Myths About Reverse Mortgages, The Villages, Florida

 

I WILL LOSE MY HOME TO THE BANK – FALSE

Many seniors assume that in order to take out a reverse mortgage they have to relinquish the title of their property to the lender.  Others believe that when the loan has to be paid back, the lender will take their home and rob the heirs of their inheritance.  Both notions are false. The fact is that you are always in control of your home and you will retain title to your home for as long as you live in it; the lender never acquires title to the property.*  If there is not enough value in the house to repay the entire loan balance, the FHA and NOT the heirs will be responsible to repay to the lender the shortfall.  Any home value that is not needed to repay the loan balance reverts back to the estate.

REVERSE MORTGAGES ARE RISKY – FALSE

Reverse Mortgages are regulated, insured and backed by HUD, an agency of the Federal Government that administers this and other federal loan programs.  Due to strict HUD enforcement of its stringent regulations and safeguard, reverse mortgages are widely recognized as a senior-safe financial product.  You have the right to stop the loan activity at anytime during the application process. You cannot outlive your right to live in the house no matter how large the reverse mortgage loan balance becomes.

I WILL LOSE MY GOVERNMENT ASSISTANCE – FALSE

A reverse mortgage does not affect regular Social Security payments, Medicare or Medi-Cal benefits.  If you are receiving Medi Cal benefits however, you must be careful to withdraw from the credit line only the amount of funds that you will spend in the month of the withdrawal.  Otherwise, money that remains in your personal bank account would count as an asset which could adversely impact your Medi-Cal eligibility. Complying with this requirement takes discipline, nothing more.

REVERSE MORTGAGE PROCEEDS ARE TAXABLE – FALSE

Reverse Mortgage proceeds are not taxable.  The IRS does not treat the proceeds of a reverse mortgage as income because the proceeds are a loan.  At the time of repayment, the interest that is paid may be tax deductible.

REVERSE MORTGAGE ARE ONLY FOR DESPERATE PEOPLE – FALSE

When the reverse mortgage program was introduced twenty years ago the majority of borrowers were desperate for funds.  Today however, the reverse mortgage is a mainstream financial tool used by seniors from all walks of life to enhance their retirement years, not just by those facing difficult financial challenges.  Many seniors now realize that they can utilize a reverse mortgage to unlock the value of their home so they can enjoy a better quality of life during their retirement years.  Last year more than 100,000 reverse mortgages were originated in the United States.

TO QUALIFY MY HOUSE MUST BE FREE AND CLEAR – FALSE

Even seniors who have an outstanding mortgage or other debt on their home may be eligible. Today it is very popular for seniors to pay off their existing mortgages with a reverse mortgage.  After paying off the existing mortgage, the balance of the reverse mortgage proceeds is available for the borrower’s discretion.

MY HEIRS CAN END UP OWING MORE THAN THE HOUSE IS WORTH – FALSE

One of the biggest safeguards of the reverse mortgage program is the government guarantee that the borrower and the borrower’s heirs are never responsible for more than the value of the home at the time of repayment.  The government guarantees to the lender that if there is not enough value in the home to repay the loan, the government and not the heirs will repay to the lender the shortfall.

To learn more about Reverse Mortgage The Villages, Florida, Reverse Mortgage Florida and the surrounding areas, call Bob Gersh today!

 

1-800-486-8786 ext. 813

 

*There are some circumstances that will cause the loan to mature and the balance to become due and payable.  Borrower is still responsible for paying property taxes and insurance.  Credit is subject to age and property qualifications.  Program rates, fees, terms and conditions are not available in all states and subject to change.

 

 

Reverse Mortgage Basics in The Villages, Florida

A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there.* With a reverse mortgage you can turn a portion of the value of your home into cash without having to move or make a mortgage payment each month. The cash you get from a reverse mortgage can be paid to you in several ways:

 

• All at once, in a single lump sum of cash;
• As a regular monthly cash advance;
• As a “credit-line” account that lets you decide when and how much of your available cash is paid to you; or
• As a combination of these payment methods.

No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age.

OTHER HOME LOANS

To qualify for most loans, the lender checks your income to see how much you can afford to pay back each month. But with a reverse mortgage, you don’t have to make monthly repayments.  With most home loans, if you fail to make your monthly repayments, you could lose your home. But with a reverse mortgage, you don’t have any monthly repayments to make. So you can’t lose your home by failing to make them. Reverse mortgages typically require no repayment for as long as you — or any co-owner(s) of yours — live in your home. So they differ from other home loans in these important ways:

 

• You don’t have to make monthly repayments on a reverse mortgage.

 

LOAN AMOUNTS

The amount of cash you can get depends on your age, current interest rates, and your home’s value. The older you are, the more cash you can get. But if there is more than one owner, the age of the youngest is the one that counts. Typically, the lower interest rates are when the loan closes, the greater your loan amount will be. In general, the greater your home’s appraised value, the more money you can get.

The amount of money you can get from a HECM loan also depends on how you want it paid to you: lump sum, credit line, monthly advance, or some combination of these three types of cash advances.

 

SHARING THE DECISIONS

Who else should you involve in making your decisions about a reverse mortgage? You may have a trusted friend or advisor who knows your circumstances — or someone who is generally good at figuring things out or discussing them with you. You may even want to invite such people to your discussion with a HUD-approved counseling agency.

 

On the other hand, you should be cautious of anyone who seems eager for you to get a reverse mortgage. Be especially alert if that person just happens to have ideas about what you might do with your loan proceeds. Watch out in particular for anyone trying to sell you something, or to get your signature on an agreement to pay them for any purpose.

 

To learn more about Reverse Mortgage The Villages,Florida, Reverse Mortgage Florida FL  and the surrounding areas, call me today!

 

1-800-486-8786 ext. 813

*There are some circumstances that will cause the loan to mature and the balance to become due and payable.  Borrower is still responsible for paying property taxes and insurance.  Credit is subject to age and property qualifications.  Program rates, fees, terms and conditions are not available in all states and subject to change.

 

1. Are you, and any other current owners of your home, age 62 or over, and live in your home as a principal residence?

 

Why is this important? These are the very basic qualifications to apply for a Reverse Mortgage loan. If either of these answers are “no”, you are not eligible for a Reverse Mortgage.

 

2. Is your home a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD)?

 

Why is this important? Once again, these are the very basic qualifications to apply for a Reverse Mortgage loan. If you have any question whether or not your home will qualify, let your Reverse Mortgage Specialist know at the beginning.

 

3. Are you willing to discuss the program with a counselor from a HUD-approved counseling agency to make sure this is the right choice for you?

 

Why is this important? HUD requires anyone applying for a Reverse Mortgage to first meet with a counselor (either in person or via telephone) from a HUD-approved counseling agency. This takes less than an hour. This ensures that all of your questions about the program are answered completely and you are in full understanding of how the program works.

 

4. Do you have use for the extra money?

 

Why is this important? Obviously there is no reason to take out a Reverse Mortgage if there is no need for the money. Most people use the proceeds of a Reverse Mortgage to pay off bills, purchase long term care/life insurance, have extra cash for everyday living expenses, home repair/remodeling, healthcare costs/medical expenses, prescription drugs, in-home care, financial/estate tax planning, lifestyle enhancements/travel and more.

 

5. Do you wish to remain living in your home forever?

 

Why is this important? A reverse mortgage works best if you plan to stay in your home for a long time. The longer you stay the less expensive the loan is because the associated upfront fees. Borrowers typically pay origination fees, closing costs and, in the case of HECM loans, a mortgage insurance premium. Those fees are typically rolled into the loan amount so you don’t have to pay them up front, and they help guarantee you won’t have to repay the loan as long as you stay in your home. But if you plan to move in a few years, you’ll end up paying for protection you don’t need.

 

6. Do you expect to move or permanently leave your home in the next few years?

 

Why is this important? Once again, a Reverse Mortgage works best if you plan to stay in your home for a long time. Perhaps you don’t plan on living their forever, but if you expect to move in the next few years, a Reverse Mortgage may not be your best option.

 

7. Are you only concerned about a one-time financial expense?

 

Why is this important? If you need money for a one-time expense, such as a new roof, you may find other programs that are quicker and/or less expensive than a Reverse Mortgage.

Do you have questions about Reverse Mortgage The Villages, Reverse Mortgage Florida? Call Bob Gersh, your Reverse Mortgage Specialist, today!

1-800-486-8786 ext. 813

 

 

Reverse Mortgage The Villages, Florida: Non-Profit Turns to Reverse Mortgages to Help Struggling Seniors

Non-Profit Turns to Reverse Mortgages to Help Struggling Seniors
by Elizabeth Ecker

With an increasing number of seniors in danger of losing their homes as values continue
to fall in many regions, one North Carolina non-profit organization is providing the solution by way of reverse mortgages. And it is starting to see success.

The Foundation For Homeowners, based in Raleigh, North Carolina, provides counseling services to seniors who are facing losing their homes. Through the work of four counselors, the non-profit gains referrals through reverse mortgage companies and helps seniors stay at home through reverse mortgages. The target segment is seniors who may not be able to qualify for any number of reasons, at which point the Foundation For Homeowners reaches in to assist.

“We try to remain the bridge at the time when a home is the most familiar and comfortable place to be,” says Lolita Stevenson, president of the foundation. “We focus only on those seniors that want the reverse mortgagebut are not qualifying for various reasons.”

The foundation is currently counseling between 15 and 20 seniors each month, with a success rate of 70-75% who are able to obtain a reverse mortgage, Stevenson estimates.

 

For information about a Reverse Mortgage in The Villages, Florida, contact our Specialists at iReverse. We have helped many seniors live stress free in their golden years by using the equity in their homes! Call 800-486-8786 ext 813.

 

 

Reverse Mortgage The Villages, Florida: A Part of Your Retirement Plan

Reverse Mortgage as Part of your Retirement Plan
Written By: Phil Loyd

We’re all looking forward to our retirement, but the real question is, are we financially prepared for it? Setting up an IRA, a 401K or pension at work, even your savings and investments, and social security, these are all key elements to financial security in your retirement. But what if they’re just not enough? There is another option; it’s called the reverse mortgage.

What is a reverse mortgage?

You may have seen ads on TV for a reverse mortgage and thought, sounds a little too good to be true. But it’s for real. A reverse mortgage is a legitimate option when planning for your retirement.

A reverse mortgage is an equity release, a loan offered to seniors age 62 or older by HUD. Under this program, seniors can draw either a percentage of their home equity or all of it in one sum. By drawing a percentage they can receive a monthly stipend against the equity in their home. It is in a way much like an annuity. The homeowner does not have to repay this loan until either they die or sell the property. In short, a reverse mortgage allows the homeowner to access their home equity while they are still alive, and not have to repay until they die.

If you would like information about a reverse mortgage in The Villages, Florida, contact Reverse Mortgage Specialists at iReverse. We are dedicated to answering all of your questions and providing the knowlege you need to make decisions for your future. Call 800-486-8786 ext 813.

 

Reverse Mortgage The Villages, Florida: Think Universal Design When Remodeling for the Long-Term

Home Remodeling for the Long-Term: Think Universal Design

by Bob Gersh, Reverse Mortgage Specialist with iReverse Home Loans.

Imagine: Your stunning home oozes luxury from every detail: a sweeping staircase, sparkling granite countertops, a massaging shower.

But you can’t use any of it. You’re 80 years old, and a fall has put you in a wheelchair. Your doorways are narrow, your countertops tall. You can’t roll over that shower-entrance lip, and you won’t see upstairs until who knows when. You can’t even get off the front porch. You’re stuck.

Now imagine those same luxurious details in a house you can get around in just fine. Your hallways are wider; your shower entrance is flat; and, as planned for years ago, you just converted stacked closets to your very own elevator.

That’s what is called universal design: designing your home so people of various ages and ability levels can navigate it. With baby boomers planning for the future, it’s a strong trend. In fact, some remodelers specialize in it. Many have “CAPS” behind their name. They’re certified aging-in-place specialists—a designation AARP and the National Association of Home Builders introduced in 2002.

In addition to larger changes, universal design encompasses the less obvious stuff. You might incorporate better lighting, lever handles instead of doorknobs, and strategically placed contrasting paint. Manufacturers have gotten in on the trend, designing handsome appliances and fixtures anyone would love to have.

Depending on what changes you make, a universal-design remodel doesn’t have to cost more than a regular one. Plus, at their website, NAHB lists ways to help pay for a remodel, without taking out a second mortgage. Options include:

•  Reverse mortgage(for people 62 and older)
  •    Insurance, such as some long-term-care policies
  •    Government and private programs

Over the years, universal design can mean the difference between staying home and moving to assisted living. It’s peace of mind for the long run—and comfortable living for today. You can find a CAPS remodeler through the NAHB’s directory.

For information about a reverse mortgage in The Villages, Florida, contact iReverse Home Loans. Our reverse mortgage specialists can provide you with the knowledge you need to make financial plans for your long term future. Call 800-486-8786 ext 813.

 

 

Reverse Mortgage The Villages, Florida: 5 Misconceptions About Reverse Mortgages

5 Misconceptions About Reverse Mortgages
By Wayne Rasku

A reverse mortgage can do different things for various people. For some people it might be a fairly easy technique to pay bills . For some individuals it may well be a cushion within their wallet or even more money designed for an unexpected emergency . It may even be that remarkable family vacation you’ve been fantasizing about, or perhaps the remodeling of your home that you’ve been putting off for a long time. What exactly a reverse mortgage is not , nevertheless, is no cost currency that by no means will have to be paid back. There are several of the reverse mortgage rules that are regularly misconstrued.

In the time frame that reverse mortgages happen to have been accessible, several misconceptions together with preconceived notions have developed. For that reason, without having done any the studies, plenty of seniors think them an undesirable alternative for adding to their income. In this post we will tackle various of these “significantly less than truthful” concepts related to reverse mortgages.

False impression #1: “When I take out a reverse mortgage the lending company will certainly own my house.”

This is just not true. Compared with a conventional mortgage, the lender doesn’t have any right of foreclosure providing the home owner is up to date with taxes and insurance policy expenses. Having said that, if you undertake to get rid of your residence subsequent to obtaining a reverse mortgage, that reverse mortgage, or collateral mortgage, must be paid off.

Misconception #2: “If We take out a reverse mortgage I most certainly will have zero estate left.”

Yet again, this is not the fact. Seniors taking out reverse mortgages can live in your home as long as they want, and also gained earnings from the reverse mortgage. With each advance out of the reverse mortgage, the homeowner’s collateral in the home minimizes. There will come a time when the level of equity is extremely minimal, but, the reverse mortgage influences just the relationship from the mortgage to the actual valuation on the home. It won’t influence anything more which the house owner has access to, that is in addition part of the house. The beneficiaries on the real estate can dispose of the property any method they opt for, however they are obligated to pay the reverse home mortgage.

Misconception #3: “These loans are simply intended for those people who are desperate for currency.”

When the perception of reverse mortgages was first formulated, this declaration might have been truer than it is now. Present-day senior is much more likely to be looking for a reverse mortgage more out of want than need. A high percentage of reverse mortgages are increasingly being given at this point simply to produce the safety of economic cushion as opposed to total need.

False impression #4: “In order to apply for funds, I have to be debt-free.”

In fact, considering this is actually a “false impression,” this is incorrect. Yes, you have to own a house, though this house may possess a mortgage on it. In truth, some people take advantage of reverse mortgages to settle their forward mortgage. The lending institution is going to figure out how much the homeowner might get from the reverse mortgage and deduct that which is owed on the existing forward mortgage, leaving the excess finances available for the home-owner. The best thing about this is definitely that the home-owner will not have a month to month house loan fee, and might have some added cash to boost their cash stream. Definitely , less cash owed regarding the present forward mortgage results in extra money to be disbursed after the home finance loan is actually paid.

Misconception #5: “I won’t be allowed to qualify for a reverse mortgage as a result of my low credit score.”

Most senior citizens with adverse credit will not even look at obtaining a reverse mortgage as a consequence of that bad credit. There’s very good news to suit your needs. You’ll never be refused financing because of a bad credit score . This is due to this concept operates differently compared to traditional, conventional home loans.

For information about a reverse mortgage in The Villages, Florida, contact your iReverse Reverse Mortgage Specialist. We are dedicated to providing you with the knowledge you need to make the right decisions for your future. Call 800-486-8786 ext 813.

 

 

 

Reverse Mortgage FAQ: Answers to Consumer’s Most Important Questions
By Abby Reynolds

By now, most adult consumers have at least heard of a reverse mortgage. Many also know that these loans are a way for retired adults to withdraw a portion of the equity in their homes. Still, the specifics of these loans often leave consumers with many important questions. To gain a better understanding of reverse mortgages, consumers can consult the following reverse mortgage FAQ.

Reverse Mortgage FAQ: Is There More Than One Type of Reverse Mortgage?

There are three types of reverse mortgage loans: single-purpose, proprietary, and federally-insured. Single purpose reverse mortgages are typically obtained through a nonprofit or government agency and must be used for a specific purpose. Proprietary reverse mortgages are those obtained through private financial institutions. These are not insured by the federal government and are therefore not subject to all of the same regulations.

Federally-insured reverse mortgage loans, or Home Equity Conversion Mortgages (HECMs), are those insured by the U.S. Department of Housing and Urban Development (HUD). According to statistics released by HUD in May 2010, over 90% of all reverse mortgage loans are HECMs.

Reverse Mortgage FAQ: Who Qualifies for a Reverse Mortgage?

To qualify for reverse mortgages, consumers must be at least 62 years old, own their home, and have enough equity that any remaining mortgage balance can be paid off with the proceeds of the loan. For a consumer’s home to qualify, the property must be a single family home, a two to four unit property, an FHA-approved condominium, or an approved manufactured home. It must also be used as the primary residence.
At iReverse Home Loans, we have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs.  Call us today about a reverse mortgage  in The Villages, Florida.  800-486-8786 ext 813.

 

 

 

New Financial Standards for Reverse Mortgage in The Villages, Florida
money.usnews.com

Reverse Mortgage lenders are beginning to require senior borrowers to qualify for loans by proving that they have enough money to continue paying property taxes, home insurance premiums, and other home upkeep expenses. Reverse-mortgage lenders are implementing financial assessment requirements, and the federal agency that insures reverse mortgage loans supports the efforts.

A Reverse Mortgage allows homeowners to tap the equity in their homes, receive money from lenders, and remain in their homes. They have not been heavily used by seniors to date. However, rising numbers of older Americans are approaching retirement, and virtually all studies show that their savings and investments will fall far short of their retirement needs. Using home equity is thus seen as increasingly likely for many seniors, particularly as depressed home values recover and support more attractive property appraisals.

Most reverse mortgages are made using the Federal Housing Administration’s insurance program, known as the Home Equity Conversion Mortgage (HECM). These loans are only available to seniors who are at least 62 years old. Borrowers must use the loan proceeds to pay off any existing mortgages and then receive a portion of their remaining home equity, either as a lump sum, monthly payments, or a line of credit.

Have you considered how to pay for care if you should need it? What if you need home care? You may be healthy now, but if you are 62 or older and looking at the possibility of rising medical costs, prescriptions or home care, then a Reverse Mortgage in The Villages, Florida from iReverse could be the answer. Reverse Mortgages have helped many seniors live stress free in their golden years by using the equity in their homes! Call us today at 800-486-8786 ext 813.

Lots of ways to obtain information in The Villages, Florida

We all have different ways that we like to obtain information. Some of us like to read articles in print. Some of us like to listen on the radio. Others like to watch the T.V. Many want the information mailed to them to read in their homes. Some want to listen while riding in their cars. There are CDs, videos, and the internet. There are web sites, facebook posts, and many other sites.

Our job is to provide as much information as possible and in the format that you like. On the internet you can obtain all kinds of information on our web site www.askBobGersh.com , including the blog that you are currently reading. If you want to see more posts you may want to go to our facebook page . If you are a facebook fan you can visit our web site by just going to our facebook page and then clicking on the box titled Web Site. If you like to watch videos keep checking the facebook site for new videos.

Radio is what you like. Then go to http://askBobGersh.podbean.com to listen to our weekly radio show. If you would like a CD sent to you with a recent half hour show on Reverse Mortgages let us know. If you would like a complete package of information mailed to you, just let us know.

Do you want your information in person, either in a small group or a one to one session ?  We have a free seminar, just call to schedule.

We can meet with you one to one in either our The Villages, Florida offices or at your home to go over specific details of programs that might be of interest to you. If you just want to talk or ask a question the phone is always available at 781-202-7475. Information in its many formats are what we do. Just let us know how you would like to receive your information.