Senior Equity Financial, Inc.

The SEF Difference

> Choose the program that’s right for you.

At Senior Equity Financial, we specialize in helping you choose the program that best meets your needs – today and in the future. There are three basic types of reverse mortgages:

Federally insured Home Equity Conversion Mortgages (HECM)

HECMs were the first regulated programs on the market. Today, they are the most popular reverse mortgages, accounting for an estimated 90 percent of the total market. Available since 1989, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development.

Fannie Mae Home Keeper®

In 1996, Fannie Mae developed its own proprietary Home Keeper® reverse mortgage as a conventional market alternative to offer homeowners more options. This program is not as popular as the HECM, but it does help in certain situations.

Jumbo Reverse Mortgages

Jumbo Reverse Mortgages, or what some call Proprietary Reverse Mortgages, were developed to address unmet needs that could not be served by the HECM and Home Keeper® programs, specifically addressing the situation for individuals with higher property values. Jumbo Reverse Mortgages are not insured by the federal government, but feature many of the important consumer protections and benefits of the government programs, including mandatory counseling.

Helping you make the right decisions

One of the most important decisions you’ll have to make is how you’ll access your funds. By understanding how you plan to use the proceeds from your reverse mortgage, we can help you make the decision that’s right for you. Below are the five basic options – and who might benefit from each. It is important to note that with the exception of the lump sum option, it is possible to change the way you receive your payment at any time over the life of the loan.

Lump sum option

When you choose the lump sum option, you take the entire proceeds from your reverse mortgage at one time. Because interest starts accruing on the monies the day you borrow them, a lump sum only makes sense if there is a good use for the money—such as reducing mortgage payments— even though the interest doesn’t have to be paid back until the home is sold.

Why a lump sum:

Pay off current mortgage or equity loan (cannot exceed monies available) Purchase 2nd home Home repairs

CLICK HERE FOR A REAL LIFE EXAMPLE OF THE LUMP SUM OPTION

Lifetime monthly advance option

With the lifetime monthly advance option, you can elect to receive your proceeds as a tax-free amount of cash every month for as long as you live in your home. The monthly advance will be guaranteed, even if you ultimately receive more than your home is worth. This option makes sense for those who wish to supplement their social security or pension— or who wish to preserve taxable assets.

Why a lifetime monthly advance:

Supplement monthly living expenses
Pay for long-term care insurance
Offset drawing down taxable investments to preserve their assets

CLICK HERE FOR A REAL LIFE EXAMPLE OF LIFETIME MONTHLY ADVANCE OPTION

Term monthly advance option

With the term monthly advance option, you arrange to receive your reverse mortgage monies in monthly payments for a specified amount of time. After that time, you will have completely used up your proceeds. Because this approach usually enables you to receive larger monthly payments, it is most often used when in-home care will be needed for a limited amount of time.

Why a term advance:

Pay for in-home care
Receive higher monthly advance

CLICK HERE FOR A REAL LIFE EXAMPLE OF TERM ADVANCE OPTION

Line of credit option

With the line of credit option, you make withdrawals, whenever you want, in the amount of your choosing, though not to exceed the amount of your loan. A unique feature of the line of credit is that the amount of money available to you will continue to grow over time based on the interest rate charged on the monies borrowed. This growth is regardless of future home value and will grow, even if your home depreciates.

Why a line of credit:

Maximize future available monies
Security of having a rainy day fund
Access money as you need it

CLICK HERE FOR A REAL LIFE EXAMPLE OF THE LINE OF CREDIT OPTION

Combination plan option

The combination plan option gives the borrower the most flexibility—which is why it is the most popular option. You can tailor it to meet your needs today – and have the ability to adjust it as your needs change in the future.

Why a combination plan?

Combines a lump sum, monthly advance, and line of credit
Most common plan option

CLICK HERE FOR A REAL LIFE EXAMPLE OF THE COMBINATION PLAN OPTION

If you’re interested in learning more about reverse mortgages, Senior Equity Financial has the experience to help you understand the options and find the reverse mortgage that’s specifically tailored to fit your financial needs. Just call us at (800) 261-8507.

With Senior Equity Financial, your needs come first.