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

5 Facts From SUPER STORM SANDY – One Of The Worst In U.S. History

5 Facts From SUPER STORM SANDY – One Of The Worst In U.S. History

Super Storm Sandy began developing on October 22/2012 and finally dissipated on November 2. It was the deadliest, most destructive and second costliest hurricane in America’s history.

Super Storm Sandy began as a tropical wave in the Caribbean on October 19. It swelled quickly to become a tropical depression, then a tropical storm within just 6 hours. Tropical Storm Sandy was the 18th named storm of the 2012 Atlantic hurricane season. It was upgraded to a hurricane on October 24 when maximum wind speeds reached 80 mph.

super storm sandy

CATEGORY OF SUPER STORM SANDY

Super Storm Sandy was a Category 2 when it hit Cuba and developed into a Category 3 by the time it hit the east coast of the United States. It was the 2nd major hurricane of the year in that area.

DEATH TOLL

Unfortunately, at least 233 people were killed along the path of Sandy within eight different countries. Most of the deaths occurred in the United States. Approximately 158 deaths were reported of the 233 total. 71 are considered to be direct deaths located in nine states.

The hardest hit state by far was New York with a total of 49 reported Sandy related deaths. New Jersey had 10 deaths, Connecticut 3, Pennsylvania, Maryland, New Hampshire, the Virginias and other areas also suffered fatalities.

Sandy was also responsible for approximately 87 indirect deaths. These were due to circumstances related to the storm such as extended power outages during cold weather.

About 50 of deaths were a result of hypothermia, accidents in the dark especially by seniors, as well as, carbon monoxide poisoning from poorly ventilated generators and heating devices. The remaining deaths occurred during clean up efforts which included falling trees and related car accidents.

THE FINANCIAL COST OF THE HURRICANE

Approximately 650,000 homes were either completely destroyed or damaged in the storm. Sandy knocked out power to more than 8.5 million homes and businesses. Many home and business owners have yet to recover. In large part due to recalcitrant insurance companies and their suspicious policy phrasing.

If you need help recovering from a storm, hurricane flooding or fire… we can almost certainly help.

Call now..

FREE CONSULTATION

Call Bob Anselmo at: 516-850-1399

Email for more info at: admin@realpropertymoney.com