Improve Your Retirement Income Plan With HomeSafe

“The world is full of magical things, patiently waiting for our senses to grow sharper .”- W.B. Yeats 

RETIRE WELL WITH THE HOMESAFE® JUMBO FINANCIAL TOOL 

HOMESAFE: The Financial Tool Designed for Owners of High-Value Homes  

If you’re 62 or older, now you can access even more of your home’s equity and put it to work wherever you want—giving you more control over your assets, investments and cash flow.

HomeSafe loan proceeds are tax-free with a competitive fixed interest rate that’s lower than you might expect. You can use your proceeds as you choose to fund a more comfortable and secure retirement.

The HomeSafe reverse mortgage offers these great advantages:

  • Loan amounts up to $4 million – significantly higher than a HECM allows
  • No mortgage insurance premium
  • Condominiums appraised at $500,000 or more do not require FHA approval

With HomeSafe you have a lot of flexibility with how you use your proceeds in order to fund your retirement and enjoy your golden years:

  • Pay off existing mortgage debt, have no monthly mortgage payments and improve your cash flow
  • Buy a house or condo in an upscale area or active lifestyle community
  • Pay for home improvements
  • Cover medical or in-home care expenses
  • Refinance an existing reverse mortgage to access a larger pool of funds
MAXIMIZE YOUR HOME EQUITY

If your goal is to supplement retirement income, a HomeSafe reverse mortgage could provide the key to unlock the equity value in your home.

Ideal for homes appraised higher than the HECM loan limit allows, homeowners age 62 and older can potentially access hundreds of thousands of dollars more of their equity than the FHA HECM loan currently offers.

Would you like to learn more about the HomeSafe jumbo reverse mortgage and how it may help you secure long-term financial independence? 

Contact me to have a conversation or to set up a complimentary personal assessment.

Reverse Mortgage Insights from Industry Expert, Ted Butler

“With the new day comes new strength and new thoughts.
– Eleanor Roosevelt

A CONVERSATION WITH TED BUTLER 

HECM World is one of my go-to resources for keeping up to date on trends and news in the reverse mortgage world. I’m a big fan of their ReverseTalk video series and in a recent episode they featured a great conversation with industry expert, Ted Butler.

Like a lot of financial services professionals I’ve run into, Ted was once skeptical of reverse mortgages but is now an advocate for this strategic financial tool.

I couldn’t agree more with his belief that today’s reverse mortgage is one of the most effective financial solutions available to help clients address the challenge of a guaranteed income in retirement.

Similar to Ted, I’ve talked quite a bit in the past about the power of leveraging your home equity with a reverse mortgage. Reverse mortgages can give you safe access to this significant financial asset in order to provide peace of mind in your retirement years.

Click on the image below to watch the video.

Ted has become a strong voice for reverse mortgages and is dedicated to educating homeowners and financial advisors on the Home Equity Conversion Mortgage (HECM) and how it can be a powerful retirement planning tool.

A New Solution to the Senior Care Challenge

“When we give cheerfully and accept gratefully, everyone is blessed .”- Maya Angelou

THE REVERSE MORTGAGE STANDBY LINE OF CREDIT  

When it comes to using a reverse mortgage in retirement planning, there are several strategies that make the standby line of credit feature a “must have” for seniors. In particular, the Reverse Mortgage Standby Line of Credit can be a great solution to help create a senior care funding strategy.

Here are some key considerations for a senior care funding strategy and the standby line of credit:

  • In-home care services can reduce the need for expensive nursing homes and improve quality of care.
  • Services can gradually be ramped up as needed—from help with household chores, to 24-hour nursing care.
  • A Reverse Mortgage Standby Line of Credit can be set up in advance—before care is needed—so funding is at-the-ready.
  • Unlike a traditional Home Equity Line of Credit (HELOC), the unused portion of the reverse mortgage line of credit grows over time, allowing access to more funds as the borrower ages. And the line cannot be reduced or revoked by the lender, as long as the terms of the loan are met — ensuring the funds will be there when needed.
  • There are no monthly mortgage payments for as long as you live in your home. Homeowners do remain responsible for keeping current with property taxes, required insurance and home maintenance.
  • Proceeds are tax-free (this is not tax advice so please consult a tax professional)
A Reverse Mortgage Standby Line of Credit is a smart retirement funding tool that leverages the power of an important asset – your home equity – to help make sure you’ll be in the position to receive the care you need and continue to live in your own home.
THE NUMBERS 
  • Over 97% of Americans make no advance financial plans for senior care needs. Yet 70% will need some form of senior care in their lifetime.
  • Most incorrectly believe their medical insurance will pay for care.
  • Annual costs start at approximately $30,000 for in-home care and range up to $94,000 for nursing home care.

Using Your Home Equity as a Retirement Asset

“The best preparation for tomorrow is doing your best today.” – H. Jackson Brown Jr.

REVERSE MORTGAGE BASICS 

Why You Should Consider a Reverse Mortgage  

It’s been a while since I’ve talked about the basics of a reverse mortgage and how this versatile retirement financial tool can help provide peace of mind in your golden years.

Reverse mortgages are becoming increasingly recognized by homeowners and financial advisors as a smart and safe way to access an important retirement asset: your home equity.

Most reverse mortgages are government-insured Home Equity Conversion Mortgages (HECMs). You will often hear the terms used interchangeably. Available exclusively to people age 62 and older, a reverse mortgage could help you live more comfortably and be more financially prepared for the future.

For example, you can use a reverse mortgage to >>

  • Avoid selling investments at a loss in a “down” market.
  • Establish a “stand-by” line of credit that you can tap into as needed. Unlike a traditional Home Equity Line of Credit (HELOC), a reverse mortgage line of credit cannot be reduced or revoked, as long as the terms of the loan are met. And the unused line of credit grows over time.
  • Supplement retirement income with tax-free funds.
  • Pay for medical or long-term care costs.
  • Finance the purchase of a more suitable home, with no monthly mortgage payments. 

To be eligible for a reverse mortgage, you must:

  • Be at least 62 years old
  • Live in the home as your primary residence
  • Not be delinquent on any federal debt
  • Participate in a consumer information session held be an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD)

Some of the Key Benefits of a Reverse Mortgage 

  • The ability to use your home equity to help you maintain a more comfortable standard of living, in your own home.
  • Tax-free loan proceeds you can use in multiple ways.
  • Great flexibility. You can choose to take your proceeds as a line of credit; monthly advances for a set period of time; a monthly stream of funds for as long as you live in your home; a lump sum; or a combination of these options.
  • No monthly mortgage payments. If you qualify and have an existing mortgage, home equity loan or any other type of debt, you can pay it off and reduce your monthly expenses. Or, if you own your home free-and-clear, you can get the additional funds you need with no monthly mortgage payments.

One thing to note is that as the homeowner, you remain responsible for paying property taxes, homeowner’s insurance and homeowner’s association dues if applicable.

HOW MUCH MONEY CAN YOU GET? 

This depends upon a number of factors including your age, your home’s current appraised market value, the amount of equity, FHA lending limits, the current interest rate, and the reverse mortgage product and payment option you choose. If you have an existing mortgage, your reverse mortgage will first be used to pay that off.

Would you like to learn more about reverse mortgages and get a quote that’s tailored to your specific needs and situation? Contact me to have a conversation or to set up a complimentary personal assessment.

The Emotional Challenges of Decluttering

The present moment is filled with joy and happiness. If you are attentive, you will see it.– Thich Nhat Hanh 

DECLUTTERING YOUR HOME: THE EMOTIONAL CHALLENGES

There comes a time when it’s necessary to declutter your home and go through the process of sorting your belongings and parting with those that aren’t necessary.

If you are planning on aging in place, it can be very good to streamline your surroundings and organize your home in a way that you can:

  1. Have easy access to the things you need.
  2. Enjoy memories stored up in photos, letters and mementos.
  3. Find critical things quickly and within a safe reach.
  4. More easily navigate through your home, especially if you have any mobility issues.

For seniors moving into a smaller, more manageable space, decluttering is an inevitable step as you prepare for this next stage of life in your new right-sized home.

Decluttering can be an extremely satisfying experience but also one that takes time and causes you to deal with a variety of different emotions.

COMMON EMOTIONAL CHALLENGES WHEN DECLUTTERING

1. Fear you might regret getting rid of a certain item
Holding onto a particular item due to the fear that you might need it someday is probably something most of us have experienced.

It could be an out-of-style pair of pants, workout equipment that you don’t use anymore or tools you haven’t looked at in ages. These are typically the things that end up sitting at the back of your closet, in your basement or in your garage untouched for more years that you can remember.

The key is not to let excess belongings hold you back from creating the ideal atmosphere and living situation in your home. You should critically assess whether you actually need or envision needing a particular item in the future and if the answer is no, it’s time to part with it.

2. Fear you could lose out on something valuable 
Fortunately there is eBay and appraisers to help address this fear. Simply look up the item on eBay to get a realistic idea of the current market value. If it is something you believe could be very valuable, consider having it appraised. From there you can decide whether you prefer to sell or hold onto the item.

3. Feelings of guilt due to getting rid of a gift or something inherited 
I’m the first to admit that it can be challenging to get rid of something that was a gift, was handed down to me or was inherited from a family member.

Family dynamics and nostalgia definitely can come into play, leading to feelings of guilt. I’ve found it helps to take your emotions out of the process and assess these items with the goal of creating a cleaner, organized and more functional home in mind.

4. Concerns about where the item might end up 
Some people might feel guilty letting go of something that once had value to them without knowing where it will end up and whether it will ultimately be appreciated.

Try to think of it this way – is it better for that item to sit in the back of your closet untouched or to be donated where there is the chance it will go to someone who needs it more?

5. Feelings of nostalgia that make it difficult to decide whether to part with a certain item 
This is one of the biggest challenges when trying to declutter. Sentimental memorabilia like old books, souvenirs, childhood toys, etc. can be difficult to part with and for good reason. These items can have an emotional hold over you.

There is no clear solution to overcome this but here are a few things to consider that might help. Getting rid of sentimental items does not mean you’re devaluing that time of your life. Your memories aren’t in physical objects. You can still hold onto and celebrate those memories and moments even if you part with these sentimental items.

However if you love a particular piece and it brings you joy, by all means keep it.

6. Feeling overwhelmed 
Feeling overwhelmed when thinking about decluttering and figuring out where to start is quite common. It can be challenging to get motivated if you do not have a clear plan for how to sort and decide what to get rid of and what to keep.

You can always pick up a copy of one of Marie Kondo’s books or watch her show “Tidying Up with Marie Kondo” on Netlfix for some inspiration and guidance.

For larger decluttering projects, you might consider hiring a professional home organizer. There are a number of services out there that specialize in helping seniors and their families downsize, declutter, sort and organize.

Decluttering can be a time-consuming and emotional task but if you have clear goals and are prepared for the various emotions you might face, it will be more manageable and less challenging.

Planning for Your Golden Years

“Faith and fear both demand you believe in something you cannot see. You choose.– Bob Proctor

WHEN SHOULD YOU SEEK ADVICE 

There are many important decisions to think about for your later years in life and at times it can seem overwhelming. The good news is that there is no lack of expert resources you can tap into so you’ll be more prepared and at ease leading up to and during retirement.

Having solid, good information is crucial to making sound decisions and minimizing risk and stress.

One of my favorite writers at HECM World, Amara Rose, identified 4 areas where seniors should seek advice in advance in her most recent article.

#1. AGING IN PLACE
I’ve talked about this a great deal and it’s been reported in numerous studies but more and more Americans are wanting to age in place. With aging in place comes the question of caregiving and most likely in-home assistance. Even a fit, healthy senior needs to plan for this in the case they live to be a ripe old age, take a fall or suffer from an unexpected illness and require temporary or longer-term assistance.

According to Genworth Financial, $45,760 is the average annual cost for a home health aide.

This is where a certified financial planner (CFP) could be a strategic resource for seniors and family members to work together and put a plan in place ahead of time.

#2. RETIREMENT PLANNING
My clients can have very different visions for their retirement years but most are planning for an active lifestyle, which is in alignment with the majority of the 76 million Boomer retirees and soon-to-be retirees out there. Whatever lifestyle you’re envisioning, you’ll need to make sure your bank accounts and any other financial resources will be able to support it.

One of the challenges in planning for your golden years is pinpointing exactly what your expenses in retirement will look like. A CFP and an accountant/CPA are two potential resources. It’s always ideal to consult these experts sooner than later so you can get an understanding of what’s required to achieve positive outcomes in retirement and start on the right path.

#3. END-OF-LIFE CARE  
Discussing end-of-life care is never easy but necessary. Questions like do you want palliative and hospice care, a DNR (do-not-resuscitate) order or every possible medical intervention in the case of serious illness should be answered and put in writing.

Speaking with your physician or another trusted healthcare professional to discuss options for end-of-life care so you have the facts and make informed decisions is crucial. Then consult an Elder Law and Special Needs Law attorney to ensure your long-term care and end-of-life care plans are official and complete.

#4. ESTATE PLANNING & ASSET PROTECTION  
Estate planning is incredibly important to making sure your property and assets end up in the place you want and the decisions in your absence will be made by the people you trust and reflect your wishes. Prudent planning will also provide protection for your loved ones and ideally prevent potential messes when you’re gone.

Estate planning can involve the services of a variety of professionals, such as an Elder Law or Special Needs Law attorney, your accountant, financial planner, life insurance advisor, banker and broker.

Getting all of your ducks in a row for your years later on in life doesn’t have to be complicated if you leverage the many resources out there. With some skillful planning with the proper experts, you can be fully prepared financially, emotionally and mentally.

Build Up Your Nest Egg with a Reverse Mortgage

“Celebrate what you want to see more of.” – Tom Peters

ADDING A REVERSE MORTGAGE TO YOUR NEST EGG STRATEGY 

Having a healthy nest egg is one of the keys to financial stability in your golden years but life isn’t always predictable and things could come up that put your savings at risk (illness, job loss, market collapse, etc.).

The cost of living and retirement has also changed and a $1 million nest egg won’t get you as far as let’s say 10 years ago.

Some financial experts recommend seniors pay off their mortgage and rent in retirement as a potential solution.

Yes. Housing can be a big expense in retirement years but it’s not the only one. According to a recent report from the Employee Benefit Research Institute, by the age of 90 “heath care expenses account for more than 20 percent of the households’ entire budget.”

The selling and buying solution also doesn’t take into consideration two things:

  1. More and more older American prefer to age in place and live out their golden years in the comfort of their own home.
  2. By selling and renting seniors could be giving up one of their biggest assets, home equity.

BUILDING YOUR NEST EGG
WITH A REVERSE MORTGAGE

A reverse mortgage is often overlooked but can be a strategic addition to a retirement plan to help maintain and ideally grow your nest egg – in particular the Home Equity Conversion Mortgage’s line-of-credit feature.

The line of credit provides senior homeowners with money they can tap into later on in life, and the credit grows at a hate higher than that of a conservative investment portfolio. Another advantage is there are no monthly mortgage payments with an HECM.

All retirement woes and financial challenges will not necessarily be solved with a reverse mortgage but it is a potential solution for long-term savings shortfalls and combined with other methods, can lead to more financial peace of mind in your retirement years.

Are Self-Driving Cars The Answer To Seniors’ Mobility Challenges?

“Intelligence is the ability to adapt to change.” – Stephen Hawking

WILL SENIORS LEAD THE SELF-DRIVING REVOLUTION? Seniors Lead the Self-Driving Revolution? 

Older Drivers Could be the First to Embrace Self-Driving Cars

Autonomous cars have not been an easy sell and not everyone is onboard with the idea. A lot of people are hestitant to hop into a driverless car and they are most likely many years away from becoming the norm.

However, seniors might just become the early adopters of the emerging autonomous vehicles. These vehicles could be the answer to aging drivers’ diminished capacity to drive safely behind the wheel and the lack of transportation alternatives out there.

Many seniors rely on friends and family to drive them where they need to be – from medical appointments to grocery shopping or a visit to the local library. There are Uber and Lyft but these services are not available everywhere.

This puts seniors, in particular those wanting to age in place, in an ideal position to experiment with something new that could ultimately make their lives easier and give them more autonomy. 

The spectrum of vehicles that will eventually be introduced into the market will provide options to older drivers so they can consider the type that suits them best.

There will also be different levels of autonomy to choose from to meet the varying needs of seniors.

The Numbers & Geography 

  • A 2014 report from the U.S. Census Bureau projected the number of people age 65+ to grow to close to 84 million by 2050, up from about 43 million in 2012.
  • Around 20% of baby boomers run the risk of being left without any family to transport them wherever it is that they need to go.
  • By 2050, surviving baby boomers will be over the age of 85.
  • Many experts estimate 2030 to 2050 as the years when fully autonomous vehicles will reach consumers.
  • According to the New York Times roughly 70 percent of adults over the age of 50 live in the suburbs, and 16 million age 65 or older live in communities basically with no public transportation.
All of these factors could make seniors a prime target for driverless cars.

With that said, there’s still no knowing how or if this group will embrace self-driving cars. It will surely a shift in mindset but could present a compelling alternative to being homebound.

Boomers Facing Retirement With Less Savings & More Debt

“Be faithful in small things because it is in them that your strength lies.– Mother Teresa  

BABY BOOMERS RETIRING WITH LESS SAVINGS & MORE MORTGAGE DEBT 

It’s no surprise that life expectancy is continuing to get higher today and baby boomers are expected to live longer than previous generations.

Experts predict a record number of boomers will be entering retirement in the near future and according to a report by the Stanford Center on Longevity entitled “Seeing Our Way to Financial Security in the Age of Increased Longevity”, they are heading into this next phase of life with less savings and more debt.

The report highlighted an increase in mortgage debt among older homeowners as a big concern pointing to data showing that in 2012, one-third of homeowners 65+ years of age were still paying off a mortgage – up from less than a quarter of homeowners in 1998. The amount owed on a mortgage has also nearly doubled from $44,000 to $82,000.

The report states:

 “Considering the vast size of the Boomer population, increased life expectancy, and the rate at which today’s Boomers are retiring, being ill-prepared for retirement has profound implications for the overall well-being of individuals, families, and society today and for generations to come.” 

But it’s not all bad news. Baby boomers have options for supplementing their retirement income and better preparing themselves for what should be their golden years. Leveraging home equity could be an ideal solution.

HOME EQUITY & RETIREMENT
As mentioned in my last email, senior housing wealth is at an all-time high, which presents a real opportunity for older homeowners.

For many people home equity represents the largest component of personal wealth and should be seen as an asset to consider in a comprehensive financial plan. Reverse mortgages can be a strategic way to tap into your home equity, pay off an existing mortgage and increase your retirement income.

Reminder of how a reverse mortgage mortgage works: 

  • Reverse mortgages are loans for people 62+ years of age that allow you to borrow against home equity without being required to pay a monthly mortgage payment.
  • You can continue to live in the comfort of your home.
  • Some of the equity in your home is first used to pay off any existing mortgages, and the remaining loan amount is converted to non-taxed cash that you may receive in a lump sum, a monthly disbursement, or a line of credit.

Senior Housing Wealth Hits an All-Time High

“There are no limits to what you can accomplish, except the limits you place on your thinking.
– Brian Tracy

The Highest Amount of Tappable Home Equity For Seniors Since 2000 

According to the National Reverse Mortgage Lenders Association’s quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), homeowners 62+ years of age have now amassed $6.97 trillion in home equity – with a growth of 1.4% over the 3rd quarter of 2018. And this trend shows no signs of slowing down.

The NRMLA RMMI hit 249.37, its highest mark since 2000 in Q2 with the NRMLA noting the increase was mainly driven by an estimated 1.7 percent increase ($143 billion) in senior home values, which was offset by a 0.8 percent or $12.8 billion increase of senior-held mortgage debt.

– HOME EQUITY –
ONE OF THE GREATEST ASSETS FOR SENIORS

“At a time when we’re seeing stock market volatility and the potential for a mild recession in the near future, it’s the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security,” said NRMLA President and CEO Peter Bell. “Housing wealth should be considered with other financial assets.”

For many homeowners, the equity they have built up in their home is their largest financial asset. There are a number of opportunities for senior homeowners to responsibly leverage their home equity and realize their vision for their retirement years.

More than a million senior homeowners have used a reverse mortgage to supplement retirement savings and age in place. This financial solution is a strategic way for older home owners, mostly retirees, who are no longer earning regular salaries but are spending down their savings, to access their home equity without having to increase their monthly expenses.

Happy Holidays & Gratitude

Christmas is a season not only of rejoicing but of reflection.
– Winston Churchill

‘Tis the Season to be Thankful, Grateful & Blessed

One of the great joys of the holiday season is the opportunity to say a heartfelt “Thank You”!

Thank you to all of you who allowed me to be of service, for all of the kind referrals, and all of the countless generous efforts, I am profoundly grateful.

I recently read an article, which shared the statistics below. Let’s take a moment to reflect on all of the amazing gifts and blessings that we all have in our lives:

IF you woke up this morning with more health than illness…
THAN you are more fortunate than the millions of people who will not survive this week.

IF  you have never experienced the danger of battle, the loneliness of imprisonment, the agony of torture, or the pangs of starvation…
THAN you are ahead of 500 million people in this world.

IF you can attend your church without fear of harassment, arrest, or death…
THAN you are more blessed than THREE BILLION people in this world.

IF you have food in your refrigerator, clothes onyour back and a roof over your head…
THAN you are richer than 75% of our world.

IF you have money in the bank, or even spare change in a dish someplace…
THAN you are among the top 8% of the world’s wealthy.

IF you can read this email…
THAN you are doubly blessed as there are over two billion people in the world that cannot read at all.

GRATITUDE
As each one of our days is truly a gift, and today will never come again, why not show your gratitude for all that you have by being a blessing to another.

 Be a friend
2  Encourage someone
3  Let your words heal
 Pay attention to another’s need
5  Lend a hand
6  Be kind

May this Christmas season help us to appreciate all of the love in our lives, and may its true meaning fill your hearts and home with an abundance of joy. 

Warmly, Cynthia Kee 

 

Add Flexibility & Growth To Your Retirement Planning With HomeSafe® Select

NEW PRODUCT RELEASE FROM FAR: 
The Jumbo HELOC Reverse Mortgage “HomeSafe” Select 

2018 has seen the introduction of a number of new reverse mortgage products.

One of the newest is ‘HomeSafe Select,’ an addition to the HomeSafe lineup from Finance of America Reverse (FAR).

Available for borrows aged 62+ in California (addition states expected in the future), the non-recourse, non-FHA reverse mortgage features an initial closed-end draw of 25% of the loan proceeds at closing. The remainder of funds is available to borrowers as an open-ended line of credit with a 5% internal rate of growth to be drawn and repaid at any time. Like the HECM, HomeSafe Select is a non-recourse loan.

To demonstrate how the product can be used, FAR provided the following example:

With HomeSafe Select, a 72 year old in California with an $800,000 home value and an $80,000 balance on the first mortgage may be able to receive $270,400 in proceeds after paying off the first mortgage versus receiving approximately $220,000 with the HECM. The borrower’s value in the line of credit could be $300,301 at the end of year three and $425,833 at the end of year 10.

ADDING FLEXIBILITY & GROWTH TO RETIREMENT  

According to FAR president Kristen Sieffert, “With HomeSafe Select, people can start planning for retirement today and also benefit from a growing line of credit that can be accessed when they need it.” She also believes it is a product that will bridge the gap between HECMs and proprietary products.

At the moment, HomeSafe is the only adjustable rate proprietary reverse mortgage on the market, with the open-end adjustable rate based on the Wall Street Journal 3-month LIBOR index.

ADDITIONAL FEATURES OF HOMESAFE SELECT
  • Availability for properties valued up to $10,000,000
  • Loan proceeds up to $4,000,000
  • No monthly or annual mortgage insurance premium
  • No pre-payment penalties
  • No FHA approval required for condos valued over $500,000
  • Open-end adjustable rate based on WSJ 3-month LIBOR index

Would you like to know if you can refinance your current reverse mortgage into the HomeSafe Select product? 
Contact me to see if refinancing is possible and will add additional cash and benefits.

Redefining “Home” with a Nomadic Retirement

“Let’s make our future now, and let us make our dreams tomorrow’s reality.
– Malala Yousafzai

RE-IMAGING “HOME” & TRAVEL IN YOUR GOLDEN YEARS 

You might think a nomadic-lifestyle or “location independent” living is something just for millennials or the younger generation. However this less traditional life-style can be perfect for physically fit seniors looking to explore the world during their retirement years.

Going 100% nomad might not be your preferred approach but rather taking the nomadic-lifestyle in spurts, which is very possible with a reverse mortgage.

You can maintain your home base as your primary residence, as required with an HECM, and then do extended stays while always returning to your house to ‘reset’ the clock after the time away.

There are many options out there now to make living as a short-term nomad more accessible.

ON THE ROAD 

ROAM
Roam is based on the basic concept of providing access to incredible co-living spaces and local communities around the world. It’s about “roaming together” and finding a community in places like San Francisco, Bali and Tokyo, to name a few.

It could be an ideal solution for retired or semi-retired persons or those who work remotely looking to enjoy privacy and comfort in a diverse community for a week, month or longer and then return nice and refreshed to their home.

BEHERE
For older woman wanting to do some solo travel and become more immersed in a local culture or community, Behere could be the answer.

Behere enables women to live in a new city, one month at a time without any long-term contracts or obligations. What you’ll get is a foreign living experience in a fully furnished apartment close to a city center with a vetted city host, access to workspaces and even a fitness membership.

UNSETTLED
Then there’s Unsettled. The site promotes Unsettled’s one-month or two-week retreats as being for those who seek to “challenge the status quo, invest in their curiosity, and find new inspiration, growth, and adventure through travel and intentional community.”

The retreats are hosted in destinations from Tuscany to Morocco, Buenos Aires to Bali and offer private accommodations, a shared workspace, local experts and immersive experiences, workshops, etc. among a curated community of peers.

RETIREMENT & “HOME” REDEFINED

How we define retirement has changed and so has the concept of “home.” Home isn’t necessarily where your mortgage (or reverse mortgage) is. It’s where you feel most comfortable, live your life and have the experiences that bring you joy.

For those travel-loving seniors, a short-term nomadic lifestyle creating “temporary homes” along the way is what will bring them joy and a reverse-mortgage can help make this doable.

Looking for alternative mortgage solutions?

Change your thoughts and you change your world.
– Norman Vincent Peale

MORE LENDING OPTIONS 
– Alternative Mortgage Solutions –

Have you worked hard to build a business and are ready for the home of your dreams but fear you’re not a good candidate for a loan?

Or perhaps you recovered responsibly from a credit incident and have the ability to repay a loan but have been discouraged by a realtor telling you you might not quality for one?

While my focus has traditionally been reverse mortgages, the lending landscape is changing and today there are more options to help open the door to the home you’ve always wanted.

PROGRAMS 

Non-Prime

  • Foreclosure, short sale & BK OK
  • Up to $5 million loan amounts
  • 90% LTV, no MI
  • One month bank statements for income
  • No reserves

ODF®

  • Foreign national loans
  • Stated income/DSCR
  • Business purpose/no TRID
  • Interest only loans available
  • Below 500 credit score on exception

Maggi Plus 

  • 24 month from credit event
  • One year W2 or 1040 to 80%
  • LTV 80% LTV, no MI
  • Bank statements for income
  • Interest only available

Email or call me to discuss your lending options and figure out which solution could be the right fit for you  or to set up a complimentary personal assessment.

Maximize Your Home Equity With A HomeSafe Reverse Mortgage

“All you need is the plan, the road map, and the courage to press on to your destination.
– Earl Nightingale 

Considering a reverse mortgage?

Seniors ages 62+ can now access significantly more home equity than the HECM loan limits allow with a HomeSafe Reverse Mortgage, which could lead to funding a more comfortable and secure retirement.

HOMESAFE ADVANTAGES 

There are a number of significant advantages with a HomeSafe jumbo reverse mortgage, including the proceeds being tax-free with a lower-than expected competitive, fixed interest rate and more:

  • Loan limits of up to $4 million —significantly higher than a HECM allows
  • No mortgage insurance premium
  • Borrowers have the Flex1 option to receive part of their proceeds as monthly term payments (over a 12-60 month period), or as a lump sum
  • Condominiums appraised at $500,000 or more do not require FHA approval
With this new proprietary and powerful retirement financing tool you can use the proceeds as you choose. For example:
  • Pay off existing mortgage debt, have no monthly mortgage payments and improve cash flow
  • Preserve invested assets
  • Cover medical or in-home care expenses
  • Refinance an existing reverse mortgage to access a larger pool of funds

Contact me to learn more about the HomeSafe jumbo reverse mortgage  and how it might help you with your long-term retirement strategy.

When Aging Parents Need Help

Never give up, for that is just the place and time that the tide will turn.” – Harriet Beecher Stowe    

CARING FOR AN AGING PARENT

Many aging parents would like to maintain a level of independence for as long as possible and more and more seniors are wanting to age in place.

This is understandable but it’s not always easy if caregiving or assistance is required.

Caregiving has changed quite a bit over the years with technology playing a bigger role when it comes to immediate help (i.e. medical alerts) but for senior’s children or other family members it can be difficult to know where to turn for the basics and for different types of assistance.

Help is there though for everything from non-medical assistance home care to short or long-term home healthcare.

Senior Concierge Services

One solution is a “senior concierge.” If an aging parent does not require medical assistance but needs help with tasks such as grocery shopping, meal preparation, transportation to appointments, etc., a senior concierge service can be an ideal solution.

Senior concierge services provide a full range of personalized services based on the individual client’s non-medical needs.

Asking for help might present a challenge for an aging parent and language can make a difference. Senior concierge certainly has a nicer ring to it than a geriatric care manager making it a little easier to get over any initial resistance.

Home Healthcare 

Some families might find themselves in situations needing more assistance than a senior concierge can provide. In these cases a home healthcare professional may be required.

The demand for home healthcare workers is growing significantly as the number of seniors hoping to age in their own homes continues to increase.

Fortunately there is no lack of agencies, from national to local service providers, who will screen, hire, bond/insure, pay the salary and replace the employee if necessary. You can also hire someone directly via word-of-mouth referral or leveraging online resources.

Family Support 

A family might decide to take on their loved one’s care on their own and simply need some support from someone that can relate to what they are going through.

There are a number of support networks out there such as the Family Caregiver Alliance.

The Health and Human Services website in your city or county is also a resource for finding caregiver support, as well as a local senior center.

Regardless of what level of support or assistance you or your family members need, you are not alone and there are many avenues available to get help.

Would you or a family member like to learn more about paying for a senior concierge or home healthcare with a reverse mortgage? 

Contact me to have a conversation or to set up a complimentary personal assessment.

Reverse Mortgages: Myths vs. Realities

“What you do today can improve all your tomorrows.– Ralph Marston

REVERSE MORTGAGE MISCONCEPTIONS 

A reverse mortgage can be an effective retirement planning tool to increase your income streams using one of your largest assets: your home.

Yet many eligible seniors avoid reverse mortgages or are not inclined to consider them due to the many misconceptions that exist about these types of loans.

Let’s tackle a few of the common misconceptions: 

Myth: The lender takes title to the home.
Truth: You still retain ownership of your home. The reverse mortgage is only a lien against the property.

Myth: The loan can exceed the value of the property, sticking you or your heirs with a large bill when you eventually leave your home.
Truth: A reverse mortgage is a “non-recourse” loan, which means that you, your heirs, or your estate will never owe more than the appraised value of the home at loan maturity.

Myth: You can’t get a reverse mortgage if you currently have a conventional mortgage.
Truth: Although this is true, you can get a reverse if you use the proceeds to pay off your existing mortgage at close.

Myth: A reverse mortgage can cause you to be evicted from your home.
Truth: You leave your home when you choose. No one will force you from your home. The reverse mortgage is not due until your home is no longer your primary residence.

The Reverse Mortgage: not your typical loan

One of the biggest advantages of a reverse mortgage is that unlike conventional mortgages, there are no payments involved.

Instead, the lender makes payments to the borrower either through a lump sum, monthly payments, or a line of credit.

Financing home healthcare with a reverse mortgage

More seniors in the US are opting to stay at home and age in place and face the financial challenge of paying for home healthcare, which can be quite expensive.

Medicare and Medicare supplements are frequently used by seniors or their family to cover these costs but it’s often not enough.

A reverse mortgage could be the ideal solution it help ease the financial burden of in-home healthcare. Learn more in my new email covering home healthcare: https://bit.ly/2tRTEIF 

 

How to Finance Aging in Place Renovations: A Fully Accessible Guide

The majority of people ages 65+ are preferring to stay in their homes as they get older.

This popular alternative to relocation is known as aging in place and typically requires some retrofitting of your home to accommodate growing older.

Here’s a practical guide on the ways to finance aging in place renovations, including leveraging a reverse mortgage:

https://www.bankrate.com/loans/personal-loans/aging-in-place-renovations/

Rightsizing with a Reverse Mortgage

Moving into a new, smaller home with a reverse mortgage can be an ideal way to “rightsize” your life.

See my latest email on rightsizing and download the Q&A for more information:

https://bit.ly/2yGqlxP

Turning millennials into homeowners with reverse mortgages

As more parents are helping their children become homeowners, reverse mortgages are being recognized as a way to accomplish this but with fewer roadblocks.

It’s becoming more challenging for first time homeowners to quality for much money with interest rates increasing and the benchmarks getting higher.

A reverse mortgage is a way to get this younger generation into news home quicker without costing them or their parents any cash and enables the parents to keep their investments and have a guaranteed flow of income to support their lifestyle.

https://bit.ly/2KBJNNd

Supplementing social security in retirement. A reverse mortgage could be an ideal solution.

Social security supplements around 40% of a retiree’s average income in most cases, leaving two options for your retirement years – reducing your standard of living significantly or finding ways to create additional income from other sources.

There are a few strategies to supplement social security including a reverse mortgage. Reverse mortgages can provide a strategic solution to create income leveraging the equity on your home.

Check out this overview on 5 Income Strategies to Supplement Social Security highlighting reverse mortgages as a smart method to create income stream without touching your retirement nest egg:

https://bit.ly/2IzY3W5

Managing the timing and sources of your income in retirement

Managing your sources of income in retirement is never easy and is completely difference from managing the income you received during your working years.

As a retired person, you can receive income monthly, quarterly, annually and in some cases not on a regular basis. And most likely you’ll receive income from investments that you’ll need to monitor, manage and protect to ensure that they last. It can be overwhelming at times.

Here’s an overview on the different types of retirement income, some practical advice and ideas for potential retirement income, such as leveraging your home equity with a reverse mortgage: https://bit.ly/2rW1eRM.

The new normal: Carrying debt at age 75 and up

According to some new research from the Employee Benefit Research Institute the percentage of older individuals with debt has been increasing over the past 10 years, in particular for those 75 and over.

The group issued a new analysis of Federal Reserve figures showing that close to 50% of retirees ages 75 and up now have some loans outstanding – up from 25% back in 1992 – with the most significant debt increases coming among lower-income seniors.

The median debt owed by this age group ($20, 900) is below the average debts owed by Americans at younger ages. Yet debt can be a significant issue for the 75+ community considering the lack of opportunities to boost their incomes.

This article examines what’s causing this debt trend, the consequences and points out some solutions including reverse mortgages to help lock in some steady income during retirement years.

https://bit.ly/2Iy8Nse

HUD raises costs on reverse mortgages

The Trump administration announced Tuesday that it was raising the premiums for most reverse mortgages and lowering the maximum amount that can be borrowed in an effort to stem the tide of losses to the Federal Housing Administration (FHA) insurance fund.

FHA’s overseer, the U.S. Department of Housing and Urban Development (HUD), said the reverse mortgage program has been a big net loser for the insurance fund over the years, and is perilously close to needing a bailout from taxpayers. Effective Oct. 2, it was restructuring the annual premiums and lowering the principal limit factor, which determines how much a person can borrow.

HUD officials said the change will result in a net increase in costs for most borrowers, and could potentially reduce the initial volume of reverse mortgages by 10 to 20 percent annually. The upfront premium will be increased to 2 percent. Currently, the upfront charge is either 0.5 percent or 2.5 percent, depending on how much is drawn in the first year. The annual premium will be reduced to 0.5 percent from 1.25 percent.

Also the maximum loan limits will be reduced.

Reverse mortgages, which are formally known as home equity conversion mortgages (HECMs) can be taken as a lump sum, line of credit or through monthly payments. HUD officials presented the theoretical case of a 62-year-old borrower, with a reverse mortgage at 5 percent. For each $100,000 in home equity, the borrower will now be allowed to borrow $41,000, which is down from $52,400.

Reverse mortgages, which represent a fraction of the overall FHA loan guarantees (there were fewer than 50,000 in fiscal 2016], have been a source of volatility for the insurance fund. Borrowers are projected to incur more losses in future years than they pay in premiums. HUD said the program has already resulted in a net cost of $11.7 billion to the FHA MMI fund since fiscal 2009. The economic value of the program at the end of the last fiscal year was estimated at negative $7.7 billion, the agency said. This number has bounced around, however. In fiscal 2015, by contrast, the HECM program was valued at a positive $7.4 billion.

A drag on the MMI fund
HUD officials say that the program is being propped up by the premium payments of younger borrowers of traditional forward mortgages. Reverse mortgages are a reason that HUD has not been able to lower the premiums on a traditional FHA loan. In a fact sheet distributed to reporters, HUD said that if it didn’t make the changes, it “would require an appropriation from Congress for FHA to endorse new reverse mortgages in FY 2018.”

The overall value of the insurance fund in fiscal 2016 was at at healthy $27.6 billion. The MMI’s capital ratio also increased to 2.32 percent, which is above the 2 percent minimum established by Congress. The fund has required only one bailout in its history, a $1.7 billion appropriation from the U.S. Treasury in fiscal 2013. This cash infusion was largely due to HECM losses, HUD said.

“Today, younger, lower-income homeowners with traditional FHA-insured ‘forward mortgages’ are routinely bailing out the HECM program through the mortgage insurance premiums they pay, placing a significant burden on the overall health of FHA’s Mutual Mortgage Insurance Fund,” the fact sheet said. “We can no longer tolerate putting American taxpayers and future generations of seniors at risk. Quite simply, the HECM program is losing money and can no longer remain viable in its present form.”

FHA insures almost all reverse mortgages, which are available to homeowners 62 and over. With a reverse mortgage, a homeowner can borrow against the value of a home. The loan doesn’t have to be repaid so long as the borrower remains in the home. A reverse mortgage carries fees, interest, and the borrower is required to pay property taxes and maintain the home.

The terms of a reverse mortgage depend on the amount of equity in the home, and the age of the borrower. Generally speaking, the younger the borrower, the less that can be borrowed and the higher the loan cost. The actual maximum loan limits are based on tables that factor in age and equity.

The reaction to HUD’s move was mixed.

The nation’s largest mortgage trade group, the Mortgage Bankers Association, praised the move as a way for the program to remain financially viable.

The National Reverse Mortgage Lenders Association (NRMLA) said the changes will increase the costs and reduce the benefits for most borrowers.

“We believe that there are alternative options for better managing the HECM program to reduce its overall costs and will continue to advocate for such beneficial changes to the program,” NRMLA President Peter Bell said. Bell did note that HUD’s action showed a commitment to the program and also to stabilizing the insurance fund and avoiding Treasury draws.

This story is excerpted from ScotsmanGuide.com.