Benefits of Reverse Mortgages and Things You Must Know About Them
You may have heard about reverse mortgages, which might have something to do with how popular they’ve become. They are a safe and simple way to have additional income if you’re a senior citizen. You can supplement your retirement income to take care of your expenses, take a much needed holiday with your significant other or pay for your monthly expenses if you’re short on cash.
Reverse mortgages bring great benefits including going on that vacation you’ve always dreamed of . . .
How Reverse Mortgages Help Senior Citizens
Some people feel reserved about reverse mortgages but the truth is that there’s nothing to be apprehensive about. Reverse mortgages let you spend the value of your house while you are still living in the home. You don’t have to worry about the expenses since they are coming from the payments you get from a reverse mortgage. It’s a way to ease your financial troubles and allow more time for relaxation and enjoyment.
Reverse mortgages actually pay you to continue living in your home. To put it in simplistic terms, you are simply borrowing the money that you would have gotten if you sold the house. You can use the money that you get from the reverse mortgage to pay for the house’s maintenance and expenses if you’re in a bad spot financially, after retirement or you can use it to go on that vacation you’ve been putting off for the last decade.
If your aspirations are vocational or education at a reputable college, you can fund that with the money you get from the reverse mortgage. You can even hire a kind and considerate person to cook or clean for you with that money. Think about it, you can help out the younger generation in exchange for them helping you out. There are possibilities endless.
Some Things you Need to Know About Reverse Mortgages
As a concept, reverse mortgage seems counterintuitive, especially since traditional mortgages require you to pay the lender instead of the opposite. It might seem difficult to understand, but here are some things that may ease you into it:
- The lender for a reverse mortgage takes factors such as your age, the appraised value of your home and interest rates before giving you the reverse mortgage. The lender gives you a percentage of the money that you would get of you sold your home at the appraised value.
- You never have to pay it back until you move out of the home. The home with the reverse mortgage should be your primary residence.
- You are still the home owner. The lender isn’t the owner by default of giving you the reverse mortgage.
- You get your preferred way of payment, whether lump sum or deferred monthly payments, solving your cash flow issues, if you have them.
Perhaps the biggest advantage of having a reverse mortgage is that you can get more money when you need it without having to let go of an asset that you worked so hard for.
Can I Afford Not to get a Reverse Mortgage in Texas?
With many of the basic costs of living on the rise it is tough to live on a fixed income. Things like healthcare, property taxes and energy are costing you more and more every day. You may need to consider ways you can preserve your current standard of living or even improve it. That is why it is so important to consider the reverse mortgage facts.
Think about it, just this week there were huge dips in the stock market. Things like investment portfolios and retirement accounts are under performing or pension plans that are being wiped out in some areas. These questions bring up the question: Should I opt for reverse mortgage? and Can I afford not to get one?
What is a reverse mortgage?
If you don’t know what a reverse mortgage is, it’s basically what it sounds like. With a traditional mortgage, you pay monthly for the mortgage until you pay it off. In a reverse mortgage, the mortgage company will be paying you instead. You can choose the way your monies are distributed to you, such as a Line of Credit, tenure payments or term payments or a combination of those.
The money you get from a reverse mortgage plan can be used to pay for your retirement, pay medical bills, property taxes, take a vacation, pay on credit cards or any of the bigger expenses on your list. There are generally no restrictions on how you use your money.
Reverse mortgages are basically a loan and therefore, the payments are not usually taxed. Plus the requirements for credit or income may be more lenient. Just stay in your home as your primary residence and the loan is not due until the last surviving spouse passes away.
So, should you consider a reverse mortgage? Let’s see.
The Costs Involved
The terms and conditions in a reverse mortgage can be complex and difficult to understand, but that is why we are here to help. There are different aspects that make up the cost. These include the title policy, mortgage insurance premium (MIP), real estate appraisal, survey fees (if needed), origination fee and recording fees. These fee’s are added to the loan just like a traditional mortgage. The only out-of-pocket fee’s is the HUD counseling and appraisal fee.
The good thing about all those steps is that you don’t need to know them. When you work with a professional, we make sure all the i’s are dotted and the t’s are crossed. We are here to help protect you and make sure you are informed.
What about Immediate Heirs?
Many people are concerned about what happens when their time here on earth is done. No need to worry. Your heirs will have up to one year to refinance the home or just simply sell it. Your heirs can still benefit from the remaining home equity, the amount left after the reverse mortgage.
Plus, any future appreciation, or how much the house increases in value, may offset some of the interest being added to the loan. It could be a beautiful win, win situation for you and for your heirs.
If your home is your primary residence and you have at least 50% equity in your home it may be a good time to consider a reverse mortgage. If you are at least 62 years of age, then you may qualify for a reverse mortgage, regardless of your credit score.
The amount you qualify for will depend on your age, the value of your home after an appraisal, and the interest rate. It is best to know all of the options available. We may be able to get you much more than you need and in doing so, you don’t have to use all the money at once. Use only what you need and keep the rest for you future plans.
If you want to know more about reverse mortgages, we’d love to show you how easy it is. Give us a call at 1st USA Reverse Mortgage and ask for your FREE packet and no obligation consultation. 800-676-5619. We look forward to helping you explore your options. Don’t hesitate to call us today.
Companies that offer reverse mortgage loans are able to secure funding for qualified borrowers. A seamless solution is available for borrowers who want access to a portion of the equity in their home. 1st USA Reverse Mortgage is a licensed lending company in Texas to speak with about getting a reverse mortgage in 2018.
Why Are Reverse Mortgage Loans Popular in Texas?
Texas offers many enviable features for its residents, such as affordable housing, warm weather and zero state income taxes. Working families are drawn to an abundance of job opportunities throughout the state. Texas also is among the top destinations in the U.S. for people who migrate into other states.
Retirees often enjoy shopping, fine dining and visits to many of the local parks in Texas. However, folks who are on a fixed income might need additional funds to pay for travel expenses, medical bills, home improvements or other items. Ownership of a home with enough equity could eliminate the need for a qualified borrower to take out a loan that requires monthly payments.
The ability for eligible seniors to cash out a large portion of their home equity without accruing additional obligations has made reverse mortgage loans popular in Texas. Our mortgage experts have helped many applicants obtain a reverse mortgage loan.
Benefits of Getting a Reverse Mortgage
There is a lot of information circulating about the benefits of a reverse mortgage versus a conventional 30-year fixed-rate mortgage. For a traditional home loan, a borrower is obligated to make monthly payments, while a reverse mortgage will not feature a monthly repayment schedule. Fast processing time frames are desirable features for borrowers who need quick access to their loan proceeds. Qualified borrowers may elect to receive a lump sum distribution or to receive periodic distributions.
Reverse Mortgages Texas
Securing a reverse mortgage loan in Texas could enable a borrower to continue living in a home that is filled with a lot of memories. Many seniors are compelled to downsize after their retirement earnings are reduced. However, getting a reverse mortgage in 2018 might provide a cushion that is large enough to maintain a pre-retirement lifestyle.
Speaking with a lending expert in Texas about reverse mortgages is a great way to obtain more details about the process. Our loan officers are kind, patient and very helpful.
Contact 1st USA Reverse Mortgage today at (512) 288-4700 to speak with one of our licensed loan professionals.
Retirement provides opportunities to discover new adventures. However, you could encounter some financial challenges if your lifestyle requires more money to maintain than you receive during your post-working years. As a trusted financial company in Texas, 1st USA Reverse Mortgage offers helpful loan products to eligible borrowers.
Why Should You Get a Reverse Mortgage?
Seniors typically receive dozens of promotions each month for new credit cards, personal loans and for traditional mortgage products. While teaser interest rates and low annual fees may be very tempting to ignore, you can avoid the accumulation of debt that requires ongoing monthly payments. Reverse mortgage loans offer a safer method for retirees to supplement their earnings.
With most types of loans, a borrower is required to make monthly payments until the principal balance, interest and any applicable fees are paid in full. Getting a reverse mortgage is ideal for borrowers who need additional cash without having an obligation to repay a portion of the debt each month. If you are searching for a loan to remodel your home or to obtain a lump sum of money, you should speak with one of our licensed experts about the benefits of obtaining a reverse mortgage.
Using Home Equity to Supplement Your Retirement
After leaving the workforce, a large percentage of retirees will notice a reduction in their monthly income. Budgeting will often suggest that a senior or a retiree should reduce some of their nonessential activities, such as frequent golfing, traveling and dining at high-end restaurants.
One of the unique features of a reverse mortgage is the ability to receive scheduled monthly disbursements. However, you might prefer to get all of the loan proceeds upfront. You get to decide which method of distribution is most desirable for your financial situation. Using some of your home equity to supplement your retirement is a favorable way for you to obtain a lump-sum disbursement, to receive monthly disbursements or to set up a credit line to access your funds.
After many years of making monthly mortgage payments, you might have a considerable amount of home equity. Using a portion of the equity in your home could enable you to pay off your high-interest rate debts, to travel more frequently or to establish some additional financial reserves. Our licensed mortgage experts are knowledgeable, honest, courteous. Call 1st USA Reverse Mortgage today at (512) 288-4700 for more details about supplementing your retirement with a reverse mortgage loan.
Reverse mortgages provide an option for seniors to obtain cash from the equity in their homes. Prior to the reverse mortgage product, a senior citizen might have considered downsizing into a smaller home or to obtain an affordable home equity mortgage loan that requires regular monthly payments. As a reputable home lender in Texas, 1st USA Reverse Mortgage employs knowledgeable professionals who can answer any questions about a reverse mortgage loan.
Pay Off Consumer Debt
Seniors who are on a fixed income may not have enough money to eliminate a sizable amount of credit card debt or other consumer bills. A retiree might also follow a strict budget that does not have a sufficient amount of discretionary funds to make additional contributions toward debt reduction. However, a reverse mortgage loan could enable a qualified borrower to pay off a lot of their consumer debt.
Our mortgage advisors can evaluate a variety of debts that you want to pay off. Instead of dealing with a maze of confusing possibilities by yourself, one of our reverse mortgage experts can help you determine which bills have the highest interest rates and ongoing fees. Paying off your consumer debt could provide you with some additional comfort during your retirement.
Take More Vacations With a Reverse Mortgage Loan
If you are ready to stay at resorts that are beyond your regional area, you will need money for extended accommodations and for traveling expenses. Whether you plan to take a cruise for more than a week or to stay at a premier destination, a reverse mortgage loan could provide you with the funds that you need.
While you might book your travel plans several months in advance, you may be able to pay for your vacation in just a few weeks. We can help you complete your application for a reverse mortgage loan. If you are approved, you can elect to receive a lump sum distribution or to receive scheduled payments. Typically, the process may be completed within a month. Speaking with an experienced lending professional is a great way to learn more about the process for getting a reverse mortgage loan.
Explore Opportunities That Are Beyond Your Current Budget
Perhaps you have waited to remodel your home or to start a small business due to a limited amount of savings. With a reverse mortgage loan that does not requires monthly payments, you may be able to complete some of your most desirable goals.
Contact 1st USA Reverse Mortgage today at (512) 288-4700 to get more information about affordable home loans for seniors.
Home equity provides a variety of options for a qualified borrower who wants to obtain a real estate secured loan. Traditional mortgage loans require borrowers to make monthly principal and interest payments. However, a reverse mortgage loan is a unique product that does not require monthly payments.
What is a Reverse Mortgage?
A reverse mortgage is a loan that enables an eligible borrower to cash out a portion of their home equity. Unlike a traditional home loan that reduces a borrower’s principal balance with regular monthly payments, a reverse mortgage balance grows over the life of the loan. Borrowers can use the loan to get a lump-sum disbursement, to receive set monthly disbursements or to obtain disbursements as needed via a line of credit. Speaking with a licensed mortgage loan officer is a great way to inquire about reverse mortgages.
What are the Benefits of a Reverse Mortgage Loan?
Many homeowners are unaware of the benefits of a reverse mortgage loan. When a fairly fast solutions is needed to pay for items, such as unplanned medical expenses, home improvements, tuition or for an extended vacation, a reverse mortgage offers a lot of incentives for qualified borrowers. Shown below are some of the benefits of reverse mortgage loans.
- No mortgage payment
- Quick access to cash
- Financial counseling
With a reverse mortgage loan, a borrower can pay off monthly bills and other debts. Additionally, eligible borrowers can use the loan toward certain lifestyle advantages. For instance, by receiving disbursements via a reverse mortgage, a homeowner might be able to delay the use of their retirement savings.
A government-back Home Equity Conversion Mortgage is an extraordinary financial tool for seniors. The program requires financial counseling from an agency that is approved by the U.S. Department of Housing and Urban Development.
What Items are Needed to Apply for a Reverse Mortgage Loan?
Lenders often receive calls from prospective borrowers who are wondering how reverse mortgages work. Many applicants are typically concerned about the requirements for a reverse mortgage loan. Shown below are items that are needed to apply for a reverse mortgage.
- Applicant or spouse must be 62 years of age or older.
- Proof of residency and owner occupancy at the subject property.
- Certificate of counseling for a reverse mortgage loan.
- Sufficient income to pay property taxes, homeowners insurance and typical maintenance expenses.
Reverse mortgage lenders will also require a credit report, an appraisal and other financial documents.
Contact 1st USA Reverse Mortgage at (512) 288-4700 for more information about reverse mortgage loans.
Nilotinib, a drug approved to treat leukemia, has been green-lit for more tests to prove its efficacy in treating Alzheimer’s and Parkinson’s. More, here.
Three Reasons you may want to consider a Reverse Mortgage
Increase Your Budget
Having a reverse mortgage could help with your budget. Many seniors have fixed income and fixed expenses. However, there are always things that pop up. Having a reverse mortage could help free up some of your budget by eliminating your monthly mortgage payment.
As houses age, they need a little bit extra to keep them maintained. If you have lived in your home for a while, you might not even see all the small repairs that are needed. When something major needs to be repaired, where do you go? Well, a reverse mortgage could give you access to help pay for those repairs and bring your house up to a safe and pleasant condition once again.
Many seniors find themselves without a lot of money to use for visiting relatives or traveling to those places they always wanted to see. Having a reverse mortgage could give you the needed funds to take those trips you have always wanted.
Is a reverse mortgage right for you?
Reverse mortgages may not be for everyone, but if you are over 65 and have been in your home for quite a while, you may gain many benefits from a reverse mortgage. We would love to help you decide what the best course of action is for you and your lifestyle.
Our professionals are diligent in listening to you and helping you get all of your questions answered.
Give 1st USA Reverse Mortgage a call at 800-676-5616 or just go to our main page (1stUSAReverseMortgage) and fill out our handy form. Our honest and dependable team is looking forward to hearing from you.
1st USA Reverse Mortgage, LLC/The Valdez Group is not here to sell you products. We are here to help you find solutions to your needs. We understand that any Reverse Mortgage is a big decision and should not be taken lightly. Our first priority is to educate and to find the right program to fit your needs and one that will benefit you for the future.
A Home Equity Conversion Mortgage (HECM’s), also known as Reverse Mortgages are federally-insured and backed by the U.S. Department of Housing and Urban Development (HUD). HECM loans can be used for any purpose.
A Reverse Mortgage is a Financial Retirement Tool
Many financial advisors are recommending the Reverse Mortgage program to homeowners age 62 and older as a successful retirement planning tool. Here are a few ways to structure your pay options.
- You can choose to take money as a lump sum or receive monthly disbursements that can be used to pay for living expenses. By doing this, your other investments or benefits will have more time to grow in value before accessing them.
- You can also start a line of credit without withdrawing any money. With the line of credit, the available money increases in value over time giving you more money available to access in the future. The amount of money available can even exceed the value of your home and is not affected by changing home values.
We think every homeowner should consider getting a home equity conversion mortgage line of credit as soon as they turn 62. This great financial tool gives peace of mind in safeguarding your financial future.
Call The Reverse Mortgage Professionals Today
Arthur Guarino has a piece for Global Risk Insights on what the aging population means to the global economy. More, here.
Sascha Janzen has a piece for Inman detailing 5 mistakes to avoid when transferring assets along to the next generation. More, here.
Senior adults want to feel comfortable while on vacation and don’t want to worry about their home being save. It can be hard to relax on vacation if you’re worried about what’s going on back home. But a few simple measures can help properly secure your house and give you the peace of mind you need to enjoy your time away.
- Hold mail and deliveries. — The U.S. Postal Service makes it easy to put a temporary hold on your mail. And don’t forget to suspend newspaper and other recurring deliveries, like Amazon subscriptions.
- Make it look like you’re home. — Use automatic timers for indoor lights and maybe a TV or two. And keep some curtains open; closed curtains suggest that you’re away and give criminals more cover.
- Recruit a friend or neighbor. — Ask a neighbor to keep an eye out for unexpected deliveries and park their car in your driveway from time to time. If you’ll be gone for an extended period of time, arrange for someone to mow your lawn.
- Freeze your social posts. — Don’t announce your travels on social media, and wait to share pictures until you’re back home. Burglars are increasingly scouring social networks for victims. Check your social network settings, too, so you’re not auto-tagged in pictures by your travel companions.
- Monitor from afar. — From cameras and sensors to remote monitoringand notifications, there are numerous options for added protection. Some home security systems can even send you an alert when someone’s at your door.
- Secure your valuables. — Before you go, make an indoor sweep and lock up sensitive financial statements, jewelry, laptops and other valuables for additional security and peace of mind.
- Lastly, it’s a good idea to give your financial institutions a heads-up about your travel plans. A stream of out-of-state or out-of-country charges could prompt an unnecessary alert that puts a hold on your account.
Senior adults realize it is fun to have a second home. Vacation home sales are booming, particularly in beach and boating locations in the South and West.
If you’ve ever thought about having a home away from home, be sure to ask yourself the following questions.
How will you use it?
Will it be a seasonal home and future retirement spot? A vacation home you’ll also rent out? Pick a place you love, but heed the advice of experts who say the sweet spot is a destination that’s no more than a three-hour drive from a major metro area. The proximity can help with resale, plus it usually draws a larger pool of potential renters. If rental income is important, ensure local laws or association bylaws allow it before making a purchase.
Can you afford all of the costs?
Don’t just look at the purchase price to determine if you can swing it. You’ll need to also factor in property and insurance taxes, potential homeowners or condo association fees, and the cost of utilities and maintenance. Your tax implications will vary, too, depending on how you decide to use the home. If you rent it out for more than 15 days a year, for instance, you’ll need to declare the income to the IRS.
Keep in mind that any funds from a reverse mortgage may help you with a second home. You can talk to one of our reverse mortgage professionals at 800-676-5619.
Do you have a plan for when you’re gone?
If you live more than a couple of hours away, a local property manager may be helpful for overseeing tenants and dealing with maintenance issues. You’ll also want to take measures to protect your home when no one is there. A security system is a no-brainer, and it might even reduce insurance costs. Other good bets include motion-sensitive exterior lights, timers for indoor lighting, and a car parked in the drive every so often (courtesy of a neighbor).
If there is anything we can do to help just give us a call. We are your reverse mortgage professionals proudly serving Texas seniors.
Senior adults have more time to take vacations and everyone needs a good getaway.
If you’re like most Americans, you’re taking fewer vacations and limiting your travel. And if that’s the case, you’re missing out on the health benefits a getaway can provide. Beyond the relaxing effects, a vacation can also reduce your risk for heart disease and improve your performance at work. So if the idea of taking some time away sounds appealing, start your planning and budgeting now to get that long-awaited vacation on the books.
Narrow Down a Destination
Before you can budget, you need a spot in mind. Maybe you’d like to visit a popular domestic destination like California, Texas, Florida or New York. Or maybe it’s a bucket-list type of location like Ireland, Fiji, Bora Bora or Australia. Vacation costs can vary widely, so determine where you’d like to go and how much money you can expect to spend.
Start a Travel Fund
Set up a dedicated savings account for your travel fund. Schedule regular transfers or have a portion of each check or deposited directly into the account. Stay motivated to save by putting images of your vacation destination on display and looking up fun activities or relaxing locales.
Boost your spending power by finding ways to save on expenses. Sign up for deal alerts from airlines and travel companies. Consider traveling in the off-season, and make the most of travel reward points. Pool or borrow points from a family member, ask for travel upgrades if you have gold or platinum status, and watch where you book — some rewards programs offer more points when booked on specific sites.
If you start planning and saving now, you’ll enjoy the physical and mental rewards of your dream vacation in no time. Plus, you can always leverage the value of your home with a reverse mortgage solution. Imagine your house paying for your vacation.
Find out more by talking to one of our reverse mortgage professionals at 800-676-5619. We would love to help you reach the destination of your dreams.
What would happen if you lost everything in a fire, tornado or another disaster?
Senior adults realize that homeowners insurance would likely cover your house, but without a comprehensive list of your belongings, you’d have to rely on memory to determine what else was damaged or destroyed. Why not be prepared?
That’s where an inventory of your home can help. Not only will it prevent you from forgetting important valuables, but it can also streamline the claim filing process. Follow these steps to create your home inventory.
Pick a method.
You have a lot of options for cataloging your possessions. There are home inventory apps for your phone, organizational apps like Evernote, and, of course, the trusty Excel spreadsheet. You can even print out a ready-made checklist to use with a clipboard as you walk through your home.
Go room by room and use your phone to take photos and video of everything, including serial numbers of electronics and appliances. Peek inside closets and drawers, and don’t forget to visit the garage, attic and any rarely used spaces.
Keep it safe.
Back up your inventory so the information is accessible even if you’re unable to gain entry into your home. Store a second set of any hard copies elsewhere, like in a safe deposit box or at a friend’s house. Digital versions should be backed up to the cloud or saved on a thumb drive you store off-site.
A home inventory can also be a helpful reminder to double-check your insurance coverages. There are certain types of belongings, like jewelry, tools and electronics, that are typically covered up to a set dollar limit. Adjusting your coverages now will save you a lot of heartache if something does go wrong, making sure you’re not left empty-handed when it comes time to file a claim.
As always, we are here to help. If a reverse mortgage would help you in any way, please contact one of our reverse mortgage professional at 800-676-5619. We’re here to help!
As we age, we have a lot more to remember. If you have lived in your house for a long time it’s easy to put off or forget about some of the most basic home maintenance. Sometimes it feels like there’s so much of it, and it doesn’t help that some tasks are done only once in a while so they’re easy to overlook.
Seniors can simplify their life by taking the time to compile a list of the most important jobs, and use it to keep your home maintained. You’ll find that the effort will serve you — and your home — for years to come.
Make a list of tasks.
Start by brainstorming all the maintenance that should be completed over the course of the year. Start with obvious tasks like changing the HVAC system’s air filter monthly and review appliance manuals, home warranties and other documents that list required maintenance. You can also look over ready-made lists online to ensure you include all of the important chores.
Organize by frequency.
Next, grab a yearly calendar (paper or digital) and organize each job by how often it needs to be done. Make an entry on the calendar for each task, including recurring ones like that monthly filter change and twice-a-year gutter cleaning. You get the picture.
Set timely reminders.
Setting up alerts is a critical part of the process. Forgetfulness is often the reason home maintenance doesn’t get done. Set a reminder alert for each task on your smartphone or subscribe to ongoing alerts from a site like HomeSpot. Also use the calendar for reminders to purchase necessary supplies, like buying replacement batteries for smoke alarms and carbon monoxide detectors.
Once you get an organized system established, you’ll find it’s much easier to tackle home maintenance tasks on time. You’ll enjoy a relatively hassle-free way to take care of your home year-round.
And of course, if you ever need help with a reverse mortgage or would just like to talk about the options you have with your house, please don’t hesitate to give us a call at 800-676-5619. We are the Reverse Mortgage Professionals who specialize in helping seniors in Texas.