Can A Reverse Mortgage Benefit A Widow?

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonWhen a spouse passes, it’s a very difficult time for the widow and the family.  In addition to the emotional toll, it’s not uncommon to face a sudden and often unexpected financial toll.  After a spouse passes, it is more common than not that there will be a reduction or elimination of the deceased spouses pension or social security benefits. This can create a serious strain on the widow to continue to make mortgage payments, property taxes, homeowners insurance, home repairs, in addition to other daily expenses.

If you are a widow financially struggling without your spouse, a reverse mortgage can be of benefit.  Senior homeowners age 62 and over may qualify for a reverse mortgage.  A reverse mortgage does not have to be repaid as long as the homeowner continues to live in the home.  This can make it possible for a widow to remain in the home without the financial strains that may be present otherwise.  The funds are available via monthly installments, a line of credit that grows over time, a lump sum, and even to purchase a new home.

If you are a married couple considering a reverse mortgage, you can find some helpful tips here.  You can also learn more about what happens to your home after both spouses pass away here.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

Dispelling Myths Surrounding A Reverse Mortgage

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonA reverse mortgage is a specialized form of loan for those 62 years and older. It offers a way to entertain the lifestyle you imagined, from long held dreams of RVing or travel, to the changing desires that come with events like children moving to different states, or just simply the ability to age in financial comfort.

All the hard years of work can be given to you in the form of cash from the equity of your home. This means all the years of mortgage payments to keep your home asset can be accessible to you now. Your home can actually be put to work for YOU.

When you take a reverse mortgage you retain ownership and the title. Very little will change from all the previous years of homeownership, except you will have the ability to cash in on all the value that has been accruing during your years of dependably paying to live there – while living mortgage and loan payment free.

A reverse mortgage is also called a Home Equity Conversion Mortgage (HECM). This unique type of loan comes with peace of mind since the FHA backs it with a 100% guarantee that you will never owe more than the actual market value of this cherished possession. When you take a reverse mortgage the loan does not come due until the last borrower passes away or moves permanently, and at that time there are options available to keep the home in the family or sell it.

More protection is offered as well, as HUD counseling is not only offered, it is required. The counseling is from an accredited independent third party and takes place before any costs for the loan are set in motion. While this may seem like a requirement, it is more of a privilege so you can understand all the details of reverse mortgage.

The funds from a reverse mortgage can be accessed via a lump sum, monthly installments, line of credit, or even to purchase a home.  There are no limitations as to how the money is spent – that is completely up to the borrower.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

Reverse Mortgage Questions Answered For Adult Children

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonAs your parents age, their needs will inevitably change. And as they change, your need to consider options with them will increase. While these conversations may be the first of their kind, it will also be a chance to offer support. Reverse mortgage could be a viable option to meet everyone’s wishes, especially your parents.

Concerns will arise. Here is a brief answer to some of them.  For more in depth answers, feel free to contact me.

• If my parents and I decide to repay the reverse mortgage loan, what happens to the equity in the home?

There are two options at this point. The first is a decision by your parents to sell the home and use the money received to pay off the reverse mortgage. The second is to keep the home and choose another way to pay the balance due on the loan. In both options, the borrowers will keep the equity that remains in the home.

• Will the home inheritance Mom and Dad have prepared for me and/or my siblings be used up?

They will be tapping into equity but their home may also be appreciating. If this is the case the appreciation will keep some equity in the home for you to receive upon their passing. This conversation with them will be the most meaningful. Oftentimes parents assume their children want an inheritance and create stress in their lives just so they leave as much as they can. Unspoken assumptions on both sides can leave everyone in the dark.  The needs of your parents, and the ability to support themselves without draining anyone else’s finances may outweigh what is received when they are gone.

They may need to know how you really feel about inheritance and your thinking about what it means to you is just as important.

• If my parents take a reverse mortgage out on their home, will it affect their retirement benefits?

This type of loan does not affect the benefits of Medicare or Social Security or other pensions, and additionally, the income is non-taxable. If your parents have other forms of assistance such as federal, state or Medicaid programs, a reputable reverse mortgage lender can help navigate this.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free.  The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your specialist guide you creatively to suit your needs and desires.

 

3 Important Changes for Reverse Mortgages in 2017

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonThe reverse mortgage program is constantly evolving and has been since it’s inception nearly six decades ago.  With the ever changing needs of older Americans and the revolving door of politics, making positive movement is a necessary part of the big picture, and these changes are largely beneficial to the industry as a whole and it’s consumers.

Here’s what to look for in 2017:

Increased Loan Limits – The loan limit for HECM reverse mortgages is increasing for the first time in nearly a decade.  The limit will change from $625,500 to $636,150.  The FHA made the limit increase announcement on December 1, 2016 and it went into effect on January 1, 2017. This new limit will apply only to case numbers issued on or after January 1, 2017.

Interest Rates Likely To Rise – In December 2016 the Federal Reserve raised interest rates for the very first time since 2009 and it’s been indicated they expect to raise rates three more times in 2017.  For those considering a reverse mortgage, the current interest rate is a factor in how much they can borrow but once a homeowner has a reverse mortgage secured on their home, they lock in the interest rate. In addition, the funds available will increase over time when using the line of credit option based on interest rates.

Rising Home Prices – Home values in many markets are nearly back to where they were 10 years ago prior to the housing collapse.  Because another factor that goes into how much a borrower can receive from a reverse mortgage is the appraised value of the home, this is important to the industry and those tapping into the equity of their home.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

 

Helping Your Parents with a Reverse Mortgage

id-10041109Perhaps your parents raised you in the home they are now ambling about. As you see them begin to slow, or have to jump on a plane every time they wish to see you, thoughts of helping them to have an easier time come across your mind. After all they deserve at this time of their life to relax, do what they wish to do, and be able to manage their health and their finances with comfort.

Considering a reverse mortgage is one good option. It gives more wiggle room to work with when balancing the growing needs of health, home, and retirement.

As you discuss the future and it’s possibilities, there are a few questions to ask yourself and everyone else involved.

First, do you or other siblings have concerns about inheritance and/or equity?  Your parents probably care that all of you feel you have received from them as they pass. While this discussion is not always easy, it is undeniably beneficial. Talking will give clarity, which in turn provides direction. It also gives everyone a chance to be heard.

Second, do you have financial resources to help your parents?  Health needs as we age are difficult to determine, but it is important to build in a buffer for the unexpected.  The stress of aging is enough in and of itself, being able to take care of the costs should not have to be an additional worry for those that raised you.

Another good question that only your parents can answer is, ‘What are my parent’s wishes about staying in their home, especially if their medical needs grow?’ For some, they are ready to let go of the home of their youth and family, wanting to change and simplify their lifestyle. For some, being closer to you is the most important desire. And for some staying in their home as long as possible is the most important wish that could be fulfilled. Since the decision about reverse mortgage as a way to fulfill desires is a big one, looking toward the future and developing a plan will only benefit everyone – and ultimately make your parents happy.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free.  The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your specialist guide you creatively to suit your needs and desires.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

Reverse Mortgage Opens Doors to a Fulfilling Retirement

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonRetirement was once considered a “golden age” in decades past. It was held as a time for you to relax and enjoy life after years of hard work for your family and your assets. This can still be possible, even in the ever changing society with it’s unexpected expenses.

Reverse mortgage could be the way for you to fulfill your long held desires.

In years past reverse mortgage was not often considered by financial planners when helping those approaching 62 manage the pieces of their retirement lifestyle – including social security, assets, savings, and all the rest. This has changed.

Reverse mortgage is a strong viable option even in the phase of financial planning. The equity that builds up in the home could rightly be accessed to give you security at the least and make the difference between just making your monthly bills to actually enjoying your life in new ways.

This being the case, a reverse mortgage or HECM (Home Equity Conversion Mortgages) should be a part of the conversation. When choosing a financial planner, find out if they have learned about reverse mortgage options.  Seek a planner that has worked with a credited reverse mortgage specialist that is part of the Better Business Bureau, is an active part of the local community, and is a member of the National Reverse Mortgage Lenders Association (NRMLA).

Involve your children in the process. Find out what they want, express to them what you want and keep the dialogue going.

Reverse mortgage is an individualized, specialized loan for those 62 and older.  If you are planning ahead let your specialist guide you in the many scenarios that are possible. Think creatively about your needs and desires.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

 

Selling a Home with a Reverse Mortgage – What You Need to Know

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonFor many that obtain a reverse mortgage, the plan is to stay and age at home, but sometimes reasons come up that the homeowner will want or need to sell the home.  Is this possible if there is a reverse mortgage on the home?  And what does it look like?

Can a home with a reverse mortgage be sold?

Yes, the home can still be sold at any time, just like with a traditional mortgage.  When the home is sold, the borrower will repay the loan balance and any outstanding closing fees from the proceeds of the sale.  Any additional funds from equity will be theirs to keep.

Are there penalties?

No, there are no penalties when selling a home that has a reverse mortgage loan on it.

How are the funds from the sale dispersed?

When the home is sold, repayment of the reverse mortgage loan will be first, followed by any outstanding liens or other obligations, then the homeowner will keep any additional proceeds.

Do I have to notify the reverse mortgage lender of my intent to sell?

Not necessarily, but it is a good idea to start there and find out what the outstanding balance is.  Having all the facts upfront will help with decision making all around.

Bottom line: Selling a home that has a reverse mortgage loan against it is very similar to selling a home that does not have a reverse mortgage.  As long as you are aware of the few differences, it is a smooth process.

Reverse mortgages are available to seniors 62 and over as long as the home the loan is being used against is the primary residence and there is some equity available.  The funds are accessible to the borrower in a variety of ways including monthly installments, line of credit, lump sum, and even a tool to purchase a new home.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

Are You Prepared If Your Spouse Dies?

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonRegardless of age, losing a spouse is difficult – and the impending “business” that comes along with it doesn’t make it any easier.  This is why we should all ask ourselves at some point, “Am I prepared if my spouse dies?”.  There are so many various aspects to being “prepared”, and although I can’t help with many of them, I can help with some simple suggestions to making sure you aren’t stuck with unexpected questions.

It’s not uncommon in marriages or partnered relationships for each spouse to take care of different bookkeeping tasks.  For example, it’s very common for the husband to manage retirements funds – pensions, IRA’s, etc.  While the wife may handle personal address books or paying bills.  Take a minute and think about this.  Not only what  you may not know, but what your spouse may not know.

Here are some suggestions to putting this information in order:

• Begin by making a list over a week or two, and ideally an entire month.  Make note of what “business” you do.  How many passwords did you need online?  How many account numbers on the phone?  What about PINs?  The results may surprise you.  In today’s high tech yet overly scammed world, everything is secured under lock and key.

•  Although it is best if both spouses can contribute to this exercise it is not a requirement.  Either way, spend some time brainstorming together.  We often will remember things when discussing them with someone else.

• It’s important to make a physical list of this information, whether typed or handwritten.  What you shouldn’t do though is save this information online.  Hackers will seek data that includes account numbers, logins, and passwords and this could lead to compromising your accounts and even identity theft.  Even if you think it’s secure, there really is little guarantee that is true.  Keeping this list with your most important documents – such as birth certificates, titles to homes and vehicles, etc – is going to be your safest bet, but make sure both spouses know where to find it.

What to include on your list:

Name and phone number of company, account numbers and any PINs associated.  If using online management of account, include website URLs of where to login, login name and password, and any auto pay information.  If there are specific people you work with at these companies, include their names.

If only one spouse is listed on the account, make an effort to add the other one.  I recently witnessed an elderly woman at the DMV who was unable to renew her driver’s license because all the mail that came to the home was in her husband’s name.  This is more common than many people realize – and often they don’t even know until they’re caught in jam.

• Home loan
• Home insurance
• Car loan
• Car insurance policies
• Health insurance policies
• Life insurance policies
• Bank accounts
• Credit card accounts
• Pension, IRA, annuities, etc
• Utilities – electric, water, gas, phone, trash
• Facebook, LinkedIn, etc
• Contact information for family and friends
• Contact information of bankers, retirement or financial planners, loan officers
• Contact information for doctors, dentists, pharmacies, veterinarians, etc (and a little info about what each one is for)

These lists will vary from person to person, so make sure to add your own ideas.  Also be sure to update it when anything changes or is added – because hopefully you won’t need it for quite a few more years!

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

How to Purchase Your Dream Home with a Reverse Mortgage

Reverse Mortgage Seattle Lynnwood Edmonds Shoreline WashingtonWhen we’re working hard and raising a family, there are two things we often hope to achieve in our future – having no house payments and living in our dream home.  As the years close in on retirement, these may still seem unachievable – but they’re not.  With the Reverse Mortgage for Purchase program seniors 62 and over can live mortgage payment free in the home of their dreams.

Here’s how it works:

When a home buyer uses a reverse mortgage to purchase a home, they will be required to provide a down payment.  The amount of the down payment will depend on the amount of the home they are purchasing – but unlike a conventional loan, not only will the lender provide the funds to make up the difference between the home price and the down payment, the new home owners will also be able to live mortgage payment free for as long as they remain in the home, freeing up income for other things – such as medical bills, in home care, or even vacations.

Commonly, when someone has a large amount of cash they want to simply pay cash for a home.  But in today’s housing market, even $200,000 doesn’t go very far.  With a reverse mortgage for purchase that $200,000 can be used as a down payment on a much more expensive and desirable home – AND the buyer will still live mortgage payment free, just as if they’d paid for the home with cash.  As with any reverse mortgage or conventional mortgage, the homeowner will always remain exactly that – the homeowner.  And the loan will not reach maturity until the last borrower passes away or permanently leaves the home.

Click here for more detailed information about how the Reverse Mortgage for Purchase program works.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.

BEWARE: Scams and Identity Theft

ID-10079656Unfortunately scams and identity theft target older consumers more than any other demographic.  Whether you’re a consumer yourself or you work with the senior population, you need to not just be aware, but be on the defense at all times.  You will never regret being extra diligent.

One of the most common types of scams is what’s called “phishing”.  This is where highly skilled con artists use various techniques to obtain information about a pending transaction (common in real estate) or other information they can use to obtain financial information.  Sometimes this information is found by hacking into non-secure servers, other times it’s found by following what someone is saying on Facebook or other online forums.  Regardless of how it’s obtained, both the senior consumer and the professional working with the senior consumer need to be advocates for their privacy.

Here are my tips to prevent becoming a victim of this type of fraud:

1.) NEVER provide personal information via email, always do this over the phone, or over a secure server on a website.  If someone requests it from you in an email, call them.  If you’re a professional working with consumers, never request this information be provided via email.  If you do, you are putting your clients at unnecessary risk.

2.) NEVER wire or transfer money according to instructions you receive in an email – even if you have corresponded with this person.  Fake email accounts look nearly identical to authentic ones and it can be very difficult to tell the difference.  This is VERY important; don’t take the risk.  Recently tens of thousands of dollars have been sent to scammers during real estate transactions because the consumer was being targeted and they did not verify any information over the phone or in person.  ALWAYS speak with anyone who is asking you to wire money – preferably in person – and always use the phone number you already have for them, not a phone number sent in an email.

2.) NEVER follow a link that comes in an email to your bank account or other account that will have access to your private, personal financial information.  This includes banks, credit cards, loans, PayPal, IRS, etc.  This is one of the most common phishing scams.  When you receive a phishing email, it will seem you are being alerted to various scenarios – possibly a fraudulent transaction, an overdrawn account, or another “urgent” situation.  Everything looks legit; they will have your name and often more information.  Most of the time these emails are scams!  As soon as you go to the link provided, and enter your login and password, it’s been stolen.  To prevent this, ALWAYS login directly from your internet browser by typing in the website URL directly as you already know it and use it.  Don’t hesitate to call and ask the bank or other institution about the email (using the number you already have, again, don’t use information given to you in a potentially fraudulent email).  All financial institutions want these reported.  It’s how they are stopped.

4.) Whether a consumer or professional working with consumers, ALWAYS use secure hosting and servers with strong security.  Password protect your wireless networks.  Hackers are highly skilled – but you are your own first defense against them.

For more information about protecting yourself against identity theft, click here.  You can never be too careful or diligent in protecting your personal details and assets.

Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington.  Contact Janis and learn if reverse mortgage is right for you.