling session. The goal is for the borrower(s) to make an informed decision.

When you hear the words “reverse mortgage” some people think “they are bad – families lost their homes during the recession!” That is true – however – the industry and federal government saw the flaws in these loans and built in safeguards to protect the consumer

Safeguards:

Mandatory Mortgage Insurance - (FHA) Insured

There is an up-front 2% mortgage insurance premium (MIP) fee on the appraised value of the home at closing and .5% annually over the life of the loan. This mortgage insurance protects the borrower and their heirs in the event the loan balance is higher than the home’s value when the loan becomes due and payable. Your heirs will not be responsible for paying the difference between the loan amount and the home’s value. Which means – if home values drop – you do not have to pay a penny over the home’s value (even if your loan is more)! Making this a non-recourse loan.

Third-Party Independent Counseling

Once you decide to move forward with a Reverse Mortgage and prior to completion of your application – borrowers must complete an independent HUD approved counseling session. The counselor will go over every aspect of the Reverse Mortgage Loan Comparison sheet provided to you by Compass Mortgage to help you understand the process, fees, obligations, and benefits/consequences of each reverse mortgage option. They are the 3rd party verifying everything we are quoting you is accurate and correct.

Eligible Non-Borrowing Spouse Protection

A non-borrowing spouse (under age 62) can be designated, at origination of loan, to have repayment of the reverse mortgage deferred if the borrowing spouse leaves the home.   This allows the non-borrowing spouse to continue to:  occupy the home, pay property taxes,  homeowner’s insurance,  and maintain the property until they leave the home.

Capped Interest Rates

If your loan has an adjustable interest rate, there is a limit on how much the interest rate can change each time it adjusts, as well as, over the life of the loan.

No Prepayment Penalty

The Reverse Mortgage loan can be repaid at any time – in part or in full – without penalty.   Borrowers who have opted for the Home Equity Line of Credit have purchased motor homes, toured for a bit, sold the motor home, and put the money back into the credit line!

What are the benefits of reverse Mortgages?

The 7 Top Benefits of Reverse Mortgages:

  1. Age in place and retain title and ownership of your home. 
  2. Refinance existing mortgage debt and eliminate monthly mortgage payments.
  3. Access the equity in your home for increased cash flow.
  4. In most cases, proceeds are not taxed as income and can be used for anything you choose. We recommend you discuss this with your financial adviser – all situations are different.
  5. Heirs inherit any remaining equity in your home after paying off the balance of the loan. If the appraised value of the home is lower than the balance you owe – the heirs ONLY PAY THE APPRAISED VALUE. This is why you have the upfront FHA insurance – so you will never have to pay back more than the value of the home. 
  6. FHA insured loan. The upfront fee is 2% of the appraised value of the home and .5% annually on the loan balance.
  7. A Reverse Mortgage for Purchase allows the borrower to put less money down on a new home – giving you the freedom to use that cash any way you like.  Think of the possibilities!

Reasons our clients say they chose a reverse mortgage.

  • “We eliminated our monthly mortgage payment.”
  • “Gave us access to a line of credit we use for whatever we need, whenever we need it.”
  • “To maximize our retirement income, our Financial Planner recommended we get the line of credit to use between actual retirement and receiving social security & other disbursements.  We can pay down the balance, at any time, if we choose to.”
  • “It has always been our plan to sell the big house and move into something more manageable.  Purchasing our new home with a Reverse Mortgage keeps lots more cash in our pocket to enjoy with family and friends NOW.”
  • “We have lived in our home over 40 years, and it needs renovating.  The Reverse Mortgage allows us to make necessary changes and not worry about repayment.”
  • “Losing my spouse also meant losing part of the income that pays the bills.  The Reverse Mortgage helps pay the financial commitments and allows me to live in my own home until I choose to leave.”

What is the Reverse Mortgage Process?

The process to obtain a Reverse Mortgage is simple but it’s helpful to know what you can expect.

Here’s Our Reverse Mortgage Process:

Reverse Mortgage Specialist (by phone, Zoom, or in person) to discuss your financial needs and goals. She will ask your name, birthdate, address, and price of the new home if you are purchasing or mortgage balance of your current home. She will generate a Loan Comparison showing you the options available – including all fees involved.

If you decide to move forward – we begin the loan application process

We will provide you a list of HUD-Approved Counselors to choose from. They will explain and answer questions regarding the information provided on your Reverse Mortgage Loan Comparison Sheet. We advise our clients to invite whomever they feel needs to be informed of this decision to the counseling session. The goal is for the borrower(s) to verify everything Laura is telling them is correct, then make an informed decision.

 

The Borrowers will provide all documentation required to process the application.  Including: Social Security card, current Social Security Award Letter, Drivers License or State ID, Financial statements – you will be given a full list.

A property appraisal will be performed to determine the value of your home. This is a key factor in determining how much money you qualify for. Borrower’s age, amount of liabilities, credit history are all taken into consideration when determining this amount.

Completing the final paperwork for the loan and choose a closing date!

Meet Laura gaida

Laura Gaida

Loan Officer, Compass Mortgage

Laura Gaida

Your Reverse Home Lending Expert

No Social Security Number is Needed For A Consultation And Initial Reverse Mortgage Comparison.  We Are Local To Central Florida And Will Work With You To Protect Your Confidential Documents.  We Will Even Scan And Upload Your Documents For You!

Laura’s diverse background as a Small Business Consultant, Business Owner, Executive Assistant, American Business Women’s Association Member, Parent of 4 children, and Volunteer, has given her the skills and expertise to become a Loan Officer. 

As part of the “Sandwich Generation”, she continuously helps family, friends, business associates, and clients with aging parents – working to develop a plan for successful retirement.  She provides a safe/comfortable environment, catering to “non-tech-savvy” adults that still want to meet in person and get to know the individual they are entrusting with their mortgage.  Because of Laura’s unique skill set and diverse variety of relationships, she is fast becoming the go-to person for Reverse Mortgage in the State of Florida.

Laura is an Award-Winning Past President of the Lakeland Downtown Chapter of the American Business Woman’s Association.  An organization that works to help women attain personal and professional skills to advance their careers.  Just rolling off 5 years of serving on the Executive Board as Secretary, Vice President, President, and Treasurer for the last 2 years – currently a Chapter Advisor.  She is also a founding member of the new Referral Networking Group – CORE Lakeland and a Mentor of Teen Moms for Young Life in Polk County, Florida.

Laura Gaida is the professional that will work tirelessly to make your loan experience seamless. She is happy to answer any questions you have – no obligations.  Just fill out the contact for and Laura will call or email you.

 

Organizations Laura works and/or volunteers with:

CORE, ABWA, Young Life, BLFS, Blended Family Foundation

Contact Laura, today:

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We Will Help You Every Step Of The Way because You deserve the best Loan Options

We are here to help you access a portion of your home’s equity and make the most of your retirement years.

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