Reverse Mortgages Give Reasons For Hope

Reverse Mortgage Gives Reason for Hope

As I was reflecting on the hope that this season brings I got to thinking about the reasons the reverse mortgage gives hope to seniors. Here are some of the reasons for hope with a reverse mortgage. Yes, the list is long but seniors have a long list of wants and needs for hope. With a reverse mortgage one will be able to:

• Stay in one’s home where they may have raised their family, are familiar with the neighborhood and their neighbors and where they usually want to remain.

• Pay off a current mortgage to eliminate the monthly principal and interest of mortgage payments. Have payment flexibility; choose if, when and how much you pay, lowering the loan balance and creating a line of credit which grows allowing more funds for in the future.

• Protect other investments/Hedge against longevity risk.

• Have funds for emergencies and/or long-term care.

• Have improved cash flow with no monthly mortgage payments. (Still have to pay property taxes and hazard insurance, flood and HOA dues if applicable.)

• Protect some of their other retirement funds or investments where there might be taxes or penalties on withdrawals.

Purchase a new one-level home to meet changing health needs

• Purchase a new home to downsize and/or move closer to family

• Have funds for making home improvements or home modifications.

• Retire and not feeling like you have to work just to have money to pay the bills.

• Have cash flow to be able to pay taxes.

• Have funds to pay for home health care.

Reverse Mortgage pays for home care or companion care

• Have funds for some assistance with home care or companion services.

• Have funds for adult day services.

• Have funds for medical expenses and prescriptions.

• Afford going to the dentist.

• Afford new eye glasses.

• Have funds for the needed hearing aid.

• Have funds to cover long term care expenses.

• Cover everyday living expenses.

• Not rely on credit cards.

• Not rely on children.

• Payoff spouse in a divorce.

• Use in probate for an heir to purchase home and pay off other heirs.

HECM Reverse Mortgage Provides funds for extras in life

• Have funds for the little extras in life, like:
○ getting one’s hair done,
○ having cable TV,
○ buying groceries,
○ going to lunch with friends,
○ treating their children to dinner,
○ going to community plays or the theater or a concert,
○ taking the grandchildren to the zoo or a movie,
○ Depends (I had a client say with their reverse mortgage they could now afford to buy Depends),
○ being able to do hobbies.

• Purchase a more dependable car.

• Afford transportation if one can no longer drive.

Afford to travel for family wedding or reunion with a reverse mortgage

• Afford the travel for the family wedding or reunion.

• Take the vacation they have dreamed of all their life.

• Have funds for emergencies.

• Reduce financial stress.

• Save one’s home when faced with foreclosure or tax forfeiture.

• Have funds to full fill needs and goals.

• To live with security, independence, dignity and control.

I have helped seniors where a reverse mortgage has fulfilled all of these reasons and more, providing hope for their future. A reverse mortgage has given hope to thousands of Minnesota seniors so they can remain in their home with security, independence, dignity and control even during trying times. If you know a senior who is looking for hope for one or more of the above reasons, a reverse mortgage may be their answer.

Would you like to explore a reverse mortgage for your situation? Contact us if you are in Minnesota.  As your local broker, we work with several lenders and provide free information and facts with no obligation, meeting in person whenever possible.

For other states, contact your local reverse mortgage specialist who is a broker, one who works with several lenders, has their Broker License/NMLS and preferably holds the Certified Reverse Mortgage Professional (CRMP) designation.

© 2019 Beth Paterson, CRMP, Beth’s Reverse Mortgage Blog, 651-762-9648

This material may be re-posted provided it is re-posted in its entirety without modifications and includes the contact information, copyright information and the following link: https://wp.me/p4EUZQ-2CC

Related Articles:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Reasons to obtain a Reverse Mortgage

I often hear that people think the reverse mortgage is only for those with an immediate need on their current home. While this is one reason one obtains a reverse mortgage, there are five general reasons to obtain a reverse mortgage. Let’s explore all of these.

  • Needs based or improving cash flow: Need funds immediately for covering living expenses or wants to eliminate the current mortgage payments.

Lisa and George had a small mortgage remaining on their home. It was difficult to make the monthly payments so they obtained a reverse mortgage to eliminate the payments. There were remaining proceeds that they left in a Line of credit for future use. And they are still paying their property taxes and insurance.

Joe needed a hearing aide but couldn’t afford it with his Social Security benefits. Rather than taking money from his savings, he obtained a reverse mortgage. He also used some of the money to put new siding on his home.

  • Maintaining lifestyle: Having funds for travel, buying a car, purchasing vacation home; fulfilling dreams or meeting goals.
To fulfill dream of traveling Helen obtained a reverse mortgage

Helen was struggling to meet her living expenses with just her Social Security Benefits. She also had always dreamed of traveling. The reverse mortgage provided the extra cash she needed and she was able to fulfill her dreams of traveling

Bob’s wife passed away so her Social Security was no longer received. To replace the 2nd Social Security check his financial advisor suggested a reverse mortgage so he could stay in his home and maintain his lifestyle. The reverse mortgage paid off his current conventional mortgage and eliminated his mortgage payments – this improved his cash flow. Then Monthly Draws were set up to add the extra money he needed each month to maintain his lifestyle. Additionally funds were left in the line of credit for future needs.

  • Protecting or delaying draws from other investments: Using the reverse mortgage to tap home equity rather than accessing other investments or retirement funds that may have penalties or are taxable; let the investments or retirement funds grow so more retirement funds are available later in one’s life; use the home equity so other investments can be left as the inheritance.

Dorothy closed on her Home Equity Conversion Mortgage (HECM) reverse mortgage as a tool to strategically manage her assets and the benefits she has received from her reverse mortgage. She’s used the funds for home repairs and travel, and hasn’t had to use her investments.

Reverse mortgage provides funds to enjoy retirement and have funds for future

In their mid-70’s, Pat and Mary planned for their retirement. But as their life changed they found there wasn’t enough money to last through the end of the month. With the reverse mortgage in place providing monthly cash flow and a line of credit for other needs, Pat and Mary’s retirement funds may be protected for their future. They are living their retirement years with a good plan along with funds for their current needs. Now they have more money at the end of the month – what a way to live in retirement!

Ray used a reverse mortgage on his primary residence to build a new lake home. Using the reverse mortgage for this purpose meant he didn’t have to tap into other retirement investments, yet created a new investment. His plan is in 10 years to start using his other retirement funds.

  • Planning for financial or long-term care needs (Standby reverse mortgage): Taking the reverse mortgage at a younger age then leaving in the line of credit, which grows to have funds to draw from in the future when “life happens.”

Charles and Sharon both in their early 60’s used the reverse mortgage to pay off their conventional mortgage. Since they were still working, they continued to make payments on their reverse mortgage. Their plan is to pay down the reverse mortgage loan balance and increase their line of credit so it grows for their future long-term care needs.

  • Purchasing a new home: Whether downsizing, moving closer to family or buying a dream home or investment property, the reverse mortgage can be used for the financing.
Purchase a new one-level home to meet changing health needs

Richard and Lou needed a one-level home to eliminate stairs that were getting hard to navigate. Instead of using conventional financing or paying cash, they used the HECM for Purchase (H4P) Adjustable Rate. Using cash from the sale and the H4P, they were able to purchase their dream home at a higher value than paying cash would have allowed, have funds for moving expenses and still have funds in a line of credit.

Mike and Carol decided they needed a one-level home to fit their changing health needs, they used the Home Equity Conversion Mortgage HECM for Purchase to purchase their new home instead of using conventional financing. This benefitted their cash flow and meant they didn’t have to tap other retirement funds.

Jim and Paula used the fixed rate reverse mortgage to purchase a new home closer to their children.

Would you like to explore a reverse mortgage for your situation? Contact us if you are in Minnesota.  As your local broker, we work with several lenders and provide free information and facts with no obligation, meeting in person whenever possible.

For other states, contact your local reverse mortgage specialist who is a broker, one who works with several lenders, has their Broker License/NMLS and preferably holds the Certified Reverse Mortgage Professional (CRMP) designation.

© 2019 Beth Paterson, CRMP, Beth’s Reverse Mortgage Blog, 651-762-9648

This material may be re-posted provided it is re-posted in its entirety without modifications and includes the contact information, copyright information and the following link: https://wp.me/p4EUZQ-2AP

Related Articles:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.