Leveraging Your Largest Assett

Reverse mortgages have become a very hot program getting both the good and the bad press.  It is true that a typical reverse mortgage loan is not for everyone. But more and more seniors are finding a need…and not in the manner that you might think.

If you are a senior, here are some reverse mortgage possibilities to consider.

The most popular use of a reverse loan is to improve your life.  Using your greatest asset (often your only asset), your home, as a means to finance your senior years can add much improvement if you are a struggling senior.  When Social Security and pension aren’t enough to pay your bills, eat and live comfortably, you can pull out some of the equity from your home in a reverse mortgage and improve your lifestyle while having the piece of mind that your home and finances are secure.

If your lifestyle doesn’t need this kind of improvement, perhaps you want to open doors for your children and grandchildren while you are still around to enjoy the view.  Many grandparents are now using a reverse mortgage to setup tax free college funds for their grandchildren.  You can invest your proceeds into long term health care policies and/or different investment plans with higher rate of returns.

Check with your financial adviser about setting up a sound investment program that may include estate tax planning in the forms of life insurance policies to offset the inheritance taxes for your estate. This could save your children lots of dollars after your death.

The proceeds that you receive from your reverse mortgage can be disbursed in a several different ways:

• credit line (to use as needed)
• monthly payments (you choose the term)
• cash (lump sum)
• any combination listed above

All monies recieved from this loan are tax free.  Financial planners and estate attorneys are getting more involved with reverse mortgage loan officers enabling their clients to live higher quality lives for a longer period of time.

Reverse Mortgage tragedy

As I was stumbling through some blogs today, I ran across this news story from last April.

Sad Story: Save Gramma’s House from Reverse Mortgage

This is a sad story about an elderly woman who possibly lost her home earlier this year due to a reverse mortgage. The saddest part of this story is that it was completely avoidable, had the family and gramma known how to prevent this tragedy!

DON’T LET THIS HAPPEN TO YOU OR YOUR LOVED ONE!

There are a few options to have prevented this event. The most obvious, without knowing the whole story, was to add Gramma to the title.

The second thought here, that is NOT mentioned in this news story, is that if this does happen to you, the bank notifies you that you have 6 months to fix this issue. But with an extension from the bank, you can have up to a year!

Reverse Mortgage Resources

I think reverse mortgages are the number one misunderstood mortgage opportunity. If you are 62 years or older, then you should be educated on this topic.

A reverse mortgage is great if you are on a fixed income and needing some extra cash-flow in your life. It is also great to share your estate with your loved ones while you are still around–tax free!

A reverse mortgage, in a nutshell, is a special loan that allows seniors, 62 years or older, to convert some of their home’s equity into tax-free funds. The senior can receive the funds in payments, in a lump sum, or a line of credit.

You may qualify for a reverse mortgage if you are:

• 62 years of age or older
• You live in the home as your primary residence
• You have a loan on your home
• You DON’T have a loan on your home
• You have some equity in your home

A couple sites that I have found very helpful in learning the ins/outs of a reverse mortgage are:

ReverseMortgage.org

Federal Trade Commission on Reverse Mortgages

Realizing a better life!

Do you want a better life? What does that mean to you?

For me, it means spending more time with my family. It means living in the house I love. It means vacationing with my family, and also escaping with my wife. It means coaching my kids when they play sports.

Perhaps, for you, a better life means having a nicer car. Or owning your home.

This blog is about helping you create a better life FOR YOU!

Stay tuned for great tips and resources about HAVING A BETTER LIFE!