Reverse Mortgage Info Archives - Page 4 of 45 - Colorado Reverse Mortgage Specialist

Category: Reverse Mortgage Info

What To Know About Reverse Mortgages With Social Security, Medicare & Pension

Posted on June 13, 2023July 5, 2023 by janjordan

A very common concern among seniors and adult children when considering a reverse mortgage is how it will affect social security, medicare, and even certain pensions. For many seniors, these benefits are a large part of their income. Fortunately, because the funds from a reverse mortgage are NOT considered taxable income, a borrower’s benefits will not be affected when taking out a reverse mortgage.

On the other hand, borrowers who have Medicaid, TANF, Food Stamps or SSI may see those benefits affected by this additional income. Because these programs are government sponsored programs with strict approval guidelines based on all sources of income, even non-taxable income, there is a possibility the additional cash flow will need reported. Other supplemental and assistance programs would need to be addressed on a case by case basis. Working with a reputable reverse mortgage lender and required third party counseling will ensure all your questions are answered thoroughly and honestly.

Reverse mortgages are available to homeowners 62 and older. The proceeds can be received as a lump sum, as monthly installments, or a reverse line of credit and can be used for any purpose the borrower sees fit. This FHA insured loan allows the borrower(s) to live mortgage payment free.

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 Counseling: What To Expect

Posted on June 6, 2023July 5, 2023 by janjordan

Prior to being approved for a reverse mortgage, HUD’s Federal Housing Administration (FHA) requires each borrow to participate in a counseling session with an approved agency. These not-for-profit agencies are funded by the federal government and work closely with both the FHA and lenders to ensure a smooth process.

The goal of this session is not to steer a potential borrower in one direction or another, but to make sure they clearly understand all aspects of a reverse mortgage.

Here is what you can expect at your counseling session:

The potential borrower will need to schedule an appointment directly with a counseling agency. The lender does not initiate or take part in the session, but can provide you with resources to seek out a counselor. The session will take place in person or over the phone – although the FHA recommends a face-to-face meeting whenever possible.

Prior to your appointment, the counseling agency will provide you with a packet of information to allow you to prepare for the session. During the session the counselor will discuss your immediate and long-term financial needs, your reasons for seeking out a reverse mortgage, address any questions or concerns you may have, and clearly educate you on the process as well as the pros and cons of a reverse mortgage. Again, they are not there to “sell” you on the product, but to educate instead.

Once you have completed the counseling session, you will be provided with a “Certificate of Completion”. This certificate verifies to your lender that you have completed the counseling session and that you understand the essentials of a reverse mortgage. Your counselor will also follow up with you to ensure you have no further needs, questions, or concerns.

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 to learn if reverse mortgage is right for you.

Here’s Where To Start If You’re Considering A Reverse Mortgage

Posted on May 30, 2023June 5, 2023 by janjordan

reverse mortgage loveland fort collins greeley longmont westminster colorado Every month thousands of Americans make a decision to obtain a reverse mortgage, but where do they start? Here are my suggestions to begin the reverse mortgage process, as well as an outline of what to expect.

Research: Begin by researching reverse mortgages to understand how they work, their benefits, and potential drawbacks. Educate yourself on the eligibility criteria, loan types, repayment requirements, and any associated costs. This will help you make an informed decision.
Consult with Professionals: Consider consulting with a financial advisor or an elder law attorney who can review your financial situation and provide personalized advice. They can help you assess whether a reverse mortgage aligns with your long-term financial goals and explore any legal or tax implications.
Find Lenders: Identify reputable lenders who offer reverse mortgages. Look for those approved by the Federal Housing Administration (FHA) or other relevant regulatory bodies. Compare lenders based on their reputation, ties to the community, information, and customer reviews. It’s advisable to select a lender with specific experience in reverse mortgages.
Gather Information: Once you’ve chosen potential lenders, contact them to request information and application materials. They will provide you with details about their specific reverse mortgage products, requirements, and the application process. The reverse mortgage professional you choose should be easy to get a hold of, knowledgeable, and able to answer any and all questions.
Seek Counseling: Counseling is a mandatory step in the process and is designed to provide you with unbiased information and guidance. The counselor will evaluate your financial situation, discuss alternatives, and help you determine if a reverse mortgage is the right choice for you.
Application Process: Begin the application process with your chosen reverse mortgage professional and lender. You will need to provide various documents, including identification, proof of homeownership, income verification, and information about outstanding mortgages or liens on the property. The lender will guide you through the specific documentation requirements.
Home Appraisal: The lender will arrange for a professional appraisal of your home to determine its current market value. This step is necessary to calculate the maximum loan amount you may be eligible for.
Loan Approval and Closing: After reviewing your application, financial assessment, and appraisal report, the lender will decide whether to approve the loan. If approved, you will proceed to the closing process. During closing, you’ll sign the necessary documents, including the loan agreement and any other legal paperwork.

Remember to take your time, ask questions, and carefully review all the details before proceeding. It’s important to fully understand the terms and conditions of the reverse mortgage before making a decision.

Reverse mortgages are available to homeowners 62 and over, including married couples. Reverse mortgages are gaining in popularity among retirees from all walks of life. A reverse mortgage for purchase option is available for those looking to purchase a new residence.

Looking For A Reverse Mortgage Professional? Here’s Some Differences

Posted on May 23, 2023June 5, 2023 by janjordan

When you start navigating the waters of reverse mortgages, you will undoubtedly come across MANY different companies and individuals ready and willing to help. Flashy ads, website calculators, famous spokesmen, and more. But who are all these people? And what is the difference between them? How do you know what is the best fit for YOU?

Here’s some information I think anyone considering a reverse mortgage needs to know about the various professionals who work in the industry:

Banks and Credit Unions – Most local banks and credit unions do not offer reverse mortgage loans, although sometimes the larger ones will. Unfortunately seeking a loan through them can often mean little or no face-to-face time, and it’s not uncommon for these banks to leave the industry down the road. At one time Wells Fargo and Bank of America were in the business, but they quit, leaving their borrowers with loans that few employees can understand and little help if reverse mortgage customers need it.

Brokers – A reverse mortgage broker is a third party individual that is licensed by the state but doesn’t work directly with a lender, instead they essentially shop the marketplace. When working with a broker, borrowers will pay higher fees because they will have to cover the costs of the broker. In addition, because all transactions run through a third party, things can easily get slowed down or even stalled completely.

Direct Lender Specialists – This is the category I fall into. Working directly with a lender that specializes in FHA insured HECM reverse mortgages, such as Mutual of Omaha, direct lender specialists are able to offer local, personal, face-to-face time with clients, and eliminate the need for costly third-party fees. We are able to do all this while ensuring the smoothest, most efficient transaction possible because they are handling the loan and not farming it out to another company.

Reverse mortgages are available to individuals and married couples age 62 and older. These FHA insured loans allow homeowners to live mortgage and loan payment free until they pass away, permanently leave the home (meaning 12 consecutive months), or they default on financial responsibilities associated with the home, such as property taxes or homeowner’s insurance. The funds are available via monthly installments, a line of credit, a lump sum, or even to purchase a home.

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.

Everything You Need To Know About The Reverse Mortgage Line of Credit

Posted on May 16, 2023June 5, 2023 by janjordan

A reverse mortgage line of credit is a financial product designed for homeowners who are at least 62 years old and have significant equity in their homes. It allows them to access a portion of their home’s value without having to sell the property or make monthly mortgage payments.

Here’s how a reverse mortgage line of credit typically works:

Eligibility: To qualify for a reverse mortgage line of credit, you must meet certain criteria, including age requirements and home equity. You need to be at least 62 years old, own your home outright or have a considerable amount of equity in it, and reside in the property as your primary residence.
Application and Counseling: You’ll need to apply for a reverse mortgage through a lender approved by the Federal Housing Administration (FHA). As part of the process, you’ll be required to attend counseling to ensure you understand the terms and implications of the loan.
Loan Calculation: The amount you can borrow is determined based on several factors, including your age, the appraised value of your home, and current interest rates. The older you are and the more valuable your home, the larger the potential loan amount.
Line of Credit: Instead of receiving a lump sum, a reverse mortgage line of credit provides you with a pool of funds that you can access as needed. This line of credit can grow over time, allowing you to access more funds in the future. The unused portion of the line of credit can also earn interest, which increases the available funds.
Repayment: The outstanding loan balance, including any accrued interest, becomes due when you sell the home, move out permanently, or pass away. Typically, the home is sold, and the proceeds are used to repay the loan, but because these loans are FHA-backed, no one will ever owe more than the home is worth at the time the loan comes due. If the sale proceeds exceed the loan balance, the remaining amount goes to you or your estate.
Flexibility and Payments: One advantage of a reverse mortgage line of credit is that you have the flexibility to choose when and how much to borrow. You can access funds at any time, and you’re not required to make monthly mortgage payments. However, you must continue to pay property taxes, homeowner’s insurance, and maintain the property.
Interest and Costs: Like any loan, a reverse mortgage line of credit accrues interest over time. The interest rate may be fixed or adjustable, depending on the terms of the loan. Additionally, there are upfront costs involved, such as origination fees, closing costs, and mortgage insurance premiums.

It’s important to note that while a reverse mortgage line of credit can provide financial flexibility for seniors, it’s crucial to work with a reputable lender to ensure you thoroughly understand the terms.

Jan Jordan is a Reverse Mortgage Specialist serving the Erie, Dacono, 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.

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.

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.