For seniors on a fixed income, owning a home will not help pay the bills. Unless a reverse mortgage.
Mike and Helen Maeda have been enjoying the view of Lanai Kukui Plaza for almost 30 years. But during this time your condo has deteriorated. Now retired on a fixed income, Maeda could not allow the necessary renovations.
His solution? A reverse mortgage. It is the opposite of a traditional mortgage because instead of paying the lender each month, the lender pays the Maeda. They took out their loan in January and work is underway.
The Maeda never be more than the value of your home. And money is still flowing, as long as Helen or Mike Maeda continue living here.
"While one of us is here," says Mike. "Until someone calls us from up or down."
If you are at least 62 years of age and a homeowner is likely to qualify for a reverse mortgage. The loan amount depends on your age and value of your home. The provider must have expertise taking reverse mortgages.
"No education needed besides just the mortgage and loans," says Maeda loan officer Nelson Oyadomari. "One must understand the problems related to high level. Medicare, Medicaid, Social Security, all these things"
The disadvantage of a reverse mortgage? Once the homeowner sells or dies, the loan must be repaid, plus interest.
"What happens to your heirs, you know, there is a little less capital that children could have anticipated," says Oyadomari. "But the majority of children are their parents to enjoy and not have to fight."
"I wanted to have my wife said after going", says Mike Maeda. "She did not have any retirement income social security only and that is not enough."
Helen Maeda counters, "He's big, but I think I will survive. It's so healthy."
No matter how long the live Maeda, who will have a place to live and monthly income that makes them feel safer
Kamis, 09 Juni 2011
Selasa, 07 Juni 2011
Reverse Mortgages
There are at least one type of loan from his mother's age actually helps you get more money than otherwise: a reverse mortgage.
Reverse mortgages allow seniors to tap the equity in their homes and receive a lump sum or a monthly check. The older you are, the greater the amount that you normally can get. If his mother's house is worth $ 200,000, for example, could increase their monthly income to $ 699 to $ 777 with a reverse mortgage. If it is 10 years younger, the amount you get could be as low as $ 319 a month.
These payments will continue until she dies, sells the home or permanently moves, at which point the loan must be repaid. Normally, the return comes from income from the sale of the home, any remaining value in the house to go to his heirs.
AARP has a free booklet on reverse mortgages called "Home Made Money" that can be downloaded from its website (www.aarp.org) or order by calling (800) 209-8085. It also takes a look at Tom Kelly's book, "The New Reverse Mortgage Formula" (2005, Wiley Publishing) to assist in the evaluation of the various reverse mortgage products.
Reverse mortgages allow seniors to tap the equity in their homes and receive a lump sum or a monthly check. The older you are, the greater the amount that you normally can get. If his mother's house is worth $ 200,000, for example, could increase their monthly income to $ 699 to $ 777 with a reverse mortgage. If it is 10 years younger, the amount you get could be as low as $ 319 a month.
These payments will continue until she dies, sells the home or permanently moves, at which point the loan must be repaid. Normally, the return comes from income from the sale of the home, any remaining value in the house to go to his heirs.
AARP has a free booklet on reverse mortgages called "Home Made Money" that can be downloaded from its website (www.aarp.org) or order by calling (800) 209-8085. It also takes a look at Tom Kelly's book, "The New Reverse Mortgage Formula" (2005, Wiley Publishing) to assist in the evaluation of the various reverse mortgage products.
Kamis, 02 Juni 2011
The Essentials of Reverse Mortgage
Four important things you should do before getting a reverse mortgage:
1. Determine if you really need a reverse mortgage or other type of loan is best for you. Depending on your needs and financial situation, you may be able to achieve their goals with other, less costly financing solution that provided by a Reverse Mortgage.
2. See a HUD approved reverse mortgage counselor-free to help you decide if a reverse mortgage is for you, or to help choose between different types of reverse mortgages.
3. Search and compare! Not all reverse mortgages are created equal. Vary considerably in the amount of money you can get, what they cost and other features.
4. Think about whether a reverse mortgage can make you not eligible for public benefits that are now or may be eligible to receive in the future. For example, if you currently receive or expect to be eligible for any "needbased" benefits such as Medicaid, Medical or Social Security Income (SSI), reverse mortgage payments should be structured so that payments that monthly be spent in the month that is received. Otherwise, these payments will be considered "income"and can cause for public eligible benefits. You should contact your benefits provider to ask about how mortgage may affect your eligibility.
1. Determine if you really need a reverse mortgage or other type of loan is best for you. Depending on your needs and financial situation, you may be able to achieve their goals with other, less costly financing solution that provided by a Reverse Mortgage.
2. See a HUD approved reverse mortgage counselor-free to help you decide if a reverse mortgage is for you, or to help choose between different types of reverse mortgages.
3. Search and compare! Not all reverse mortgages are created equal. Vary considerably in the amount of money you can get, what they cost and other features.
4. Think about whether a reverse mortgage can make you not eligible for public benefits that are now or may be eligible to receive in the future. For example, if you currently receive or expect to be eligible for any "needbased" benefits such as Medicaid, Medical or Social Security Income (SSI), reverse mortgage payments should be structured so that payments that monthly be spent in the month that is received. Otherwise, these payments will be considered "income"and can cause for public eligible benefits. You should contact your benefits provider to ask about how mortgage may affect your eligibility.
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