With the holidays ahead of us, it’s not uncommon for adult children to reach out to me to discuss a reverse mortgage as an option to help their aging parents.  They often spend a little more time with family and may realize things are changing with their parents and in their home.  Here are my tips to helping your parents or older loved ones…

1.) Talk with them

Don’t hide your concerns or exclude them from the conversation, no matter how uncomfortable it is.  Ask them to sit with you and discuss your concerns.  Discuss their wants and needs.  Learn about their financial situation and retirement resources.  Having a honest face to face conversation is the first step to determining what is best for them.  

2.) Discuss living arrangements 

Find out what your parents want to do long term regarding their home.  Discuss what they ultimately want, and what would make them change their mind.  According to AARP, 90% of retirees want to age at home.  Do they have concerns with their home?  Do they need updates?  Is the home too big?  Too many stairs?  Do they want to move to a smaller home?  If medical care became a need, how will this be managed?

3.) Look into the various options such as insurance and reverse mortgage

When discussing how to finance potential scenarios, educating yourself about the various options such as long term care insurance and reverse mortgages will go a long way.  The two can even be used together by using some of the reverse mortgage funds to pay for long term care insurance, especially when there are medical concerns.  

4.) Come to an agreement about how much is expected out of adult children

Adult children may want to give the world to their parents, but is that really feasible?  And how do the parents feel about that?  Determining expectations all around, along with setting hard boundaries, will ease any resentment down the road.

5.) Seek out a professional

There are many resources for seniors – whether it’s community resources or elder attorneys.  When you’re unsure of the options or what is best, enlisting a professional can help to ease everyone’s mind. 

Reverse mortgages are available to homeowners 62 and over, including married couples, 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.  A reverse mortgage for purchase option is available for those looking to purchase a new residence.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, 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 Kelsey to learn if a reverse mortgage is right for you.

If you find yourself yearning for a retirement of comfort in your own home in a community you love, you are definitely not alone.  Here are some pretty telling facts and statistics surrounding the desires of older adults in the U.S..

According to research by the American Association of Retired Persons (AARP):

• Nearly 90 percent of seniors want to stay in their own homes as they age.
• Even if they begin to need day-to-day assistance or ongoing health care during retirement, 82% would prefer to stay in their homes.
• Most pre-retirees expect they will be able to live independently during retirement; only 14% expect they will need day-to-day assistance or ongoing health care at any point during their retirement.
• Thinking about parents’ getting older is on the minds of 88% of adult children.
•  75% of adult children and 69 % of parents think about the parents’ ability to live independently as they get older
•  AARP identified housing features that seniors find are especially important in the later years: 

  – Safety features such as non-slip floor surfaces (80 percent)

  – Bathroom aides such as grab bars (79 percent)

  – A personal alert system that allows people to call for help in emergencies (79 percent)

  – Entrance without steps (77 percent)

  – Wider doorways (65 percent)

  – Lever-handled doorknobs (54 percent)

  – Higher electrical outlets (46 percent)

  – Lower electrical switches (38 percent)

From the National Assocation of Home Builders:

• 75% of remodelers report an increase in inquiries related to aging in place.
• The NAHB predicts that aging in place remodeling market to be $20-$25 billion.  That’s about 10 percent of the $214 billion home improvement industry.

According to the MetLife Mature Marketing Institute:

• 91% of pre-retirees age 50 to 65 responded that they want to live in their own homes in retirement.  Of that group, 49% want to stay in their current homes, and 38% want to move to new homes

Whether it’s the desire to simply stay put through retirement, or to make modifications to the home, or even to purchase a new home, a reverse mortgage is a flexible tool to help finance any of these.  

Reverse mortgages are available to homeowners 62 and over, including married couples, 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.  A reverse mortgage for purchase option is available for those looking 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, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and learn if reverse mortgage is right for you.

With the Federal Reserve increasing their benchmark interest rate by a quarter of a percentage point and home values at an all time high in Colorado, what does this mean for Reverse Mortgages?

With the increase in the benchmark interest rate, we will see some shift in types of borrowing. For the past two years, with a sustained record low interest rate, borrowing across the board has favored HELOCs and refinances, while home values have simultaneously been favorable toward HECM Reverse Mortgages. Borrowers of retirement age have had to weigh the short and long term pros and cons of loan types for their individual situations. We except a shift back to traditional borrowing to come with interest rate increases.

Because the amount of money available from a HECM Reverse Mortgage is partly based on the value of a potential borrower’s home, these record breaking home values make it a great time for older individuals to tap into that equity, especially using the FHA insured HECM loans. The FHA backing of these loans means even if we saw the housing market make a significant correction in the coming years, the borrower would never owe more than the home is worth at the time the loan comes due. This is unique and incredibly important to many potential borrowers who are weighing their options. 

Adding in the increase of the Fed’s benchmark interest rate means traditional borrowing or refinancing will become more expensive and alternatives such a HECM Reverse Mortgages more desirable.

From Reverse Mortgage Daily: 

Homeowners aged 62 and older saw their collective housing wealth increase in Q3 2021 by 4% compared to the previous quarter. This constitutes an increase of approximately $396 billion to a record of $10.19 trillion, according to data provided by the National Reverse Mortgage Lenders Association (NRMLA) in conjunction with data analytics firm RiskSpan.

“Survey after survey has shown that one of our biggest fears is running out of money in retirement and having to subsist solely on Social Security,” said Steve Irwin, president of NRMLA in a statement accompanying the latest release. “That’s why housing wealth should be considered with other financial assets when developing a comprehensive retirement plan.”

Last July, the collective senior housing wealth figure topped $9 trillion for the first time. It reached a threshold of over $8 trillion for the first time in April 2021, and previously topped $7 trillion for the first time in March 2019.

Read the full article on Reverse Mortgage Daily here: https://reversemortgagedaily.com/2022/01/14/senior-housing-wealth-tops-10-trillion-for-first-time/

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.

With the holidays now behind us, many families are reflecting on their experiences.  Adult children enjoyed spending time with their aging parents or relatives, grand children and great-grand children were squeezed and showered with adoration.  For some spending time with family is an encouraging sign of many happy years to come…but for others, it can be a time that raises concern about health or finances, and questions about how aging  parents will continue to cope.  Will this person need additional care?  Do they need a more adequate home closer to family or suitable for aging in place?  How does long term retirement look?

Concerns such as this are very common around the holidays.  To better guide you in the right direction and ultimately direct the family in the right direction, here are some questions to ask yourself:

• Are they able to get around by him or herself? Are there stairs in the home?

• Is this person able to take medications without assistance? Is there a health concern that would require more regular supervision, such as Alzheimer’s or Parkinson’s?

• Is your parent able to manage mortgage payments, home-owners insurance payments, and property taxes. Is the home outdated and in need of frequent repairs – such as a furnace, roofing, electricity?

• Where is this home located? Is it in close proximity to relatives, hospitals, etc? Or is it secluded and away from town?

• Is this person lonely? Has he or she suffered the loss of a spouse? Does he or she have a solid social group or close friends?

Based on your answers to these questions, aging at home may be an option for years to come – and reverse mortgage can be a solution to many problems even for married couples. Reverse mortgages allow homeowners age 62 and older to access equity in their home, without acquiring a loan or mortgage payment, and the funds can be accessed via a line of credit, monthly installments, a lump sum, and even as a new home purchase. The homeowner will always retain the title and remains in the home. All reverse mortgages are government insured with an FHA backed loan and no repayment is due until the last borrower passes away or permanently leaves the home. At that time there are several options that include keeping the home in the family. If selling the current residence and moving into a new home is a more reasonable route, Reverse Mortgage for Purchase may be an option.

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.

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 ways seniors are using their reverse mortgage funds:

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.  This FHA insured loan offers funds through a lump sum, monthly installments, or a line of credit 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.

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.

Interest rates have been at historic lows for years.  This has afforded thousands of Americans to the ability to secure home loans for their dream house.  It’s also worked in favor for those who have made the decision to tap in their home equity using a reverse mortgage.  But interest rates affect a conventional loan differently than a reverse mortgage.

HECM reverse mortgage are insured by the Federal Housing Administration (FHA), and are available to homeowners 62 and over.  These tax-free loans convert a portion of home equity into cash without incurring a loan payment.  Borrowers can access the funds via monthly installments, line of credit, a lump sum, and even to purchase a home. The Department of Housing and Urban Development (HUD), which regulates the reverse mortgage industry, sets a “floor” rate of about 5%.  As interest rates rise and fall above this floor rate, borrowers will receive less or more in proceeds.  In fact, even a small rise of 1% above the floor rate can decrease available funds by as much as 20%.

Fortunately, once a homeowner has tapped into a reverse mortgage they lock in the interest rate and proceeds will never decrease, no matter what the market does, and the funds available will increase over time when using the line of credit option.  In addition, even if the home decreases in value below the amount of their loan proceeds, they will never be responsible for more than the home is worth.

Bottom line: with interest rates on the rise, now is the time to act if you’re considering a reverse mortgage.

Jan Jordan is a Reverse Mortgage Specialist serving the Erie, Dacono, Fort Lupton, Windsor, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado.  Contact Jan and learn if reverse mortgage is right for you.