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Nick Hall
Broker Associate
Coldwell Banker Premier Real Estate

48 South Ocean Avenue
Cayucos, CA 93430
Phone: 805-458-4544
Fax: 805-995-3657
Email: nickhall@sceniccoastrealty.com

Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

Nick Hall

Reverse Mortgage
A Reverse Mortgage Defined
A reverse mortgage is a special type of loan used by senior homeowners to convert part of the equity in their home into cash or tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The money from a reverse mortgage can provide seniors with the financial security they need to enjoy their retirement years to the fullest.

The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you.

While a reverse mortgage loan is outstanding, you continue to own the home.

You Will Never Be Forced Out of Your Home
Borrowers will never, under any circumstance resulting from the reverse mortgage, be forced to leave their homes providing they pay their real estate property tax and insurance premiums.

Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for up to life), or a line of credit, or as a combination of monthly income and line of credit. No mortgage payments are due during the life of the loan. Borrowers can use the funds anyway they wish. Borrowers make no monthly payments on a reverse mortgage during its term. The loan becomes repayable when the borrower sells the home or permanently moves out. In addition, the repayment amount can't exceed the value of the home.

What can the Money Be Used For?
The money from a reverse mortgage can be used for ANYTHING, including the following:
  • Daily living expenses
  • Home repairs and home modifications
  • Medical bills and prescription drugs
  • Pay-off of existing debts
  • Continuing education
  • Travel
  • Long-term health care
  • Prevention of foreclosure, and other needs.
If your home needs physical repairs (mandatory repairs) in order to qualify for a reverse mortgage, a portion of the proceeds will be set aside for this purpose.

To qualify for a reverse mortgage, you must be at least 62 years old and own your own home. There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. In fact, many seniors get a reverse mortgage to pay off a first mortgage.

Options on How to Receive Money from a Reverse Mortgage.
  • All at once (lump sum)
  • Fixed monthly payments (for up to life)
  • A line of credit
  • A combination of these
  • The most popular option - chosen by more than 60% of borrowers - is the line of credit, which allows you to draw on the loan proceeds at any time
The size of the reverse mortgage you can receive depends on:
  • Your age at the time you apply for the loan
  • The type of reverse mortgage you choose
  • The value of your home
  • Current interest rates
  • And - sometimes - where you live.
In general, the older you are and the more valuable your home (and the less you owe on your home), the larger the reverse mortgage can be

What Costs are Associated With a Reverse Mortgage?
They include the origination fee (which can be financed as part of the mortgage), an appraisal fee, and other charges similar to those for regular mortgages.

The money provided to you from a reverse mortgage is tax-free, and does not affect regular Social Security or Medicare benefits. However, the funds received from a reverse mortgage may affect your eligibility for certain kinds of government assistance, such as Medicaid or state assistance programs. So, you should check into this before getting a reverse mortgage. To do this, you may wish to consult with your local Area Agency on Aging (to locate, call 1-800-677-1116, or visit http://www.www.eldercare.gov), a reverse mortgage lender, or a tax attorney.

How Do I Begin the Process?
Before applying for a reverse mortgage, you must first meet with a reverse mortgage counselor. You may, however, first approach a reverse mortgage lender, who can provide you with the names of approved counseling agencies in your area. A list of approved counseling agencies nationwide is posted on the Internet by the U.S. Department of Housing and Urban Development. http://www.hud.gov/buying/rvrsmort.cfm

The counselor will educate you about reverse mortgages, and inform you of other alternative options given your situation, as well as assist you in determining which particular reverse mortgage product best fits your needs.

No payments are due on a reverse mortgage while it is outstanding. The loan becomes due and payable when you cease to occupy your home as a principal residence. This can occur if you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out.

Where can I get a Reverse Mortgage?
They are offered by banks, mortgage companies, and other financial institutions.

In the U.S., the most popular reverse mortgage is the federally-insured reverse mortgage, called the FHA Home Equity Conversion Mortgage Program (HECM). The other major product is the Home Keeper reverse mortgage, developed in the mid-1990s by Fannie Mae, a private national mortgage company. One "jumbo" private reverse mortgage product, designed to accommodate seniors living in higher-priced homes, is offered by Financial Freedom Senior Funding Corp. of Irvine, CA. This is the Cash Account Plan. The HECM and Home Keeper products are available in every state, while Financial Freedom's product is offered in 21 states and the District of Columbia.


Nick Hall
Coldwell Banker Liberty Realty
48 South Ocean Avenue
Cayucos, CA 93430
Business Phone: 805-458-4544
Business Fax: 805-995-3657

       
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Testimonials

We highly recommend Nick Hall - Nick brought this property to our attention while keeping us abreast of listings in the market that met our criteria. We have been working with Nick for some time and he has been very competent and professional and we highly recommend him. Lane and Sylvia B., San Luis Obispo
Nick has been an exemplary sales associate and satisfied our every need. Mike and Nell L., San Luis Obispo
Nick was wonderful, helpful and attentive to our wishes and very diplomatic and professional when working with others involved in our transaction. Nick was a great advocate and definitely on our side and I think he went the extra mile more than once. Kenneth and Catherine C., Cambria
Nick showed us several properties and found us our home in Avila Beach. He was wonderful to work with and his guidance and thoroughness throughout the sale were exceptional Glenn and Jennifer V., Avila Beach
Nick is excellent at his job! Michael and Dew, San Luis Obispo
We enjoyed working with Nick - he was great! Lee and Christine J., Morro Bay
We were very pleased with Nick who was very thorough and very available. Douglas and Sally P., San Luis Obispo
Nick Hall is outstanding! He made himself available to us for all of our questions, concerns and comments all throughout the time, in a very professional manner.Nick had great suggestions and resources for us to tap into and it was a pleasure to work with him. Keep up the good work and thank you very much for your help and assistance. We cannot say enough good things about working with Nick, we found a friend in him. Nathaniel and Sonia D, San Luis Obispo
Nick's communication was excellent and he was very helpful to us. Esteban and Stella E, Cambria
We found Nick on the Internet and he was great to work with, low key and no pressure. Dennis and Judy P, Morro Bay
Nick was fantastic to work with and represents his firm with excellence. He quickly understood our wants and needs and represented us well and we would choose him again as our agent in the future. Andrew and Cheryl H, Templeton
Nick was very helpful and excellent to work with and handled everything for us. Dominic and Maura G, San Simeon
Nick was very personable, efficient and professional to work with and we were very pleased with his representation. Mervin and Patricia S, Los Osos
Nick was outstanding - professional, knowledgeable and courteous and never pushy and we were very satisfied and would choose Nick again. Claude and Cheryl C, Cambria
Nick was very accommodating and friendly and went above and beyond the call of duty. How do you improve on perfection? Rowena L, Cambria
Nick has been a wonderful agent and always in our corner in negotiations and although others in our transactions were difficult to do business with Nick dealt with them very well to our advantage and we would definitely choose him as our agent in the future. John and Helene Z, San Luis Obispo
Nick thank you for a smooth transaction, it was a pleasure working with you and I look forward to doing business with you again in the future. Narlene C, San Luis Obispo
Nick was very professional and thorough and provided excellent service. James and Barbara Q, San Luis Obispo
Nick was extremely helpful, communicating many times each day throughout and was very reliable in every way. He is a true man of integrity, very rare in the business world today. We have appreciated him and will call on him when we sell. Michael and Joy P, San Luis Obispo
Nick's advice and service were excellent and we would choose him again in the future. Tim and Marguerite B, San Luis Obispo
Nick is a fine person and agent and always low key. Richard and Marguerite P, Atascadero
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