The Reverse
Mortgage Alternative™
For Homeowners of Any Age

Many of the benefits of a reverse mortgage, with none of the strings attached.

By Bob Hanson, March 2008

We’ve all seen the television commercials. Actors like James Garner and Robert Wagner encouraging senior citizens to call a toll free number to get free information about a Reverse Mortgage -- a special government approved program that enables homeowners over age 62 – especially those with lots of equity in their homes -- to receive monthly income checks and yet pay no more mortgage payments. It’s a valuable program that has helped thousands of our older Americans live better lives.

But like every government program, there are some significant strings attached. For instance you must be 62 to apply. You must attend government sponsored counseling sessions before being approved. There are high closing costs. And the program stops if you decide to move out of your home for any reason. Yet for many people the benefits outweigh the costs. You see a reverse mortgage allows you to harvest the dormant equity otherwise locked in the walls of your home – either in one lump sum or in monthly installments – but does not require a monthly mortgage payment. That’s because the interest that is being charged by the mortgage every month is drawn from the remaining equity still left in the walls of the house.

But what if you would like many of the benefits of a reverse mortgage, but without all the government imposed limitations? Perhaps you are not yet 62 years old. Or perhaps you may want to someday move out of your current house and still keep it either for the kids, or as a second home, or even as an income producing investment property. Or maybe you would like to obtain these same benefits right now from a second home or investment property that would not qualify under the government program. Good news! Finally, there is an ideal program for you.

We call it the Reverse Mortgage Alternative™. And as the name suggests, it comes with many of the benefits of a reverse mortgage, with none of the strings attached. We begin by issuing you a first lien line of credit for up to 90% of your homes value. That line of credit is immediately used to pay off all of your existing mortgages and other liens, thus eliminating your mortgage payments to them. Now comes the best part.

You get a check book for the balance of the available equity. You have unlimited ability to put money towards your credit line, or draw money out of your credit line whenever you choose for any purpose. With such complete and flexible access to your homes equity, your financial cash flow stress is eliminated. The business owner with seasonal ups and downs in her monthly income can draw on her equity and skip mortgage payments in months of limited income. The retired couple of any age can draw money out in a lump sum to fund an annuity or simply draw a monthly check to supplement their living expenses – just like in a reverse mortgage. Whenever you choose, you need not make any mortgage payments towards the monthly interest that is charged. You may even choose to opt out of paying mortgage payments altogether. Your equity line will simply be charged each month for the interest that is due. You can finally have complete flexibility as to how and when you use your homes equity. And, unlike the government program, there is no problem if you later decide to move out of the home and keep it for other than your primary residence. You can even place this same program on your second home or investment properties.

To learn more about The Reverse Mortgage Alternative™ or to discuss your own situation in confidence, call us at 1-800-GREAT RATE (1-800-473-2872). Access to the advantages of a Reverse Mortgage are not limited to only folks over 62 anymore.

Be sure to listen to Bob and David Hanson host their syndicated radio program on WBIS 1190 AM in Annapolis on Mondays at 9am; Tues, Weds and Fri at 10am; Fri at 4 pm and Sun at 2pm; and on WAGE 1200 AM in Leesburg, Virginia weekdays at 3pm.

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