Are you a senior homeowner that feels your home no longer fits your needs? You don’t need the additional family space anymore, and maintaining a large home is expensive and can be a drain on your time and resources. It might be time to downsize and move into a one-story home or to a neighborhood closer to your family. The problem is that although your home has increased in value over the years, selling your current home may not cover the purchase price of a new one. 

A reverse mortgage loan program designed specifically to help baby boomers aged 62 and older can help bridge that gap. A Home Equity Conversion for Purchase loan or H4P, is a safe, FHA federally insured loan program that helps seniors purchase a home more suited to their retirement lifestyle. It will allow you to make a one-time payment of 50 to 65% of the purchase price of a new home, while eliminating your monthly mortgage payments…for life. You will still be responsible for maintaining the home and paying any property taxes, home insurance, and HOA fees. But you don’t have to repay the loan until you sell your current home, or you no longer live there as a primary residence. 

For many senior homeowners, this is a better option than paying cash for a new home or taking out a mortgage in retirement. H4P also effectively doubles your purchasing power, by allowing you to afford the home you want now while leaving enough cash left over to fund your retirement. To find out more about the H4P program, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post HECM for Purchase appeared first on Reverse Mortgages of Michigan.

As a financial advisor, you may be overlooking a significant planning tool… a reverse mortgage line of credit. The government regulated and insured FHA Home Equity Conversion Mortgage or HECM is designed to help seniors of every economic stratum. 

As recent peer reviewed studies conclude, it can be an important strategic tool to be incorporated into a mass affluent client’s retirement plan. Its unique Line of Credit provides seniors access to tax free cash flow and can grow significantly over time. For the mass affluent client, this adjustable-rate line of credit can be of great value in mitigating the sequence of returns risk. 

By implementing a coordinated withdrawal strategy, especially during a down market, clients take needed distributions from the line of credit instead of liquidating assets from their investment portfolio. This greatly reduces the negative potential effects on portfolio size, growth, and longevity by leaving the portfolio intact and invested in the market… poised for the next bull market phase… while preserving the firm’s assets under management. Dormant home equity is now accessible and can serve as a non-correlated portfolio buffer asset supplementing income whenever needed. 

A HECM Line of Credit provides seniors with the ability to “Age in Place” in the safety, comfort, and freedom of their own home, by providing the funds to replace, remodel or upgrade. It can also be used to cover long term care insurance premiums or pay caregivers directly. A HECM Line of Credit is a kind of insurance policy – with available contingency assets – for a variety of planned and unplanned expenses that many seniors encounter during retirement. 

Another great feature is the approved line of credit cannot be reduced, frozen or taken away, even if there is a housing correction or sharp market downturn. And because the line of credit is open-ended, they can pay it back and use it again and again. Also, interest is charged only on what your client uses. 

To find out how partnering with a reverse mortgage professional can help your practice, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Financial Advisors and the Reverse Mortgage Line of Credit Strategy appeared first on Reverse Mortgages of Michigan.

You’re retired – or soon will be – and you’re in the process of planning for the days after you stop working. You’re checking with your financial advisor regularly to make sure your IRA or 401K is performing as you hoped, and you’ve worked long enough that your Social Security payments will be near the maximum…. So, your retirement plans seem to be on track. But as you observe all the market volatility these days and watch the cost of just about everything rise, you’re beginning to wonder whether this approach will provide enough money to fund the retirement lifestyle you and your family desire. 

Let a reverse mortgage specialist show you how a reverse mortgage – an often-overlooked retirement planning option – can benefit senior homeowners. A reverse mortgage allows you to access the equity in your home – without selling it -and turn it into additional cash flow that you can use to fund a more secure retirement. It eliminates the principal and interest payment requirement, and instead provides payouts as a lump sum, monthly payments, a line of credit, or a combination. You can use the extra cash to renovate your home, fund a grandchild’s education, or function as a “safety fund” should an emergency like an illness or accident occur. 

To find out more about reverse mortgages and retirement planning, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Why Talk to a Reverse Mortgage Specialist? appeared first on Reverse Mortgages of Michigan.

Unlike previous generations, today’s baby boomers face some unique challenges to funding – and maintaining – their current lifestyle in retirement. They can no longer depend on the steady income provided by a company pension as their parents did. Instead, most are left hoping that their savings from an IRA or 401K, combined with Social Security payments, will be enough to fund their retirement. The problem is, although baby boomers are working as long as their parents did, about 40 years, they’re staying in retirement longer – 20 years or more. That means that baby boomers will need additional cash flow to fund their retirement … or risk outliving their money. 

A reverse mortgage can help baby boomers generate the cash flow they need to bridge those years, by allowing them to tap into the equity in their home. They can choose to receive these funds in the form of monthly payments, a line of credit, a lump sum payout, or a combination… all while retaining ownership. A reverse mortgage is a safe way for baby boomers to improve their cash flow, achieve some financial peace of mind and enjoy a more comfortable lifestyle in retirement. To find out more about reverse mortgages, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Baby Boomers, Reverse Mortgages and Retirement Cash Flow appeared first on Reverse Mortgages of Michigan.

As they enter retirement, many seniors feel comfortable with the amount of equity they’ve built up over their working years. They think that the steady income they’ll receive from their Social Security payments, coupled with the funds from their IRA or 401K, will be enough to fund their retirement.  

But what if something unexpected happens, like a medical emergency or an accidental injury, that causes you to need extra cash? A reverse mortgage can provide the additional cash you need – without drawing on your other sources of income – by accessing the value tied up in your home. 

By setting up a reverse mortgage in advance – before an emergency arises – you’ll have additional cash on hand to draw on. You can use it whenever you might need it…even if it’s to just make life in retirement a bit more comfortable. A reverse mortgage is great way to make the equity tied up in your home work for you – without waiting sell it – and you still retain ownership. 

Find out how you can use a reverse mortgage to help build a more secure financial future. Call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Why Should Seniors Consider a Reverse Mortgage? appeared first on Reverse Mortgages of Michigan.

With financial scams targeting seniors occurring with such frequency, it’s fair for senior homeowners to ask, “Is a reverse mortgage safe?” Since the first FHA-insured reverse mortgage was issued in 1989, many safeguards have been put in place to protect senior homeowners against unscrupulous practices.

It begins with a requirement that seniors be counseled by an independent third party, usually by phone, to make sure they fully understand the terms of the loan. There is a “senior friendly” financial assessment that is also required, to determine whether the borrower can meet all the qualifying criteria. They must live in the home as a primary residence, keep up with the loan obligations of keeping the home well maintained, and stay current on their property taxes and homeowners’ insurance. There are also safeguards for eligible spouses of senior borrowers who are either not 62 at the time of the signing or not named on the title. Once a borrower passes or is moved to a care facility, the non-signatory spouse can remain in the home without any principal and interest payment obligation until they pass away or move out. To find out more about the strong consumer safeguards built into reverse mortgages, call us today. 

David J. Blatt

Reverse Mortgages in Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Are Reverse Mortgages Safe? appeared first on Reverse Mortgages of Michigan.

Having enough cash to last to – and through – retirement is one of the major challenges facing today’s seniors. A reverse mortgage is a safe way to help senior homeowners improve their cash flow while allowing them to better “age in place” in their own home. With a reverse mortgage, seniors can tap into the equity in their home in a variety of ways that best suit their individual circumstances and needs. 

For example, they could take a lump sum payout at closing to spend it in any way they choose. They could also choose to receive a liquid, growing line of credit that allows any unused balance to grow at the same compounding rate as the loan balance, and the amount of the credit line increases when any payments are made. These tax-free funds in the line of credit can grow substantially over time, and the homeowners will only accrue charges on whatever funds they have borrowed. Also, this line of credit cannot be capped, reduced, or eliminated because of market conditions or declines in property value. 

To find out more about how a reverse mortgage can improve your cash flow in retirement, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post How Do Reverse Mortgages Increase Cash Flow? appeared first on Reverse Mortgages of Michigan.

If you’re considering a reverse mortgage to help fund your retirement, you may be wondering, “How do I qualify?” To be eligible for a typical reverse mortgage, you must be at least 62 years of age, but for a “Jumbo” reverse mortgage – typically used for high end, premium properties – the age limit can be as low as 55. The younger you are, the less equity you’ll be able to borrow. 

In both cases, depending on age, the borrower must generally have 50% or more equity in the home, and it must serve as their primary residence. Additionally, they must keep up with the loan obligations of keeping the home well maintained and paying property taxes and homeowners’ insurance. 

To assure borrowers fully understand this type of loan, they are required to attend a HUD-mandated counseling session with a certified counselor of their choosing who will answer any concerns or questions the borrower may have. In addition, a financial assessment is conducted to ensure the borrower can meet the loan obligations and has not incurred either a foreclosure or a bankruptcy within a certain period prior to the loan. Also, in order to qualify, they must not be found to be delinquent on any federal debt. To find out more about reverse mortgage qualifications, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Who Qualifies for a Reverse Mortgage? appeared first on Reverse Mortgages of Michigan.

Senior homeowners are using the additional tax-free cash flow generated by a reverse mortgage in many creative ways to benefit themselves and their families. Homeowners are no longer required to make a principal and interest payment, allowing them to boost their cash flow… free of income tax. The monthly payment becomes optional, giving the borrower complete control. However, the borrower must be 62, 55 in some instances, live in the home as a primary residence, maintain the home, and pay their property taxes and homeowners’ insurance. 

Some borrowers use the additional available funds generated by their reverse mortgage to consolidate other existing debt, further improving their cash position. Borrowers can also create a “What If” fund, to cover unexpected expenses like a medical emergency or other unanticipated events. This additional cash flow can be used to help senior homeowners maintain and even improve their retirement lifestyle. It can provide an alternative to being placed into a retirement home or expensive care facility, preserving their dignity and independence. A reverse mortgage can also allow them to renovate their home to accommodate their changing physical needs, so they can more comfortably “age in place.”  

To find out more about how a reverse mortgage can help meet your financial needs, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post How Are Reverse Mortgage Funds Used? appeared first on Reverse Mortgages of Michigan.

Inflation has increased the price of just about everything, including buying a new home. For senior homeowners living in a home that no longer fits their needs, this is a serious problem. They have the option of selling their home and receiving an inflated return, but finding a new home when inventory is so scarce – and expensive – can take months.  

With a reverse mortgage, senior homeowners can replace their traditional monthly mortgage payments with a lump sum or monthly payout, a line of credit or some combination… and still retain ownership. They can use the cash flow from the reverse mortgage to plan for aging in place and avoid withdrawing from their investment portfolio. And even though the current increase in interest rates means homeowners can borrow a bit less of the equity in their home, it is still more cost-efficient than moving.  

But a reverse mortgage isn’t right for everyone, so it’s important that you fully understand the process before making a decision.  

To find out more, call us today. 

David J. Blatt

Reverse Mortgages of Michigan

1-800-318-8000

davidjblatt@gmail.com

The post Reverse Mortgages and Inflation appeared first on Reverse Mortgages of Michigan.