Reverse Mortgages Are Not Just for Low Income Seniors

Reverse Mortgages Are Not Just for Low Income Seniors

When it comes to mortgages, reverse mortgages don’t have so much of a good reputation. As a matter of fact, many Americans retired or not, sees reverse mortgages as a ‘loan of last resort’ or a loan to take out when there are no other options left. Others see the reverse mortgage as a loan taken out by either poor or uneducated people.

Reverse Mortgages Are Not Just for Low Income Seniors

What these people fail to see is that the reverse mortgage is a way to use the untapped equity in the home they’ve paid for throughout their working years.

The criticism of reverse mortgages is not really about the product itself, but with the way that people use them. People tend to use this lump sum payment to buy something they’ve always wanted. This why the Federal Housing Administration requires borrowers to undergo a counseling session before entering a reverse mortgage contract.

A reverse mortgage can be seen as a flexible alternative to the more traditional forms of retirement planning such as social security, 401ks or stock; and with more Americans living a lot longer than ever before, flexibility is essential!

For instance, if the stock market has taken a downturn, it may be time to pull funds from the reverse mortgage line of credit in order to sustain retirement expenses while the market stabilizes. Another instance would be to set up monthly reverse mortgage payments to help supplement social security payments and cover retirement expenses.

Those are two ways reverse mortgages can adapt to a retiree’s situation, not just a senior at 62, but also at 72 or 82. For example, a person planning for retirement may be saving at 62 for retirement but may need more cash flow when he turns 72, as they adjust to their new needs and wants. When they turn 82, fixed expenses may be set and monthly payments may be more attractive than they were at 72.

What we’re saying here is, things change, and so do retirement needs and a reverse mortgage is a way to, not only sustain retirement but also ensure that it is secure and worthwhile.

Do You Ever Wonder Who is the Ideal Client for the Reverse Mortgage? Find out Today!

Do You Ever Wonder Who is the Ideal Client for the Reverse Mortgage? Find out Today!

As a Reverse Mortgage company with over 25 years of experience, we’ve worked with thousands of homeowners. Although each client’s financial situation is unique, one of the common denominators of many of our borrowers is a pressing need for immediate debt relief.

Ideal Client for the Reverse Mortgage

Since the term Reverse Mortgage is becoming extremely popular these days, you may still wonder “Is this product right for me?”, “Am I the ideal client for the Reverse Mortgage?”

The answers to those questions depend entirely upon an assessment of the following:

  • Are you 62 years or older?
  • Do you own your home?
  • Are you struggling to make ends meet?
  • Are the bills piling up without any relief in sight? 

If you can quickly answer “yes” to these questions, then you are most certainly an ideal client for the Reverse Mortgage.

Most importantly, if debt relief knocked at your door today or tomorrow, would you answer?

The truth is the Reverse Mortgage is a safe and secure way for you to access the money in your home. This program allows a homeowner to convert the value of their home into tax-free cash.

Imagine the extra money you could place back into your pockets if you no longer had to pay on a monthly mortgage.  This gives you additional funds to pay off credit card debt, medical bills, or other loans and have the retirement you deserve. Whatever your debt may be, the Reverse Mortgage can help set you free!

Give yourself the peace of mind knowing that you can have a fresh start. It’s easy, safe, and available to you today. To find out how our staff can help you get started on your path to debt relief, give us a call at 1-800-420-5515.

Stay in Your Home with a Reverse Mortgage

Stay in Your Home with a Reverse Mortgage

Stay in Your Home with a Reverse Mortgage

Are you considering selling your home and belongings in order to move to a retirement home?  This may not be something really want to do, but you feel like it’s your only choice. Well, guess what? It’s not! We have good news for you. You can stay in your home.

If you are over the age of 62 and have equity in your home, you might be the perfect candidate for a Reverse Mortgage.  A Reverse Mortgage works by giving you tax-free access to the equity that is in your home.  Best of all, you have no monthly payments.

Here are the things you will be able to do with a Reverse Mortgage:

Pay for your Healthcare Costs

For many people, rising healthcare costs is one of the biggest reasons they choose to sell their assets and move into a retirement facility.  However, with a Reverse Mortgage, you can pay for health care costs while staying in the comfort and security of your home.

Stay in your community

Let’s face it, people don’t like change.  They want to stay in their home where they are comfortable and friends and family are nearby.  No one wants to feel isolated and it is challenging moving to unfamiliar surroundings.  If this sounds like you, then you will be happy to hear that Reverse Mortgage can help! The Reverse Mortgage will enable you to maintain or even improve your current lifestyle.

Check off items on your bucket list

A Reverse Mortgage provides you with the income to stay in your home while also fulfilling your biggest dreams.  You can now travel, purchase the car you have always dreamed of and experience the retirement you deserves.

Call Reverse Mortgage Answers today and start the process of fulfilling your retirement dreams. With over 25 years of experience, we can help you attain your goals safely and easily.  Find out for yourself how the Reverse Mortgage can benefit you.

Building a Budget for Retirement

Building a Budget for Retirement

Building a Budget for Retirement
We all have dreams of retirement that include plans of what we will do with our free time and ideas for how we will live out our bucket list. But, as we get closer and closer to retirement the reality of the price tag on those dreams begins to feel daunting.

Don’t worry though.  In retirement, just like everyday life, there is nothing a good budget can’t fix. However, your budget for retirement might look slightly different than your budget right now. Here’s how you can figure it out.

Everyday Expenses

In retirement, your everyday expenses may look slightly different than your everyday expenses right now.  For example, you won’t be commuting to and from work every day using gas or eating out every day for lunch. So, when you are thinking about the money you need to pay your bills and just “live,” be sure to take these factors into consideration.

Lifestyle Expenses

Lifestyle expenses are where things get “real” in retirement.  There are many more opportunities for entertainment and adventures since you have free time. It is important to create an idea of the lifestyle you want to live upfront, so you can ensure you have enough funds to make it happen.  The crucial point is to be honest with yourself. If you know you will want to go to the movies once per week, or take an annual trip to the beach you must budget for that. Otherwise, it likely will not happen.

Medical Expenses

Medical expenses are very different in retirement than they are while you are working. For one, health insurance coverage changes, meaning you might be paying more than you are used to. When creating your retirement budget, be sure to go over your health insurance coverages to get a good idea of how much money you will need for your medications and care.

Long-term Goals

Long-term goals are where things get exciting.  If you have always dreamed of taking a European vacation, African safari, or going on a 3-month cruise during retirement now is the time to make it happen! Set aside enough money in your budget to live out your bucket list without having to cut into the money you have for your other necessary expenses.

Creating a retirement budget is a balancing act that requires a lot of work, but the results are well worth it. If you are looking for a solution to your cash needs in retirement, you should really consider a Reverse Mortgage as an important part of your retirement budget. A Reverse Mortgage is a straightforward, easy solution to help you through retirement. Talk to you financial advisor today!

3 Reasons Retirees Choose Reverse Mortgages

3 Reasons Retirees Choose Reverse Mortgages

3 Reasons Retirees Choose Reverse Mortgages

With the baby boomer generation aging out of the workforce, there is one thing at the top of everyone’s mind—retirement.  Now more than ever, retirement is a cause for concern as fewer companies are offering pensions and the cost of healthcare is rising.  That being said, many retirees are finding comfort in the flexibility and resources Reverse Mortgages offer.  If you are a baby boomer considering your retirement options, here are a few reasons you may want to consider a Reverse Mortgage.

Reverse Mortgages allow you to delay Social Security.

Many people choose to retire or need to retire before they reach the full retirement age.  This means they are unable to draw Social Security.  For many retirees, going without that extra income is simply not an option.  As a result, many retirees opt for a Reverse Mortgage to cover their extra expenses. Once their Social Security is fully matured, they can relinquish the Reverse Mortgage and begin drawing benefits.  For these people, Reverse Mortgages are a temporary fix until they reach a long-term solution.

Reverse Mortgages allow extra income for medical expenses.

When you take out a Reverse Mortgage, you can choose to receive a specific amount each month.  You can then use that loan amount to aid you in any of your day-to-day expenses. Many retirees choose to use their Reverse Mortgage income as a health insurance and health cost stipend so they know they will be able to cover any expenses that may arise.

Reverse Mortgages allow you to age in place.

When it comes to retirement, most retirees want to know they will be able to live in their home for the duration of their life without having to turn over their assets and move to a senior care facility.  Reverse Mortgages help people live with the peace of mind that this is possible.  With the income from a Reverse Mortgage, retirees can plan to cover expenses such as in-home care or other living expenses they might not otherwise be able to afford.

 

Are you facing the exciting opportunity of retirement? If so, you might want to consider talking to an expert about a Reverse Mortgage.  Call Reverse Mortgage Answers now at 1-800-420-5515.   It might be just the solution you need.

Too Many Are Afraid to Discuss the True Costs of Medicare. Find out the Facts Today!

Too Many Are Afraid to Discuss the True Costs of Medicare. Find out the Facts Today!

True Costs of Medicare

Most of us are unable to jump right into “retirement.” It’s a word that sounds good to our ears, but the truth is that it requires long-term planning and a healthy level of savings.

A lot of Americans are being proactive with building their nest eggs, but there is one crucial thing that most workers forget to do: plan for healthcare costs during their golden years.

According to data from the Empower Institute and Brightwork Partners, 12% of working adults are taking steps to address or plan for medical expenses in retirement.  However, more than half of Americans admit that they do not know what medical care will cost.

To retire with real financial security,  one has to start planning before retirement.

How much does a retiree spend on healthcare?

The amount depends on some factors, the most important: one’s actual health.  The latest projections reveal that the average 65-year-old male today will spend roughly $189,687 on medical care throughout retirement, while the average 65-year-old woman will spend $214,565.  The difference stems from the fact that women tend to live longer, and therefore, typically require more care in their lifetime.

The reason why both numbers are so high is that Medicare only covers a portion of the total healthcare cost.  There are some services as such as dental, vision, and hearing that the program won’t include.

What is the breakdown of the costs?

A senior will pay a premium for Medicare Part B, which covers preventive care and diagnostics, and Part D, which includes prescriptions. Furthermore, the services that Medicare does cover typically come with a copayment, not to mention a deductible. Moreover, unless one opts for a Medicare Advantage plan, there’s technically no limit as to what someone might spend on healthcare in a single year.

Approximately 70% of seniors will need long-term care in their lifetime, and the associated costs could be staggering. For example, the average nursing home stay costs $85,775 per year for a shared room and $97,455 per year for a private one. Even assisted living facilities are costly.  They average $45,000, or more per year.

How to save for future costs?

Currently, workers under 50 years old can contribute up to $18,500 a year to a 401(k), or $5,500 a year to an IRA. If a person is 50 or older, these limits increase to $24,500 and $6,500, respectively.

Another great option is a Reverse Mortgage. If a senior is 62 years or older and owns their home, this program allows him or her to gain access to tax-free cash based on the value of their home.  One of the requirements of the program is to pay off the mortgage payment, and the remaining funds are for the borrower to keep. Imagine the extra financial cushioning this could provide to help with Medicare costs.

RMA specializes in assisting seniors with the Reverse Mortgage. We take great pride in knowing that many of the seniors we’ve helped used the funds to help with Medicare, or to afford a healthier lifestyle, in general.  If you are a senior or knows someone who would be a great candidate for the Reverse Mortgage, please give us a call at 1-800-420-5515.

How to Mentally Thrive During Retirement

How to Mentally Thrive During Retirement
How to Mentally Thrive During Retirement

While money and finances are important aspects to consider when retiring, there’s more to retirement than just having a lot of money in the bank. In fact, sometimes what makes or breaks your retirement isn’t your monthly income, but how you feel. For a lot of retirees, if you don’t find a new identity after leaving your career, then retirement can be far from the idyllic vision so many younger individuals imagine.

To ignore the fact that retirement is a major transition in life has the potential to produce a variety of negative repercussions, some of which can be quite dangerous, not to mention aggravating. When you retire, psychologically your entire life changes, which means that if you’re not as mentally prepared as you are financially prepared, you’ll be facing an uphill battle.

While retiring can reduce emotional stress, especially if you’re in a demanding career, it can added a new set of stressors, like not knowing who you are or what your new purpose in life is. To avoid feeling “lost at sea”, experts recommend spending time considering the psychological effects of your retirement before you make the transition.

To help ease the emotional stress some people feel when they retire, start creating a new identity for yourself, one that isn’t attached to your career, profession or title. Making sure that you have purpose in your life will keep you from struggling with negative emotions, including depression. Remember, the more you have identified with your career or title in the past, the more difficult it will be to let that go, which means that preparing emotionally for the transition is even more important.

Experts also recommend looking at your personality type to help better understand how you will feel once you enter retirement. In general, individuals with a more relaxed disposition and who are better able to adapt to changing environments will do better during retirement than those who are more goal-oriented or rigid with their schedules. While retirement has the potential to be enjoyed by every type of individual, knowing where you stand right now will help you prepare for the road ahead – and that really can make all of the difference.

Qualifying for a Reverse Mortgage Loan: What You Need to Know

Qualifying for a Reverse Mortgage Loan: What You Need to Know
Qualifying for a Reverse Mortgage Loan: What You Need to Know
Four generation family take time together for the mother’s day. In this photo the grandmother talk with her granddaughter in the living room with happiness. Photo was taken in Quebec Canada.

If you are retiring or nearing retirement, there’s a good chance that you’re taking a good look at your finances. While retirement brings about a lot of great changes, there are some aspects of it that can feel a bit intimidating, including how to pay for your monthly expenses and lifestyle. While many retirees look to their savings and retirement plans, there are other options that can be considered to help make sure retirement is as great as it sounds.

One of the best options for many retirees concerned about finances is a reverse mortgage loan. Not only does this type of loan leverage the equity you already have in your home, but you can access the money when you need and how you need it – whether in a lump sum or monthly installments.

Of course, one of the biggest questions retirees have about reverse mortgages is, “How do I get one?”

Thankfully, qualifying for a reverse mortgage loan really is pretty simple.

Here’s what you need to know…

First of all, in order to qualify for a reverse mortgage you have to be at least 62 years old. If you’re married, the youngest borrower on the title must meet this age requirement. Second, qualifying for a reverse mortgage loan requires that you live in the home you’ll be using on the loan as a primary residence. The more home equity you have in your primary residence, the more money you can access via a reverse mortgage. Additionally, borrowers interested in getting a reverse mortgage loan must meet the eligibility requirements established by HUD.

If you meet the requirements for a reverse mortgage, then the amount of money you can access from your loan is based on a calculation done by the Federal Housing Administration (FHA). This calculation uses your home equity in addition to four other factors. Those four factors that will determine if you qualify and the amount of money you can access are:

  1. Current interest rates
  2. The balance on existing mortgage loans
  3. The age of the youngest homeowner
  4. Current property value

To learn more, contact a reverse mortgage professional today!

4 Tips for Staying Healthy During Retirement

4 Tips for Staying Healthy During Retirement
4 Tips for Staying Healthy During Retirement
senior athletes synchronous exercising on step platforms at gym

One of the biggest concerns about retirement is that health and well-being will start to decline simply because there is less to do – and less motivation for doing it! Of course, for some soon-to-be retirees, finally leaving that stressful job might just seem like the healthiest decision of all! Either way, making smart decisions at the beginning of your retirement can set the tone for the rest of your life, one that is hopefully happy and healthy!

According to experts, these 4 simple tips are some of the best ways to make sure your retirement is as healthy as possible…

  1. Stay Physically Active. Being retired should in no way mean that you’re living a sedentary lifestyle. In fact, now that you have more time on your hands, you should be finding ways to be even more active. Some of the healthiest activities for retirees include yoga, dancing, hiking, swimming, walking, pilates and gardening.
  • Stay Mentally Active. If you can keep your brain as active as your body during retirement, then you’re off to a great start! The more active your brain is, the lower your risks are for developing things like dementia or Alzheimer’s down the road. How do you keep your brain active? Of course, you can learn something new, whether a language or a skill. But you can also stay mentally active by being social. Going out with your friends and just talking is very stimulating for your brain!
  • Stay Involved. A big part of staying healthy during retirement is making sure that you continue to be involved in your community. For a lot of retirees, volunteering is a great way to do this. If you have grandchildren, that’s another way to stay involved – volunteer to babysit or watch them for a weekend!
  • Eat Healthy. And, no surprise here, eating healthy is just as essential to your health when you’re retired as it was before you entered retirement. Watch your diet and make smart decisions each day so that you feel your best!

Retirement really can be the best years of your life if you take an active role in maintaining your health!

The Pros and Cons of Reverse Mortgages You Should Know About

The Pros and Cons of Reverse Mortgages You Should Know About
The Pros and Cons of Reverse Mortgages You Should Know About
Home loan / reverse mortgage or transforming assets into cash concept : House model, US dollar notes on a simple balance scale, depicts a homeowner or a borrower turns properties / residence into cash

When considering a reverse mortgage for your retirement planning, it’s important to see both sides of the argument. By understanding both the pros and the cons of choosing a reverse mortgage, you can better understand if it’s the right choice for you and your family.

Reverse Mortgage Pros

  • If you’re over the age of 62, a reverse mortgage is a smart loan option that affords you a more comfortable retirement lifestyle.
  • A reverse mortgage doesn’t impact your ability to live in your home or keep its title. As long as you maintain all of your loan obligations, then a reverse mortgage won’t change the way you live in or own your home.
  • Reverse mortgages are flexible, which means there are options when it comes to receiving your money. Some of the most popular form of reverse mortgage payments are lump sums, regular monthly advances, and a line of credit.
  • In most cases, the money you receive from your reverse mortgage is not considered to be taxable income. (Always talk with your tax professional to be sure.)
  • In most cases, a reverse mortgage won’t change your ability to qualify for benefits from Social Security or Medicare.
  • A reverse mortgage doesn’t make you or your heirs personally liable for any amount of the mortgage if it ends up exceeding the value of your home after the loan has been repaid. Once the loan is repaid, all of the equity that remains is yours (or your heirs’) to keep.
  • As your home’s value increases, so does your reverse mortgage loan’s potential. You can refinance your reverse mortgage to receive more money if your home’s value increases.

Reverse Mortgage Cons

  • The balance of your loan does increase with time because of the accumulation of interest and loan fees.
  • Each time you use the equity of your home, you are leaving your estate and heirs less money and fewer assets. While the home can still be left in your will, the loan balance will have to be repaid. This is typically done by selling the home, but it can also be done with other funds or by having your home refinanced with a traditional mortgage.
  • Depending on where you get your reverse mortgage from, the fees can be higher than they would be with a traditional mortgage.

To decide if a reverse mortgage is right for you, talk to one of our loan professionals today!