Being creative with a Reverse Mortgage

Continuing the series on Reverse Mortgages, I thought it would be beneficial to note some of the creative ways seniors are using the funds received through this special loan. Most seniors use a Reverse Mortgage to help close a gap between their retirement expenses and their retirement income.

According to NewRetirement.com, these loans can help with medical expenses and also estate and retirement planning.

Medical needs met through a Reverse Mortgage:

• Funding for healthcare, medical treatment that medicare or your insurance does not cover
• Funding for long-term care and/or long-term care insurance
• Funding for life insurance to leave something to your heirs

Reverse Mortgages and estate planning:

• The loan lowers the total value of your estate, which will lower the estate tax liability
• Life insurance policies pay the benefits to your heirs, which will be in tax-free dollars, leaving your heirs a guaranteed sum, rather than the entire value of your home being at the mercy of the real estate market.

Before making any decision that will affect your retirement planning, discuss this with a trusted Reverse Mortgage Lender and also your financial advisor.

Reverse mortgages are NOT too good to be true

Is there such a thing as a loan you don't have to make payments on? For some, the answer is "yes". Does that sound too good to be true?

If you're a senior, and need cash (for whatever reason), a Reverse Mortgage might be exactly what you need for your financial situation. With this type of loan, you do not need to make payments over time. The only time payment will be required is when you sell your home, permanently move out of the home or die. Additionally, you do not need to prove credit worthiness, provide income information or a statement of health.

The requirements are minimal: you must be 62 years old or older, plus own and live in your home. Sound too good to be true? You don't know until you ask. Call us at 371-255-0062 and we'll help you decide if this is the right loan for you.

When does a reverse mortgage make sense?

We are excited to announce that we have just landed a very competitive source of funds to furnish Reverse Mortgages. Although it is not a loan for all people over 62, it can be a very good loan for the right situation. So, when does a Reverse Mortgage make sense? This is the first of a series of articles providing information to help you understand these mortgages better.
Key facts:

• Homeowners retain title and ownership to their home.
• You can pay off your current mortgage and eliminate monthly payments.
• The loan is not qualified on amount of income, credit, assets, employment, medical history.
• Depending on age, the home should have at least 50% equity (i.e., owe $75,000 on home that is worth $150,000).
• Can be used to supplement income by way of lump sum or monthly payments.
• Tax-free cash advances do not affect Social Security or Medicare Benefits.
• All participants attend a free education counseling session with a HUD-approved counselor to have a third party assist you with thinking through if a Reverse Mortgage is the right loan for you.
• Repayment is required in one lump-sum when the property is sold or the borrower(s) no longer live in home.
• You or your estate may sell your home and use the proceeds to pay off the reverse mortgage.
• Your heirs may keep the home in the family and pay off the reverse mortgage from their own funds or with a new mortgage.

Would you like to learn more? Give us a call at 371-255-0062 to walk through your specific questions.

Do brokers work for the wholesale lender or the consumer?

This is a common question. The answer is "neither."
As an independent contractor, the broker allows wholesaler lenders to cut origination costs by providing such services as preparing the borrower's loan package, loan application, funding process, and counseling the borrower. Brokers help keep loan rates low due to their minimal overhead and setup costs. Furthermore, the broker will seek the loan which best suits the borrower's financial circumstances, needs and goals. From the consumer perspective, with rare exception, the broker does not get paid unless and until the loan closes. Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer.

Today over two-thirds the nation's mortgages are originated by mortgage brokers. This clearly indicates that consumers are choosing the superior options, service, and expertise offered by mortgage brokers. Brokers have forced retail lenders to compete with other loan sources driving down costs nationwide.