Reverse Mortgage Info Archives - Page 5 of 46 - Colorado Reverse Mortgage Specialist

Category: Reverse Mortgage Info

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.

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.

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.

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).

How to Find a Reputable Reverse Mortgage Lender in Colorado

Posted on February 17, 2023March 8, 2023 by janjordan

For many seniors, a reverse mortgage is a feasible option to living within a budget, without the constraints and worry of excessive financial distress. In order to qualify for a reverse mortgage, the individual must own their home, be at least 62 years old, and have some equity in the home. Funds from a reverse mortgage can be accessed in various ways including a line of credit, monthly installments, a lump sum, and they can even be used to purchase a new home. In general, the older the borrower (or the youngest borrower in the case of married couples) and the more valuable the home, the more money available. Other factors also come into play, such as: the appraised home value, interest rates, and the amount of equity in the home. Once a basic understanding of how a reverse mortgage works, the next step is finding a lender.

Where to find a lender?

Reverse mortgages are marketed in every possible way. Television, radio, mailers, internet, etc. Although not all of these methods ensure trouble, some of them can be scams. When seeking a reverse mortgage lender, it’s important to speak with people you trust. Ask around at your bank or financial institution. Speak with a financial or retirement adviser. Talk with neighbors or friends who have utilized a reverse mortgage. Seek information from the local Chamber of Commerce or Better Business Bureau. Utilize other resources that may be available in your community.

What to look for in a reverse mortgage lender?

Working with a reputable reverse mortgage lender is critical. The reverse mortgage industry is riddled with scams and flashy sales. It can be risky to get involved with a lender who does not offer all the details or who is just looking to make a “quick sell”. A reputable lender will have strong connections in the community, working closely with a network of professional organizations.

Accreditations and ratings?

Seek out a lender that is a member of the National Reverse Mortgage Lenders Association (NRMLA). Members of the NRMLA must conform to a strict code of lending ethic. Look for a lender that is affiliated with the Better Business Bureau (BBB), where you can also learn of any complaints against the company.

Follow your gut.

When it comes down to it, always follow your gut. Just because a lender may meet all this criteria doesn’t mean they will be right for you. If you do not feel comfortable or feel your questions are not being adequately answered, there is nothing wrong with seeking out a different lender.

Understanding The Reverse Mortgage Maturity Event

Posted on February 10, 2023February 13, 2023 by janjordan

For many who have had a conventional mortgage on their home, they are familiar with the “maturity date”. But with a reverse mortgage, there is no maturity date, only a “maturity event”. So, what’s the difference?

A maturity date indicates the date which the borrower will make the final payment on the loan, including principal and interest. These are used with conventional mortgages.

A maturity event represents a specific event that takes place in the borrower’s life that signifies the loan has come due. Because reverse mortgage borrowers do not make monthly mortgage payments. many seniors see this as an advantage.

Here are some examples of maturity events:

The property is no longer the borrower’s primary residence
The property is sold or transferred out of the borrowers name
The borrower (or last borrower on the loan) passes away
The borrower moves away from the home for more than 12 consecutive months (such as moving into an assisted living facility)
The borrower fall substantially behind on their property taxes, homeowners insurance, or HOA fees.

A reverse mortgage is available to seniors 62 and over, and this FHA backed loans allow the borrowers to live mortgage payment free. The funds are available in various different ways, including a line of credit, monthly installments, a lump sum, and even to purchase a home.

Everything You Need To Know About Reverse Mortgage For Purchase

Posted on February 3, 2023February 13, 2023 by janjordan

Reverse Mortgages, once typically thought to only help struggling seniors, have undergone enormous changes recently and are being used to help even affluent retirees achieve their retirement dreams and home buyers purchase new homes.

The Reverse Mortgage for Purchase program is quickly gaining in popularity. This program allows seniors to purchase a home using a reverse mortgage and live mortgage payment free. To qualify for this program, borrower(s) simply need to be age 62 or older, be purchasing a home to become their primary residence, and have their “required investment”. The borrower will still be the homeowner and will always retain the title. In addition, similar to a homeowner who owns their home free and clear, there will not be a monthly mortgage payment but the borrower will still be required to pay property taxes, homeowner’s insurance, HOA fees, and basic upkeep and utility payments.

The borrower can use this loan to purchase single family homes, town homes, and FHA approved condos, and even homes under construction.

As mentioned above, the borrower will need to have their “required investment” or down payment. This amount is determined by a calculation set by HUD based on: the lesser of the sale price or appraised value, the age of the youngest of the borrowers, and the current expected interest rate. There are many examples available of these numbers to help real estate professionals and borrowers determine the price bracket they should search based on the required investment they have available.

Unlike a traditional mortgage where the loan reaches a “maturity date”, reverse mortgages have a “maturity event”. This is the event which causes the loan to become due and payable. These “events” include: the last remaining borrower passes away, the homeowner sells the home, the last remaining borrower leaves the home for 12 consecutive months, or the homeowner defaults on property taxes or insurance.

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.