retirement planning Archives - Page 2 of 6 - Colorado Reverse Mortgage Specialist

Tag: retirement planning

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.

Should Reverse Mortgage Be Part Of Your Retirement Portfolio?

Posted on October 28, 2015November 2, 2015 by janjordan

For the past quarter century seniors have easily managed to retire on three things: company pension plans, social security, and personal savings. But with a rocky economy not long behind us – and still unsteady in many areas, baby boomers are being forced to take a second look at their retirement portfolios. Previously, tapping into home equity for retirement has been considered a last resort. But should it be?

Both company pensions, personal investments, and social security benefits face much uncertainty down the road. And if retirees have had the ability to hold onto any personal savings during the economic downturn, it likely took a hit as well. But when adding home equity into the retirement equation, statistics show most baby boomers 51 and over have enough to retire comfortably. So where does this leave reverse mortgages?

In a recent Forbes article, author and retirement income planning expert, Jamie Hopkins says: “The lack of focus on home equity in retirement income planning is nothing short of a complete failure to properly plan and utilize all available retirement assets. This needs to change immediately because strategic uses of home equity, especially reverse mortgages, could save many people from financial failure in retirement and help stem the overall retirement income crisis facing Americans.”

And he’s absolutely right.

For seniors 62 and over, reverse mortgage is something that should be considered when seeking retirement funding solutions. Homeowners can access the equity in their home and no repayment is due until the last borrower passes or permanently leaves the home. For retirees, it could mean the difference between living, living comfortably, and living out retirement dreams.

When looking down the road toward financial planning for retirement, ask yourself a few questions and determine if a reverse mortgage might fit into your Plan A or your Plan B. Discuss it with your spouse and with your financial planner. Learn the facts about reverse mortgage and how it will affect your loved ones after you pass.

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.

Reverse Mortgage and the Alternatives

Posted on August 12, 2015August 18, 2015 by janjordan

Home equity accounts for approximately 70% of a senior’s assets, not including social security or pension. Often times tapping into this equity becomes inevitable when facing health crisis or financial restrictions in retirement. Using home equity should be part of a larger financial plan and there are a few ways it can be incorporated.

Reverse Mortgage

A reverse mortgage is available to seniors 62 and older with married couples being eligible to both be on the loan if both meet the age requirement. Homeowners who obtain these loans do not make monthly mortgage or loan payments but instead receive the funds in a variety of available options, including monthly installment and a line of credit. The loan does not have to be repaid until the last borrower passes away, at which time there are options available to heirs. The amount of the loan depends on the amount of equity in the home and the age of the borrowers – the older the borrower, the more money they can receive. This is an excellent option for both seniors with questionable retirement funds or the retiree who is looking to boost their portfolio.

Home Equity Loan

A home equity loan (HELOC) also taps into equity by borrowing money against the home. This type of loan will be processed as a conventional loan and monthly payments will need to be made to the lender. Any health or future financial concerns should be thoroughly thought through prior to taking out a home equity loan. Loading up the home with debt during retirement can be risky and could result in loss of the home if the borrowers are unable to make their monthly payments.

Downsize

Another option would be to downsize all together by selling the existing home and moving into a more modest situation. Depending on the amount of equity in the home, a homeowner may be able to sell the home for enough money to comfortably be able to make rent or mortgage payments for 10 to 20 years. Just as with a home equity loan, this option could be risky for a person with health concerns as the funds set aside for housing could be needed elsewhere. For homeowners looking to downsize, a Reverse Mortgage for Purchase is also a very good option. This will allow the borrower to move into the home they desire AND eliminate mortgage payments.

Before making any major decisions regarding how to effectively use the equity in your home, it is best to consult with a financial adviser and a reputable reverse mortgage lender.

Reverse Mortgage and the Married Couple

Posted on July 29, 2015August 10, 2015 by janjordan

Maybe you have been looking at reverse mortgage online and as you read and learn, the question keeps arising: ‘what about my spouse?’ This is a perfect starting point for understanding the long term effects of taking out a reverse mortgage as a couple.

Here are a few points to understand:

• As long as both spouses are age 62 or older, they can both be on the loan. If only one spouse is over the required age, a loan can still be obtained, but the loan will not continue for the ineligible spouse if the borrowing spouse were to pass away or leave the home permanently.

• Always bear in mind that the reverse mortgage amount is calculated from the age of the youngest borrower. The older the age, the more money is available.

• There are a few choices when it comes to the loan that will affect its status depending on who is listed as borrower(s). If both are on the loan, when one passes away the loan continues as it was originally set up. The loan will not become due until the other borrower passes away or leaves the residence.

• If both are on the loan, if one spouse needs to leave the home permanently, such as to move into a health care facility, but the other stays in the home, the reverse mortgage will continue as originated.

• If both are on the loan, and one spouse passes away, while it is true the remaining spouse will continue on with the reverse mortgage unscathed, things will change if they remarry. While remarrying will not affect the original borrower, it can affect the new spouse if the borrower were to pass away or leave the home permanently. Reverse mortgage does not include the second spouse automatically. Refinancing or adding the new spouse would have to be considered.

If you are married and considering a reverse mortgage choose a reputable reverse mortgage specialist to work with. They can lay out all your options and help you see the long term picture of what will happen in all the different possible scenarios. It is also especially important to make sure everyone feels comfortable and no one is being pressured into a scenario that could potentially end badly if the proper precautions are not put into place.

Crisis in Retirement

Posted on July 22, 2015July 22, 2015 by janjordan

It is unfortunately not surprising, but more than half of Americans have less than $10,000 in savings. Most coming to retirement age these days do not even have the resources to cover the living expenses and health care costs if they were to leave their jobs. Is retirement only for the rich?

The numbers have been tabulated, and right now there is a gap between pensions and retirement savings for those in these golden years that is more than 6.5 trillion dollars! (This is according to the Center for Retirement Research at Boston College.) Many will be unable to maintain their current standard of living during retirement, let alone live the retirement they once dreamed of.
Millions of seniors live in poverty and the percentage is growing, expected to increase more than 30% by 2020. This trend is a concern not only for the ones retiring but for their families as well. And the overall effect upon society means we are in crisis to provide for our own after they have given their lives working in our country.

Reverse mortgage can be an effective means for seniors 62 and older to rise to their personal need and create a stream of resource that will allow them to comfortably stay in their home – or provide for specific needs, such as medical care. The concept of a reverse mortgage is to use the equity of the home and turn it into liquid cash in the form of monthly payments, a line of credit, a lump sum, and even to purchase a new home. The assistance is well deserved since the equity of the home rightly belongs to the borrower, but unlike a Home Equity Loan, with a reverse mortgage there are no monthly loan payments. And the homeowner retains the title to the home. Once only considered a lifeline for destitute seniors, reverse mortgage is proving to be an excellent tool when used as part of a retirement planning strategy and is making a world of difference for retirees.

Unraveling The Myths Around Reverse Mortgage

Posted on April 27, 2015 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 reverse mortgage is and 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.

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.

Reverse Mortgage in Colorado – Points to Know

Posted on February 25, 2015 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.

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 dies, the other can continue living in the home under the same agreement. No changes happen just because both are not alive, giving the one remaining a true security as they navigate through the transition of losing their life partner.

Second, at this time the loan is not dependant on credit score or income. There are simple eligibility requirements: the borrower must be 62 or older, the residence must be their primary residence, and the home must meet HUD guidelines.

Third, 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.

Fourth, funds from a reverse mortgage will not affect Social Security, Medicare or pensions because they are considered “tax free” income.

And the title of your home stays in your name, there is not a transfer of ownership just because you drew upon the equity of your personal asset.

Last, you could even use a reverse mortgage to buy a new home via the Reverse Mortgage for Purchase program. 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.

These are dependable facts to help you sift through all the marketing and information that will come your way.

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.

First a Vision, Then a Plan – Reverse Mortgage a viable option

Posted on January 27, 2015January 27, 2015 by janjordan

Life in our country continues to change and one major shift is our personal life span, we are all living much longer, ready to enjoy the latter years of our life after many years of work, much longer. Since retirement now spans up to thirty years and sometimes more, moving into life without steady work income requires a plan.

Before a plan, however, it is most helpful to create a vision. If your time for retirement is near or far, it can be efficacious to ask yourself questions now, even if you might change down the road.

What are some of your retirement desires? Where would you like to live? Near family? In warm weather? What type of lifestyle do you desire? Quiet and serene in nature yet near to a small town? Active community with lots of senior social events easily available to you? When you note your desires, you can then look into the practical implications of a plan to give you what will make you happy.

In addition to writing down your desires, ask yourself a few questions about the possible challenges and how you can meet them to stay on track. What could be additional costs down the road that could hinder your vision? Consider health care costs, the expected and the unexpected. How much is it going to cost to maintain your present home? What is your debt going to require down the road? Tally with honesty these costs so they can be a part of your plan up front.

Talk about money now. Erase the unspoken assumptions that exist between you, your spouse and/or your family. These types of conversations are not always easy, but they are always fruitful. Being clear with those we love can give everyone the gift of ease when the time for you to pass does arrive. Is inheritance part of the equation? Do your children want this? How do you and your spouse look at retirement and desires? Are your desires the same? For instance, you may want to travel (higher expense) and your spouse may want to spend long hours in their garden. When it comes to inheritance, they may have a different view, have you talked about it?

Even if all the details are not worked out, the lines of communication will be open and decisions can be made from a place of consideration for all, including yourself. Oftentimes the answers can be surprising when we ask questions and allow those we love to share freely.

Once you identify your vision, and look to a plan, you may discover that reverse mortgage can be foundational to achieving your dream. Created to aid those in our society having worked all their lives to have a time of true rest, a reverse mortgage gives access to equity in your home, value that is already yours. It could eliminate expenses that limit reaching your goals, help you move from one home to the home that fits your new lifestyle, and even give a sense of ease to those with limited incomes. It is certainly a tool worth considering for your retirement plan.

Unexpected benefits of Reverse Mortgage – Stay at home!

Posted on January 22, 2015January 22, 2015 by janjordan

As you grow older your needs of body, mind and heart change, sometimes requiring assistance. Have you even considered a reverse mortgage to help you with this assistance to stay in your home, instead of moving where that is provided like assisted living or nursing home?

This is a very possible option for those who wish to remain in the place where family memories are held, and familiar rooms hold personal furniture and mementos marking the years.

The average resident of a nursing home lives about four months, so short a time for this cherished time of life. With a little investigation by you, or by your loved ones, a number of other options could prove to be the best choice.

For one, home health care has grown exponentially over the years. Certified aides, care givers and nurses can come to you to meet your defined needs. Add in a bit of tender loving care from family and friends to balance home care, doctor’s appointments, therapy and all the rest and a second option presents itself. In addition to the one on one focus both these options provide are an endless stream of senior services such as meals on wheels, senior centers, day care assistance and many more falling under the umbrellas of social services.

A Reverse Mortgage could be an easy way to create the lifestyle you want, meeting your changing needs, right within your own home!

The first step would be to create a plan for your life of retirement. Set your vision for the future, naming long term health care providers, establishing the roles of family members, look at your resources (or seek professional counsel to assess costs of living for years to come,) and be honest about what needs you have now, and what needs you want to provide for in the future. Include the unexpected in your assessment so the stress of change is not compounded by lack of resources.

Once you make your plan, discuss it with all involved. If it makes sense include those helping you in your will so they can provide a line of continuity from their care for you, to the care of your estate and affairs once you pass.

Review your plan yearly so you have the security and freedom to change as you change. A reverse mortgage can not only provide you by covering your monthly expenses as you live mortgage payment free, but can also be included in the planning process increasing your options as you see how much you will receive from the equity of your home.