adult children Archives - Page 2 of 6 - Colorado Reverse Mortgage Specialist

Tag: adult children

Reflecting on the Holidays and Elderly Family

Posted on December 26, 2015April 19, 2016 by janjordan

With Christmas now behind us, many families are reflecting on the holiday. 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 Is the home outdated and in need of frequent repairs – such as a furnace, roofing, electricity?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 Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

How to Use Home Equity for Retirement Security

Posted on November 4, 2015June 26, 2017 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 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.

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.

What Happens to a Reverse Mortgage After Owners Pass?

Posted on October 19, 2015April 19, 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?
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.

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.

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.

Reverse Mortgages Helping the Elderly Age at Home

Posted on October 8, 2015April 19, 2016 by janjordan

As traditional forms of elder care continue to be overshadowed by numerous other options, reverse mortgage is often helping senior individuals stay in their homes while they age. 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 using this opportunity to pay for care that would otherwise not be covered by basic Medicare or Medicaid.

Traditionally, “long term” elder care takes place in a nursing home or assisted living facility. Medicare or Medicaid will often cover these expenses. but there is little public assistance for “in-home care”, although it varies from state to state. As economic woes lend to retirement fears, reverse mortgage is more commonly being utilized for what it can do best, provide security for those most in need and offer a longer-term lifeline without disrupting the lives of the recipients.

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. Benefits include:

Comfort. We all know the saying “There’s no place like home”, but this is often especially true when a senior has lived in a home for years or has lost a spouse. Uprooting from such familiarity can have drastic affects.
Community Ties. More often seniors are developing strong community ties well into their retirement years. Family and friends are wonderful for grounding an aging loved one.
Independence. Remaining independent keeps seniors healthier than ever realized before. It also allows them to continue doing many of the things they have always done and enjoyed.
Mentality. Our home life strongly impacts how we feel mentally. If a senior stays home to age they are likely to feel much better and happier than one that has been put into a nursing home or assisted care facility.

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

Reverse Mortgage Funds In-Home Senior Care

Posted on August 28, 2015 by admin

Reverse mortgage has long been used to help seniors convert home equity into cash, and the funds can be used for anything the borrowers sees fit. The reason homeowners are looking to tap into these funds varies widely, but they’re commonly used to pay for extraordinary out of pocket medical expenses, including in-home senior care.

A common question is whether the amount of money received will be enough to cover the medical needs. Often it is – whether it is covering actual medical costs, live-in care, or drop-in care. The amount of money available to the borrower depends on the borrower’s age, the appraised value of the home, any outstanding mortgage balance, and current interest rates.

To best determine how much money will be needed for in-home care is to do some research. Find out what options are available from your local home care services. Talk to more than one. Get referrals from those you know and trust. Ask for an estimate of cost. Work with a reputable reverse mortgage specialist to ensure no one is being misled. They will be able to help break down the numbers long term to determine what is right for you.

Reverse Mortgage Questions Answered for Adult Children

Posted on June 17, 2015 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.

Dispelling Myths About Reverse Mortgage

Posted on June 11, 2015 by janjordan

A reverse mortgage is a specialized form of loan for those 62 years and older. It offers a way to entertain the lifestyle you imagined, from long held dreams of RVing or travel, to the changing desires that come with events like children moving to different states, or just simply the ability to age in financial comfort.

All the hard years of work can be given to you in the form of cash from the equity of your home. This means all the years of mortgage payments to keep your home asset can be accessible to you now. Your home can actually be put to work for YOU.

When you take a reverse mortgage you retain ownership and the title. Very little will change from all the previous years of homeownership, except you will have the ability to cash in on all the value that has been accruing during your years of dependably paying to live there – while living mortgage and loan payment free.

A reverse mortgage is also called a Home Equity Conversion Mortgage (HECM). This unique type of loan comes with peace of mind since the FHA backs it with a 100% guarantee that you will never owe more than the actual market value of this cherished possession. When you take a reverse mortgage the loan does not come due until the last borrower passes away or moves permanently, and at that time there are options available to keep the home in the family or sell it.

More protection is offered as well, as HUD counseling is not only offered, it is required. The counseling is from an accredited independent third party and takes place before any costs for the loan are set in motion. While this may seem like a requirement, it is more of a privilege so you can understand all the details of reverse mortgage.

The funds from a reverse mortgage can be accessed via a lump sum, monthly installments, line of credit, or even to purchase a home. There are no limitations as to how the money is spent – that is completely up to the borrower.

Being Responsible with a Reverse Mortgage in Longmont, CO

Posted on June 2, 2015 by janjordan

The Reverse Mortgage (HECM) program in Longmont, Colorado continues to help millions create the life of their dreams as they retire and relax into this time of their lives. Seniors age 62 and over are eligible for this type of loan. Regardless of the type of reverse mortgage you get (traditional, line of credit, or reverse mortgage for purchase) the main advantage is the relief from monthly mortgage or loan payments, but the borrower will still have some responsibilities, including a small amount of financial obligations.

Here are the four main commitments borrowers of a reverse mortgage will continue to be required to take care of:

Homeowners Insurance

A reverse mortgage is like other conventional loans requiring the holder to purchase and maintain homeowners insurance. There are many options out there to be discussed with both the reverse mortgage counselor and the lender.

Property Tax

This too is the same as with a conventional loan. The reverse mortgage homeowner will need to pay the property tax. Depending on your financial need, assistance may be available to help pay or defer property taxes. Your reverse mortgage specialist and your local human services office would have more information about such assistance.

Home Maintenance

Your home remains in your possession, so the maintenance of your home remains your responsibility. If you are thinking of selecting the reverse mortgage in the form of one lump sum bear in mind you need to allocate funds for future maintenance needs. This too is an excellent point to discuss with your reverse mortgage specialist or counselor. Any applicable HOA fees also remain the responsibility of the borrower.

Utilities

All utilities, such as electricity, gas, water, and trash will remain the borrowers responsibility.

Adult Children and Reverse Mortgage in Longmont, Colorado

Posted on April 19, 2015April 19, 2015 by janjordan

When your parents move into this stage of their life there may be many considerations for them, their comfort, and your relationship to them. During the discussion process the option of reverse mortgage is a good one to consider. The equity from their home can be turned into available resources. This will help make it possible to either move to a smaller place, easily take care of home costs while other savings can be used for both enjoyment and medical, or even move closer to you and your kids.

There are quite a few common concerns that will arise. Here are short answers but speaking with a reputable reverse mortgage agent will be to your advantage if you need more information.

Will the bank own their home if my parents take out a reverse mortgage?

No. Your parents will continue to own their home and retain the title throughout the entire reverse mortgage.

When the loan has to be repaid how much will be owed?

This amount will be outlined up front before they sign the dotted line. They, or those that are the beneficiaries, will owe the amount borrowed, accumulated interest, servicing fees, accrued mortgage insurance premiums, and any costs and fees financed through the amount of the loan.

How is the loan repaid the loan if it comes due?

There are three options. They can use their own resources, refinance the loan, or sell the house to repay the lender. A reverse mortgage is designed, however, to make it possible for them to live payment free for the remainder of their lives.

FHA insured reverse mortgages are available to homeowners 62 and older with no credit or income requirements until April 27th, 2015 (at this time some changes will take place to the qualifying process). These loans allow the borrower to live mortgage payment free and receive their loan payment in one lump sum or in monthly installments.

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.

Retirement on the Horizon with Reverse Mortgage

Posted on April 8, 2015 by janjordan

Retirement was once considered a “golden age” in decades past. It was held as a time for you to relax and enjoy life after years of hard work for your family and your assets. This can still be possible, even in the ever changing society with it’s unexpected expenses.

Reverse mortgage could be the way for you to fulfill your long held desires.

In years past reverse mortgage was not often considered by financial planners when helping those approaching 62 manage the pieces of their retirement lifestyle – including social security, assets, savings, and all the rest. This has changed.

Reverse mortgage is a strong viable option even in the phase of financial planning. The equity that builds up in the home could rightly be accessed to give you security at the least and make the difference between just making your monthly bills to actually enjoying your life in new ways.

This being the case, a reverse mortgage or HECM (Home Equity Conversion Mortgages) should be a part of the conversation. When choosing a financial planner, find out if they have learned about reverse mortgage options. Seek a planner that has worked with a credited reverse mortgage specialist that is part of the Better Business Bureau, is an active part of the local community, and is a member of the National Reverse Mortgage Lenders Association (NRMLA).

Involve your children in the process. Find out what they want, express to them what you want and keep the dialogue going.

Reverse mortgage is an individualized, specialized loan for those 62 and older. If you are planning ahead let your specialist guide you in the many scenarios that are possible. Think creatively about your needs and desires.