The Frederick County Guide Spring 2016 | Page 23

REA L E S TAT E The borrower may receive a lump sum initially or she may elect to receive a monthly amount to help cover living expenses or a combination of both lump sum and monthly amounts. The borrower may elect not to receive any money initially and keep the account open as a line of credit to be available whenever it is needed for unexpected home repairs or medical expenses. The balance of a reverse mortgage increases as the borrower withdraws funds. Some people’s perceptions about reverse mortgages are most likely based on some truths about early abuses and lingering fears and misinformation. Before the 2007-08 federal regulations were put in place, some lenders charged exorbitant fees; now fees are capped. Borrowers were not advised that they must continue to pay their real estate taxes and maintain homeowners insurance; now borrowers must participate in pre-lending counseling, provided by an independent, federally approved counselor prior to applying for a reverse mortgage so that they fully understand the benefits, alternatives and obligations. In order to further protect the borrower from negative consequences of not paying taxes and insurance, the borrower may include a Lifetime Expectancy Set- Aside (LESA) that automatically pays the taxes and insurances for them. I decided that a reverse mortgage was the best solution for me and was able to withdraw enough equity to pay the settlement agreement with my now ex-husband and remain in my lovely home. A year later I withdrew another lump sum and paid off a large credit card debt and bought a new car. Without having to make mortgage payments, pay credit card fees or a car payment, my monthly income allows me to enjoy my retirement life. I am so convinced many others would benefit from having a reverse mortgage that I obtained my license as a mortgage loan officer and was hired by the company that I selected for my own reverse mortgage, Atlantic Home Equity, so that I may help others. + Contact C. Hillal Eastburn at 301-676-9421 or [email protected]. Real Teams, Real Estate Estate Teams, The Frederick County Guide Specializing Specializing in in Frederick Real Estate! Frederick Real Estate! Jerry Broker,,GRI GRI Jerry Coates Coates, Associate Broker Jennifer Coates-Wang , REALTOR®, GRI Jennifer Coates-Wang REALTOR®, GRI 240-578-3235 broker(o) (o) 240-578-3235 Direct Direct 301-695-3020 301-695-3020 broker www.facebook.com/TheLandmarkGroupRE www.facebook.com/TheLandmarkGroupRE http://TheLandmarkGroup.us website http://TheLandmarkGroup.us website Military Relocation Professional Military Relocation Professional SPRING 2016 | FREDERICK COUNTY GUIDE 23