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Like Like most most time time deposit, deposit, funds funds can can not not withdrawn withdrawn before before maturity maturity without without paying paying a penalty. CD s CD s have have specific specific maturity maturity date, date, interest interest rate and itit can be issued inin any denomination denomination.. The The main main advantage advantage ofof CDCD isis their their safety safety.. Anyone Anyone can can earn earn more more than than aa saving saving account account interest interest..
What is Money Market? AsAs per per RBI RBI definitions definitions AA market market for for short short terms terms
financial financial assets assets that that are are close close substitute substitute for for money, money, facilitates facilitates the the exchange exchange ofof money money inin primary primary and and secondary secondary market market .. The The money money market market isis aa mechanism mechanism that that deals deals with with the the lending lending and and borrowing borrowing ofof short short term term funds funds (less (less than than one one year) year).. AA segment segment ofof the the financial financial market market inin which which financial financial instruments instruments with with high high liquidity liquidity and and very very short short maturities maturities are are traded traded.. ItIt doesn t doesn t actually actually deal deal inin cash cash oror money money
banks.. communication. ItIt isis not not aa single single homogeneous homogeneous market.. market. institution institution and and intermediaries intermediaries. individual. promissory promissory notes notes && govt govt papers papers which which can can converted converted into into cash cash without without any any loss loss atat low low transaction transaction cost cost.. ItIt includes includes allall individual.. 2 ! Features of Money Market? ItIt isis aa market market purely purely for for short short--terms terms funds funds oror financial financial assets assets called called near near money money.Continued Transaction Transaction have have toto bebe conducted conducted without without the the help help ofof brokers brokers. InIn Money Money Market Market transaction transaction can can not not take take place place formal formal like like stock stock exchange.. . acceptance acceptance houses houses && NBFC NBFC . market. bills. ItIt deals deals with with financial financial assets assets having having aa maturity maturity period period less less than than one one year year only only. relevant relevant document document and and written written communication communication transaction transaction can can bebe done done. acceptance acceptance && bill bill market market.. itit comprises comprises of of several several submarket submarket like like call call money money market. exchange. only only through through oral oral communication.but but deals deals with with substitute substitute ofof cash cash like like trade trade bills... The The component component ofof Money Money Market Market are are the the commercial commercial banks.
Answers to your reverse mortgage questions Presented by Diane Quitmeyer <Rep Name> Reverse Mortgage Consultant MetLife Bank 1 Would you like to live better today. CDs for more than $100. and be more prepared for the future? A reverse mortgage could help. APY: How The Distinction Affects You.05). the rates are rarely competitive.500 ($10. 3. APY is the total amount of interest you earn in one year. overall. the CD will have grown to $10.) nvestopedia explains Certificate Of Deposit . how much money you invest. Reverse Mortgage Powerpoint . without taking compounding into account. so it's important to shop around. At year's end.(Non (Non--banking banking financial financial companies) companies).000 are called "large CDs" or "jumbo CDs".000 are called "small CDs".. as well as some small CDs. the likelihood that a large bank will go broke is pretty slim. let's say that you purchase a $10. CDs of less than $100. Almost all large CDs. (To learn more. 4. .. While nearly every bank offers CDs. this action will often incur a penalty. the amount of interest you earn depends on a number of other factors such as the current interest rate environment. For example.Presentation Transcript 1. Ds offer a slightly higher yield than T-Bills because of the slightly higher default risk for a bank but. APR is simply the stated interest you earn in one year. A fundamental concept to understand when buying a CD is the difference between annual percentage yield (APY) andannual percentage rate (APR). Although it is still possible to withdraw the money. are negotiable. It is a time deposit that restricts holders from withdrawing funds on demand.000 CD with an interest rate of 5% compounded annually and a term of one year. Of course.000 * 1. the length of time and the particular bank you choose.. 2 What you should know Reverse mortgages are an important financial option Reverse mortgages can be an important part of living with less worry and fewer restraints It¶s to your advantage to get all the facts so you can make an informed decision 3 What is a reverse mortgage? A reverse mortgage can help many seniors with their financial needs: A loan that allows homeowners age 62+ to tap into their home equity You can use the proceeds for what you need It is not advisable to use reverse mortgage proceeds to make a financial investment since the costs of the loan may exceed the investment return You can even use a reverse mortgage to purchase a home 4 2. read APR vs.CD A certificate of deposit is a promissory note issued by a bank. taking compound interest into account.
How can you use the funds? Pay your monthly bills Fix up your home Pay for prescriptions and healthcare Retire your existing mortgage Make a major purchase or needed expenditure Travel Help your children or grandchildren However.to 4-unit dwelling to be occupied as principal residence. your reverse mortgage proceeds will first be used to pay off any existing mortgages Live in your home as your principal residence Meet U. Required independent counseling Ensure that you have the information you need to make the reverse mortgage decisions that are right for you HUD-approved counselors are available nationwide and locally ²you can meet face-to-face or receive your . What about your heirs? The loan can be repaid by selling the property. Department of Housing and Urban Development (HUD) minimum property standards 8 How does the program work? You choose how you want to receive your funds: ± Single lump sum of cash ± Monthly income for as long as you live in your home or. regardless of income or credit history One transaction with one closing simplifies the process *Only applicable for the purchase of a 1. homeowner¶s insurance. but you do not make monthly mortgage payments Your loan does not need to be repaid until the last borrower permanently moves out or passes away There are no income qualifications 5 6. Home Equity Conversion Mortgage (HECM) The vast majority of all reverse mortgages are HECMs Federally insured² when the loan becomes due. or to maintain the home OR The last surviving borrower passes away 13 14. including accrued interest on the money you took and accumulated monthly servicing and origination fees 9 7.S. When does the loan become due? All borrowers permanently move out of the home. homeowner¶s insurance. it is not advisable to use reverse mortgage proceeds to make a financial investment since the costs of the loan may exceed the investment return 11 12. HUD will pay the lender any shortfall between sale proceeds and amount owed Variable rates are tied to an established index²fees and interest rate margins are capped for your protection 6 HECM for Purchase Designed to help you purchase* a home using the proceeds from a reverse mortgage on that home You can be qualified. 9. you or your heirs repay the loan. such as Medicaid and Supplemental Security Income (SSI). and any home maintenance FACT: You do not need to make monthly mortgage payments² interest accrues on the portion of the loan amount disbursed FACT: There is no income qualification FACT: Your Social Security and Medicare benefits will generally not be affected 15 16. refinancing. 7 Who is eligible to apply? To qualify for a reverse mortgage. if you prefer. or don¶t live in it for 12 months OR You sell the home OR You fail to pay taxes or homeowner¶s insurance. A review of the facts FACT: The bank will not own your home²you continue to be responsible for paying property taxes. or using other assets²the choice is up to you or your heirs Any sale proceeds in excess of the loan balance belong to you or your heirs The lender can never claim from you or your estate more than the fair market price received if you sell the home²even if the loan balance exceeds that fair market value 14 15. Reverse mortgage facts You continue to live in and own your home The bank makes payments to you²that¶s why it¶s called a ³reverse´ mortgage You remain responsible for property taxes. 10. you must: Be age 62 or older Own your home²if you have an existing mortgage. How much can you get? The amount you can borrow depends on: Your age The type of reverse mortgage you select Current interest rates Location of your home Appraised value of your home Federal Housing Administration (FHA) lending limits 10 11.5. for a specified time period ± Line of credit you draw on as needed ± Any combination of these Closing costs can be rolled into the loan You continue to live in and retain the title to your home while you use your reverse mortgage proceeds When you leave the home. What about your government benefits? Reverse mortgage funds usually do not affect regular Social Security or Medicare benefits Needs-based benefits. may be affected Contact a tax professional about your particular situation 12 13. 8. and maintenance of the home.
your MetLife Bank reverse mortgage consultant or any other associate of MetLife Bank cannot provide guidance on the selection or scheduling of counseling appointments. For more information Call me at any time: Diane Quitmeyer <Rep Name> 314-556-4100 <Rep Phone Number> I¶m here to help! 20 . The next step is up to you I can help you with all of the process steps: Answering your questions Providing you with a list of HUD-approved local and nationwide independent counselors so that you can set up your independent counseling Completing your application Preparing for your closing Let¶s start with an informal conversation 19 20. Identity Theft Resolution Services MetLife Bank is among the first to offer this service to reverse mortgage customers Oneon-one assistance should you become an identity theft victim Help in restoring your credit and regaining control of your identity Ongoing monitoring services to watch for recurrences Identity Theft Resolution Services are provided by Identity Theft 911®. it is your choice. and more *Counselors are not employed by MetLife Bank. you will be presented with a list of local and nationwide HUD-approved counselors for you to choose from* Counseling is regulated for your protection. 17 18. currently at no additional charge* *Identity Theft Resolution Services are provided by Identity Theft 911®. and required before you can apply for a HECM reverse mortgage The service is designed to help you review your alternatives. Why MetLife Bank MetLife Bank is a MetLife company ± For more than 140 years. 16 17.counseling by phone. consider the financial implications. therefore. MetLife has been helping individuals and families ± MetLife is a trusted name in the financial services industry Reverse mortgage professionals to help with every step of the process Identity Theft Resolution Services. 18 19.