janjordan, Author at Colorado Reverse Mortgage Specialist - Jan Jordan

Author: janjordan

Delay Social Security Benefits with a Reverse Mortgage

Posted on February 24, 2021March 9, 2021 by janjordan

When planning for retirement, there will no doubt be a discussion about when a retiree should start taking their Social Security benefits.

There are perks to delaying, for example Social Security benefits stand to increase as much as 7-8% per year if you don’t apply until age 70. But many seniors need this income. With the ability to apply for a reverse mortgage at the age of 62, and current low interest rates, retirees stand to actually make gains by using a reverse mortgage to supplement while delaying benefits.

When approved for a reverse mortgage, the borrower can choose from a variety of ways to access the funds. It could be a monthly installment, a lump sum, or even a line of credit that in itself stands to grow over time.

This is a creative way to use the hard earned equity in your home to your benefit. A well educated financial advisor would easily be able to help you decide if this is a good option. Reverse mortgages are available to seniors 62 and over, including married couples, with an approved type of home. The borrower will always retain the title to the home and reverse mortgages are insured by the FHA.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.

Yes, You Can Get A Reverse Mortgage On A Condo In Colorado

Posted on February 18, 2021February 21, 2021 by janjordan

For most of the time reverse mortgages have been around they were not available on condos and many people still believe this to be true. But that changed in 2019.

Previously most condos could not obtain HECM Reverse Mortgage loans because they required approval of the entire building, which included multiple units. The 2019 change now only requires approval of single units. This was a huge step forward for the industry, as many seniors find condos to be comfortable and affordable as they age in place.

Here’s what former HUD Secretary Ben Carson had to say when this change was made:

“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said HUD Secretary Ben Carson. “This is an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.

FHA deputy assistant secretary of single family housing, Gisele Roget, also clarified that the previous rules governing condo approvals shut out a lot of senior condo owners from obtaining a HECM in the past, and the new rule helped to address that.

“We recognize that many seniors live in condominiums that were unable or unwilling to go through the process of FHA’s project approval,” Roget said. “And so, by allowing borrowers to utilize the single unit approval, they will be able to age in place in condominiums that do not have the overall FHA project approval.”

Condos can now also be purchased using a Reverse Mortgage for Purchase.

If you have a condo and are interested in learning more about a reverse mortgage, contact me to find out if it could be a fit for you.

I Have A HELOC On My Home – Can I Get A Reverse Mortgage?

Posted on February 11, 2021 by janjordan

The short answer is – absolutely. And as a matter a fact, reverse mortgages are great options to eliminate HELOC payments.

A HELOC is the acronym for Home Equity Line of Credit, and thousands in the Fort Collins and Loveland cities have taken advantage of it. When the housing boom was in full swing a number of years ago, the values of personal homes gave their owners a strong resource to draw upon in the form of a loan. Unfortunately many of these loans amortized, leaving the borrowers with higher than predicted payments.

Seniors 62 or older with a HELOC loan may be able to utilize a reverse mortgage to relieve the financial burden. The HECM, or Reverse Mortgage, provides the borrower with non-taxable income that will not affect social security or Medicare, and can be used for whatever the borrower sees fit. The funds from the loan can also be received in various options. Seeking the advice of a reputable reverse mortgage lender can help you make these decisions. During the application process, the HELOC will be discussed and a options of paying it off will be laid out.

If you do not presently have a HELOC but are considering one, put reverse mortgage on the table for a consideration as well. There will be advantages to both options giving you a sense of freedom to have choices.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming. Contact Jan and learn if reverse mortgage is right for you.

Should You Use Home Equity In Retirement?

Posted on February 4, 2021February 11, 2021 by janjordan

Did you know home equity can be used to reduce the overall risk of your retirement plan? Your house is a great asset that for many years has been overlooked in financial planning for seniors. This is making a sharp turn lately as retirement experts are beginning to understand how tapping into home equity via a reverse mortgage should never be underestimated.

Let’s take a look at where most seniors sit currently when it comes to retirement…

• Only 22 percent of workers are very confident they will have enough money in retirement.

• 45 percent of Americans have saved exactly nothing—zero.

• The expected lifespan of women is 20 years past the age of retirement, and two years longer than men.

• The average retiree can expect to spend $220,000 in out of pocket health care costs during retirement.

• Medicare pays for an average of 62% of a seniors health care costs, leaving 38% to come out of pocket.

• 36% of up and coming retirees will rely on Social Security as their sole income.

A reverse mortgage can help in many different ways – and the how the funds are spent is entirely up to the borrower. Whether it’s a monthly payout or a line of credit, when combined with other retirement planning tools, reverse mortgage can allow retirees financial security during the years they worked so hard to enjoy.

Reverse mortgages are available to senior homeowners 62 and over – even married couples. They will live mortgage payment free, always retain the title to the home, and because these loans are FHA insured non-recourse, no one – including heirs – will find themselves saddled with the debt after the owner passes. There are also various solutions for adult children or other family members who may want to keep the home in the family.

What Does It Mean When A Reverse Mortgage Is FHA Insured?

Posted on January 30, 2021February 1, 2021 by janjordan

If you’ve taken the time to learn even a little bit about a reverse mortgage, it’s likely you’ve heard the term “FHA insured” at least a couple of times. But what exactly does it mean?

Homeowners 62 and over, with significant equity in their home, may be eligible for a reverse mortgage. These loans are typically insured by the FHA and provide non-taxable income to the borrowers based on the available equity in the home. The more equity and the older the borrower, the more funds available. The funds can be accessed via a line of credit, monthly installments, a lump sum, and even can be wrapped into the purchase of a new home. The borrower can always use the funds for whatever they deem fit.

The homeowner will live mortgage payment free for as long as they remain in the home, although they will have a few financial obligations related to the house such as homeowners insurance, property taxes, utilities, and HOA fees. As long as the borrowers keeps current on these few obligations, they cannot be evicted from the home or made to repay the loan. The loan comes due once the last borrower has left the home for 12 consecutive months or passes away. At this time the loan will be due and payable with time allotted to allow for transitions. This is where the FHA insurance comes in.

In the case of a death, the home with pass onto the heirs. At this time they have two options – 1) Pay off the loan and keep the home (often through life insurance or sale of another asset), or 2) Sell the home.

In the scenario of loan repayment the heirs will never have to repay any more than the home is appraised for. They will only be required to pay 95% of the appraised home value or the full amount of the loan, whichever is less. Any amount due on the loan above the appraised amount will be covered by the FHA insurance and no one will be held liable.

In the case of a home sale, the heirs will never be required to pay more on the loan than the home sells for as long as the sale price is at least 95% of the appraised value. Any remaining balance will be covered by the FHA insurance. On the other hand, if the home sells for more than the loan balance, the heirs will keep any remaining funds. This is especially important as over the years the housing market shifts.

Jan Jordan is a Reverse Mortgage Specialist serving the Dacono, Fort Lupton, Erie, Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.

7 Reverse Mortgage Myths That Need To Go Away

Posted on January 23, 2021February 1, 2021 by janjordan

Reverse Mortgage was created to give our retiring generation a way to keep their homes and manage the ever increasing costs of life after working long and hard over the years. It is an option that could be just right for you. All applicants are required to participate in HUD approved counseling to ensure all their questions and concerns are addressed. Working with a reputable reverse mortgage specialist will also be critical in the process, as this person should be your advocate – even telling you when a reverse mortgage may be wrong for you.

In the meantime, it’s important to unravel the myths floating around about what a reverse mortgage is and what it does. Here are a few myth busting facts:

Myth #1: Reverse mortgages are only for poor people.

Fact: Many retirees use reverse mortgage as a way to fulfill their desires for retirement, or to help grandchildren with college, or even to move into their dream home.

Myth #2: It’s free money.

Fact: It is a loan specialized for those 62 years old and older that does not need to be paid back until the last borrower passes away or leaves the home permanently. If anyone attempts to market a reverse mortgage as “free money”, beware as it is likely a scam.

Myth #3: You lose your home.

Fact: The title of your home stays in your hands. You are always the owner.

Myth #4: It is not a safe program.

Fact: Reverse mortgages are FHA insured and fully guaranteed – regardless of how you receive the payout.

Myth #5: My equity is safe if I don’t use a reverse mortgage right now.

Fact: Your equity is dependent upon the housing market, which is always changing. Utilizing a reverse mortgage line of credit is a great way to guarantee your reverse mortgage equity is not affected by housing booms and busts.

Myth #6: I must be a homeowner or use my current home to obtain a reverse mortgage.

Fact: Reverse mortgages can be used to purchase a home, even if you have never owned a home before.

Myth #7: If I’m married, my spouse will lose the home if I pass away.

Fact: Married couples can both be on the loan if both are 62 or older. There are many ways to ensure both spouses are not at risk.

Fast Facts About Reverse Mortgages In Colorado

Posted on January 16, 2021February 1, 2021 by janjordan

Are you wondering if you or someone you love may qualify for a reverse mortgage and how the process works? Here are some fast facts to help. Reverse mortgages are available to many homeowners and retirees looking for creative ways to enhance their golden years.

Do I qualify?

Age 62 or older
The home you own must be your primary residence
Have enough equity in the home to pay off existing mortgage (if applicable)

How much money can I receive?

The older you are the more money you can receive. The calculation is based on your age, or the age of the youngest borrower in the case of married couples.
The amount you can receive is based partly on the appraised value of your home
The current interest rate will also be a factor in the amount of money you can receive with interest rates changing weekly

How do I receive the money?

Fixed monthly payments
Lump sum payment
Line of credit
Wrapped into the purchase of a home
A combination of the options above

Should You Consider In-Home Senior Care?

Posted on December 26, 2020January 11, 2021 by janjordan

In today’s fast-paced society, seniors are more independent than ever before. Many develop strong community ties, visit with nearby family frequently and even open their homes to out-of-state family, embrace a close circle of friends, and through options such as reverse mortgage, are able to stay in their homes comfortably for far longer than ever before. But what happens when living at home alone becomes a concern for these seniors and/or their adult children? In the past, it typically meant one of two things: move-in with family or move to a senior care facility. Often times though, a move like this can be detrimental in itself. In-Home Senior Care may be all that is needed to alleviate concerns and keep everyone happy.

What is In-Home Senior Care?

In-Home Senior Care is an option where a caregiver visits the home during scheduled days/hours in order to attend to specific needs. This offers peace of mind to both the family and the senior. It also helps seniors continue to lead an independent lifestyle while still receiving the assistance needed, without burdening busy family members. The care providers receive specialized training to ensure they are adequately equipped to care for seniors with varying needs.

What Types of Assistance Will In-Home Caregivers Offer?

The types of assistance that is offered by an in-home caregiver will vary based on both the needs and the care company, but most often include:

Safety supervision
Socialization
Transportation
Light housekeeping
Grocery shopping
Cooking
Running errands
Medication reminders
Walking assistance
Helping get dressed
Stand-by bathing/showering assistance
Grooming
Reading aloud from books, newspapers and magazines
Range of motion exercises
and lots more

Serving as a family caregiver for an aging loved one often is rewarding, yet involves sacrifice and stress. It also frequently takes a financial toll on the caregiver with an estimated $5,500/year spent on out of pockets expenses, not to mention lost wages due to missed work. Considering working with an in-home caregiver may be a better option all around.

Jan Jordan is a Reverse Mortgage Specialist serving the Longmont, Boulder, Estes Park, Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.

Are Reverse Mortgages Under Utilized?

Posted on December 18, 2020January 11, 2021 by janjordan

Two or three decades ago, the idea that an elderly couple or individual could live comfortably in their home far beyond retirement was practically unheard of. Preparing for aging meant retirement homes, assisted living, or moving in with adult children. Now today people are living longer and healthier lives than ever, but on the flip-side, they are retiring with less. The Pew Research Center has found that the percent of adults who said that they “will not have enough money to live comfortably” in retirement rose from 32% to 53% in ten years. Among adults in the 55 to 64 age bracket, the percent who are “not too” or “not at all” confident that they will have enough to live on in retirement rose from 26% in to 39%. These are alarming statistics.

Many seniors can improve their retirement outlook by considering a reverse mortgage, but very few use it as a retirement tool. Homeowners, 62 and over, qualify for these FHA insured loans. When creating a retirement portfolio, looking into home equity and a possible reverse mortgage can often mean the difference between getting by and living well.

So why is this option not utilized more often? It is usually for one of two reasons: senior homeowners are either unaware or uneducated on the option, or negative public perception has steered them away. Media coverage may report a negative story, but will fail to include the facts as to why these situations happened in the first place and how they can be prevented. The majority of reverse mortgages are favorable experiences, although this is not considered newsworthy. Some financial advisers or retirement planners are ambivalent to reverse mortgages, not adequately educating their client on this possibility. It’s important to stay educated while watching out for scams. And working with a reputable lender is critical when going through the reverse mortgage process or obtaining information to share with others.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Erie, Dacono and other Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.

What Makes Elder Law Different

Posted on December 11, 2020November 4, 2024 by janjordan

Elder law is a relatively unknown segment of law and is often overlooked when seeking legal solutions. But for some seniors and their families an elder law attorney may be exactly what they need. Elder law is very broad and includes things like estate planning, probate, guardianship, real estate, nursing home neglect and a dozen other areas of law that affect the elderly. Typically one lawyer will not have expertise in every area, but will instead work with a network of attorneys who can supplement in specific areas when needed and vice versa. Also, keep in mind just because an individual is elderly does not mean they need an elder law attorney. Elder law is focused on legal problems specific to the elderly. Concerns with other areas of law may best be handled by attorneys dedicated to those areas.

An elder law attorney should be educated and informed on reverse mortgage. It is common for them to receive questions from clients, former clients, and their families about reverse mortgage when establishing estate plans or when they are considering a reverse mortgage for the first time. Although reverse mortgages can be an excellent and safe tool for many homeowners, they are not for everyone and are most effective when used as part of a financial and estate plan. It is highly encouraged to make sure any question receives an adequate answer when considering reverse mortgage – and often elder law attorneys are part of that equation. This can also help with avoiding reverse mortgage scams.

Here are a few questions to ask when seeking out a an elder law attorney:

How long has the attorney been practicing?
What percentage of the attorney’s practice is devoted to elder law?
Does his or her practice emphasize a particular area of elder law? (for instance, guardianship or other specific work)
How much elder law training has the attorney had, and from what organizations?
Is the attorney a member of the National Academy of Elder Law Attorneys?
Will the attorney be able to work within your time limitations?

In addition to a legal network, an elder law attorney should be familiar with the “elder network”, a network of public and private community resources to assist seniors in various capacities. This should include a reputable reverse mortgage lender.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.