How Seniors Use Reverse Mortgages to Increase Cash Flow or to Pay Off an Existing Mortgage in Surprise, Arizona
Money is tight for most people with the way that the economy is today, and this can be especially true for seniors. Social security doesn’t tend to be enough to get by and when there are so many bills to pay for such as medical bills and a family to provide for, there isn’t any money left over to enjoy retirement. Things can be especially tough when there is still a mortgage to pay because the interest rates and monthly payments just seem to get higher and higher. Fortunately there is a way for seniors to increase the amount of money they receive monthly and even pay off their mortgage without having to leave behind large debts for their children.
Reverse mortgages have been around since the 1980’s and have come a long way since the first one. They are now supervised by the government and there are laws that lenders and borrowers have to follow in order to complete the reverse mortgage transaction. The way that a reverse mortgage works is different than any other kind of loan because instead of needing money to purchase an item, the person has an item and needs money. In this case, the item would be the home that a person lives in.
A person must be over the age of 62 to qualify for a reverse mortgage. The older the borrower is, the more money they will get from their reverse mortgage.
Some home may not qualify for the reverse mortgage, and other types of homes such as mobile homes have to meet certain restrictions in order to be considered. Any borrower who chooses to get a reverse mortgage must go through counseling to be sure that they understand the loan and that they can afford the fees that go along with it.
Once a senior has been approved for the loan, they can do whatever they want with their money. The most common option is receiving their cash flow in monthly payments that will continue for as long as the borrower is alive, no matter how long they live. Since the borrower is taking out money against the house, when they no longer are no longer in the home, the estate will sell the home to repay the loan, or the family can choose to refinance. If the sale of the house doesn’t make enough money to cover the loan, the borrower doesn’t have to make up the difference, because all reverse mortgages are insured by the federal government.
Visit me at www.reversemortgageprosaz.com for help with a reverse mortgage in the Surprise AZ area.
Reverse mortgages shouldn’t be lumped into ‘bad’ category
“Comparing every loan’s shortcoming – real or perceived – to a “subprime” product needs to stop.”
Continue reading HERE. Visit me at www.reversemortgageprosaz.com if you have any questions about, or need help with a reverse mortgage in the Surprise, AZ area.
Retiring in Surprise, Arizona? Use a Reverse Mortgage to Pay off Your Current Home Loan.
Here’s a great article I found in the Wall Street Journal that talks about paying off your current mortgage at retirement age.
In many cases we have seniors here in Surprise AZ who are using Reverse Mortgages to pay off current loans.
If you would like more information on how to pay off your current mortgage at retirement age be sure to visit our website at www.reversemortgageprosaz.com
or give us a call at 623-322-4594.
Read the Wall Street Journal Article: “Retiring? Pay Off Your Mortgage” HERE.
Reverse Mortgages and Your Retirement in Surprise, Arizona
Visit me at www.reversemortgageprosaz.com if you need help with a reverse mortgage in the Surprise, AZ area.
Reverse Mortgage Can Pump Up Retirement Pay
Q: My husband and I are retired with a total annual income of $40,000. We owe $145,000 on our home, which is worth $475,000. We don’t have any extra to play with. We would like to know whether you would advise us to consider a reverse mortgage.
Colleen, Folsom, Calif.
A: A reverse mortgage could pay off your existing mortgage and eliminate the monthly mortgage payments you are currently paying. This could free up some income for you to play with each month.
Here’s essentially how it would work. A reverse mortgage would pay off your existing mortgage balance of $145,000. Then, rather than having to make monthly interest and principal payments, the interest charged on the loan would simply add to the balance of the loan.
NCOA Offers Free Counseling and Brochure for Older Adults Seeking to Tap Home Equity in Surprise, Arizona
| NCOA Media Contact: Connie Hofmann 215-219-2943 chofmann@aboutscp.com |
NCOA Reverse Mortgage Initiative: Barbara R. Stucki, Ph.D. 541-322-5610 |
Is a Reverse Mortgage Right For You?
Washington, D.C. (July 31, 2009) — In response to increased pressure on the income and savings of older adults, the National Council on Aging (NCOA) is offering free counseling for seniors through its Reverse Mortgage Counseling Services (RMCS) Network. RMCS counselors will waive the usual $125 fee to help older homeowners understand how these loans, along with community programs and other options, could help them to remain in their homes. Consumers age 62+ can schedule a free reverse mortgage counseling session through September 30, 2009 by calling 1-800-510-0301.
NCOA also offers a consumer booklet on reverse mortgages, entitled Use Your Home to Stay at Home. The booklet can be downloaded for free at www.ncoa.org/reversemortgagecounseling. As part of the new reverse mortgage counseling protocol under development by the U.S. Department of Housing and Urban Development (HUD), all HUD-approved reverse mortgage counselors will soon be required to provide consumers with this 28-page booklet. A website for purchasing printed copies will be launched when HUD’s new protocol goes into effect.
“Tapping home equity in a timely way can keep small financial challenges from becoming overwhelming problems, but many older homeowners need guidance on how and when to tap this asset,” said Barbara R. Stucki, Ph.D., Director of the Reverse Mortgage Initiative for NCOA. “We are pleased to work with HUD to provide both one-on-one reverse mortgage counseling and a detailed consumer booklet to help fill this knowledge gap.”
About NCOA
The National Council on Aging is a non-profit service and advocacy organization headquartered in Washington, DC. NCOA serves as a national voice for older Americans – especially those who are vulnerable and disadvantaged – and the community organizations that serve them. It brings together non-profit organizations, businesses and government to develop creative solutions that improve the lives of all older adults. NCOA works with thousands of organizations across the country to help seniors find jobs and benefits, improve their health, live independently, and remain active in their communities. For more information, visit www.ncoa.org.
Visit me at www.reversemortgageprosaz.com if you need help with a reverse mortgage in the Surprise AZ area.
Visit www.reversemortgageprosaz.com if you need help with a reverse mortgage in the Surprise AZ area.
Reverse Mortgage Loans Bring Monthly Cash For Retired People by Juhani Tontti
Reverse mortgage loans offer an opportunity to take a part of the equity out, but still to continue living in an old flat. And as long as you own your flat or house and live there, you do not have to pay the loan back. The flat remains in your name.
1. The Reverse Mortgages Allow Retired People 62 Or Older To Convert Equity In Their Homes Into Cash.
This is the basic term for the reverse mortgage loans. You must be at least 62, says the law. The older you are, the more cash you can get upfront from your home equity. Other things, which influences on the reverse mortgage loan terms are the location and the value of your flat or house.
2. The Reverse Mortgage Loans Are Flexible Ones.
Because the main idea of the reverse mortgage loans is to give you cash for your everyday living, you can decide how you want them to pay you. As monthly payments, as a credit line or as a slump sum. When you do the reverse mortgage purchase, just decide it.
If the target to take the loan is to buy a flat to your child, for instance, you can take the whole loan sum as a one slump sum. In this case the loan costs will be added to the amount of the loan.
The National Council on Aging and The MetLife Mature Market Institute have recently released a study that carefully looks at home equity and reverse mortgages for seniors. This is important information for any family considering a reverse mortgage in Surprise, AZ. Please take the time to download and read this material!
Also, remember to visit me at www.reversemortgageprosaz.com.
Jack Kemp: A Reverse Remembrance
Jack Kemp: A Reverse Remembrance
Mon, 2009-07-13 16:57 — Atare E. Agbamu
Cheryl Olsome was a traffic-stopper in her prime. Even at 55, with four grown boys under her maternal belt, she retains her drop-dead Nordic beauty: Tall, blond and elegant. You cannot tell from her calm presence that she has any cares in the world. But appearance can fool us. Beneath the beauty, underneath the mild make-up, below her Nordic calm is an ocean of worry. She worries about her family’s financial survival. She agonizes about her husband’s acute joblessness. She frets about their retirement security for they have depleted their savings and the 401k account they had when her husband Peter had steady employment.
For more than 30 years, Cheryl Olsome was a stay-at-home mother, and she successfully raised four sons. The last boy will leave home for college in September, and Peter and Cheryl Olsome’s nest in south Minneapolis will be empty.
Far from celebrating her liberation from child-rearing, Cheryl is deeply concerned about their future. For most of the last 30 years, Peter, her husband of 33 years, was handsomely employed in the printing business. His single income was robust and secured enough to keep the Olsomes squarely in the middle-class lifestyle column: A nice, old, four-bedroom stucco home in south Minneapolis, two family cars, a cabin in northern Minnesota, a boat, vacations and other extras … life was good.
Free Reverse Mortgage Counseling in Surprise, Arizona Offered by Money Management International
Money Management International (MMI) announced that as of July 1st, 2009 it’s no longer charging clients for reverse mortgage counseling. According to a company statement, MMI believes it has sufficient grant funds to cover expenses until at least October 2009, at which time new HUD grant funds will become available.
MMI expects there will be large demand for HECM counseling, so it will limit capacity to about 3,500 sessions each month, but all seniors calling MMI to receive counseling by phone or in any of its branches will not be charged.
MMI is a national intermediary, so it should be listed on every counseling list given to a client. However, HUD does not permit lenders to steer to any particular agency, but having a no cost option for counseling is a great thing to have.
Money Management International (MMI) and its family of Consumer Credit Counseling Service (CCCS) agencies make up the largest nonprofit, full-service credit counseling agency in the US and provides counseling 24/7.
Contact us at www.reversemortgageprosaz.com for more information.
I saw this article written by Phillip Moeller in The US News and World Report and thought you might want to take a look.
If you are considering a Reverse Mortgage in Surprise AZ this is important information to have! Visit me at www.reversemortgageprosaz.com if you need help with a reverse mortgage.
http://www.usnews.com/blogs/the-best-life/2009/06/25/smart-ways-to-access-your-housing-wealth.html
Reverse Mortgages Surprise AZ 