Retirees in 49 out of 50 states have inadequate funds to support themselves in their later years.
Generally, retirees need 70 percent of their pre-retirement income to support themselves.
Nevada is the only state that has seniors who report sufficient funds, according to a recent survey from invest.com.
If you need more money to supplement your retirement years, call Steve today!
Given that older Americans’s homes are worth, on average, more than their other combined savings, there is a begrudging inevitability about reverse mortgages. As more people enter retirement in the coming decades with modest savings and no private pension, they’re going to need some of that home equity back during their increasingly long lives. Therefore, older Americans need reverse mortgages to supplement their income. - The New York Times, September 2014
If you are over 62 and need to supplement your income, call Steve today!
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December 9th, 2014 | by Jason Oliva Published in Reverse Mortgage Daily
The Center for Retirement Research at Boston College has been garnering considerable press in the past few weeks for a recent report on how retirees can supplement their assets with home equity, primarily via touting the benefits of using a reverse mortgage or downsizing to a smaller residence.
But while reverse mortgages have become vulnerable to a variety of public misconceptions, an article from Morningstar helps make the case for these loans in a Q&A with Alicia Munnell, director of the Center for Retirement Research.
“[Reverse mortgages] are not a last-ditch-effort product,” Munnell said in the article. “But for those for whom it’s right or who can afford it, it will be a very valuable product over time because people are going to need to add their home equity to other sources of retirement income to get by.”
Munnell, who also has a book coming out titled “Falling Short: The Coming Retirement Crisis and What To Do About It,” even likened reverse mortgages to annuities in the role they play in terms of asset allocation.
“So, if you take [a reverse mortgage] in terms of a steam of income over the rest of your life, it is very much like an annuity in terms of how the payments seem to you,” Munnell said. “They continue for as long as you live, and then the money is paid back out of the sale of your house. So, it’s a stable, predictable source of income that would allow you to take risks with the other part of your portfolio.”
Read more at Morningstar.
Written by Jason Oliva
The statistics below are horrifying, but this doesn’t have to be you. There are things you can do to make sure you will be okay. Your 1st step is to call Steve today, and let him take a look at your situation. Steve can help!
62 - average retirement age
18 - average length of retirement
$43,797 - average savings of a 5-year-old
$215,000 - total cost of medical treatment for a couple older than 63 over a 20-year span
35% - number of Americans older than 65 who rely completely on Social Security
36% - percentage of Americans who don’t save anything for retirement
719-266-5500 - the number you should call now. Steve can help you have the retirement of your dreams, no matter what your situation!
Over the years, celebrities such as Robert Wagner, Alex Trebek and Fred Thompson have touted reverse mortgages as a way to supplement a senior’s fixed income by tapping equity that has accrued in their home. But here’s another, less common use of reverse mortgages that these celebrities may not have mentioned in their commercials: buying a new home. And in some cases, seniors can still hold on to their old homes, too.
In 2009, the Federal Housing Administration introduced a new product called the Home Equity Conversion Mortgage for Purchase, or HECM, that allows older Americans to buy a new home by putting a reverse mortgage on it. So far, the product has been little used.
From October 2013 through June 2014, 40,512 reverse mortgages were originated, according to the FHA. But only 3.3 percent of those were used to buy another home.
“It’s new and just catching on,” says Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association. “I recommend to all seniors that if they are age-eligible and considering purchasing a home, they should at least look at the option.”
A reverse mortgage is a type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold.
But reverse mortgages aren’t for everyone. In fact, they were specifically designed for older Americans whose net worth was tied up in the homes they already owned. Seniors can use a reverse mortgage to purchase a new home, too, while keeping their existing one.
“Some seniors may want to live closer to family but don’t want to give up their original home,” says Maggie O’Connell, reverse mortgage specialist at ReverseMortgageStore.com. “It could work well for snowbirds or those who want to live in a state with no taxes on income or retirement funds.”
Below are some key points you’ll want to know about reverse mortgages before signing up for one.
The property must pass certain requirements, such as meeting all FHA standards and flood requirements.
Any new construction requires a certificate of occupancy, the reverse mortgage association’s Bell says. Right now, you cannot get reverse mortgages on homes that are to be built by a developer, he says.
Read the rest of the article: http://www.bankrate.com/finance/mortgages/use-reverse-mortgage-to-buy-a-home.aspx#ixzz3M63xvzA8
Suggesting a looming crisis in senior housing, an increasing number of baby boomers are entering into retirement with mortgage debt, according to a recently released report from the Harvard Joint Center for Housing Studies and the AARP Foundation.
Reverse mortgages may offer financial security for those who are eligible and in need. “Reverse mortgages can be particularly helpful to lower-income households holding most of their wealth in home equity,” the study says, noting that reverse mortgage income can support a variety of financial needs.
To read this article on NRMLA news, click here.
While America struggles to meet the housing needs of its population, reverse mortgages remain a valuable source of funding for older Americans who have financial and other retirement needs, according to a new report published this week by the Harvard Joint Center for Housing Studies and AARP Foundation.
Entitled “Housing America’s Older Adults-Meeting the Needs of an Aging Population”, the report estimated the number of adults in the USA aged 50 and over will grow to 132 million by 2030, an increase of more than 70 percent since 2000. It also noted that housing that is affordable, physically accessible, well-located, and coordinated with supports and services, is already in short supply.
The report concluded that high housing costs currently force a third of adults 50 and over-including 37 percent of those 80 and over-to pay more than 30 percent of their income for homes that may or may not fit their needs, forcing them to cut back on food, health care, and for those 50 to 64, retirement savings.
States have implemented property tax relief as one possible solution to address housing cost challenges, while at the federal level, the report singled out HUD.s Home Equity Conversion Mortgage program.
“Reverse mortgages can be particularly helpful to lower-income household holding most of their wealth in home equity,” said the report. “For example, reverse mortgages can be used to convert a portion of housing wealth into an income stream to help cover property taxes and insurance payments, the costs of supportive care, and other living expenses. The ability to choose either a lump sum or a line of credit can assist homeowners in paying for one-time, big-ticket expenses, such as home modifications or improvements.”
Today, MarketWatch came out with an article about what retirees are going through. The article by Catey Hill is clever and lighthearted, but also illuminates the tough financial position in which seniors in America find themselves.
According to the article, 60% of workers aged 55 and older have saved less than $100,000 for retirement, while 24% have saved less than $1,000. Roughly 15% of people over age 65-that’s 6.1 million people in all-live in poverty.
If this is your situation, and you’ve reached the retirement age of 62, you might want to consider a reverse mortgage to help you pay your bills, fund your Long Term Care, pay for your health care, or make that trip to Hawaii a reality. There may also be other ways to help you thrive.
If you own property in Colorado, call Steve today. You’ll talk to him personally, and he will give your financial situation a thorough physical to see how you can best recover your financial health. Call The Mortgage Doctor toll free at: 1-877-299-5500. Don’t wait another day.
These are the 10 Senior Secrets listed in the article. To read the complete explanation of each one, go to the original article at: http://www.marketwatch.com/story/10-things-retirees-wont-tell-you-2014-09-19?page=1. (I want to read number 7!)
1. We’re broke
2. Retirement is more stressful than it looks
3. We spend too much time by ourselves
4. We’re in denial about our health problems…
5.…and our health-care costs are huge
6. We’re coming after your jobs
7. We still get frisky
8. We’re planning to move in with you
9. That big Hawaii trip? It’s more like a pipe dream
10. We’re scam magnets
A recent study by Hart Research Associates finds 52% of Americans are making sacrifices in order to cover their rent or mortgage. Homeowners are facing tough decisions such as delaying retirement saving, finding additional work and reducing health care spending to locate the needed income to pay for their homes.
If you are having trouble affording your mortgage, call Steve today!
You mortgage is a big part of your retirement plan. If you want to buy a home, refinance, or get a reverse mortgage, call Steve, The Mortgage Doctor. He’ll help you figure out the best way to make sure your’e in the 50% of Americans who have a retirement plan. Call today! He’ll talk to you personally.
Steve The Mortgage Doctor is happy to bring you The Reverse Review, July 2014. Steve believes that educated clients are happy clients. Read and enjoy…and if you have any questions, call him! He’ll talk to you personally.
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Published by Blackenterprise.com | June 30, 2014 | Written by Sheiresa Ngo
Updated guidelines allow borrower’s spouses to avoid homelessness
The unthinkable happens to many widows and widowers who take out a reverse mortgage while their spouses are still alive. After the borrowing spouse dies, the non-borrowing spouse ends up receiving a foreclosure notice, even though they’re up-to-date on all of the payments, reports Credit.com.
A reverse mortgage lets those older than 62 to receive cash payments based on the equity built up on the home. No payments have to be made on the loan until all those involved in the reverse mortgage have vacated the property.
The ages of individuals involved in the reverse mortgage is used to figure out the withdrawal amount. Therefore, some couples were told they should remove the younger spouse from the title in order to receive a higher payment.
However, this advice often led to a nasty surprise. When the older spouse dies, the living spouse gets a foreclosure notice because their name doesn’t appear on the mortgage. But thanks to a recent court decision that made HUD revise its rules, a reverse mortgage must now list both spouses. This change will take place on August 4.
A recent court ruling made HUD revise its rules in order to prevent this dilemma. Credit.com notes that the new rules are not retroactive. However, HUD is attempting to figure out ways to protect spouses who are not named in the mortgage. Extensions will be allowed in some cases. For more information on the updated changes, see its brochure entitled Frequently Asked Questions about HUD’s Reverse Mortgages or Mortgagee Letter 2014-07.
To Read more on BlackEnterprise.com, click here.
And if you need help with your reverse mortgage in Colorado, call Steve today! 877-299-5500
