janjordan, Author at Colorado Reverse Mortgage Specialist - Jan Jordan

Author: janjordan

Fort Collins & Loveland Colorado Top Nation’s Most Satisfied Cities

Posted on April 11, 2014April 11, 2014 by janjordan

For those already residing in Fort Collins or Loveland, it will come as no surprise that these cities ranked #1 in a nationwide Gallup poll which asked residents how satisfied they were with their city. But for those living elsewhere, it will suggest there is something wonderful and special in this area. Fort Collins/Loveland has always ranked high in this poll, but it continues to do better. Times Magazine has great write-up about this poll here.

This is a reason reverse mortgages (whether traditional or for purchase) are so popular in northern Colorado. Who would want to leave such a wonderful place? And many seniors want to retire here.

With a reverse mortgage, seniors 62 and over are able to stay in their home throughout their aging years while living mortgage payment free, and without income or credit requirements. Aging in place has quickly become the norm among seniors, opting out of nursing homes or choosing to not move in with adult children. Reverse mortgages help to make this happen.

With a reverse mortgage for purchase, individuals and married couples have the ability to purchase a home and live their years mortgage payment free. With this option, borrowers must have a required down payment which is calculated according to the purchase price of the home. Borrowers are able to chose where they want to live and choose the residence, including homes and condos in senior living communities.

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

Reverse Mortgage for Purchase Down Payment Information

Posted on April 1, 2014August 21, 2017 by janjordan

Reverse mortgage for purchase is a popular option for seniors wishing to purchase a home and live mortgage payment free, just as they would with a traditional reverse mortgage. This program has been a wonderful tool used by homeowners in Northern Colorado, including Longmont, Fort Collins, Loveland and Greeley.

Here are few basics to the reverse mortgage for purchase program:

The purchaser must be age 62 or older (each borrower on title must meet this criteria, although others residing in home do not)
The home being purchased must be the new primary residence
Credit and income are irrelevant
The purchaser must have the “required investment” (down payment) from a HUD allowable source. The funds cannot be borrowed. The required investment can come from the sale of a currently owned asset or money you have had for at least 90 days.

For more detailed information about reverse mortgage for purchase, click here.

The required investment (or down payment) changes based on the age of the homeowner and the value of the home they are purchasing. The following table is an illustrative guide to required down payments.

Taxes and your Reverse Mortgage

Posted on March 20, 2014June 17, 2014 by janjordan

Spring has sprung in Northern Colorado again! That’s the good news. The bad news is this also means it’s tax time. It’s common during this time of year for me to receive a few questions regarding taxes and reverse mortgage – from both those considering a reverse mortgage, and those who already have a reverse mortgage.

Here are the two most common:

Are the funds from my reverse mortgage considered taxable income?

No. Because the funds received from a reverse mortgage are technically an advance on a loan, any payments or lump sums received are not taxable income, meaning they do not need to be reported on a tax return as such. They also typically do not affect Social Security or Medicare payments.

Is the interest from my loan deductible?

No. Because reverse mortgage holders do not make monthly mortgage payments and typically the interest is not paid until the loan is paid in full, the interest from a reverse mortgage loan is not deductible on a tax return. This is also the case with a reverse mortgage for purchase loan.

FHA insured reverse mortgages are available to homeowners 62 and older with no credit or income requirements. These loans allow the borrower to live mortgage payment free and receive their loan payment in one lump sum or in monthly installments. All borrowers are required to participate in third party counseling to ensure all their questions are adequately answered before making a decision. Reverse mortgages are also available to purchase a new residence.

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.

3 Things to Do with a Reverse Mortgage in Colorado

Posted on March 10, 2014June 17, 2014 by janjordan

One of the best parts of a reverse mortgage is the borrower(s) can do anything they’d like with the funds – while also living mortgage payment free. In Colorado, seniors are more active than ever, whether it be traveling, home improvements, or visiting with family and grandchildren often. As several Colorado cities always make the list of the best cities to retire (including Fort Collins & Loveland in this survey and Firestone, Parker & Louisville in this one) there couldn’t be a better time or place to enjoy life.

Here are 3 fulfilling options seniors are using their reverse mortgage funds for:

Take that trip they always dreamed of – After years of working hard, saving for retirement, and raising a family, some reverse mortgage borrowers are using a portion of their funds to take the bucket list vacation they’ve always dreamed of. This option becomes less probable as they age and makes for a fantastic celebration by the more active seniors.

Visit with loved ones – Whether it’s a sister who hasn’t visited in 10 years, or children and grandchildren, or long lost friends, using reverse mortgage funds to visit with loved ones is a very common today. Travel can be expensive and it holds us back far too often from the visits that mean the most to us, especially as we age.

Make home repairs or upgrades – After a life of caring for others, senior homeowners often find parts of their home may have been neglected. When using a reverse mortgage to tap into home equity without a subsequent loan payment borrowers often make those repairs or upgrades they have been longing for. Whether it’s a sunroom addition or a kitchen remodel, or just dutiful repairs, this is never a bad option.

Reverse mortgages are available to homeowners 62 and over with no income and credit requirements. This FHA insured loan offers funds through a lump sum or monthly installments and eliminates monthly mortgage payments. With many protections in place to ensure borrowers are adequately educated before using this option, such as required third-party counseling, reverse mortgages are gaining in popularity among retirees from all walks of life. And a reverse mortgage for purchase option is available for those looking to purchase a new residence.

NBC’s Today Show Discusses Reverse Mortgage

Posted on February 26, 2014June 17, 2014 by janjordan

In this great 4 minute video from NBC’s The Today Show, financial editor Jean Chatzky answers some common questions about reverse mortgage, how they work, and whom they are right for.

Touching on the issue of home inheritance she urges potential borrowers to ask the question: why are they so attached to their homes? An excellent first question to anyone who thinks a reverse mortgage may not fit their needs.

Reverse mortgages are available to homeowners 62 and older, with minimal income and credit requirements. A reverse mortgage for purchase is also an option for those looking to buy a new home or move from their current residence.

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

Reverse Mortgage Fosters Relationship with Senior Real Estate Specialists

Posted on February 13, 2014June 17, 2014 by janjordan

Many changes have come to Colorado’s reverse mortgage industry in the past several months. These changes have had a positive impact on an industry that was once thought to only serve cash-strapped seniors who had no other options. As financial planners and realtors are learning about the various opportunities available with a reverse mortgage, better education of potential consumers is fostering an important relationship between lenders, seniors and their advisers.

This is why Security One Lending has partnered with the Senior Real Estate Specialists (SERS) Council, the goal being to help over SERS’s more than 15,000 realtors better understand how a reverse mortgage may help those they serve – seniors 50 and over.

“Security One Lending is excited to have this new relationship with the SRES Council as we have a shared mission, a dedication to providing outstanding service to the senior community,” Torry Larsen, Security One’s president of retail lending said. “Now more than ever, seniors need to be aware of their options when it comes to housing. By working with the SRES Realtors we can both serve as a dedicated, knowledgeable resource on a national and local level.”

Reverse mortgages are available to seniors 62 and over, with minimal income and credit requirements. There are options to use a traditional reverse mortgage to live mortgage payment free and receive either a lump sum or monthly installments of funds received from the transaction – or use a reverse mortgage to purchase a home.

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.

Strong Home Sales Highlight Reverse Mortgage for Purchase

Posted on February 5, 2014June 17, 2014 by janjordan

As existing home sales rose in December of 2013, the year ended with the strongest sales since 2006, as reported by Realtor.org report. This is great news according to Lawrence Yun, NAR chief economist, who said housing has experienced a strong and encouraging recovery over the past two years.

“Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” Yun said. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”

The national median existing-home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800.

What does this mean for reverse mortgages? Well, it may mean it’s the perfect time to consider a reverse mortgage for purchase. Here’s how the program works:

For seniors 62 and over, with minimal credit and income requirements, home buyers are able to use reverse mortgage to purchase a new home. The amount of the down payment required from the buyer will depend on the amount of the home they are purchasing. But unlike a conventional loan, not only will the lender provide the funds to make up the difference between the home price and the down payment, the new home owners will also be able to live mortgage payment free for as long as they remain in the home.

There are two scenarios that may signal the time is right for you to consider a reverse mortgage for purchase. Such as:

Possibly you’re looking to sell your existing home and move to a community or house that better fits your needs? With the strength in the housing market and thinning inventory, this could be a great time to consider selling your current home. And with a reverse mortgage for purchase, there are options that allow you to purchase while the current home is still for sale.

And of course, if purchasing a new home is your only goal, jumping in as a buyer before the market becomes overly competitive and home prices rise, usually proves to be beneficial. And not only will the reverse mortgage supplement the existing proceeds when making the purchase, it can also mean the buyer will not need to drain all of their funds, freeing income up for other things – such as medical bills, in home care, or even vacations.

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.

How to Alleviate HELOC Payment Shock with Reverse Mortgage

Posted on January 27, 2014June 17, 2014 by janjordan

At the peak of the housing boom thousands of Loveland and Fort Collins homeowners tapped into their biggest asset – their home – and took out a home equity line of credit or a HELOC. Many of these loans are set to amortize after 10 years, meaning these borrowers are about to see some serious payment shock as their loans readjust and their payments now include interest and principal. The Office of Comptroller of the Currency estimates that 60% of all HELOC balances will start amortizing between 2014 and 2017, and resetting to higher payments could cause a jump in delinquencies. In addition, analysts at Moody’s Investor Services are warning banks of impending losses, worrying this situation may prove problematic, just as payment adjustments during the 2008 housing crisis did.

For retirees already living on a fixed income, borrowers may scramble to make these adjustments fit into their budgets. But homeowners 62 and over have another option – reverse mortgage. With a reverse mortgage seniors have the ability to not only alleviate any impending HELOC payment shock but also live mortgage payment free throughout retirement – all with minimal income and credit requirements. Once a homeowner has obtained a reverse mortgage, they are able to receive their funds in a one-time lump sum or as monthly payments made directly to them.

This scenario is also something to consider for homeowners currently considering a HELOC to make home repairs or improvements. Considering the difference between a home equity loan and a reverse mortgage is important when developing a long term plan. Learn more about HELOC vs Reverse Mortgage here.
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.

Reverse Mortgage for the Married Couple

Posted on January 14, 2014June 17, 2014 by janjordan

It’s a common question among those considering a reverse mortgage, especially in the Loveland and Fort Collins area – “I’m married. What about my spouse?” If you and your spouse are considering obtaining a reverse mortgage, it’s important to understand the long term effect it could have on either spouse and feel confident any and all appropriate protections are in place.

What Married Couples Need to Know:

When applying for a reverse mortgage, whether for traditional loan or to purchase a new home, the amount of money you can receive is calculated according to the age of the youngest borrower. The older the borrower, the more money is available from the lender.

Since reverse mortgages are available to homeowners aged 62 and over (with minimal income or credit requirements) if both spouses are over the age of 62, both homeowners can be on a reverse mortgage loan. If both spouses are on the loan, the loan continues after either passes away. If only one spouse is on the reverse mortgage loan when the borrower passes, the loan is due and the home will transfer to the estate. At this time the heirs will have the option to pay off the existing loan, sell the home, or obtain a conventional loan. Occasionally this is not a concern if the amount of life insurance is anticipated to be enough to pay off the loan after the borrower dies or another plan has been put in place.

Another scenario to consider is if a borrower obtains a reverse mortgage and then remarries. If this was to happen after the age of 62 or even older, it wouldn’t be unheard of for the married couple to live in the home for 20 or more years before the borrower passes. At this time the new spouse would not be protected under the existing reverse mortgage loan and the loan would be due. You could consider looking into refinancing the reverse mortgage and adding the new spouse to the loan after marriage.

And yet one more thing to note is the possibility one spouse needs to move out of the home into an assisted living facility due to health concerns. If this happens, as long as the spouse remaining in the home is on the loan, they can continue under their current reverse mortgage.

Bottom line: If you are married and are considering obtaining a reverse mortgage, it is extremely important to work with a trusted and experienced reverse mortgage specialist who can easily answer all of your questions and address any concerns you may have. Making sure both spouses are protected should be a lender’s top priority.

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.

A Retirement Crisis by the Numbers

Posted on January 10, 2014June 17, 2014 by janjordan

Numbers are being released showing that the impending retirement crisis may be worse than originally thought.

Half of Americans have less than $10,000 in savings. Nearly half of the oldest Baby Boomer generation have insufficient resources to pay for basic retirement living expenses and healthcare costs.

The Center for Retirement Research at Boston College estimates that our “retirement income deficit” is $6.6 trillion. That number represents the gap between pension and retirement savings that American households have today and what they should have to maintain their standard of living in retirement.

Over 6 million American seniors are living in poverty. This number is expected to grow by 33% by the year 2020.

Continue reading “A Retirement Crisis by the Numbers” →