Tag: homeowners insurance

Can A Reverse Mortgage in Greeley, CO Provide Guaranteed Cash Flow For Life?

Posted on by janjordan

Reverse Mortgage Helping Seniors in Fort Collins Colorado Loveland GreeleyDid you know the average retiree in Greeley, Colorado lives off $1,230 per month from Social Security and a small nest egg?  Often times that nest egg only lasts for a portion of the retirement years while their retirement may actually last for two to three decades.  This is why financial advisers and retirement planners are beginning to incorporate a reverse mortgage into retirement portfolios at the beginning of retirement, rather than using them as an emergency life line once the “nest egg” has been exhausted.

 

Through the use of a strategic FHA insured reverse mortgage, retired homeowners are able to use the equity in their homes as an available line of credit for life – without being required to make a monthly mortgage or loan payment.  That’s right – a reverse mortgage CAN provide Colorado’s seniors with guaranteed cash flow for life – as long as they continue to live in the home and keep their property taxes, homeowners insurance, and HOA fees up to date.  The funds can be used for whatever the borrower deems fit – additional income, medical expenses, vacations, home repairs or modifications, gifts, etc.

 

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 without a monthly mortgage or loan payment. 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 Cheyenne and Laramie, Wyoming.   Click here to contact Jan and learn if reverse mortgage is right for you.

Maturity Date versus Maturity Event in Reverse Mortgage Loan

Posted on by janjordan

Reverse Mortgage Loveland fort collins greeley longmont coloradoFor many who have had a conventional mortgage on their home, they are familiar with the “maturity date”.  But with a reverse mortgage, there is no maturity date, only a “maturity event”.  So, what’s the difference?

 

A maturity date indicates the date which the borrower will make the final payment on the loan, including principal and interest.  These are used with conventional mortgages.

 

A maturity event represents a specific event that takes place in the borrower’s life that signifies the loan has come due.  Because reverse mortgage borrowers do not make monthly mortgage payments. many seniors see this as an advantage.

 

Here are some examples of maturity events:

 

  • The property is no longer the borrower’s primary residence
  • The property is sold or transferred out of the borrowers name
  • The borrower (or last borrower on the loan) passes away
  • The borrower moves away from the home for more than 12 consecutive months (such as moving into an assisted living facility)
  • The borrower fall substantially behind on their property taxes, homeowners insurance, or HOA fees.

 

A reverse mortgage is available to seniors 62 and over, regardless of income or credit, and this FHA backed loans allow the borrowers to live mortgage  payment free through their retirement years.

 

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.

5 Things You Should Know About A Reverse Mortgage

Posted on by janjordan

Reverse Mortgage Colorado Fort Collins Loveland Greeley

 

If you’re a senior over 62, reverse mortgage marketing will begin to creep into your life.  It’s inevitable.  Sometimes it’s big, flashy promises and other times it’s scary horror stories.  To help you filter through the hype, here are 5 important things every senior should know about a reverse mortgage:

 

1. You do not make monthly mortgage payments.  Yes, that’s right, homeowners with a reverse mortgage do not need to make monthly mortgage or interest payments as long as they live in the home and keep it as their primary residence.  Borrowers will be required to continue paying property taxes, homeowners insurance, general upkeep, and standard utilities (such as water, gas, and electricity).

 

2. There are no credit or income requirements.  It’s true, there are no credit and income requirements to obtain a reverse mortgage.  There are, however, borrower and property eligibility requirements.  For example, the borrower must be age 62 or older.  The home must be their primary residence and the property type will need to meet certain HUD guidelines, meaning it must be a:

  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium
  • Manufactured home that meets FHA requirements

3. You can use a reverse mortgage to purchase a home – even if you’ve never been a homeowner before.  There are a few options to use a reverse mortgage to purchase a home.  When purchasing a home, the borrower will be required to make a down payment, but will enjoy living mortgage payment free in this new home.  Click here for much more information about purchasing a home with a reverse mortgage.

 

4. Married couples can both be on a reverse mortgage.  If both borrowers are 62 and over, both can be on the reverse mortgage.  If a spouse passes or moves to an assisted care facility, the remaining borrower can stay in the home.  A reverse mortgage lender should be able to answer any questions regarding married couples and ensure both spouses feel confident in their decision.

 

5. You retain to the title to your home.  Yes, you are still the “owner” and you will always retain the title to your home.

 

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.

Can a Reverse Mortgage Help a Loved One this Holiday Season?

Posted on by janjordan

Reverse Mortgage Colorado Loveland Fort Collins Greeley LongmontThis time of year is often one of insight for adult children as they travel to visit their elderly parents or loved ones.  Of course, these special visits are filled with a sense of joy and love.  Catching up, reminiscing about old times, visiting with grand children.  But it can also be a time filled with anxiety and worry – especially if aging loved ones are having difficulties in their current home – sometimes more so than previously realized.  Questions will arise about their future; questions surrounding their long-term needs and their ability to meet them in the current situation.

 

In order to better sort through these thoughts, here are a few questions to ponder:

 

• 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 the answers to these questions, aging in place may be an option.  If there are financial strains and they wish to stay in their current home, a traditional reverse mortgage may help alleviate financial worries or even provide funds for in home care.  If the current home does not seem to be appropriate long term – whether due to location, stairs, or needed repairs – a reverse mortgage for purchase may allow them to purchase a new home that is more suitable to their needs or closer to family.  Both reverse mortgage options are available to seniors 62 and over, with minimal income and credit requirements.

 

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.

Summer Vacation, Adult Children, and Reverse Mortgage

Posted on by janjordan

reverse mortgage colorado fort collins loveland greeleyAs summer vacation is nearing an end, many of us are reflecting on our experiences during the past couple of months.  Maybe you took your children on a camping trip or to Disneyland.  Possibly you flew overseas to experience a new culture.  Or maybe you took a road trip to visit your aging parents or other loved ones.  If you visited with elderly family members, it likely came with mixed emotions.  Every year they are a little older – and for some, every year brings just a little more worry.

 

This is very common after a visit.  It may raise concerns about health or finances, and questions about how aging parents will continue to cope.  If you’re wondering when and how you need to intervene, ask yourself these questions:

Continue reading “Summer Vacation, Adult Children, and Reverse Mortgage” →

Frequently Asked Questions – Part 2

Posted on by janjordan

Reverse Mortgage Colorado Fort Collins Loveland Greeley
This is the second in a three part series of frequently asked questions about Reverse Mortgage.  You can find Part 1 here and Part 3 here.  If you have questions that are not currently listed, please don’t hesitate to contact me directly.

 

Can I get a Reverse Mortgage even if I have an existing mortgage?

 

You may qualify for a reverse mortgage even if you still owe money on an existing mortgage. The existing loan will be paid off first with the reverse mortgage funds, then the remainder of the funds will be given to you.  This scenario would apply as long as the amount of the reverse mortgage is larger than the existing loan.  For example: if you owe $100,000 on an existing mortgage and you qualify for $125,000 under the reverse mortgage program, under these circumstances you would still have $25,000 left over to do with as you wish AND you would no longer have a mortgage payment.

 

Continue reading “Frequently Asked Questions – Part 2” →

Responsibility as a Reverse Mortgage Holder

Posted on by janjordan
Colorado Reverse Mortgage

 

Reverse Mortgages have helped millions of seniors live more plentiful lives as they age.  Homeowners and their spouses over the age of 62 are eligible for Home Equity Conversion Mortgages (HECM) regardless of income and credit.  But although they will not have a monthly mortgage payment to pay, they are still responsible for some financial obligations regarding the home.  These include:

 
Property Taxes:

 

Just as with a conventional home loan, a reverse mortgage homeowner is always responsible for paying their property taxes.  Your particular county or city may have a program that allows you to defer a portion of your property tax.  Homeowners can contact their county human services office for more information.

 

Homeowners Insurance:

 

Just as with any conventional home loan, reverse mortgage holders are required to purchase and maintain homeowners insurance.  This yearly expense is something that should be discussed with your lender and a reverse mortgage counselor to ensure the homeowner understands their options and a plan is put in place to keep insurance current.

 

Home Maintenance: 

 

The homeowner or their family will be responsible for continuing to maintain and upkeep the home.  Because a reverse mortgage uses the equity available in the home to make it’s monthly mortgage payments, if major repairs are needed the homeowners will not be eligible for a home equity loan or similar.  It’s important to keep this in mind, especially when homeowners elect to receive their reverse mortgage funds in one lump sum.  Again, discussing this with your lender can help ensure you have planned to have funds available should a major home repair be needed.

 

Ultimately, understanding and planning for these expenses is key to being prepared in the years to come.  Working with and asking questions of a reputable reverse mortgage lender, as well as a reverse mortgage counselor, can help alleviate any concerns a homeowner may have.

 

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.