janjordan, Author at Colorado Reverse Mortgage Specialist

Author: janjordan

Nearly Half Baby Boomers Don’t Have Retirement and a Reverse Mortgage Can Help

Posted on May 9, 2023 by janjordan

According to Census data for 2020, nearly half of working-age Americans don’t have any retirement savings. Savings rates rise with age, but only to a point. In the 55- to –64-year-old boomer age group, 58 percent of Americans own retirement accounts.

The fact that less than half of baby boomers have retirement plans is a concerning issue. Retirement planning is essential to ensure financial stability as we age, and not having a plan can lead to a lot of stress and uncertainty. In such a scenario, reverse mortgages can provide a useful financial tool to help baby boomers achieve financial security during retirement.

First and foremost, reverse mortgages can allow baby boomers to tap into the equity in their homes. This can provide a source of income that can be used to supplement retirement savings, cover expenses, and improve overall quality of life. Since reverse mortgages don’t require monthly payments, the homeowners can use the proceeds from the loan to cover expenses without adding to their financial burden.

Furthermore, reverse mortgages can provide an opportunity for baby boomers to age in place. Many older adults prefer to stay in their own homes as they age, but the cost of maintaining a home can be challenging. With a reverse mortgage, older adults can use the equity in their homes to make necessary repairs and modifications, making it possible for them to stay in their homes and maintain their independence.

Another advantage of reverse mortgages is that they can help reduce financial stress. Retirement can be an uncertain time, especially for those who haven’t saved enough. A reverse mortgage can provide a reliable source of income that can help baby boomers feel more financially secure, reducing the stress and anxiety that often come with financial uncertainty.

Overall, reverse mortgages can provide a valuable financial tool for baby boomers who don’t have retirement plans. By allowing older adults to tap into the equity in their homes, age in place, and reduce financial stress, reverse mortgages can help improve overall quality of life during retirement. However, it’s important to note that reverse mortgages may not be the right solution for everyone, and it’s essential to work with a reputable lender.

Reverse mortgages are available to individuals and married couples age 62 and over. The loan must be taken out on the primary residence where the borrower lives which meets HUD guidelines, or it can be used to purchase a home that will be primary residence. The funds can be accessed via a line of credit, monthly payments, or a lump sum.

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

Senior Home Equity Falls – What It Means For Reverse Mortgages

Posted on April 27, 2023May 9, 2023 by janjordan

For the first time in 12 years, senior home equity has fallen, according to the Reverse Mortgage Lenders Association (NRMLA). The decline in home equity has resulted in the collective senior housing wealth sliding from a peak of $12.42 trillion in 2022 Q3 to $12.39 trillion in Q4. According to NRMLA, the dip in equity resulted from a $30 billion increase in senior mortgage debt, while home values remained flat due to the cooling housing market.

A reverse mortgage can be a smart financial decision for seniors, even when senior home equity is declining. The amount of funds someone can receive from a reverse mortgage is based on the value of their home among other factors, so a decrease in home equity can potentially impact the amount of money that can be borrowed. However, even in times of declining home equity, a reverse mortgage can still be a valuable source of income for seniors.

One important reason why it’s important to consider a reverse mortgage now, even as senior home equity is declining, is that home values were previously at their peak. This means that many seniors may still have significant equity in their homes, even if the value has declined somewhat. By taking out a reverse mortgage, seniors can access that equity and use it to supplement their retirement income, cover expenses, or make improvements to their home.

Furthermore, a reverse mortgage can provide a valuable source of financial security, even if the value of the home has declined, because these loans are FHA insured. This means a borrower will never owe more than the balance of the loan OR the current value of the home, whichever is less. Seniors who have a lot of equity tied up in their homes may feel anxious about the impact of declining home values on their financial security. A reverse mortgage can provide a reliable source of income that’s not dependent on the value of the home, which can provide peace of mind and reduce financial stress.

Finally, it’s important to remember that a reverse mortgage is just one option for seniors who want to access their home equity. Depending on individual circumstances, other financial products or strategies may be more appropriate. It’s important to carefully consider all available options and consult with a reputable reverse mortgage lender before making a decision.

In conclusion, while declining senior home equity can impact the amount that can be borrowed with a reverse mortgage, it’s still a valuable financial tool for seniors 62 and over. By providing access to home equity, even in times of declining home values, reverse mortgages can provide a reliable source of income and financial security. But it’s important to consider a reverse mortgage now, while home values are still relatively high, to take advantage of this valuable asset.

Jan Jordan is a Reverse Mortgage Specialist serving the Erie, Dacono, Fort Lupton, Windsor, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Contact Jan and learn if reverse mortgage is right for you.

Boomers Are Buying Homes At Faster Rate Than Millennials And They Should Be Using A Reverse Mortgage

Posted on April 20, 2023May 9, 2023 by janjordan

Baby boomers are buying homes at a faster rate than millennials for the first time ever, but this trend also comes with an increasing amount of debt near retirement age. While owning a home can be a valuable asset, carrying debt into retirement can create financial stress and strain. However, there is a solution that can help baby boomers purchase a home without taking on excessive debt: the reverse mortgage for purchase.

A reverse mortgage for purchase allows older adults to buy a home and finance the purchase with a reverse mortgage. With this option, baby boomers can purchase a home without taking on a large amount of debt and can often also supplement their retirement income with the payments received from the reverse mortgage.

One of the primary advantages of a reverse mortgage for purchase is that it can provide a way for baby boomers to buy a home without draining their retirement savings or taking on additional new debt they must immediately pay. With traditional mortgages, borrowers are required to make monthly payments, which can be difficult to manage on a fixed income. However, with a reverse mortgage for purchase, the borrower receives payments based on the equity in the home, which can help them maintain their financial stability and avoid excessive debt.

Moreover, a reverse mortgage for purchase can also provide a way to downsize or move into a more suitable home or location without incurring excessive debt. For example, if a baby boomer wants to move into a smaller home that’s more affordable or move closer to family, a reverse mortgage for purchase can provide a way to do so.

Learn more about the creative financial Reverse Mortgage for Purchase tool here. And if you’re home shopping and your realtor hasn’t mentioned a reverse mortgage for purchase, ask them, or reach out to Jan Jordan for more info.

Retirement Worries And How A Reverse Mortgage Can Help

Posted on April 6, 2023 by janjordan

Many older Americans are concerned about having enough money to retire comfortably. In fact, a recent survey found working Americans age 45 and older expect they will need about $1.1 million in savings in order to retire, but only 21% of people in that age group expect to have even $1 million. That’s down slightly from the 24% in 2022 who said they expected to save that much. The survey also found that 59% of those workers expect to have less than $500,000 saved for retirement, including 34% who said they will have less than $250,000.

The traditional approach to retirement planning has been to accumulate a significant nest egg through saving and investing. However, for some people, this may not be enough. This is where a reverse mortgage can help.

A reverse mortgage is a type of loan that allows homeowners to convert home equity into cash without having to sell their home or make monthly mortgage payments. Instead, the comes due when the borrower sells the home or passes away. Reverse mortgages can be an attractive option for retirees who want to access the equity in their homes to supplement their retirement income.

For many retirees, their home is their largest asset. According to the National Reverse Mortgage Lenders Association, homeowners age 62 and older had $11.81 trillion in home equity in the third quarter of 2022. A reverse mortgage can provide a way for homeowners to tap into that equity and use it to fund their retirement.

One way to use a reverse mortgage is to establish a line of credit. This allows homeowners to access funds as needed, without having to take out a lump sum loan. The line of credit can be used to pay for expenses such as healthcare costs, home repairs, or travel. Unused funds in the line of credit will continue to grow over time, providing an additional source of income in retirement.

Another way to use a reverse mortgage is to take out a lump sum loan. This can be useful for retirees who need a large sum of money upfront to pay off debts or make a major purchase. The lump sum can also be used to supplement retirement income or pay for long-term care.

A reverse mortgage is a FHA backed loan available to seniors 62 and over.

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.

Reverse Mortgage For Purchase Helps Boomers Buy Homes

Posted on March 30, 2023April 6, 2023 by janjordan

For the first time in 8 years, boomers are buying homes at a faster rate than millennials. A reverse mortgage for purchase can be a good option when they’re looking to buy a home. A reverse mortgage for purchase allows seniors to purchase a new home and pay for it without making monthly mortgage payments. Instead, the loan is repaid when the borrower sells the home, moves out, or passes away.

There are several advantages of a reverse mortgage for purchase for senior citizens. First, a reverse mortgage for purchase can help seniors preserve their savings and investments. By using a reverse mortgage to purchase a home, seniors can avoid depleting their savings or investments to pay for the home. Instead, they can use the equity in their home to fund their retirement expenses.

Second, a reverse mortgage for purchase can help seniors stretch their retirement income further. By not having to make monthly mortgage payments, seniors can use their retirement savings and income for other expenses, such as healthcare or leisure activities.

Third, it can allow seniors to purchase a new home that better suits their needs as they age, such as a home with fewer stairs or one that is closer to family. This can help seniors maintain their independence and quality of life.

Finally, a reverse mortgage for purchase can help seniors leave a legacy for their heirs. When the loan is repaid, any remaining equity in the home can be passed on to their heirs.

In summary, a reverse mortgage for purchase can be a good option for those 62 and older who are looking to purchase a new home. It can provide them with financial flexibility, help them preserve their savings, and improve their quality of life in retirement. However, as with any financial decision, it’s important to carefully weigh the pros and cons before deciding if a reverse mortgage for purchase is right for you.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Lupton, Erie, Lafayette, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.

Here’s Why Using A Reputable Reverse Mortgage Lender Is Critical

Posted on March 23, 2023April 6, 2023 by janjordan

Using a reputable reverse mortgage lender is crucial for anyone considering a reverse mortgage, as it can greatly affect the borrower’s financial well-being and peace of mind. A reverse mortgage is a serious financial product and working with a reputable lender can help ensure that the borrower fully understands the terms and risks involved.

Here are some reasons why it’s important to use a reputable reverse mortgage lender:

Avoiding scams: Unfortunately, there are many scams and unscrupulous lenders in the reverse mortgage industry. Working with a reputable lender can help protect the borrower from fraud and predatory lending practices.
Clear and transparent terms: A reputable lender will provide clear and transparent information about the terms and costs of the reverse mortgage. This includes the interest rate, fees, and repayment terms, as well as the borrower’s obligations and responsibilities.
Education and guidance: A reputable lender will provide education and guidance to the borrower, helping them understand the pros and cons of a reverse mortgage and how it fits into their overall financial plan. This can include counseling and education from an independent third-party counselor.
Compliance with regulations: A reputable lender will comply with all applicable regulations and laws related to reverse mortgages. This includes following guidelines from the Department of Housing and Urban Development (HUD) and other regulatory agencies.
Customer service: A reputable lender will provide excellent customer service, answering questions and concerns promptly and professionally. This can help the borrower feel more comfortable and confident throughout the process.

In short, working with a reputable reverse mortgage lender can help ensure that the borrower is making an informed decision and is protected from fraud and predatory lending practices. It can also provide peace of mind and a better overall experience throughout the process. When considering a reverse mortgage, it’s important to do your research and choose a reputable lender with a track record of excellent service and transparency.

Reverse mortgages are available to individuals and married couples aged 62 and over.

Using Home Equity In Retirement

Posted on March 10, 2023March 8, 2023 by janjordan

Did you know home equity can be used to reduce the overall risk of your retirement plan? Your house is a great asset that for many years has been overlooked in financial planning for seniors. This is making a sharp turn lately as retirement experts are beginning to understand how tapping into home equity via a reverse mortgage should never be underestimated.

Let’s take a look at where most seniors sit currently when it comes to retirement…

• Only 22 percent of workers are very confident they will have enough money in retirement.

• 45 percent of Americans have saved exactly nothing—zero.

• The expected lifespan of women is 20 years past the age of retirement, and two years longer than men.

• The average retiree can expect to spend $220,000 in out of pocket health care costs during retirement.

• Medicare pays for an average of 62% of a seniors health care costs, leaving 38% to come out of pocket.

• 36% of up and coming retirees will rely on Social Security as their sole income.

A reverse mortgage can help in many different ways – and the how the funds are spent is entirely up to the borrower. Whether it’s a monthly payout or a line of credit, when combined with other retirement planning tools, reverse mortgage can allow retirees financial security during the years they worked so hard to enjoy.

Reverse mortgages are available to senior homeowners 62 and over – even married couples. They will live mortgage payment free, always retain the title to the home, and because these loans are FHA insured non-recourse, no one – including heirs – will find themselves saddled with the debt after the owner passes. There are also various solutions for adult children or other family members who may want to keep the home in the family.

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

Is Your Home HUD Eligible for a Reverse Mortgage in Colorado?

Posted on March 3, 2023March 8, 2023 by janjordan

Reverse Mortgages are specialized loans available to seniors 62 and over. This creative resource is used by a wide demographic – from those looking to supplement a fixed income to the more affluent in need of protection for retirement assets, and even those wanting to purchase a home in retirement. But there are some requirements when it comes to the actual home…

Which types of homes are included?

According to the HUD’s Federal Housing Administration, the home must be a single-family home or a 2-4 unit home with one unit occupied by the borrower. Some condominiums and manufactured homes that are approved by HUD also meet FHA requirements.

In the case of a Reverse Mortgage for Purchase, borrowers can use a reverse mortgage to purchase a single-family home or 2-4 unit home with completed construction that has received a certificate of occupancy.

Are there reasons my home may not qualify?

A home with very little equity may not qualify, although homes with existing mortgages may.

In addition, homes must be maintained with general upkeep and be current on property taxes and other expenses relevant to the home.

A second home or vacation home may not qualify. The borrower must be living (or plan to live) in the home.

Bottom line

The funds from a reverse mortgage can be accessed via a lump sum, line of credit, monthly installments, or to purchase a home. If you have questions let your specialist guide you in the many scenarios that are possible and the two of you can think creatively about your needs and desires.

Use a Reverse Mortgage to Eliminate Your Traditional Mortgage

Posted on February 24, 2023March 8, 2023 by janjordan

It’s not uncommon that I get questions about why a senior may want to use a reverse mortgage to pay off an existing conventional mortgage loan. This scenario would vary from person to person, but in the long run, if the equity in the home can eliminate a mortgage payment without acquiring another loan payment, it’s often a win-win.

A reverse mortgage is essentially a home equity loan in which the borrower is not required to make payments. The homeowner must be at least 62 years old and meet certain income and credit guidelines. Although a reverse mortgage does accrue interest, it does not have to be repaid until the last borrower passes away or leaves the home permanently. Almost all of these loans are FHA insured. There are certain things like property taxes and HOA fees that the homeowner will still be responsible for.

Here is a scenario:

Barbara is a 75-year-old widow with a house worth $495,000. She still owes $125,000 on her conventional mortgage, with no other mortgage debt such as a HELOC.

Based on her age and the home’s value, she can get a reverse mortgage that would not only pay off her mortgage but give her extra funds as well that could be accessed via a line-of-credit.

She could live mortgage payment free for the remainder of her time in the home.

A common question with reverse mortgages is who technically owns the home? The borrower does. They will retain the title and can make modifications or upgrades to the home.

In addition, this is a great option for eliminating a HELOC (home equity lines of credit).