A Simple Solution For Senior Homeowners 62 And Older Who Want To Retire But Can’t
You are not alone. There are thousands and thousands of seniors all across Oregon that are still working. Many are not working because they want to. Many are working because they need to.
There are a variety of reasons why people are forced to continue working even though they would much rather retire.
1. Social Security and your other investments are just not enough to live on.
2. You have too much debt between the home, car, credit cards and other personal debt for Social Security to cover.
3. You are continuing to work so that you can maximize your Social Security benefits.
4. You are worried about dipping into your retirement too early and outliving your assets.
What if I told you there was a very simple solution that could allow you to retire today and that this solution could:
1. Supplement your Social Security and other investments so that you could afford to retire.
2. Pay off most if not all of your debts freeing up the monthly cash flow you need to retire.
3. Allow you enough funds to live on while waiting for Social Security benefits to max out.
What is this amazing solution?
It is a Home Equity Conversion Mortgage or HECM. It is also known as a reverse mortgage.
What Is A Reverse Mortgage?
A reverse mortgage, also known as a home equity conversion mortgage (HECM), allows home owners 62 and older a way to access the equity in their home without the borrower needing to make payments on the loan.
With a reverse mortgage, the amount owed increases every month since you are not making payments. The payments, interest and mortgage insurance, are simply added to the loan balance every month. The equity in your home decreases as payments accrue. You remain responsible for paying the taxes and insurance.
The amounts you can borrow are based upon your age, interest rates and reverse mortgage option you choose.
There are several options to choose from when you gain access to your home’s equity. You can get a lump sum, home equity line of credit, monthly payments as tenure (for however long you live in the home) or for a fixed amount of time. You can also get a combination of those things.
As you can see there are many different options with a reverse mortgage that will allow you to access and use your home’s equity based upon your needs.
There are no payments due until you vacate the property for 12 months, sell or pass away. Interest and fees will accrue as long as you continue to live in the house based upon the amount of money you borrow. It was already mentioned, but you must continue to pay taxes and insurance as well as keep your home maintained.
Have questions? Need more info? Want a no cost proposal? Just give me a call today at 541-773-3131 and ask for Matt Allen, MLO-254296.
Common Myths About Oregon Reverse Mortgages
The Bank Owns Your Home – FALSE. You own the home. It is just like any other mortgage where there is a lien against your property. You are free to do whatever you would like with the property. Sell it, refinance it, pass it on to your heirs, etc. You are on title to the home, not the bank.
Heirs Can Not Inherit The Home – FALSE. When you pass away, your estate gains control of the property. Your estate has the option of keeping and refinancing the home or selling the home. This would be the exact same as if there was a “regular” mortgage on the home.
You Can Outlive A Reverse Mortgage – FALSE. A reverse mortgage only becomes due and payable once the last homeowner has moved out of the property for 12 months or has passed away.
Social Security and Medicare Will Be Affected – FALSE. Social Security and Medicare will not be affected by a reverse mortgage. However, some need-based programs such as Medicaid may be affected. You should consult with a financial advisor to see how a reverse mortgage may affect your eligibility to these programs.
You or Your Estate Could Owe More Than The Home is Worth – FALSE. The HECM reverse mortgage is a “non-recourse” loan which means that the lender cannot pursue you, your estate or your heirs for any losses associated with the loan.
You Have To Own Your Home Free and Clear To Qualify For A Reverse Mortgage – FALSE. You do not have to own your home free and clear. Your current mortgage and any other liens against the property will need to be paid off. But you do not have to own the home outright.
Why You Should Consider Getting A Reverse Mortgage In Oregon
There are many benefits to getting a reverse mortgage. For many homeowners like you, the biggest benefit is being able to retire. Here are some other benefits to a reverse mortgage:
• Pay for in-home care services.
• Pay off your mortgage, debts and other bills; frees up more money to live on.
• Cash in hand to update, improve and repair your home.
• Access to your homes equity through a line of credit for life’s little emergencies.
• Receive additional monthly income for life or a fixed period of time.
• Less stress over finances.
• More income to enjoy life.
• Continue to live in your home for as long as you want.
This list could go on and on and I am sure you can think of many more benefits you will receive from getting a reverse mortgage.
You have worked hard for your house. Now it’s time to let it work for you.
Why Some People Say No To A Reverse Mortgage
A reverse mortgage is not right for everyone. However, it is a great product for many senior homeowners. Here are some of the most common objections heard about why people do not want to get a reverse mortgage.
I Worked Hard All My Life To Pay Off My Home
Not having any mortgage payments is a major trophy in life, especially in retirement. What you need to understand is that you now have an asset to help you during retirement. It is now time to unleash the power of the equity in your home. It’s time to let your home start working for you just as hard as you worked for it. There is a lot of money sitting there and ready to assist you in your retirement.
I Won’t Have Anything To Leave My Kids
For most people, a paid off home is a huge asset they leave for their kids. Most children do not expect anything from their parent’s estate. In fact, if you were to speak with your children, which I recommend, most of them would support the idea of a reverse mortgage if it meant a better life for you during retirement. Keep in mind that your estate retains control of the home after you pass away, allowing your heirs to sell, refinance or purchase the home out of the estate.
If I Need Cash, I Will Just Get A Home Equity Line Of Credit From My Bank
While a HELOC is a great tool, it is a risky proposition to anyone on a fixed income. First, most lines of credit are on variable interest rates and there are usually no caps on the rates. Secondly, the more you borrow, the higher the payments. And finally, the bank can close down your line of credit at any time they choose.
Request A No Cost Proposal To See If A Reverse Mortgage
Is The Solution To You Finally Being Able To Retire In Oregon
Getting a reverse mortgage is a very simple solution that helps many, if not all of the financial problems you are facing right now. If you are ready to retire but have been unable to do so a reverse mortgage can make your retirement a reality.
Getting started is easy and there is no risk on your part. Just give me, Matt Allen, MLO-254296, a call today at Pacific Residential Mortgage, 541-773-3131. With just some very basic information I can give you an idea as to how much you can qualify for.
I can answer questions you might have and address any concerns. I’m also happy to speak with your family members about this program as to how it will help both you and them.
Again, there is no cost to speak with me about your situation, ask questions or request a proposal. Let’s see how much you are qualified for.
I really look forward to speaking with you.
Matt Allen – MLO 254296
Sr. Reverse Mortgage Banker
Pacific Residential Mortgage
1555 E McAndrews Rd Suite 301
Medford, OR 97504
Toll Free: 1-888-382-9590
NMLS 1477 / WA CL-1477