There are repercussions for the actions of today's government spending and it will most likely hurt you more than help you!
As the government gives more and more money away the Dollar gets weaker and weaker. To entice investors to invest in the United States the government will have to raise interest rates, this will fuel inflation and in a down real estate market the economy may crumble. I am sure many of you remember the days of Jimmy Carter and interest rates well above 10%, I believe we will see those days again soon. Hopefully you have not lost a lot of your worth in the stock market, because as inflation kicks in you may need to access those Dollars. What can you do to protect yourself from what's coming?
A HECM may be the answer. Through a Home Equity Conversion Mortgage you can set up a credit line that grows year by year (guaranteed by FHA) giving you access to more money. This may be the cure for all of this for many American Homeowners.
Why should you do this now versus waiting until the problem presents itself?
Well actually you should have done this 3 or 4 years ago when home values were at an all time high and Interest Rates were at an all time low, but we won’t fault you for that, you may not have met anyone who has explained this to you like we are now.
Here is why you should do it now. Home values have not totally dropped yet so you still may have some equity to work with. A HECM is a loan based on the equity you have in your home so you will need to have some, if home values continue to drop it you may be too late. Interest Rates are on the rise, as Interest Rates rise the amount of money you can qualify for goes down, there may be a point where you will not qualify for any money under this program, we are already seeing that a lot of Homeowners can't get the HECM and if you are waiting until there is a problem it may be too late.
It is a painful thing to watch, when I see someone wait until there is a problem and there is nothing I can do to help... It really does hurt me to see people in that situation, knowing that I could have helped them if we would have crossed paths earlier, assuming they would have listed to what I had to say.
Now is the time to act. If you believe any of what I am predicting you should look into how we can help you. I urge you to get in touch with us... You never know when it may be too late.
[ add comment ] ( 2 views ) | permalink |
( 2.9 / 215 )As aging Baby Boomers enter retirement age and beyond, opportunities to serve this segment of the population have risen. People are living longer and have needed to make adjustments to their finances as they have exceeded their savings.
A reverse mortgage gives a homeowner the ability to access some of the equity they hold in their home in order to pay for living expenses. They are not required to repay the funds as long as they live in the home. Borrowers must be at least 62 and have adequate equity in order to qualify. Borrowers can access the equity as a single lump sum, as monthly cash advances, as a line of credit, or as any combination thereof. A reverse mortgage is an option for senior citizens who have little cash with which to pay their living expenses but who have a large amount of equity in their property.
In a reverse mortgage, the lender takes a lien position on the equity when the loan is granted. Without careful planning, this may leave the homeowner and his or her heirs without assets. Reverse mortgages are also considered rising-debt loans – meaning interest is added to the principle balance each month – the loan balance can grow significantly each time interest is compounded and added. Homeowners are still responsible for any origination and servicing fees as well as property taxes (since they retain the title) and interest on reverse mortgages is not tax deductible until all or part of the loan is paid off.
Government backed products also add a mortgage insurance premium (MIP), although this amount can be financed into the loan and it guarantees that a borrower will never owe more than the value of their home in total debt.
There are a number of reasons why a reverse mortgage might become due and payable, some of which are:
* The homeowner dies
* The homeowner moves out of the home (for a period of one continuous year)
* The homeowner sells the home
* The homeowner fails to pay property taxes or keep the home insured
* The homeowner fails to maintain or repair the home
* The homeowner declares bankruptcy
* The homeowner abandons the property
* Perpetration of fraud or misrepresentation
* Eminent domain or condemnation proceedings
Additionally, acceleration clauses may be added, which make the reverse mortgage due or payable:
* Renting all or a portion of the home out
* Adding a new owner to the home’s title
* Taking out any new debt against the home
* Zoning classification changes
[ 2 comments ] ( 6 views ) | permalink |
( 3 / 301 )Tenure. This is where the lender will make payments to you each month for as long as you live. If you like the security of having stable, steady monthly checks deposited in your bank account, monthly tenure payments is the way to go. The big advantages here is that you don't have to worry about investing the money or losing it or running out of money, no matter how log you live, as long as you keep your home as your primary residence you will keep getting paid.
The only real downside to this is you do not have access to the lump sum if you need money for a large expense for something you need or desire.
[ add comment ] ( 2 views ) | permalink | related link |
( 3 / 272 )People tend to shy away from the very idea of reverse mortgages, in part because of their former bad reputation and some current negative press. If you are one of the millions of people that are unfamiliar with real estate term and mortgage terms then it is easy to tune out any conversion that you don’t feel comfortable with. Our goal is to simplify the concept and help you and your family, understand how the Home Equity Conversion mortgage really works and how it might be helpful in making your life better.
The first thing I want you to think about is what is equity anyway? Very simply it is the market value of your home minus any debt or mortgage you owe on the home. This equity is created in two ways: first because you have been paying down your mortgage or you paid it off. Second is from appreciation in your home’s value, this portion is like monopoly money, it is not worth anything unless you sell your home.
So now let’s talk about mortgages, a traditional mortgage is used to leverage your money. You may have $20,000 and you borrow $80,000 to buy a $100,000 home, as you make payments of interest and principal you build more equity in your home.
A reverse mortgage is where you have a $100,000 home, and for our example let’s say it is paid for, so you have $100,000 of equity. You use the reverse mortgage to access the equity you have built up over the years, the reverse mortgage makes payments to you each month reducing your equity a little bit each month.
So you spent years building up the equity in your home and a reverse mortgage lets you receive equity from your home for the years you have left. You can use this money for anything you want, it is totally up to you.
The Complete Guide to Reverse Mortgages: Turn Your Home Equity into Instant Income!
[ add comment ] ( 2 views ) | permalink |
( 3 / 257 )
Calendar
