By Alain Valles, CRMP, MBA, CSA, Managing Director, Helping Hands Community Partners, Inc. “If you give it out in slices it comes back in loaves.” As...
Reverse mortgages have been around since 1987 and have helped hundreds of thousands of older homeowners to live in their homes and have access to cash. Reverse mortgages are the most heavily regulated loan program in the country with periodic government changes to continue to strengthen the program.
The Oxford Dictionary defines “attribute” as a “quality or feature regarded as a characteristic or inherent part of someone or something.” Attributes are rarely all good or all bad but depend on how the attribute is used. This specifically applies to reverse mortgages.
Real estate values continue to increase but so do major living expenses. Does it make more sense to downsize or figure out a plan to remain financially independent at home? It reminds me of the old Clash song - “Should I stay or should I go?”
If you’re approaching retirement or hopefully enjoying retirement, there may be a nagging concern of have you done everything possible to minimize your financial risks? Whether you have professional advisors, do your own planning - or perhaps worse, ignore the entire topic - below are economic areas that can affect your quality of life once you stop working:
If you are in your 50s or 60s, you most likely are at that stage of your life where college bills and mortgage payments, while perhaps not quite a thing of the past, are well on their way to being just that. You probably are not yet ready to retire, but for many it is closer than ever. Although people are living longer, however, the expenses of life are not declining. And, according to the National Council on Aging (NCOA), over 23 million older adults are economically insecure, either living at/below poverty or one financial crisis away.
By Alain Valles, CRMP The Reverse Mortgage rules changed Oct. 2. For the past 25 years, reverse mortgages have allowed hundreds of thousands of homeowners...
You’ve heard the word reverse mortgage and likely know that for those who qualify they can receive a lump sum of cash, a monthly stream of cash, a line of credit that grows over time, or any combination of the three. All without ever being required to make a monthly payment for the rest of their lives as long as the real estate taxes and insurance are paid and other guidelines met.
I was recently at a local charity event and invariably people asked what I do? My answer is always “I save financial lives by educating people about reverse mortgages and, when appropriated, arrange them.” That’s usually followed by a polite sigh and then the person stating: “Aren’t those bad? Doesn’t the person lose their home to the bank or government? Don’t the kids lose their inheritance? Don’t you have to have no mortgage? Isn’t a reverse mortgage a last resort?” In other words, they’re really asking “Aren’t you just taking advantage of old people?”
Reverse mortgages are government-insured loans also known as Home Equity Conversion Mortgages (HECMs).