adult children Archives - Colorado Reverse Mortgage Specialist

Tag: adult children

Today Show : Part 3 – Helping Parents Make Legal, Medical, and Financial Decisions

Posted on June 13, 2017 by janjordan

Recently, financial expert, Jean Chatzky, did a three part series on the Today Show called “Taking Care of Mom & Dad”. Each of these segments specifically touched on real questions adult children have regarding what to expect as their parents age.

The video featured here is Part 3 – Helping Parents Make Legal, Medical, and Financial Decisions.

Take a few minutes to watch this well done, informative short video. Find Part 2 here, and Part 1 here.

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.

Today Show : Part 2 – Is A Reverse Mortgage Right For Your Aging Parents?

Posted on June 7, 2017June 13, 2017 by janjordan

The video featured here is Part 2 – How to Handle the Cost of Aging Parents: Is a Reverse Mortgage Right For You?

Take a few minutes to watch this well done, informative short video. Find Part 1 here, and Part 3 here.

Today Show : Part 1 – How To Help Your Aging Parents Find The Best Place To Live

Posted on June 1, 2017June 13, 2017 by janjordan

The video featured here is Part 1 – How To Help Your Aging Parents Find The Best Place To Live.

Take a few minutes to watch this well done, informative short video. Find Part 2 here, and Part 3 here.

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.

The 7 Worst Myths Surrounding Reverse Mortgage in Colorado

Posted on August 10, 2016August 19, 2016 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 in America 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, 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.

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.

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.

What Exactly is a Reverse Mortgage Line of Credit?

Posted on July 20, 2016August 1, 2016 by janjordan

Reverse mortgages aren’t new, but the shifting perspective on them certainly is. After undergoing various regulation changes the past couple years, everyone is taking a second look. Real estate agents are seeking more information on the Reverse Mortgage for Purchase so they can offer this option to their senior buyers. Adult children are realizing the myths they’d heard over the years are just that – myths. And now retirement experts are suggesting adding home equity into the equation when helping retirees plan for their golden years.

Reverse mortgages are very versatile when it comes to ways to access funds, but this article is going to focus on one that is quickly gaining in popularity – the Reverse Mortgage Line of Credit.

What is a Reverse Mortgage Line of Credit?

The line of credit option allows homeowners to tap into the equity of their home and have access to the funds whenever needed, but unlike a lump sum or monthly payments, they don’t have to withdraw any funds at all and can keep it as a safety net. Or the funds can be used when needed to supplement retirement income. The options are endless.

How is the amount on a line of credit determined?

Just like all reverse mortgages, the amount is determined based on the age of the borrower and the appraised value of the home. The older the borrower and the more the home is worth, the larger the line of credit will initially be. Borrowers also are not required to use all the available equity in their home as the line of credit, and they have options to combine it with other funding sources such as monthly installments or even a home purchase.

Will the line of credit funding amount ever change?

Yes and no. Unlike other reverse mortgage funding options, a line of credit will increase at a compounding rate determine by HUD – and on the flip side, it will never decrease even if home values depreciate.

Why get a Line of Credit now rather than wait until I’m sure I need it?

Retirement experts are recommending to many clients to include the reverse mortgage line of credit in their retirement portfolios from the get-go for various reasons. One, the housing market is strong right now and appraised home values are high. Two, as the years go on, these programs change and it may not be available in 10 years, but anyone who has an already established line of credit will always be ‘grandfathered’ into the program, even if it is eliminated in the future. And three, in the case of economic downturn where investments are affected, having the line of credit immediately available can be a future safety net.

Is a Reverse Mortgage Line of Credit FHA Insured?

Typically yes, as long you are working with a reputable reverse mortgage lender, the line of credit will be FHA insured just like any other reverse mortgage product. This means there are protections and guarantees in place for the borrower that will never falter.

Reverse mortgage are available to seniors 62 and over throughout Colorado and Wyoming.

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

5 Interesting Facts About Reverse Mortgages

Posted on July 16, 2016August 1, 2016 by janjordan

Reverse mortgages have made a serious comeback in the past couple years. After regulation changes were enacted in 2015, the reverse mortgage loan once considered a desperate lifeline is now being used as a retirement tool for even the wealthy. The loans are still only available to seniors 62 and older (including married couples) with the amount of funds available increasing depending on age and appraised value of the home, but now those funds are often being accessed in ways not available before – such as a line of credit or to purchase a home. This really is not your mother’s reverse mortgage, it’s something much more versatile than it was years ago.

Here are some lesser known facts about today’s reverse mortgage:

1.) I’ve said it before and I’ll say it again – the borrower will always remain the homeowner as long as basic responsibilities such as property taxes are paid, homeowners insurance is kept current, and utilities and HOA fees are paid. One of reverse mortgage’s scariest myths has always been that a bank will own the home. This couldn’t be further from the truth. Not only will the borrower remain the homeowner, they will also retain the title.

2.) There are NO mortgage or loan payments. That’s correct. Regardless of how the borrower decides to utilize the reverse mortgage funds, they will not pay a loan or mortgage payment while they remain in the home.

3.) With a Reverse Mortgage for Purchase, borrowers can wrap both the home purchase and the reverse mortgage into the same transaction allowing them to buy their dream home – AND the reverse mortgage will substantially supplement purchasing power allowing a home to be purchased that may have once been out of their price range. When using a Reverse Mortgage for Purchase, the borrower is required to provide some down payment and the reverse mortgage funds will make up the rest of the purchase price.

4.) Married couples can both be on the loan regardless of how the funds are utilized. Another all too common myth is that in the case of a married couple, if one spouse passes away the other spouse will be evicted. When working with a reputable reverse mortgage lender this should never happen. As long as both spouses are 62 or over, they can both be on the loan allowing either borrower to stay in the home until the last spouses passes away or permanently leaves the home.

5.) Heirs are not “saddled” with the debt of a reverse mortgage. After the borrower(s) pass away, there are several options as to what the heirs can do with the home. And in today’s hot housing market, the home may gain equity that can be available to the heirs. Most all reverse mortgages are FHA insured meaning the loan will never exceed the amount of the home sale – even if more is owed, and it also means it will only ever require the amount of the loan even if the home is worth much more when it comes due.

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.

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:
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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.

Nursing Home vs Reverse Mortgage

Posted on January 13, 2016April 19, 2016 by janjordan

In our society, the elderly and nursing homes go hand in hand. But when speaking with elderly people, one of their biggest fears is being placed into a nursing home. Who can blame them? According to National Center on Elder abuse, one study interviewing 2,000 nursing home residents reported that 44% said they had been abused and 95% said they had been neglected or seen another resident neglected. When considering the psyche of an older senior, nursing homes or convalescent homes mean “end of life”. Often times adult children don’t know a better solution as the needs of the parents increase, the home is no longer suited for their parent, and/or they do not have the funds or the time for in home care. Reverse mortgages have been helping seniors in need for years. But now as retirement planners are realizing the benefit the can offer long term, they are now being used more proactively.

Reverse mortgage is a great method to finance in-home care to avoid nursing homes, pay for medical care, and even fund home modifications. For seniors who are looking to situate long term and prepare to live their golden years in their own home, a move to a new residence closer to family or more suited for senior life may be in order. The reverse mortgage for purchase is perfect option for these situations. Reverse mortgage for purchase allows the purchase of a different residence using a reverse mortgage while still employing the perks of a traditional reverse mortgage – living mortgage payment free. In addition, reverse mortgages do not affect social security, pensions, or medicare.

Both reverse mortgage for purchase and traditional reverse mortgage are available to seniors 62 and over. The home must be the primary residence and it must be a HUD approved property type.

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