Silver Leaf Mortgage

    ABOUT US SILVER LEAF MORTGAGE is a local brokerage serving all of Colorado. Our office is in Centennial, allowing us to visit personally with most of our clients in the Denver metro area and beyond. Our specialty is helping seniors improve their financial position and lives with the benefit of a Reverse Mortgage.  We take a personal interest in each client often assisting them in getting their home repaired, tidied and ready for an appraisal.

    Our Mission: “To love and serve our clients well!”SliderMulitipicBob Muni has been married to Kathy for 40 yrs. They have 5 married children and 7 grandchildren. Bob has been in the Mortgage lending and Real Estate business for over 25 years following a career as a missionary/pastor. He has closed well over 1500 transactions, providing a wealth of knowledge and experience to serve his clients well.

    bob muniBob is passionate about Reverse Mortgages and loves to educate folks about them, so they can make great decisions about their future.

    WHY A REVERSE MORTGAGE? Sam and Judy are both nearing 70. Retirement has not turned out the way they dreamed it would. Every month is a struggle financially. They live the “more month than money” syndrome. Their combined Social Security totals just under $2400 month. They had to start withdrawing at 63, well before they intended. This led to a significant reduction in their monthly payment. They had planned to withdraw at 70 to get the maximum payment. BUT their retirement account did not recover enough from the 2007 crash. It is nowhere near where they had hoped. Then there were the unexpected medical expenses, the furnace went out, the roof had to be replaced after 20 years…. life regularly happened. They didn’t want to take funds from retirement but had no choice They are drawing less than $1000/month from their retirement and it is going faster than planned due to the much lower rate of return than expected. The funds may not last another 5 years. Their mortgage payment is almost $1500 month. With the other bills and the high medical expenses, they are regularly short $500/month to cover all their expenses. Food is from the foodbank some months.  Every month is a juggling act and their credit cards have never been this high. Gone were the dreams of living a comfortable life, able to pay the bills, keep an emergency fund, having enough to travel to the kids a couple of times a year, maybe a vacation occasionally. Nothing fancy, just not so hard like it is now. In fact, when they went to see about refinancing to get a lower payment and some money out, they found their struggles, not paying bills sometimes and the couple of late payments on their mortgage kept them from refinancing. Their credit score had never been this low at 520. They felt trapped. Unfortunately, this scenario is one we regularly hear when talking to people about the benefits of a reverse mortgage. We have helped many people in this situation, often with tears of relief and gratitude after they close and their financial strains are alleviated. Most wish they had done so sooner. Here is how it might look if Sam and Judy were to seek help with a reverse mortgage. Even though only one party needs to meet the minimum age requirement of 62, both Sam and Judy qualify. They bought their home 25 years ago and planned for it to be paid off. However, they still owe $150,000 from their last refinance 8 years ago. Fortunately, their home value benefited from the strong market and it is now valued at $400,000.  They can’t currently access any of their equity unless they sell. Where would they live? They want to age in place in this home. When they finally met with a Reverse Mortgage specialist, they found hope. Their credit score was not an issue. They didn’t have to qualify in the same way as a traditional mortgage either, so their Debt-to-income was not a problem, nor were the late mortgage payments. In fact, they found they could be in the process of a foreclosure and still qualify.   The Reverse Mortgage specialist ran their numbers. Sam and Judy were amazed. They could pay off their current loan and have no mortgage payment. Not only that, they would get a check at closing for over $20K and have access to an additional $40K after 1 year. They were surprised that the line of credit was accumulating interest tax free at almost 5%.  That was better return than many investments. It was impressed on them they must make payment for property taxes and insurance every year. This was not going to be a problem with the mortgage payment gone. They could also pay off some debt with the funds from closing and still have enough to cover an emergency. Instead of being in the hole about $500 every month, they now were going to have $600+ left over as a cushion. Saving for a trip was now something they could make happen. There were several concerns and fears they had from things they had heard over the years. They found there had been significant changes in 2013-2015 by the government to Reverse Mortgages addressing the previous issues. They were relieved to find out their concerns were unfounded. 1)     They bank did not own the house, they did. They could sell it at any time and they would still get whatever equity was available. 2)     Since they lived through the big real estate bust it was great to find out they would never owe more than the house was worth. It was a non-recourse loan. The money paid to FHA as part of the closing costs (about 2% of the appraised value) was how the government insured the loan. 3)     When they and the advisor discussed the interest rate and market appreciation, they realized that the value of the home was growing at 6% in their area. That was higher than the interest rate. If that continued for the next few years, their equity could actually grow. Their concern there would be no equity for their kids was lessened. 4)     If one spouse passed on, the other spouse could continue to live there under the same conditions. Sam was comforted to know Judy would be taken care of should he pass first. His health was becoming an issue. Once both passed on, the heirs would have a year to sell or could buy the house at 95% of appraised value, no matter how much was still owed. 5)     The costs were much more reasonable than expected not much more than a traditional mortgage, especially after their loan officer gave them a credit for some of the fees. They wished they had discovered a reverse mortgage years ago. They could have made it a few more years without Social Security. Their Social Security payments would be much higher. OR they could have delayed withdrawals from their retirement account, allowing it to grow and last longer. Either would have put them in a much better position than they currently were in. DOES THIS ACCOUNT RESEMBLE YOUR SITUATION?  ONE OF A FAMILY MEMBER? If so, please do yourself or your family member a favor, contact me for a free no obligation consultation. **This is a fictional account of actual circumstances. The Reverse Mortgage numbers are real for the situation given.**
    REVERSE MORTGAGE: RETIREMENT PLANNING TOOL FOR BOOMERS Significant changes by the government in 2013-2015 removed the issues people had with Reverse Mortgages that led to some of the negative stories giving them a less than stellar reputation. The changes, resolving those issues, prompted a new look at the product, its advantages and benefits. The boomer generation is reaching its peak numbers of those arriving at the doorstep of retirement. However, many are delaying retirement and working late into their 60′s and some into 70′s. For many Boomers, the plans for retirement didn’t pan out. The economic recession decimated many retirement accounts. Interest rates on their savings have been near 0%, not a formula for growth. The stock crash left many risk averse to a repeat, seeking safer investments with smaller returns. Rather than enjoying the fruit of their labor they struggle to just get back to where they were 10 years ago. Those willing to take the plunge into retirement often face the decision to tap into Social Security at 62 and draw much less monthly than if they could wait till 65, 67 or even 70. Monthly benefits increase by 30% and more if you can wait. Many retirees are faced with a smaller retirement portfolio growing at a slower rate. The rate of withdrawal (how much taken each month) from a retirement account to allow it to last the number of years expected likely must decrease OR they have to plan on the funds running out sooner. Neither is a good proposition. A frugal, often muted existence replaces one of a hoped for life with enough resources to enjoy retirement. There is another solution. Many Boomers own their home and even if not fully paid off have lots of equity. It is becoming increasingly popular for Boomers to use the equity in their home to help make up the difference in retirement. They can access the equity with a Reverse Mortgage, also eliminating the current mortgage and payment. ALSO, they can age in place for as long as either spouse is alive and living in the home. Imagine how eliminating just the mortgage payment can help stretch retirement dollars. They do have to pay property taxes and insurance, often only a fraction of the previous mortgage payment. In addition to paying off the mortgage, there is often enough equity to have a line of credit. Some of the funds can be accessed at closing and the remainder a year later. All the funds are tax free. Whatever is in the line of credit is also growing, earning interest at approximately 5%, again, tax free. If there was enough equity to receive a $200,000 line of credit growing at 5%, one could add an additional $10K to their annual income and never touch the principal. The line of credit can be used by a retiree to fund or supplement the first few years of retirement until they maximize their Social Security benefit and retirement funds. Retirement funds can grow a few more years and hopefully see a rise in the rate of return as well. Another strategy is to alternate between using the retirement funds and line of credit depending on which is more advantageous to use. If the retirement account is getting low rates of return, don’t tap into the principal, use the line of credit instead. Keep the retirement account intact extending its life. These are just a few of the smart successful strategies Boomers are beginning to use to extend and enjoy their retirement. If you have questions and want to find out if a Reverse Mortgage is a good fit for you, as well the options it may provide, contact me for a free consultation. BOB MUNI, Sr. Loan Officer/Reverse Mortgage Specialist NMLS # 719030 6972 S. Vine Street #366 / Centennial, CO 80122 DIRECT:  720-458-4027 CELL: 303-588-1335 FAX: 720-440-9046 BobM@silverleafmortgages.com SilverLeafMortgages.com