BABY BOOMERS! There are millions of “Baby Boomers” coming of age as Seniors! What financial position will you be in when you want to retire? What will you have saved for that inevitable day? What monies will you have to rely on in this tough economic market? Will you have to work part-time to keep enough money coming into the household? Let’s review some financial options that just might be the answer to all the above questions.

You love your home. You have put a lot of yourself into it. Perhaps you’ve raised your family there, worked hard to keep it in good repair, lived, loved, laughed, and cried there.

Your home is one of the biggest assets you have. It represents one of your largest and most often overlooked sources of Extra Income. But, is it a LIABILITY rather than an ASSET? You have taxes, insurance, and maintenance to pay for on the home. Asset or liability? What if you could eliminate the monthly payment for principal and interest portion of your mortgage payment? Just think of the money you can save every month!

For example, your monthly mortgage payment is $1,000/month for principal and interest. Multiply $1,000 by 12 (months) to get your P & I expense for the year. Multiply that number by the number of years you have left on your existing mortgage. Let’s say you still have 10 years to pay on your existing mortgage balance. $1,000/month X 12(months) = $12,000/year expense, X 10 years left on your existing mortgage = $120,000 left to pay in mortgage payments. HOWEVER, with a Reverse Mortgage, the existing mortgage balance is paid off. By not having to pay the 10 years of $12,000/year, you will save out-of-pocket expenses of $120,000! That is a very large expense you can avoid yet be able to remain on your Deed, still own your home, NEVER have to make a payment on the Reverse Mortgage, NEVER pass the debt to your heirs.

What you do have to do, per HUD Reverse Mortgage rules, is always pay you personal property tax, property home-owner’s insurance, and just keep the home maintained as you normally would! It is your home and you would have to continue to pay these expenses with or without a mortgage!

The ability to remain in your home while taking care of yourself financially is important. With the HUD/FHA Reverse Mortgage program, in the United States since the 1980’s, you can rely on the equity you worked hard to establish over the years. For a Reverse Mortgage you must be 62 (or older) to use an advance of equity. You have no mortgage payments for life, until you move out permanently, sell your home, or pass away. The older you are, the more equity money you will receive in a Reverse Mortgage. Counseling by a third-party HUD Counseling Agency is required. An Appraisal of your property is also required which establishes the current market value of your home for the Reverse Mortgage calculations. The home does not have to be paid for in order to receive your Reverse Mortgage and if it is not paid for then the Reverse Mortgage must pay off any liens against the property. The equity funds received through a Reverse Mortgage are NON-TAXABLE and do not affect regular Social Security or Medicare. Let’s review again the significant Reverse Mortgage program provisions:

  • you NEVER make a payment
  • you NEVER come off the Title; it is your home
  • you NEVER owe more than the home is worth
  • you NEVER pass the debt to your heirs

A Reverse Mortgage can be just the solution to give you the financial security you want. Let us help you reach your financial goals!