Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 



Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes



 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

 

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

 

Fixed Rate Reverse Mortgage

 

MLS Reverse Mortgage

 

Seniors Serving Seniors

Help for elderly in today’s tough economic times



by Lenora Degen

 

 

“We’ve met lots of seniors,” say Dick and Patty Dockstader of Colorado Springs.   “And many are having trouble meeting daily expenses, covering medical costs, and keeping gas in the car.  It seems a shame that so many people our age are struggling to afford the smallest of luxuries that add comfort to their lives.”

 

No stranger to tough financial times, 80-year-old Dick Dockstader was born on a farm in central California at the beginning of the Great Depression. When the farm fell on hard times, the family lost most of their land.  Patty was raised nearby by her single grandmother who had very little money.

Dick enlisted in the U.S. Marine Corps upon graduation from high school,

and when he was promoted to PFC, making a grand total of $72 per month, the high school sweethearts were married.

 

That was 62 years ago.  Today the couple is grateful for the experiences of their past - even the difficult times. These have taught them to be grateful for the important things in life: health, family, and the ability to overcome obstacles.

 

Life’s been good to Dick and Patty.  They raised 3 sons and have 8 grandchildren and 7 great-grandchildren. They’ve had plenty of adventures along the way, and much of their success can be attributed to Dick’s keen business sense and willingness to try new things.

 

After attaining the rank of Captain in the Marines, and graduating from Cal Poly at San Luis Obispo on the G.I. bill for vets with a B.S. degree in Animal Husbandry, Dick began a career in ranching and agriculture which would span over the next 20 years.  At age 62, Dick and Patty turned their business over to their youngest son and started a new career.  The Dockstaders took some land they owned and built homes for low income families.  These homes were subsidized by the government.  Due to the amount of red tape, very few builders were willing to work with USDA making subsidized mortgage loans.  The Dockstaders learned how government-guaranteed loans work, while processing and working their own loans. Dick and Patty continued building houses for low-income families in rural areas of California for 10 years.

 

Several times, friends and family members urged Dick and Patty to retire and relax.  “I tried retiring a few times, from many different careers,” laughs Dick.  “I wasn’t very good at it. I kept coming up with another endeavor to try.”

 

In 2004, looking for another way to give something back, particularly to the senior community, Dick and Patty took their knowledge and experience with government insured loans and formed Seniors Serving Seniors, Inc.

 

Seniors Serving Seniors is dedicated to informing and educating the senior community about Government Sponsored Reverse Mortgage programs.  Through informal seminars, seniors and their families can learn the truth about these often-misunderstood options for homeowners 62 years and older.  “We don’t sell anything, we just explain the facts.  Reverse Mortgages aren’t for everyone.  And if they’re not right for you, we’ll be the first to tell you.  But for many, they are a huge blessing.”

 

Several Colorado seniors have already benefitted from the Seniors Serving Seniors seminars. A Colorado Springs couple in their eighties was able to pay off a debilitating mortgage and have an extra $2,000 cash each month.  A widow and retired nurse has paid all of her debts, receives a monthly income, established a line of credit, and is finally experiencing freedom from financial worries.

 

Even if you are not a senior, the information from Seniors Serving Seniors can be helpful for an elderly family member or useful for your future.  Attendees receive a comprehensive, easy-to-read booklet published by Seniors Serving Seniors, a booklet from AARP about Reverse Mortgage, and easy-to-follow-along-with handouts from the lecture.  Materials and the seminar are free of charge with absolutely no obligation.

 

“I’m happy to talk with anyone interested in learning more about the Reverse Mortgage,” says Dick Dockstader.  “We keep up with the many changes to the laws, including some very recent ones which have lowered the rates for Reverse Mortgages, raised the limits of the loan amounts, and even make it possible to purchase a new home with a Reverse Mortgage. We want to make the process easy to understand so that everyone knows the facts, rather than the misconceptions.”

 

Visit www.seniorsservingseniors.net to get some of your questions about Reverse Mortgages answered.  If you’d like to find a seminar near you, call Seniors Serving Seniors at 719-599-7609. If you or your group would like to have Seniors Serving Seniors conduct a seminar in your area, call or email Dick (rwdock@q.com).  “We can mail information to you and if you’d like a one-on-one meeting in person or on the phone, we are happy to set that up as well.”

 

 

 

 

 

 

I just finished reading an article about a network news program that did a negative report on reverse mortgages, citing an incident in Los Angeles of a senior borrower who was talked into buying annuities that did not mature until the year 2033 without a substantial penalty. I saw the actual Nightly News piece with Tom Costello. I was very concerned with the piece because I saw that they interviewed a woman identified as Robin Talbert with the AARP.

I have to believe that only part of Ms. Talbert’s comments were represented in the piece on the program as her comments stated “We’re all living longer and you don’t want to outlive that equity in your home to which the piece cut away immediately to Mr. Costello who added Because the bank could then take the home. Ms. Talbert is absolutely correct, and the AARP champions all things for seniors, but they are extremely aware of how reverse mortgages operate and Mr. Costello’s remarks are done in a way to mischaracterize reverse mortgages.

This is the type of misinformation and misreporting that we have been running into for several years now. While I do not know all of the borrower’s circumstances in this particular situation and I always get extremely angry when I hear of any mortgage professionals who do not keep the borrower’s best interests at heart, it is not the Reverse Mortgage that is the rip off here, it was the end use of the funds.

The notion that the bank will take the borrower’s home when her equity is gone is just plain wrong and bad reporting. The whole idea behind the reverse mortgage and one of the reasons the borrowers pay mortgage insurance is that no matter what happens to the equity, the borrower will never make another house payment and the borrower or the borrower’s heirs will never owe more than the property is worth, regardless of what the equity position does. The loan is set up so that you own your property, not the bank.

If the Nightly News or Mr. Costello had researched reverse mortgages more thoroughly, they would have learned that if the borrower had chosen what is known as the tenure option or payments for life, she would have received those payments for the rest of her life so long as she continued to occupy the property and the bank would never then take the home when the senior outlived the equity as the report leads the listener to believe.

I think it is very important for seniors to not only go through the required counseling, but also to enlist the assistance of their loved ones or trusted financial advisors whenever available. In this piece, the borrower said she didn’t really even need the money, she was doing just fine without it. Her daughter was with her during the television interview and maybe if she had been with her during the reverse mortgage process, she could have helped her to keep from getting the loan in the beginning. Another piece of advice, don’t ever go into the process with someone who is only looking to sell you another product or service.

If you don’t need a reverse mortgage and someone is trying to sell you one so that you can buy something else, or you do need one for living expenses and then someone tries to tell you that you should put the money into something else instead, find a reverse mortgage specialist who is only looking to help you fulfill your reverse mortgage needs. Many people have used reverse mortgages as retirement tools but make sure that your use of your funds is from your careful plan and decisions, not from someone elses salesmanship.

Reverse Mortgages can be a very viable retirement tool and I’ve seen them help many senior borrowers. Like almost anything, they can be abused but if you take the time to research the products and the people with whom you are working, the reverse mortgage can be the difference to many seniors of staying in their homes or having to leave; between barely surviving and aging in grace and dignity.

I would hate to see a senior borrower avoid this viable option that may be badly needed due to bad or partial reporting.

If you have decided to get a reverse mortgage on your home the next big decision you will have to make is how to choose the right reverse mortgage lender. There are many out there to choose from, but how do you know which ones are the best. Keep reading this article to uncover some great tips on how to choose the right reverse mortgage lender that will meet your needs.

The most common type of reverse mortgage is the HECM which stands for the Home Equity Conversion Mortgage. This is the only reverse mortgage that is insured by the federal government. They are insured by the FHA which tells the HECM reverse mortgage lenders how much they can lend you. This decision is based on your age and your home value.

Another type of reverse mortgage lender can be a state funded lender. The cash received from these reverse mortgage lenders will usually have stipulations on how you can spend the money. The money will be given to you in one lump sum but it must be spent for home improvement, to pay taxes or some other pre-approved expense.

Proprietary reverse mortgages are offered by banks or lending institutions. The money received from these types of lenders is able to be used in any way that you want. But proprietary reverse mortgages are usually the most expensive. If you live in a higher value home, you may be able to get more money from a proprietary lender. However, it’s important that you always compare the advantages of a proprietary reverse mortgage and a more traditional of a HECM.

When you begin your search for a reverse mortgage lender, do so with caution. There are many good mortgage lenders out there but there are some dishonest ones also. Always check out a reverse mortgage lender thoroughly before you agree to anything.

Another option would be to enlist the aid of a reverse mortgage lender association. Do a search on the Internet and you can find a few associations that will aid you in finding a reputable reverse mortgage lender in your area of the country.

Read through the AARP website for a lot of great advice on reverse mortgages. AARP has several pages devoted to reverse mortgages. This site also has a free downloadable eBook that explains the whole reverse mortgage process in easy to understand language.

If you are worried about how you are going to be able to stay in your home, consider getting a reverse mortgage. You will make no payments on the mortgage during your lifetime or while you still live in your home. You will be able to get the cash to create a cushion to fall back on in case of medical bills or home repairs. Do some research and find a great reverse mortgage lender today.

A reverse mortgage calculator is a powerful and beneficial financial tool if you know how to use it correctly. Most of the calculators that you find are online are accessible and easy to use to get the data you need when you want it. But for many, using a reverse mortgage calculator may seem like more trouble than it is worth.

The American Association of Retired Persons (AARP) website features the most-accessed reverse mortgage calculator on the internet. Their calculator consists of only four easy to use questions that when answered can allow you to roughly determine what you should anticipate if you secured a reverse mortgage within the near future. By knowing your age, the appraised value of your home, your spouse’s age and your zip code, a mortgage calculator can have you well on your way to knowing how much you could get out of your home if you signed up for a reverse mortgage.

When you finally decide to use the reverse mortgage calculator on the AARP website, the first step for you is entering in all of the required information. If you do not know the value of your home, estimate based upon the appraisal value of your home for tax purchases, your purchase price or perhaps a rough estimated appraisal that you have find from online real estate services such as Zillow.com.

Once you have entered all of the required data, you will be taken to a page that offers itemized details of how much you stand to acquire as a homeowner from a reverse mortgage. In addition to these initial details, a reverse mortgage calculator will also tell you if you can get a single lump sum payment, a line of credit account or the traditional monthly loan advance payment on your home.

To find relevant details on something specific such as reverse mortgages ask your friends and co-workers for info they may have found out on it. You can also look up various groups on the web that discuss things such as newsgroups and forums. There is one on so many topics and you can post your own question.

To find relevant details on something specific such as reverse mortgages ask your friends and co-workers for info they may have found out on it. You can also look up various groups on the web that discuss things such as newsgroups and forums. There is one on so many topics and you can post your own question. See below for more information on Reverse Mortgage.

Reverse mortgages have really started to become popular among senior homeowners today. They are helping to supplement the incomes of retirees all over and the trend is only going to continue to grow in the coming years.

To help protect people in applying for a reverse mortgage, the government requires every applicant to take a credit counseling class before any loan can be processed. One of the best ways to get this required counseling is through AARP. Here’s a look at what you can expect with AARP reverse mortgage counseling.

With nearly 80% of all seniors being a member of AARP, there is little wonder why AARP reverse mortgage counseling is by far and away the most popular. It’s also offered free of charge to any current member.

You may be thinking that reverse mortgage credit counseling is just a waste of time and more government red tape to go through, but the truth is that this type of counseling can not only help you understand more about reverse mortgages, but also help you make the right decision in moving forward.

AARP will go through all the details about a reverse mortgage and how the loan process works. They will go over all of your options that pertain to your individual situation so you know if you’re making the best choice. You may even discover through this process that a reverse mortgage loan isn’t the best option for you.

The counselor will discuss all the benefit options with you, as well as how this type of loan may affect other benefits you are receiving currently.

You’ll have a better understanding of taxes and your estate through AARP reverse mortgage counseling and how it can affect your heirs in the future.

AARP is not your only option when it comes to reverse mortgage counseling. There are many other services available, but with that said, you won’t go wrong with AARP for this type of loan counseling. When finished you will know you are making the right decision in applying for a reverse mortgage.

What is an AARP reverse mortgage? How is it different from various other loans that one applies for? These are the general queries that arise in our minds while looking or applying for a loan. Well, AARP reverse mortgage is a loan for a senior citizen that helps him in borrowing money while retaining property at the same time. With this loan, one just has to relax and does not have to loose sleep over the repayment demands of the creditors.

An AARP reverse mortgage is actually a loan against a property that one does not have to pay back as long as he or she is staying in it. In fact, with AARP reverse mortgage, an elderly person can turn the value of his or her home into cash without having to move or to repay the loan each month. The cash that one gets from a AARP reverse mortgage can be paid to the debtor in various ways, such as in a single lump sum of cash; as a regular monthly cash advance; as a credit line account. This helps one to decide when and how much of available cash is paid to him or her; or even in a combination of all these paying methods. The benefit involved in AARP reverse mortgage is of high stake as it allows members and customers to pay them in easiest of ways unlike other loans providers and creditors in the market.

A senior citizen can be eligible for an AARP reverse mortgage loan only when she or he have completed the age of 62 years and is living in home at the same time. He or she does not have to pay the loan amount back until he or she dies, moves out of the property or sell their properties to someone else. The other benefits that an AARP reverse mortgage offers to its customers is that one does not have to procure income proof unlike other mortgage loans that demands a lot of paper work, as well as is time consuming. However, one can get loan in a lesser time and without any hassle as AARP reverse mortgage works with and for its members and customers with care. It offers reverse mortgage loans that are available in federally insured forms.

AARP reverse mortgage additionally offers low- and more costly public loans for various properties. It also helps in evaluating and estimating of the property that has to be mortgaged. AARP reverse mortgage provides experience and expertise on development of money to its clients. AARP reverse mortgage also conducts counseling sessions for senior citizens in relation to reverse mortgage loans. Well, that is not all folks; AARP reverse mortgage also offers special discounts and services to its members on general insurance, health care, travel and entertainment solutions. AARP reverse mortgage is additionally involved in providing tax aide services in personal and through websites. It also offers assistance in preparing financial retirement plans to its clients. Thus, an AARP reverse mortgage is a friend in need for many people who have nothing but are relying on their homes

Do you wonder if a reverse mortgage is the right choice for you? Do you know exactly what a reverse mortgage is? Do you know how to find out more information on a reverse mortgage? These are just a few questions that a lot of people may have about reverse mortgages. The good news is that these questions and more can be answered through the AARP reverse mortgage information page. This webpage can give you the tools that you need to make an informed decision on reverse mortgages. Read on to discover the kind of useful information that you will find on the AARP reverse mortgage page.

The very first thing you will discover is the definition of a reverse mortgage. You should read this carefully so that you are fully aware of what a reverse mortgage is. The more informed that you become the easier it will be to make an intelligent decision. Don’t depend on other people to tell you what you should do, research for yourself.

Another thing that you will find on the AARP reverse mortgage page is an explanation of how a reverse mortgage works. This is a great explanation that is written in plain English and very easy to understand. This will help you become aware of what you are getting into when you apply for a reverse mortgage.

Do you wonder if you are eligible for a reverse mortgage? The AARP reverse mortgage page will give you the information that you need to find out if you are eligible. It will also tell you if your type of home is not eligible. Having this information will save you a lot of time and stress.

A great feature on the AARP reverse mortgage page is the explanation of how you can receive the reverse mortgage payment. Some programs will give you a lump sum, some will give you a monthly cash advance and some programs are set up to do a credit line where you decide how money you want each month. It also will tell you which program gives the largest cash advances.

Be careful when choosing which reverse mortgage program to work with. Some programs will tell you what you can do with the money. For example, some federal programs will only allow you to use the money for home repairs.

The AARP reverse mortgage page will also give you good advice on what you will pay when you get a reverse mortgage. This page will reveal to you who the cheapest lender of a reverse mortgage is in the private sector. Read this carefully to save yourself a ton of money.

As you can see, there is a ton of helpful information on the AARP reverse mortgage webpage. If you are thinking about getting reverse mortgage, study all the information on this page before you make your decision. It will save you a ton of money in the long run.

Is reverse mortgage a sensible step? How to deal with reverse mortgage? What are the objectives that have to be focused if opting for reverse mortgage? These and many more questions bubble in your mind on talking about reverse mortgages. But very few of us actually know the exact place to look out for these answers because incorrect or half information can bring out a confusing conclusion. And the questions remain at the same status with no valid assurance. The main reason for receiving half information about the mortgages is the hidden prospects of mortgage policies. American association of retired persons or commonly known as the AARP reverse mortgage has no such hurdles. The have simplified set of terms and regulations for providing basic required information.

AARP reverse mortgage has a motive of helping out people who are above 62 years of age. It is basically a financial plan to support senior citizens economically after their retirement. As the monthly income stops after retirement, many people find it difficult to balance their expenses with definite amount of pension and other income resources. The scheme is already well established and highly acknowledged by the people of America. However, the benefits coming from AARP reverse mortgage are unbeatable and greatly rewarding. According to the government every person must seek some valuable informative counseling before selecting any reverse mortgage loan plan and schemes. This can be easily done by meeting the members of AARP. Around one third of total American senior citizens are linked with American association of retired person and all the members are entitled to receive free counseling, which can guide them in understanding the entire idea of reverse mortgage in a more appropriate manner, so that they can make wise decision fetching enough benefits.

There are certain norms and rules to be applicable for a reverse mortgage loan. AARP reverse mortgage can thoroughly guide you on these terms. The most important among them is that the applicant must own a house because the complete dealing of financial transitions are settled on that basis with the broker. On taking the reverse mortgage loan, the amount of payment that the applicant is supposed to get in the form of loan is decided by the equity of his house and other such factors. An added advantage is the fact that you do no have to pay any tax on the money you get through the reverse mortgage. However, still the most prominent thing about it that overcomes all other features is that no repayment of the loan money has to be done. After the death of the person who has taken the loan, the broker reimburses the amount by the auction of the house instead of transferring the toll on their heir.

The AARP reverse mortgage page offer you a detail study about the ways in which you can receive your money from reverse mortgage. There are several schemes, according to which you can get the entire amount in one go or in monthly installments. There are few programs that present to you a credit line through which you can fix your monthly income.

Usually, seniors get most affected by financial problems as they do not possess any steady source of income to meet their bigger financial requirements. For people, who are indulged in any profession and getting a good amount of money, it is not that difficult to face the situation of financial crisis. However, for a senior it can be a worst situation as it can drain his or her hard earned retirement money. For such people, who have got retired from their profession and facing problems in fulfilling their day-to-day and emergency financial requirements, Aarp reverse mortgage loans are there to ease-up their monetary issues. Aarp is an association for retired American seniors that offer a helping hand for all its members to make their post retirement life hassle free.

It proceeds with a motive to provide every member with amenities to smoothen his or her old age; for making it possible Aarp avails best reverse mortgage loan so that every senior who is associated with it, may get freedom from financial disturbance. Since mortgage loans are a deep rooted, traditional procedure for arranging money, it helps a person in getting money against his or her equity in any asset. Due to its ill will and risk bearing nature, initially, it was not so popular among educated segment of society consequently, this section never considered reverse mortgage loans as a safe way to get money. With passage of time and involvement of liberal norms, mortgage loans are getting more and more popularity among every segment of society including highly educated section.

Aarp reverse mortgage is one of those liberal and highly beneficial mortgage facilities that are helping seniors in arranging instant money for fulfilling their old age financial requirements. With this every senior can manage to get required amount of money by using his or her equity in house property. In America, most of the seniors are associated with Aarp; with its reverse mortgage services all members are getting great help in securing their old age financial requirements. Despite the fact that reverse mortgage loans are so lenient that every senior can go for it without pestering for security of his or her home property, checking reliability is must as a wrong selection of mortgage lender can cause collapsing of house property.

Aarp reverse mortgage help seniors in arranging money through most reliable lender so that they may secure their house property by retaining its ownership with them for as long as they want. It can prove to be the best companion of seniors in their hard days; Aarp not only help its members in getting desired loans but also facilitate them a large variety of services such as financial counseling, market research and status of concerned institutions in the market and many more. Therefore, if you are a retired citizen of America and looking for a true companion to help you out in every step of your old age then just associate with Aarp and many other people like you and get best help and suggestion to cope with every problem.