February 2015 - Colorado Reverse Mortgage Specialist

The Reverse Mortgage, created to aid the realization of retirees dreams, will be in your face if you have approached, or are approaching, the eligible age of 62. As with the all special offers across Colorado, marketing can promote it in such a way as to allure you – or to terrify you.

There are a number of points to know when you begin to learn about reverse mortgage. These are simple facts and not marketing strategies.

First of all, married couples can both be on the reverse mortgage loan if they are both over the age of 62. This means when one dies, the other can continue living in the home under the same agreement. No changes happen just because both are not alive, giving the one remaining a true security as they navigate through the transition of losing their life partner.

Second, at this time the loan is not dependant on credit score or income. There are simple eligibility requirements: the borrower must be 62 or older, the residence must be their primary residence, and the home must meet HUD guidelines.

Third, there are NO monthly mortgage payments. So long as the borrower(s) remain in the home as their primary residence, their only financial responsibilities are the homeowner’s insurance, HOA payments, property taxes and basic upkeep/utilities.

Fourth, funds from a reverse mortgage will not affect Social Security, Medicare or pensions because they are considered “tax free” income.

And the title of your home stays in your name, there is not a transfer of ownership just because you drew upon the equity of your personal asset.

Last, you could even use a reverse mortgage to buy a new home via the Reverse Mortgage for Purchase program. This a great option for those who wish to be close to family, in a desired location or have a place that fits your new lifestyle.

These are dependable facts to help you sift through all the marketing and information that will come your way.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Longmont, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming. Click here to contact Jan and learn if reverse mortgage is right for you.

With the varieties of opinions about reverse mortgages out in the marketplace a question comes up, that is, ‘would a reverse mortgage be a fall back, last resort, or would it be a positive option for a financial plan?’ While the answer lies in the hands of the borrower, or owner, there are worthy considerations to take into account.

Some, including financial planners, might label those choosing a reverse mortgage as poor planners, those that did not take the time or effort to look long at their future needs and desires and work that into a plan. Indeed, many who have sought financial planning around a reverse mortgage probably had not had a consult up until that point.

There are many reasons to consider a reverse mortgage in a forward moving plan, making the choice before it might be the only option available (though this is not bad either.) First of all, many coming into retirement are ready to downsize or move. Maybe they raised their children in a two story house in Illinois, and now do not need five bedrooms, or to weather the cold when their children and families are in clement areas such as Georgia or South Carolina. A reverse mortgage makes this possible.

The amount a reverse mortgage can be reaches a defined limit, taking into account the equity of the present home and the age of the borrower(s.) This limit can be used in multiple ways, it can go towards that downsized home, be a credit limit, can cover monthly payments for the rest of their lives, or can even be a lump sum the borrower receives immediately.

There are also other typical reverse mortgage scenarios.

For instance, as well as one might plan, life offers us unexpected events. A reverse mortgage is a respectable option when a family is in distress, many foreclosures have been avoided with the solid help of a reverse mortgage. And sometimes, when a family is not even in distress, they wish to take advantage of all their hard work, which is there in the form of the home they own, and have liquid resources instead of just equity that cannot be utilized. The ways a reverse mortgage can be brought into the questions of a plan are as unique as the personal life situations existing.

For seniors 62 and older, a reverse mortgage can objectively be considered as an alternative revenue option. This takes away the stigma sometimes attached to it as a choice that was the only option left, a fall back when it is really a move forward.

Month: February 2015

Credit Lines Magnify Every Month with a Reverse Mortgage