Straight Facts (Reverse Mortgage Basics)

A reverse mortgage is a special loan for homeowners who are over 61 and allows you to;

Eliminate your current monthly mortgage payment for good
Access some of the equity in your home to receive a monthly payment each month
Receive a lump sum

• Establish a credit line to be used at any time.
• Improve your cash flow each month
• Use the money for any reason you see fit.
• Afford the increased cost of living
• Make home improvements or repairs
• Make large purchases, such as a car or RV
• Eliminate credit card balances and payments

In addition to the above, a reverse mortgage also offers the following advantages:

• The proceeds received from a reverse mortgage are non-taxable
• Does not affect your social security or Medicare benefits
• You continue to own your home and title stays in your name
• You may still give the home to your heirs
• Both fixed and adjustable rates are offered
• There is no income or credit standards in order to qualify
• Most Reverse programs are government insured
  

Our FREE Guide and Work Book gives you in-depth details and additional information and techniques on how to properly structure a reverse mortgage to possibly help lower your current income taxes, and/or position yourself to qualify for future government benefits you may otherwise not qualify for. The Work Book section helps you identify where you are at today, where you would be if one of you were to pass away, and how you could improve each circumstance to live a less stressful, better prepared and more rewarding and fulfilling retirement. Click here to get your FREE Guide and Work Book.

There are surprising, effective and interesting solutions to increase ones cash flow for retirement, however not all of these solutions are appropriate for each individual. When evaluating or creating a solution for a client it is imperative that we understand what's important to the client and what he or she wants to achieve during retirement. With this knowledge we can sort through our many strategies and solutions to achieve the optimal solution that matches perfectly with the client's circumstances and desires.

Retirement is a unique time in our lives, and presents it's own unique and distinct financial challenges. Studies have shown that the average individual does not save as well as they should for retirement, and therefore arrives at retirement with an under-funded retirement account. If this sounds like you don't feel bad, as I said most all of us fall into this category. Additionally, most home owners have found that they have accumulated a huge amount of money in their home over the years, and now in fact have much more of their wealth stuck in their home than in their liquid assets. Fortunately, the federally insured reverse mortgage was designed by HUD specifically to help these homeowners access these funds in a safe and secure manner while continuing to own and live in their home as long as they wish. Being able to access this large amount of wealth helps allow you to obtain additional money for whatever reason is important to you. Retirement has its financial challenges, thankfully there are also very good solutions available.

There are many questions to ask yourself regarding retirement planning: what is the best way to achieve the desired or needed cash flow, what is the best way to safeguard or guarantee cash flow, how do we reduce the risk of loss of assets or benefits that we now depend on, how do we best allocate the assets that we have accumulated in order to produce the most satisfying financial retirement possible, what have we accumulated that we no longer need or desire, what is the greatest financial risk in retirement and how can we protect ourselves against this risk., and lastly, when it is all said and done, what is the best way to pass our estate on to our heirs with the least amount of taxes possible.

The reverse mortgage is often the very best solution to access some of the trapped wealth inside your home in order to eliminate your current house payment (if you have one), to increase cash flow, to receive a lump sum of money or create a credit line to be used at any time. Additionally, this new source of funds, if structured correctly, may help you reduce your income taxes (ask our agents how to do this), enable you to qualify for other government benefits you may not qualify for now (ask our agents how to do this), and help you protect your self against your number one financial threat - long term care expense.

Most people have heard of reverse mortgages but have not taken the time to learn about them. I urge you to obtain our FREE guide and Work Book to retirement planning and reverse mortgages. This guide (click here) will provide you with tons of useful information and show you how you can safely use a reverse mortgage to make a safe and substantial improvement in your retirement cash flow. 

As we enter retirement our financial goals change. Previously we worked to accumulate assets. Now that we are in retirement, we switch to using and consuming these assets to support the retirement lifestyle that we desire. Since our home is often the best and largest investment we have ever made, it only makes good sense to also look at the wealth contained in the home and consider the best way to access and use these funds to help create the cash flow that we need and want, ideally while continuing to own and live in the home as well. This often makes the reverse mortgage a perfect fit.

Click here to request your FREE Guide or call us to speak with an agent who can answer your questions.

HomeSafe, is part of the Crossmark Financial corp. family, who is licensed by HUD (government office of Housing and Urban Development), by FHA (the government office of Federal Housing Authority), the California Department of Real Estate, as well as the California Department of Corporations. We are also an active member of NRMLA (National Reverse Mortgage Lenders Association) and subscribe to its code of ethics of straight, honest information and serving our client's needs.