Reverse Mortgage Associates (RMA) main office is located in downtown Punta Gorda, Florida.

Loan officers are located throughout the state of Florida to meet the growing needs of its seniors. RMA specializes in all types of reverse mortgages and also has a senior financial advisor in the Punta Gorda office.

RMA is an approved FHA Lender and a Direct Loan Correspondent with the Financial Freedom Senior Funding Corporation, the largest servicer of reverse mortgage loans in the United States.

RMA also is a member of the National Reverse Mortgage Lenders Association (NRMLA) which is a national trade association for financial service companies that originate, service, and invest in reverse mortgages.

The employees at RMA look forward to meeting your reverse mortgage needs.

A traditional loan means borrowing a large sum from the bank and paying down that debt, which increases equity. With a reverse mortgage the opposite happens: the equity is paid out to you and the loan balance accumulates over the years, reducing the equity. However, most real estate appreciates over the life of the loan, which means you will probably always be in an equity position.
In addition, today’s reverse mortgage guarantees that the amount of the repayment will never exceed the home’s value.
A reverse mortgage is a powerful tool for realizing your dreams, keeping up with expenses and planning for your heirs.

Reverse Mortgage Associates has a representative near you.

Your personal envoy to a new chapter in your life – your loan officer – is an expert in this specialized field of finance.

He or she will guide you through the process and make it an easy and enjoyable experience to secure a reverse mortgage. See the back page of this brochure for more information about your representative.

The amount you can borrow depends on:

• Age of the youngest borrower
• Current interest rate
• Lesser of the appraised value of your home, the HECM FHA mortgage limit for your area or the sales price
• The initial Mortgage Insurance Premium (MIP) option you choose (2% HECM Standard option or .01% HECM Saver option)

You can borrow more with the HECM Standard option. Also, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow. If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow. For an estimate of HECM cash benefits, select an online calculator from the HECM Home Page. You can use an like the one on the AARP website to get an idea of what you may be able to borrow.

What is the difference between a reverse mortgage and a bank home equity loan?

The reverse mortgage is different in that it pays you, and is available regardless of your current income.

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA’s mortgage limits, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you may borrow.

With a HECM, you don’t make monthly principal and interest payments, the lender pays you according to the payment plan you select.

Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities.

With an FHA HECM you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash.

The equity that built up over years of home mortgage payments can be paid to you.

But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence or fail to meet the obligations of the mortgage.

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

These mortgages are generally used by older people who have accumulated a substantial amount of equity in their home. Most lenders require the borrower to be at least 62 years of age. Reverse mortgages are a good way for them to subsidize their retirement income.

The way a reverse mortgage works is by the lender making payments to you based on the value of the equity in your home as opposed to you making payments to a lender with a traditional mortgage.

Taxes and interest are added to the amount that needs repaid, decreasing the equity in the home. The lender gets their money after the house is sold or when the owner dies.

Most reverse mortgages do not have to be repaid for a long time and some not at all, as long as you continue to live in the property. The amount you are loaned is based on your age, the value of your home and the current interest rates.

Your loan is usually disbursed in one of the following ways:

A lump sum that is given to you or used to pay off debt or a combination of the two.
Fixed monthly payments that will be made to you for a set period of time.
Fixed monthly payments that will be made to you as long as you live in the home. These payments will be smaller than the ones in the previous option.

As a line of credit.
As a combination of a credit line and one of the payment options.
Some potential drawbacks of reverse mortgages are:
You can only use your equity once. If you use it to live on and have an emergency later it will not be there.
There can be substantial fees involved with reverse mortgages. There may be upfront fees as high as $5000 dollars. It is wise to do some comparative shopping when it comes to this type of financing.
Your payment amount may not meet your needs. How much good will $100 a month do you if it is going to cost you the equity in your home?
Your ability to receive government pay outs such as SSI and Medicaid may be affected.
Make sure your lender is reputable. The names of reputable lenders can be gotten from the Department of Housing Urban Development.
Upon death, if repayment has not been made, your home will go to the lender. This may not necessarily be a bad thing, but it is something to consider.

These are a few of the facts about reverse mortgages. These mortgages can be a big help if you need money later on in life, but they also come at a price. Only you can decide, based on your situation, if that price is worth paying.