The Importance of Good Financial Health
If you're planning retirement or already there, your financial health is up there in level of importance as physical health. And each has an impact on the other! Worry and stress from not being able to pay the bills or get out and enjoy life can have a negative impact on your physical well being and poor physical health can reak havok on your financial well being.
To manage retirement properly, you must consider using all of your assets and that includes your home!
Use your home equity and stay in your home.....
what a great concept!
A Reverse Mortgage to the Rescue!
- Estate Planning - make your investments last longer through supplementing income with tax free funds from home equity
- Travelling - If not now, when?
- Get Rid of Mortgage Payments - Refinance to a reverse mortgage and keep your money in your pocket! (why pull out money from retirement funds, pay taxes on it to plunk it down on mortgage payments??)
- Get rid of credit card debt (no-brainer)
- Take care of yourself!!!! Buy a new car, fix up your house (make is safe for aging!).... you know what you want...
- Gifts to family.... help the grandkids (and their parents) pay for the piano lessons, or soccer pictures, textbooks, tuition... it's not cheap raising children these days, what a nice way to provide an inheritance :)
- Tired of your old house? Want to move closer to family? Use reverse mortgage financing to help you purchase a new home!
What You May Not Know About Reverse Mortgages
- You own the home, not the bank!
- Social Security and Medicare are not affected because it is a loan and not considered income. Medicaid or Medical Assistance can still be received.
- You can stay in your home as long as it is your primary residence. It is not due until you are 150 years old (really!)
- At the time your home is sold, you or your heirs receive the difference of the price of the home and the reverse mortgage loan balance. THE BANK DOES NOT GET YOUR HOME! You will not leave debt to your heirs, the home alone stands for the debt, it is a non-recourse loan. If the amount you owe is higher than the value of your home, you or your heirs will not be responsible for the overage.
- Just like any mortgage, you are responsible for property taxes, homeowner's insurance and maintaining the property.
FHA insures the HECM or Home Equity Conversion Mortgage and tightly regulating the program and making it one of the safest loans you can get.
- Provide guarantees the funds are available for you
- Guarantees to the lender againts defaults or shortfalls (safety for lender means lower interest rates for you!)
- Line of credit growth that continues even if the home value declines (providing a hedge against decreasing property values)
- HUD insures the non-recourse feature
- Requiring reverse mortgage counseling by a third party HUD approved counselor - SAFETY
Know the facts about reverse mortgages to make an educated decision.
and view frequently asked questions
Maggie O'Connell can help! 800-489-0986