Brenda DeArmond

Reverse Mortgage

 

Dave Ramsey says that the paid off mortgage is replacing the BMW, and I can’t agree with him more.  It’s never too early to start planning retirement.  Homes are getting more and more expensive and even with the lower interest rate it can be a struggle.  Social Security alone will not cut it.  Some of the figures I am hearing from senior citizens is approximately $1,000 a month to live on.  Some are more and some are less.  That’s not even a house payment any more – much less all the other expenses.

 

I don’t have all the answers but I do have one solution.  The Reverse Mortgage.  The reverse mortgage has been very much misunderstood over the years.  This is an FHA product.  If a senior citizens wants to stay in their home and they have approximately 50% equity, they can get a reverse mortgage and not have to make another payment.  How this works is that the senior citizen has to be at least 62 years of age in order to qualify.  Once they qualify the only thing they will have to pay is taxes, insurance and an HOA fee.  This frees up money the homeowner can use for their everyday lives.  Once the senior citizens can no longer use the home either by death of nursing home, the home will be sold.  After the debt for the Reverse Mortgage is paid, any excess money will go to the heirs.  If there is no excess money and the home is sold as a short sale, the heirs are not liable.

 

One of my favorite parts of a Reverse Mortgage is you can purchase a home using the program.  There are so many people who live in other states who sell their home and want to move to Florida.  If they have at least half down, they can purchase using a Reverse Mortgage.  Depending on their age will determine how much you have to put down.  If you are 62 you will have to put more money down than someone 82.

 

If you know anyone who would benefit from this program, tell them about the reverse mortgage.  Not all mortgage companies participate in this program.  If I can point you in the right direction, let me know.

 

If you know anyone who would benefit from this program, tell them about the reverse mortgage.  Not all mortgage companies participate in this program.  If I can point you in the right direction, let me know.