5 Requirements to Get a Reverse Mortgage To Fund Your Retirement

5 Requirements to Get a Reverse Mortgage To Fund Your Retirement

5 Requirements

to Get a Reverse Mortgage

To Fund Your Retirement

You’ve worked hard all your life and your planning for your retirement. The best way to do that is to have a solid, practical plan in mind. This calls for financial planning that is specific to you and your life.

 

First off, start with a list. Not unlike a grocery list. You know what you need and you know the few things that are a splurge you’ll get if the budget allows.

Ask yourself a few questions when making your list:

– What are your biggest priorities to have a comfortable retirement?

– What is your budget going to be like?

– Will you want to travel? If so, where and how often?

– How much do you want to leave your kids?

– What is your health like? Do you anticipate medical bills or increased insurance?

One financial product that can help you achieve your retirement goals is a reverse mortgage. If you qualify and if your home meets the criteria it can be a powerful financial planning tool for some families and individuals.

Just don’t be fooled by television commercials and magazine ads. There is much more to it than those sources suggest. Basically, owning a piece of property that is your primary residence can give you excellent options for funding your retirement.

 

It may be that you can leverage the equity you have in the home to make wise investments and ultimately help secure your desired lifestyle in retirement. You may even be able to do this without selling your home and moving elsewhere.

If you want the straight up details on reverse mortgages and wonder whether you should even consider one, here are 5 critical factors to know about a reverse mortgage:

1) A Reverse Mortgage is a Type of Home Equity Loan

The use of the term “mortgage,” which can be misleading. In reality, a reverse mortgage is a type of home equity loan. The amount borrowers can receive depends (to some extent) on how much equity is in their home.

With a reverse mortgage you are borrowing your own home’s equity. However, unlike regular home loans, no loan payments are due until the loan becomes due.

**To qualify for a reverse mortgage the home owner must have homeowner’s insurance, pay the property taxes and keep regular maintenance on the home.

These are things you probably already do but because the lender now has an interest in the property it’s a requirement to receive the loan.**

 

2) The Primary Borrower MUST Be 62 or over

The fact is, reverse mortgages aren’t right for or even available to everyone. One of the first questions you’ll be asked is how old the homeowner is. The borrower must be at least 62 years old.

Recent changes, according to the Consumer Financial Protection Bureau, now allow the younger (non-borrowing) spouse to live in the home should the borrower pass away first.

Although, it would be wise to have an attorney advice before moving forward with the signing.

3) The home MUST be the borrower’s primary residence

You can own additional property such as a vacation house. However, it means the home the reverse mortgage will be taken out on must be where the borrower lives most of the time.

4) One Day… The Loan Will Be Due

A reverse mortgage lets you live on (and enjoy) the equity you’ve built up in your home.

You can choose to use this loan for your living expenses in retirement or use it for other types of investments. Including, real estate and various financial products.

However, as with any loan, it must be paid back in the end. This happens when the owner dies or moves away from the home.

5) The Heirs

It’s important to note that your heirs have rights to the equity in the home. They can choose between keeping the home or selling it. There are conditions to each option though.

There are 2 options:

#1 – If the loan balance is less than the property value, they can take over the property by paying-off the loan balance. They can do this using cash or a new mortgage.

#2 – The heirs can sell the home and keep the equity remaining after paying off the loan.

However, if the loan balance is equal to or more than the value of the home, then the bank keeps the difference.

Your heirs then have the choice of paying 95% of the appraised value or the balance owed to keep the home, whichever is less. Or, they can choose to sell the home or let the bank keep it and owe nothing.

Is a Reverse Mortgage Right for You?

Statistically, less than half of all Americans are adequately prepared for their retirement.

That’s why the time is now to talk to someone who can help you figure it all out. You deserve to have a happy and stress free retirement.

The fact is this, you’ve spent years of accumulating equity in your home and it’s one of the most accessible sources of cash for retirement.

A secure future is within your grasp and Real Property Money Associates can help.

Real Property Money Associates has a group of dedicated individuals waiting to help you figure it out. Our consultations are always free.

We can help you plan a retirement strategy and help you understand exactly what a reverse mortgage is and whether it is right for you. Why? Because it’s not right for everyone.

We’ve lived and worked in the tri-state area all our lives.

We know the market. We know the mortgage business.

We’ve got connections with lawyers, realtors, insurance brokers and all the other professionals needed to get the loan done right.

Contact Bob Anselmo today –  516-850-1399

admin@realpropertymoney.com

What is a Reverse Mortgage & What Can it Do for You?

What is a Reverse Mortgage & What Can it Do for You?

What is a Reverse Mortgage & What Can it Do for You?

In a nutshell, a reverse mortgage is basically the opposite of a traditional home loan.

As you pay off a regular mortgage the smaller the loan becomes. With a reverse mortgage, the longer you have it, the larger it gets.

You may be thinking, home mortgages don’t work that way. And normally they don’t.

Reverse mortgages are fairly complex financial products that allow the home owner to borrow money using the equity in their home as security.

The home owners who are best served by this product are those over 60 years of age. A reverse mortgage can be one of the best ways to fund your retirement.

 

Question: So how does that work? Well, let me tell you.

The structure of a reverse mortgage can be underwritten to be paid out as either:

– a lump sum
– a regular stream of income
– a line of credit
– or a combination of these options

Interest is charged like any other loan, except you don’t have to make repayments while you live in your home. The interest compounds over time and is added to your loan balance.

This calculation will be the barometer used to determine the amount you can borrow against the home. Additionally, the age of the younger spouse is taken into consideration.

You remain the owner of your home and can stay in it for as long as you want.

However, you must repay the loan in full (all interest and fees included), when you either:

– sell the home
– die
– or move into an eldercare facility

 

Question: Who is best suited for this type of financial product?

It’s simple. The best candidates are people who have either retired or are soon to be retired.

Let’s look at an ideal reverse mortgage scenario:

There are 2 ideal candidates:

#1 – A retired person, 65 years old, who owns a lot of asset based wealth (mostly in their home) but has almost no available cash.

#2 – A senior citizen who’s looking for cash to supplement their pension or part time income. Someone who would have difficulty paying for their day to day activities in their golden years.

A reverse mortgage can be used to convert the current value of your home into available cash.

It’s best if the senior person owns their property free and clear although it’s not usually a problem if there’s a small balance remaining on the original mortgage.

Question: How much will it cost?

To set up a reverse mortgage it’s usually in the neighborhood of $1000 to $2000.

After that, the monthly fees may be $20 or nothing at all. This depends on many factors mostly on the lending institution you set up the reverse mortgage with.

Keep in mind, that the interest rates will probably be 1% or 2% higher than a regular mortgage because no monthly payments are required.

Also, in some cases, the receipt of a reverse mortgage may impact the homeowner eligibility for a pension.

However, like any other banking product, it’s best to obtain financial, as well as, legal advice before you move forward with a reverse mortgage. In fact, many lenders will insist on it.

Let’s break down the Pros and Cons of obtaining a reverse mortgage:

Pros

– The debt owed to the bank is normally capped at the market value of your home

– It helps mortgage free but cash strapped homeowners fund their retirement

– There are options for payouts (eg. regular payments, line of credit or lump sum)

– It could allow homeowners to stay in their homes, whereas they may have had to sell otherwise

– If you must, you can always sell your home and pay off the debt

Cons

– There are higher interest rates than on a regular mortgage

– The interest starts accumulating from the first day

– If you’re the sole owner, your spouse or other occupants may have to leave the property when you die

– The younger you are and the more you borrow against your home now, the less equity you’ll have in your home in the future

*****

There is a lot to consider when looking at signing on for a reverse mortgage.

Our associates at Real Property Money can help you. Our consultations are always FREE.

Contact us today: admin@realpropertymoney.com

Hillary Clinton Announces 2016 Presidential Bid in Donor Emails

Hillary Clinton Announces 2016 Presidential Bid in Donor Emails

 

Hillary Clinton Announces

2016 Presidential Bid

Hillary Clinton officially announced her candidacy for President of the United States via email on Sunday, April 12 — watch the video!

Source: www.usmagazine.com

Love her or Hate her…. All I can say is “You Go Girl!”

 

If the banks have turned you down… you can talk to us. Bob Anselmo is a NYC native and all round expert when it comes to putting private real estate deals together.

Call Bob Anselmo today: 516-850-1399

Attention: Builders and Contractors – Our Private Lenders Can Help You!

Attention: Builders and Contractors – Our Private Lenders Can Help You!

 

Attention: Builders and Contractors – Our Private Lenders Can Help You!

Are you a builder who needs a loan? Does your client need financing? The banks won’t help?

What we can do for builders and contractors (and anyone else) is this…

Real Property Money Associates exist to bring hard-to-finance deals together with those who have the most experience with hard-to-get-done deals AND make sure that everyone involved is rewarded fairly.

The following loan transactions are examples of some of the deals we do.

Call Bob Anselmo at 1-516-850-1399 For a FREE Consultation

Bob will answer all your questions. He won’t waste your time either. Within minutes he will know if we can help you or not… and we usually can.

BRIDGE LOANS

Builders and loan seekers are you or your client right in the middle of renovations or moving out of one property and buying another? Sometimes all they need to make it through is some extra cash until the deal is finalized.

Our private lenders can bridge the gap over troubled water for you. Whether those waters run under residential or commercial properties.

Call Bob Anselmo at 1-516-850-1399 For a FREE Consultation

Bob will answer all your questions. He won’t waste your time either. Within minutes he will know if we can help you or not… and we usually can.

RENOVATION AND FLIPPING LOANS

Do you have a client who likes to take on a property challenge or perhaps a property nightmare?!

 

Our list of private investors are highly experienced in the field of property renovation.

They are very willing to offer their expertise and money so your client can get the job done and make some REAL MONEY.

Send us your email or give us a call. Find out how we can help you and your client get the job done!

Call Bob Anselmo at 1-516-850-1399 For a FREE Consultation

Bob will answer all your questions. He won’t waste your time either. Within minutes he will know if we can help you or not… and we usually can.

 

SPEC HOME BUILDING LOANS

Are you a contractor or renovation specialist? Then you know how difficult it is to get a loan at a great rate and make some REAL MONEY.

We will work with you to find the best loan solution for your situation. We can help you on the front end of the deal, as well as, the back end when you’re ready to sell.

 

Call Bob Anselmo at 1-516-850-1399 For a FREE Consultation

Bob will answer all your questions. He won’t waste your time either. Within minutes he will know if we can help you or not… and we usually can.

Now Seeking Investors & Partners

Real Property Money Associates has an online outreach program where we seek investors and partners to join with in other states across the country.

If you are an experienced real estate investor we’re interested in connecting with you. Here is what you get from us:

We have relationships with our investment partners that have lasted over 25 years. Together, we have invested over $125,000,000 in small/medium size bridge loans on commercial, multifamily, mixed use and specialty use properties.

We have experienced underwriters. We use multiple criteria to determine a lendable situation. We never lend more that 60% of the as is value or more than 50% on the completed value of any property.

We always do our due diligence. We look at the overall indebtedness and credit worthiness of every borrower who must also have a valid exit strategy (usually within 12 months) for every deal.

If the above describes the type of RE partner you’re interested in then perhaps we should connect…

Call 1-888-370-0698

OR

Email admin@realpropertymoney.com

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**Right now, Real Property Money Associates are looking for investors/partners far and away…

First: We’re looking for investors who want to buy local distressed and “under valued” properties in the greater NY area. Then take those properties and use a buy, renovate and rent/hold business plan.

Second: We want to aide investors around the nation looking for funding for their local projects. These projects can be buy and hold or fix and flip options. They can even be strictly funding or refinancing deal as well.

Our Simple Buy/Hold Strategy Explained:

#1 Find distressed properties earmarked for a 20% to 30% return.

#2 Put down 50% up front and borrow the other 50% at a rate of 10%-12% annually (approx. 1% per month during the renovation phase).

#3 We refinance within 9 months and make 20-30% on the initial equity. Then we pick up the spread on the borrowed funds at 9% and net an additional 11%-21% off the loan…

This makes our entire ROI 30-40%. This is very doable. We’ve done it before and with this strategy we can either hold the property or sell and still see big numbers on the back end.

If reading the above strategies and opportunities gets you excited to work with us then give us a call or at the very least leave your email. We’ll get back to you ASAP.

Call 1-888-370-0698

OR

Email admin@realpropertymoney.com

OR

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