Information for Adult Children Archives - Page 18 of 23 - Colorado Reverse Mortgage Specialist

Category: Information for Adult Children

Why You Should Pay Off A Traditional Mortgage With A Reverse Mortgage

Posted on January 6, 2017January 27, 2017 by janjordan

A recently released university report by the Michigan Retirement Research Center and funded by the Social Security Administration showed that 55% of those utilizing a reverse mortgage are using some of the proceeds to pay off a traditional mortgage.

So, when is this a good strategy?

1.) They’re living in a house they can’t afford

When many older adults reach retirement, they have to figure out out how to live on a fixed income and how to make their other retirement assets last for what is often decades. Tapping into a reverse mortgage will both eliminate the weight of the mortgage payment, and often even allow extra funds to use throughout the remainder of their lives.

2.) They want to purchase a different home

It’s not uncommon for retirees to purchase a home in retirement. But few know they can do this with a reverse mortgage instead of a conventional one. This allows buyers to either preserve assets and income, or purchase a home that would typically be out of their price range. Click here to learn more about the Reverse Mortgage for Purchase program.

3.) They don’t want to interrupt performing assets

For those with retirement investments that are doing well, drawing from these to make mortgage payments could be a bad move. Using a reverse mortgage to eliminate mortgage payments can be a win-win in the long run.

Reverse mortgages use the equity in your home to allow access to cash through monthly payments, a lump sum, or a line of credit while living mortgage payment free. The borrower and the home must meet certain qualifications, such as age (62 or older), and HUD’s home eligibility requirements, and they must also continue to pay and maintain certain responsibilities such as property taxes and homeowners insurance.

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.

Use a Reverse Mortgage Line of Credit to Fund In-Home Care

Posted on December 6, 2016January 2, 2017 by janjordan

According to statistics, there’s a 70% chance seniors over 65 will need some sort of long term care such as in-home care, skilled nursing, or assisted living at some point during their lives. Although there are various ways to pay for such care, like Medicare, Medicaid, or health insurance, these options often come with limits and additional costs.

For homeowners 62 and over reverse mortgage should be another option considered to fund long-term care. 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 reverse mortgage line of credit is a great option when facing the future needs of long term care. This option allows homeowners to secure this FHA insured loan at the current interest rate, then only use the funds when needed – and the line of credit grows as the borrower ages.

Unlike a traditional loan or a Home Equity Line of Credit (HELOC), there are no loan or mortgage payments as long as the borrower lives in the home. The line of credit comes due either when the last borrower permanently moves out or passes away, in which case the heirs or the estate could pay the loan back either through sale of the home or other means. Depending on how much of the line of credit has been tapped, this could result in significant equity left to heirs. If you never used the line of credit, the equity would still be in place and would pass to heirs along with the home.

How to Help Your Parents with a Reverse Mortgage

Posted on November 8, 2016January 2, 2017 by janjordan

Perhaps your parents raised you in the home they are now still living in. As you see them begin to slow, or have to jump on a plane every time they wish to see you, thoughts of helping them to have an easier time come across your mind. After all they deserve at this time of their life to relax, do what they wish to do, and be able to manage their health and their finances with comfort.

Considering a reverse mortgage is one good option. It gives more wiggle room to work with when balancing the growing needs of health, home, and retirement.

As you discuss the future and it’s possibilities, there are a few questions to ask yourself and everyone else involved.

First, do you or other siblings have concerns about inheritance and/or equity? Your parents probably care that all of you feel you have received from them as they pass. While this discussion is not always easy, it is undeniably beneficial. Talking will give clarity, which in turn provides direction. It also gives everyone a chance to be heard.

Second, do you have financial resources to help your parents? Health needs as we age are difficult to determine, but it is important to build in a buffer for the unexpected. The stress of aging is enough in and of itself, being able to take care of the costs should not have to be an additional worry for those that raised you.

Another good question that only your parents can answer is, ‘What are my parents’ wishes about staying in their home, especially if their medical needs grow?’ For some, they are ready to let go of the home of their youth and family, wanting to change and simplify their lifestyle. For some, being closer to you is the most important desire. And for some staying in their home as long as possible is the most important wish that could be fulfilled. Since the decision about reverse mortgage as a way to fulfill desires is a big one, looking toward the future and developing a plan will only benefit everyone – and ultimately make your parents happy.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. Adult children can help their parents plan ahead by working with a reputable reverse mortgage specialist.

Common Questions about Reverse Mortgage from Adult Children

Posted on August 17, 2016December 27, 2016 by janjordan

As your parents age, their needs will inevitably change. And as they change, your need to consider options with them will increase. While these conversations may be the first of their kind, it will also be a chance to offer support. Reverse mortgage could be a viable option to meet everyone’s wishes, especially your parents.

Concerns will arise. Here is a brief answer to some of them. For more in depth answers, feel free to contact me.

• If my parents and I decide to repay the reverse mortgage loan, what happens to the equity in the home?

There are two options at this point. The first is a decision by your parents to sell the home and use the money received to pay off the reverse mortgage. The second is to keep the home and choose another way to pay the balance due on the loan. In both options, the borrowers will keep the equity that remains in the home.

• Will the home inheritance Mom and Dad have prepared for me and/or my siblings be used up?

They will be tapping into equity but their home may also be appreciating. If this is the case the appreciation will keep some equity in the home for you to receive upon their passing. This conversation with them will be the most meaningful. Oftentimes parents assume their children want an inheritance and create stress in their lives just so they leave as much as they can. Unspoken assumptions on both sides can leave everyone in the dark. The needs of your parents, and the ability to support themselves without draining anyone else’s finances may outweigh what is received when they are gone.

They may need to know how you really feel about inheritance and your thinking about what it means to you is just as important.

• If my parents take a reverse mortgage out on their home, will it affect their retirement benefits?

This type of loan does not affect the benefits of Medicare or Social Security or other pensions, and additionally, the income is non-taxable. If your parents have other forms of assistance such as federal, state or Medicaid programs, a reputable reverse mortgage lender can help navigate this.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your specialist guide you creatively to suit your needs and desires.

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

Reverse Mortgage in Colorado – 5 Quick Facts

Posted on June 29, 2016July 31, 2016 by janjordan

The Reverse Mortgage, created to aid the realization of retirees dreams, will be in your face if you have approached, or are approaching, the eligible age of 62. As with the all special offers across Colorado, marketing can promote it in such a way as to allure you – or to terrify you.

There are a number of points to know when you begin to learn about reverse mortgage. These are simple facts and not marketing strategies.

1.) First of all, married couples can both be on the reverse mortgage loan if they are both over the age of 62. This means when one passes, the other can continue living in the home under the same agreement. No changes take place just because both are no longer in the home. This gives the remaining spouse a true security as they navigate through the transition of losing their life partner. The same would apply if one spouse was to leave the home permanently and move into an assisted living facility. As long as both partners are on the loan, and one still remains in the home, nothing changes.

2.) Second, there are NO monthly mortgage payments. So long as the borrower(s) remain in the home as their primary residence, their only financial responsibilities are the homeowner’s insurance, HOA payments, property taxes and basic upkeep/utilities. This is the case whether a traditional reverse mortgage is acquired, or a reverse mortgage to purchase a home. No mortgage payments, ever.

3.) Third, funds from a reverse mortgage will not affect Social Security, Medicare or pensions because they are considered “tax free” income. They also are not declared on tax returns as income.

4.) Fourth, you retain the title to your home and it stays in your name. There is not a transfer of ownership just because you drew upon the equity of your personal asset.

5.) Lastly, you can access the funds in various ways including monthly payment, a line of credit, a lump sum, or as a purchase. And the funds can be used however you see fit. Borrowers can even use a reverse mortgage to buy a new home via the Reverse Mortgage for Purchase program allowing the home purchase and the reverse mortgage loan transaction to take place at the same time. This a great option for those who wish to be close to family, in a desired location or have a place that fits your new lifestyle, or even move to your retirement dream home.

Reverse mortgage are available to seniors 62 and over all over Colorado. To learn more, contact a reputable reverse mortgage lender.

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

How Reverse Mortgage Helped a 100 year old Man Age at Home

Posted on June 22, 2016July 4, 2016 by janjordan

Awhile back I closed a reverse mortgage loan for a 100 year old gentleman. This was my first time closing a loan for someone of his age. He lives at home with 24 hour care at a cost of $10,000 a month. When I was sitting at the closing table with the client and his lawyer, the lawyer mentioned that that he could move to an assisted living facility at half the cost ($5,000/month).

This gentleman’s quick sharp answer back to everyone? “NO…. I’m staying in my home.”

Deciding whether aging at home, moving in with family, or moving to an assisted living facility is right for you or your loved ones can be very complicated and emotional. Since reverse mortgages can open up opportunity to turn home equity into liquid cash, without having to move or make a mortgage loan payment, seniors and their families are often using this opportunity to pay for care that would otherwise not be covered by basic Medicare, Medicaid or health insurance.

Studies have shown that the benefits of aging in place can be enormous for the right candidate. Not only can a move be both emotionally and physically challenging on a senior, especially one with medical concerns, it’s known that the quality of life tends to increase when seniors maintain their independence and their community ties.

With reverse mortgages being available to homeowners 62 and over, I was honored to have been given the opportunity to help this 100 year old gentleman stay in his home – where he felt the happiest and most comfortable.

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

Do You Need A Colorado Elder Law Attorney?

Posted on June 15, 2016January 2, 2017 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 are nearly exclusive to 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 Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

What Happens to a Reverse Mortgage After the Owners Pass?

Posted on June 1, 2016June 12, 2016 by janjordan

A common question and concern surrounding reverse mortgage is what will happen to the home after the homeowners pass away? Will the bank take possession? Will it be allowed as inheritance? Will it be possible to keep the home in the family? Will the family of he deceased be held liable? These are very valid concerns – so I’d like to offer some clear and concise guidance.

When the last homeowner passes, whether we’re talking about you or a loved one, the home will transfer into the estate or a specific person according to the wishes expressed in the homeowner’s will. At this time there are three main options:

1. Pay off the remainder of the loan

Depending on the amount of equity that still exists in the home, the financial situation of the family, and just the overall ability of those involved, this may or may not be a feasible option. It’s not uncommon for a portion of life insurance to be used in this manner. Because these loans are FHA insured, if the loan is repaid, it will never be more than the home is worth – even if the housing market is in a deep low spot.

2. Obtain a conventional loan.

Many mortgage brokers are familiar with the reverse mortgage process and the right broker will be able to help those in need identify the best route in obtaining a conventional loan and keeping the home.

3. Sell the home

The final option is to sell the home. When there is not a desire to keep the home, the heirs can sell the home. When the home is sold, the loan will be repaid and any remaining equity from the sale will go to the heirs.

If there are no heirs or the heirs are not interested in the home, no one will be held liable.

One last note, as long as the communication lines remain open, the bank will typically allow up to one year to help with the transition. This one year is allotted in three month increments.

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

Are You Prepared to Take Care of Your Parents?

Posted on May 18, 2016May 29, 2016 by janjordan

The cost of eldercare is staggering. And so is the toll it takes on an adult child. Are you prepared for either? Or both?

A recent MetLife study estimated that the total cost incurred by the caregiver alone (not including the costs directly related to care) is an average of $324,044. The financially impact can be similar to having children, but without the planning. So, how can one prepare for this? Here are a few suggestions:
`

1.) Talk with other siblings and relatives. Have any of them considered this? Do they have plans or ideas they haven’t shared? Utilizing networks early on can help alleviate worry down the road.

2.) Talk with mom and dad. Not always the easiest or most comfortable conversation to have, but a very important one nonetheless. Find out what they want these upcoming years to look like, and what kind of long term care insurance, pensions, and home equity they may have. Do they have a retirement planner that as factored any of this?

3.) Look into long term care options and weigh out the costs along with the pros and cons. Although your parents are your parents, and you love them dearly, you may not be the best option as a caregiver among the many options available today.

4.) Consider a reverse mortgage. The once frowned upon reverse mortgage program is now being utilized to brighten long term retirement scenarios. This FHA insured loan not only eliminates mortgage payments but allows the borrower to access the equity in their home via monthly installments, a line of credit, or sometimes even a lump sum. This is a great option for those wishing to age at home, as the loan does not come due until the last borrower passes away or leaves the home permanently.

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

What Adult Children Need to Know about Reverse Mortgage

Posted on May 11, 2016May 20, 2016 by janjordan

Concerns will arise. Here is a brief answer to some of them. For more in depth answers, feel free to contact me.

• If my parents and I decide to repay the reverse mortgage loan, what happens to the equity in the home?

• Will the home inheritance Mom and Dad have prepared for me and/or my siblings be used up?

They may need to know how you really feel about inheritance and your thinking about what it means to you is just as important.

• If my parents take a reverse mortgage out on their home, will it affect their retirement benefits?

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your specialist guide you creatively to suit your needs and desires.

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.