Senior Financial Tips

Holiday Gift Ideas for Baby Boomers

Baby Boomer Gift IdeasAre there any Baby Boomers on your Christmas gift list? Anyone born between 1946 and 1964 qualifies in the group, which is made up of some 81 million Americans. Even the youngest Boomers are starting to qualify for senior citizen discounts on the Denny’s menu. And none too soon, since seniors are earning far less in Southern California, where Reverse Mortgage Certified is located, than necessary to make ends meet. So, this year, as you assemble your gift-giving “to do” list, consider these ideas, which could help brighten the holiday season for a senior you love:


Consumable Gifts
Senior Citizen Gift

People of all ages have favorite sweet or savory foods they love to stock up on. Consider either a one-time purchase or an annual subscription for cheese, nuts, fruit, candy, wine or flowers.

Experiences

Holiday Gifts SeniorsSince most Baby Boomers have lots of “stuff,” think outside of the box this season. Instead of buying them something they’ll have to store and dust, invest in a bucket list item, such as indoor skydiving, bowling or handmade gift certificates good for time with their grandkids. Or, how about a gift card good for a nice meal out?

HobbiesBaby Boomer Hobby

Does your gift list include someone who likes to quit, crochet, knit or garden?  Activities such as these require materials. So, purchase basics like yarn, needles, seeds or saplings. If hobbies aren’t their thing, maybe that’s because they haven’t figured out how they want to spend time during retirement. The holidays are a great opportunity to provide a few ideas as well as associated materials.

Education

Senior ClassesIt’s never too late to learn. So, enroll your Baby Boomer in a class or pre—pay for something at the local college or community center. If mobility is an issue, consider an online class. No matter their interest, webinars provide infinite options, such as cooking, dancing, piano, guitar, photography, creative writing…to name a few!

Mementos

Photos of loved ones or other reminders of shared experiences, such as shadow boxes, are great gifts for Baby Boomers. Take advantage of apps or websites that turn stacks of digital pics into personalized books, mugs, tote bags or clothing. Other ideas include objects from the past that have emotional meaning. Memory Gifts Seniors

About Reverse Mortgage Certified

After a lifetime of hard work and sacrifice, your loved one deserves to live comfortably instead of scrounging. At Reverse Mortgage Certified, we love to help homeowners improve their financial situation by taking out a reverse mortgage. Wouldn’t you rather your parent or grandparent get a check each month rather than having to scrimp and save to pay the mortgage?

EquityIf they own their own home, they could be eligible. If you have questions about how much reverse mortgage capital they might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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Holiday Money-Saving Tips for Seniors

money saving senior citizens
With utilities, groceries and gas in Southern California at all-time highs, even well-heeled senior citizens can find it a struggle to make ends meet during the holidays. Between special family meals, gifts, decorations and party attire, if you aren’t careful, you could end up in the hole. So, to help, we have come up with some money-saving tips for seniors for the 2017 holiday season:

Holiday Meals –thanksgiving menu on budget

Does your family’s holiday tradition revolve around you prepping and providing the Thanksgiving meal? If so, consider passing the baton to the younger generation. While they will undoubtedly want to take advantage of beloved family recipes, that’s no excuse to make you do the work and carry the lion’s share of the financial burden.

If you love entertaining and are reluctant to give up your role as host or hostess, suggest potluck so everyone can share their favorite food (and some of the costs!) or offer to provide the location if everyone else pitches in with the meal. If meal prep is non-negotiable for you, save by shopping at discount stores such as Aldi or Dollar Stores locations that offer an in-store market. Both are up to 30% less than larger grocery store chains. And don’t forget to check for free turkey giveaways, which some markets offer in November and December, with a minimum purchase of $25, $50 or $75.
holiday decorations

Gifts –

Whether your family celebrates Christmas, Hanukkah, Kwanza or an occasion you made up, the cost of gifts can sink your financial ship. To keep this from happening:

  • Set a budget and stick to it.
  • Shop in discount stores like the .99 store, Big Lots or Wal-Mart.
  • Make homemade gifts, like a batch of homemade chocolate chip cookies or a can of holiday toffee. holiday money-saving ideas
  • Draw names. Set pre-established limits. And don’t be afraid to speak up if the limit is higher than you are comfortable accommodating.
  • Whether you call it Yankee Swap, White Elephant or Nasty Santa, discuss the possibility of playing a fun holiday game this year instead of holding a traditional gift exchange. This will not only save dollars but is interactive and good for people from most (but not all) generations. (Hint: You might not want to steal the gift your 2-year-old great grandchild is clutching.)
  • Remember that the thought truly counts more than the dollar value of any item you give.
    Holiday Decorating on a Budget

Decorations –

Thrift stores offer great holiday decorations for a fraction of the cost of retailers. This is also true of dishes, which are sometimes less expensive at second hand stores than paper goods are at major retail outlets. As with most things, less is often more. So, don’t feel compelled to crowd your house with holiday décor. When it comes to decorations, a little goes a long way.

Festive Clothing –Christmas Clothing on a Budget

If you buy only one holiday item of clothing after season’s end, in a few years’ time, your wardrobe will be the talk of the town. Thrift stores are also a great resource for holiday garb. So, head to the local Goodwill to find items at a fraction of the cost of department stores.

About Reverse Mortgage Certified

After a lifetime of hard work and sacrifice, you deserve to live comfortably instead of scrounging. At Reverse Mortgage Certified, we love to help homeowners improve their financial situation by taking out a reverse mortgage. Wouldn’t you rather get a check each month rather than having to scrimp and save to pay the mortgage? If you own your own home, you may be eligible.
Reverse Mortgages Diamond Bar
If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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Is a Reverse Mortgage a Good Idea? 6 Questions to Consider

REVERSE MORTGAGEOn October 1, 2017, the U.S. Department of Housing & Urban Development (HUD) changed requirements for obtaining a reverse mortgage. Although their intention was to reduce the number of associated defaults, the impact is felt by elderly borrowers who now face steeper fees because of the change. Since your home is your most significant asset, because of the HUD changes, you should carefully consider whether a reverse mortgage remains your best option to inject cash into your personal finance equation.

Reverse Mortgages Glendora
Is there hidden money in your home?

Before making the decision, answer the following questions:

  1. Do you own your home outright or are you close to paying it off? To qualify for a reverse mortgage, you should have enough equity that a reverse mortgage will leave you with a reasonable lump sum, monthly payment or line of credit after paying off your existing mortgage balance.
  2. Short on Cash Reverse Mortgage
    Are you short on cash?

    Are you short on cash and don’t have any other viable way to get the money you need for the expenses of daily life? Since your home is your biggest asset, it takes years to accumulate equity. Taking out a reverse mortgage means spending a portion of that equity onloan fees and interest. That said, if your home has ample equity, you may be able to safely take out a reverse while leaving other portions of the equity untouched.

  3. Do you want to stay in your home long-term or do you plan to move? Staying put can make taking out a reverse mortgage worthwhile. This is not the case, however, if your immediate plans include a move. Lender fees, such as the origination fee, can be as high as $6,000 – depending on your home’s value. Other applicable fees could include up-front mortgage insurance; and closing costs such as title insurance, a home appraisal and a home inspection may not be worth the expense if you don’t plan to stay put. simbolo abitazione con persona matura anziano
  4. Can you afford ongoing property taxes, homeowners insurance and home maintenance? Keeping up with your property taxes, homeowner’s insurance and home maintenance are essential if you have a reverse mortgage. If you fall behind such payments, the lender could declare your loan immediately due and payable.
  5. Senior Citizens Revesrse Mortgage GuidelinesIs your spouse aged 62 or olderReverse Mortgage borrowers must be at least 62 years old. In general, the younger you or your spouse are, the lower the amount you can initially borrow. While new laws protect the non-borrowing spouse from losing the home if you die first, he or she won’t be able to collect remaining reverse mortgage proceeds after you are gone. In this case, the reverse mortgage set up as a monthly income stream or a line of credit would be discontinued, so your spouse would lose access to a necessary source of income. Also, reverse mortgage proceeds are based on the youngest spouse’s age –whether that person is on the loan. Senior Woman With Credit Card On Phone
  6. Do you know someone you can trust who handles reverse mortgages? Since scammers often target senior citizens, make sure you find a professional reverse mortgage counselor who will be able to give you an accurate idea about whether a reverse mortgage can provide a long-term solution to your financial problems. You can trust the experts at Reverse Mortgage Certified, who have years of experience securing reverse mortgages for seniors in the Inland Empire, North Orange County, Los Angeles basin and San Gabriel Valley.
    Grunge retro metal sign with palm trees and van. Surfing in California. Vintage advertising poster. Old fashioned design.

The Bottom Line

Despite the hype and negative publicity, reverse mortgages can be the answer to your financial prayers. After a lifetime of hard work and sacrifice, we love helping homeowners improve their financial situation by taking out a reverse mortgage. Wouldn’t you rather get a check each month rather than having to scrimp and save to pay the mortgage? If you own your own home, you may be eligible. If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant.

About Reverse Mortgage CertifiedReverse Mortgages Southern California.jpg

Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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Why Reverse Mortgages are a Great Choice for Senior Citizens

How can I afford these pills?The Struggle to Survive

Most senior citizens in the United States live on fixed incomes. Struggling to make ends meet, many are forced to choose between spending limited income on expensive medications or groceries. What’s more, with millions of Baby Boomers entering their Golden Years, the senior population is expected to grow by nearly two-thirds in the coming decade. And, while the retirement crisis is national in scope, the picture is bleakest for California seniors, who face higher than average costs of living and limited access to pensions or 401(k)s.Senior couple at home with many bills

In Diamond Bar, California, where Reverse Mortgage Certified is based, we understand the strain. And it is our great pleasure to help Southern California senior citizens find an elegant solution to their financial problems: Reverse Mortgage.

Reverse Mortgage: What it is

Reverse mortgage form on a table and money.As with a traditional mortgage, a reverse mortgage is a loan that uses the borrower’s home as collateral. But, unlike a traditional mortgage, borrowers do not have to repay the loan while they remain in their home. Another difference between the two types of loans is that reverse mortgages are only available to borrowers who are at least 62 years of age and have already paid off their forward mortgage or will be able to pay it off using proceeds from the reverse mortgage. A reverse mortgage allows senior citizens to take available equity out of the house through lump-sum withdrawals, regular payments, or a line of credit. Home Equity Conversion Loans (HECM) loans do not need to be paid off until the borrower dies, sells the house, or moves.

Enter HUDsilhouette of town

More than one million senior households have gone through the federal reverse mortgage program since it was created 30 years ago. The federal reverse mortgage program enables older adults to use available equity in their homes to supplement retirement savings and support aging in place. But administrators in the Department of Housing & Urban Development (HUD) were concerned that senior borrowers were spending their money too quickly – without saving cash to pay for property taxes and insurance. So, in 2015, they introduced new underwriting standards, which greatly impacted the industry.Magnifying glass on colourful pie chart with "Credit report" tex

Due to the change, lenders are required to consider an applicant’s financial and credit risk profile in deciding whether to approve a loan. While this type of underwriting is standard practice for forward mortgages, the requirement was new relative to Home Equity Conversion Mortgages (HECMs). Under the 2015 update, applicants who fail to meet required criteria can be: 1.) denied a loan; or 2.) required to set aside a portion of the available principal in an escrow account – known as a Life Expectancy Set Aside – to be managed by the lender, to cover future property tax and insurance payments. Since the change, associated defaults have been reduced by nearly three-quarters. In all, the measure has made loans safer for borrowers as well as the fund.

Reverse Mortgage CalculatorOn October 2, 2017, HUD will again enter the reverse mortgage fray, enacting stricter borrower guidelines. Under the new rules, a 62-year-old borrower getting a reverse mortgage with a five percent interest rate would be able to draw 11 percent less money from a home than under current rules. For an 80-year-old borrower, the reduction would be 12 percent. Another key set of changes involves the insurance premiums that borrowers must pay when they first take out a reverse mortgage and the annual premiums they pay over the life of the loan. The new rules require higher initial premiums in most cases but lower annual premiums in subsequent years. So, if you are considering applying for a reverse mortgage, now is the time to act! Call Manny4Reverse today.

About Reverse Mortgage CertifiedConsidering senior housing options

In truth, after a lifetime of hard work and sacrifice, we would love to help homeowners improve their financial situation by taking out a reverse mortgage. Wouldn’t you rather get a check each month rather than having to scrimp and save to pay the mortgage? If you own your own home, you may be eligible. If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant.

Silhouette palm tree with vintage filter (background)Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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5 Money-Saving Tips for Senior Citizens

The plane draws a number in the sky. FiveThe Struggle is Real

At a time when they should be enjoying the fruits of their labors, American senior citizens are struggling. In fact, many strain each month just to make ends meet, let alone celebrate their Golden Years.

According to the National Council on Aging, “Over 25 million Americans aged 60+ are economically insecure—living at or below 250% of the federal poverty level (FPL) ($29,425 per year for a single person). These older adults struggle with rising housing and health care bills, inadequate nutrition, lack of access to transportation, diminished savings, and job loss. For older adults who are above the poverty level, one major adverse life event can change today’s realities into tomorrow’s troubles.”

Southern California SnapshotLos Angeles skyline with palm trees in the foreground

In Southern California, where Reverse Mortgage Certified is based, the situation is bleaker still.

“Poverty among seniors is not new, but has been exacerbated in recent years by a cyclone of factors, especially in California,” say Sacramento Bee reporters Claudia Buck and Phillip Reese, who go on to write, “Seniors statewide caught at the edge of poverty are mostly single; the large majority are women. They’re often minorities.”

Short Economic Stories

Healthcare costs and fees concept.Hand of smart doctor used a calculator for medical costs in modern hospitalThe stories about how each senior made it below the official poverty line vary:

  • Some didn’t work long enough to qualify for Social Security.
  • Others had jobs that didn’t provide a pension.
  • Some made poor financial decisions or investments.
  • Others fell victim to financial abuse.
  • Still others saw their savings and retirement accounts depleted by the recession and earlier economic downturns.
  • Many, especially those 85 and older, are simply living longer and contending with costly, chronic health conditions.

How to Save MoneySaving plan with Gold Piggy bank

Since many seniors have penny-pinched their entire lives, these hints may be familiar. But we provide them because we care about senior financial matters. In fact, Reverse Mortgage Certified exists to help senior citizens in the San Gabriel Valley, Los Angeles basin and North Orange County enjoy their Golden Years.

  1. Car insurance and car services concept. Business concept. Car insurance concept.Car Insurance. If you’ve been paying the same car insurance for several years, you may be eligible for a longevity discount. If not, you could potentially save by changing the deductibles or eliminating gap coverage if you have been making payments on your vehicle for two years or more.
  2. Clothing. If you aren’t a fan of thrift stores, consider checking out consignment shops. These stores sell gently used items at deep discounts. When it comes to laundry, you could save double digits each year by washing everything in cold water instead of warm or hot. Clothing on hanger at the modern shop boutique
  3. Hair Styling & Mani/Pedi’s. Even on a budget, you can afford to pamper yourself if you do so at the local community college cosmetology program. Students supervised by licensed beauticians and manicurists, these readily available programs cost a fraction of similar services in regular salons.
  4. Physical Activity. Suspend your gym membership during the hot summer months and take your exercise outside. Walking is still considered the most safest way to exercise and it is free!
  5. Set of cut coupons for shopping to save moneyFood. Skip meat once a week because vegetarian meals cost less. Throw away less produce by tossing plastic bags and wrapping fresh fruits and veggies in paper towels, which absorb moisture so produce stays fresh longer.

In truth, after a lifetime of hard work and sacrifice, we would love to help homeowners improve their financial situation by taking out a reverse mortgage. Wouldn’t you rather get a check each month rather than having to scrimp and save to pay the mortgage? If you own your own home, you may be eligible. If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant.

About Reverse Mortgage Certified, #Manny4ReverseLa vivienda y la bolsa de la compra

Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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All About Diamond Bar

diamond bar grunge blue stamp. Isolated on white.Working with dozens of banks and borrowers across Southern California, Manny LaFosse of Reverse Mortgage Certified is based out of Diamond Bar, California. Centrally located in eastern Los Angeles County, Diamond Bar has 57,094 residents.

Facts about Diamond BarFun Fact rubber stamp

  • The average household size is 3.07
  • Median age is 42.9
  • The average household income is $117,031.
  • There are over 19,000 dwellings, 81 percent of which are owner-occupied.
  • The median home price is $651,413.
  • The median rental rate is $1,574.

Motorway, Expressway, Freeway the infrastructure for transportation in modern city, urban viewStrategically situated at the crossroads of one of the business busiest interchanges in Southern California, Diamond Bar is home to several large organizations:

Diamond Bar HistoryOld compass and old telescope on vintage map world explorer concept

Like many Southern California communities, Diamond Bar began with a Mexican land grant. On March 30, 1840, Governor Juan Alvarado deeded 4,340 acres (including Brea Canyon and the eastern Walnut Valley) to Jose de la Luz Linares, who founded Rancho Los Nogales, or Ranch of the Walnut Trees. Linares died in 1847, and his widow sold a choice portion of the ranch to Ricardo Vejar for $100 in merchandise, 100 calves, and the assumption of her late husband’s debts. Vejar already owned the Rancho San Jose to the east (which is now Pomona), and by acquiring the rest of Rancho Los Nogales over the next 10 years, became the 5th wealthiest landowner in Los Angeles County. He owned more than 10,000 acres.

unexpected bad luckTables Turned

Unfortunately, Vejar’s luck did not last. When the U.S. government took over California and resurveyed the existing land grants, they gave Vejar just 464 acres. Then, the great drought of the 1860’s forced most area ranchers to borrow money to feed their cattle. Vejar had been trading with two LA-based merchants, who loaned him $600 for supplies. When the note, with compounded interest was finally called in, the total due was $28,000, Since Vejar couldn’t pay, his property passed to the lenders, Schlesinger and Tischler, in 1864.

Rancho Los Nogales did not prosper under the new owners, as the land was surrounded by hostile neighbors who were loyal to Vejar. So, in 1866, they sold the ranch to Louis Phillips for $30,000. Phillips sold a portion of the ranch to a man named WiIliam Rubettom, who opened a tavern and overland stage station for the Butterfield route near where the Orange Freeway (57) now crosses Pomona. He called the community “Spadra,” which became the first named settlement in the Diamond Bar area.

Cattle RanchBeef cattle around feed trough

In 1873, Rancho Los Nogales was sold again – this time to men named Wilson Beach and George Butler. Thereafter, property was sold off in parcels. Finally, in 1918, Frederich E. Lewis bought up most of the original Rancho Los Nogales again, and he registered the Brand of Diamond Bar with the California Department of Agriculture. Lewis sold the Diamond Bar Ranch in 1943, where the new owners raised cattle on for the next 13 years.

Diamond Bar, the Early Years

resident engineer holding yellow safety helmet at new home building under construction siteIn 1956, the Diamond Bar Ranch boasted golden hills peppered by green stands of oak and walnut trees. Large herds of cattle grazed on the entire area. That year, the Transamerica Corporation paid $10 million for 8,000 acres of Brea Canyon, opting to develop a master plan for a community that would eventually be home to 50,000 people. When the first model homes were built at the north end of town in 1960, a development “boom” was born. Manny LaFosse has worked in the city of Diamond Bar for 15 years. He and his wife, Patti, have lived in Covina for 30 years.

Diamond Bar Reverse Mortgages

BCfrontIf you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options. Call our senior hotline today to find out if a reverse mortgage may be right for you or for someone you love (855) 444-9798.

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Senior Citizen Finances

Social Security coverageLimited Public Funds

Three out of five retirees rely on Social Security income to fund at least half of their monthly expenses, according to a Gallup poll of pre-retirees. Survey results also suggest that nearly nine out of ten seniors will need some form of Social Security to make ends meet during their golden years. This data is grim since the Social Security Board of Trustees projects that the trust’s more than $2.8 trillion in asset reserves could be depleted by 2034. With funds set to dry up in as little as 17 years, where does that leave American seniors?

Private Fundsprivate lending, 3D rendering, metal text on rust background

Unless your income earned was substantial enough to enable you to meet living expenses and save a large nest egg, you could be discouraged by the financial road ahead. The Consumer Expenditure Survey (CE) shows where seniors spend their income:

  • Food
  • Housing
  • Clothing
  • Transportation
  • Contributions for pensions (which proportionally decreases with age)
  • Healthcare spending (which proportionally increases with age)
  • Entertainment

Statistical pie chart / piechart flat icon for apps and websitesSenior Financial Picture

With so many demands on senior finances, it’s little wonder so many feel stressed. A recent Gallup Economy & Personal Finance Survey showed 60 percent of people surveyed worried about not being able to pay medical costs for an illness/accident. And 64 percent said they were worried about not having enough money for retirement. The poll also showed that seniors are afraid they would:

  • Not be able to maintain the standard of living they currently enjoy.
  • Not have enough to pay their normal monthly bills.
  • Not be able to pay medical costs for normal healthcare.
  • Not be able to pay rent, mortgage or other housing costs.
  • Not be able to make the minimum payments on credit cards.

Gallup first began polling Americans about their financial concerns in 2001. Results show that respondents have continually worried about not being able to afford retirement. In fact, that concern ranked number one in each of the surveys over the past 16 years. So, instead of spending their retirement years enjoying the life they have worked so hard to build, most are worried about just making ends meet. Clipboard with green ticks checkmarks and pen. Checklist, complete tasks, to-do list, survey, exam concepts. Premium quality. Modern flat design graphic elements. Vector illustration

So, what’s the answer?

  1. Start saving now. Since you can’t go back in time, there is never a better time to start than now!
  2. Look for creative ways to supplement social security. If you don’t want to apply to be a greeter for Wal-Mart, you could potentially earn a little extra cash by making crafts or baked goods to sell at art fairs or online.
  3. Sell assets. Of course, you could put your home on the market. But it takes money to make money. So, be prepared to de-clutter, sell possessions and relocate if you go this route.
  4. Investigate a reverse mortgage. Once considered a “last resort” move, reverse mortgages have come into their own. With new regulations to protect borrowers and loans guaranteed by FHA or private lenders, you might be surprised at how much extra cash you could enjoy each month with an HECM Reverse Mortgage. Wouldn’t you rather have extra spending money instead of struggling to come up with your mortgage payment each month?

Senior Golden years finances.jpgCall #Manny4Reverse

If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options.

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Fox Business on Reverse Mortgage for Purchase

Unknown-1(This blog post was adapted from an article which originally appeared on Reverse Mortgage Daily.)

Fox Business host Bob Massi recently dedicated a segment of his show to the subject of  reverse mortgages for purchase. In it, he subjectively examined the process of reverse mortgages and came up with analysis which puts the financial option, which is available to many senior homeowners, in a positive light.Unknown

In “The Property Man,” Massi interviewed the senior director of a reverse mortgage specialist called Josh Shein. The piece also featured two couples who used a Home Equity Conversion Mortgage (HECM) for Purchase to downsize and save money.

Watching football on TVHere is a synopsis of the show:

Couple #1

  • First, Karl and Starla Kramer, an Arizona couple traded in their large home for a smaller property after Karl retired.
  • The Kramers sold their original home for $500k, and made a down payment of $143k in cash toward the second house.
  • Then, the couple used an HECM to cover the rest.

Mr. Shein summarized the transaction by saying: “This allowed them to keep the rest of the money in their pocket, and use the money for whatever they wish.”

Shein and Massi explained the program to people who are unfamiliar with age requirements, tax-and-insurance payments, and the types of properties that qualify for reverse mortgages. Shein emphasized that the product is a loan. He walked viewers through the ways principal balance grows instead of declining, which is the process as in a standard mortgage loan.Reverse mortgage loan application on a table.

Most importantly, the segment features raving reviews by two couples who were obviously very satisfied with their decisions to pursue reverse mortgage.

Kramer’s wife is a real estate agent. She and her husband are happy to be free from monthly mortgage payments, noting that they typically ran out of spending money once their automatic mortgage payment hit their bank account each month. Now, on the 15th of the month, they enjoy a monthly influx of cash from the HECM rather than huge deductions.

Couple #2

Senior couple enjoy the sunset togetherThe second couple, Ralph and Mary, first took out a reverse mortgage five years ago and then decided to use another HECM to downsize.

“If the market tanks, you’re going to lose the equity in your house, but even if you own your house and the market tanks, it’s the same thing,” Ralph said. “What you’re doing is receiving your equity up front, which is, I think, a smart move if you have a plan.”

This isn’t Shein’s first time with Massi, who is a real estate lawyer. He previously appeared on “The Property Man” back in 2015, sharing two other reverse mortgage success stories. Massi himself is enthusiastic about HECM, having written a column about the products and appearing on “Fox & Friends” to discuss financial assessment and reverse mortgage.Reverse Mortgage Review

Hand holding big pile of money cash vector, loan salaryIf you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options.

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The Beauty of a Reverse Mortgage

Reverse mortgage on blackboardNo financial product is as misunderstood as reverse mortgages. The reason for the confusion is because the products are so flexible that they provide solutions for virtually any senior financial situation. Here is a breakdown of the two main types of reverse mortgages: Home Equity Conversion Mortgages and Proprietary Reverse Mortgages.

Home Equity Conversion Mortgage

  • Pronounced HEKUM, a HECM is an acronym for a Home Equity Conversion Mortgage.
  • Created and regulated by the U.S. Department of Housing and Urban Development (HUD), HECMs are not government loans.
  • A HECM is issued by a mortgage lender and insured by the Federal Housing Administration (FHA), which is part of HUD.
  • With an HECM, the borrower is charged an insurance fee of 1.25% of the loan balance each year, which is added to their loan payment.
  • Insurance fees protect lenders if the borrower is not able to make a payment or if the value of the home (upon selling) fails to cover the balance of the loan.
  • Most reverse mortgages offered in the U.S. are HECMs.
  • The maximum lending limit is $636,150.Paper with words fha loan on a wooden background.

Typical HECM Repayment Options

Line of Credit
Most reverse mortgage borrowers establish line of credit which they can access when funds are needed. In this case, borrowers can access funds by submitting a written request to the loan servicing company. An important feature about this line of credit is that the unused portion grows over time. The borrower does not earn interest, as he or she would with a checking account. Rather, with every year that passes, the lenders take into consideration that the borrower is one year older and that their home has likely appreciated in value.

Term Payment 

calculator and house building miniature models on the tableWith this option, borrowers make fixed monthly payments for a specified amount of time. If, for example, the borrower is 65 and wishes to defer claiming Social Security until he or she turns 70 (since deferred claims result in the maximum payout benefit), this borrower can establish term payments for five years. In such a case, the amount received each month would not change, even if the home decreases in value.

Tenure Payment 

Providing borrowers with fixed monthly payments for as long as the person lives in the home, this option is great for people who keep their home as a primary residence. Even if the loan balance exceeds the value of the home, the borrower would continue to receive the same monthly payment. The payments would cease only after the borrower passes away or permanently leaves the home.

Modified Term/Line of CreditApplying for a Home Equity Line of Credit Approved

The borrower establishes a line of credit and receives fixed monthly payments for a specified amount of time, under this repayment structure.

Modified Tenure/Line of Credit  

Under this option, the borrower is given a line of credit and would receive fixed monthly payments as he or she lives in the home.

Single Disbursement Lump Sum 

This is a great way for homeowners to preserve equity. With a single disbursement, the borrower can take fewer funds than he or she may qualify for. For example, if the borrower is eligible for a $200,000 loan, but just needs access to $10,000 to replace the carpet, he or she can opt to take the lesser amount. A one-time lump sum payment is made to the borrower. The drawback to this structure is that additional funds are not available later, so the borrower would have to refinance or apply for another reverse mortgage, which would require additional closing costs and potential application hassles.

Businessman receiving a huge money bagFor Purchase

If the borrower does not wish to remain in the home for decades, he or she could use a reverse mortgage to downsize and purchase a new home. The advantage of using HECM for purchase is that the new home could be purchased outright, using funds from the sale of the old home, private savings, gift money or any other sources of income. These are then combined with the reverse mortgage proceeds. This option would leave borrowers without the hassle of monthly mortgage payments.

Proprietary Reverse Mortgage

Unlike an HECM, proprietary reverse mortgages are privately insured by the mortgage companies which offer them. Thus, they are not subject to HECM regulations. Nevertheless, as a standard best practice, most companies that offer proprietary reverse mortgages follow many of the same consumer protections found in HECM programs, including mandatory third-party counseling.

Proprietary reverse mortgages are sometimes called “jumbo” reverse mortgages, because they are taken on higher-value homes. The maximum loan limit on a HECM Mortgage is $636,150. This is important in Southern California, where Reverse Mortgage Certified is based, since homeowners’ properties are often valued more than one million dollars.So Cal Loans.jpg

If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options.

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Senior Financial Fraud: Don’t be a victim

Reverse Mortgage Glendora.jpgOne in three senior citizens is the victim of financial abuse, according to a study done in 2016 by Time.com. Tragically, on average, victims lose about $36,000.

“Most people think (fraud) will never happen to them. But it does. And it does on a daily, hourly basis,” says Debra Whitman, public policy officer for the American Association of Retired Person (AARP).

Attractive to con artists because they usually have savings accounts and excellent credit, today’s senior citizens grew up in the 1930’s, 1940’s and 1950’s, when people were raised to be polite and trusting. Scam artists exploit these traits because they know most seniors will find it difficult to confront, hang up, or just say no.Say no to Fraud

One of the most important steps toward fraud prevention is awareness.

If someone calls to offer you fast cash, it could be fraud.

If a telemarketer says you have a “limited” time to respond to his or her offer, it could be fraud

If a caller promises something that sounds too good to be true, it could be fraud.  

If a computer tech contacts you to say your software has a virus, it could be fraud.

If you click on an online offer that takes you to a flashing screen and impacts your computer’s speed, it could be fraud.

Not only are seniors more likely to be victimized, but they are less likely to report fraud than younger folks, for several reasons:

  • They don’t realize they have been scammed.
  • Either they don’t know who to report it to.
  • They are too ashamed at having been scammed.

So how can you avoid fraud?

Using One Time Password When Shopping Online, Banking Security ConceptOnline Safety

  1. Use strong passwords. Don’t use the word “password,” or 12345, which can easily be hacked.
  2. Don’t share your passwords or write them on post-it notes next to your computer.
  3. Be careful with social media posts. Set your privacy settings high. And don’t over-share. If you broadcast vacation plans, burglars and identity thieves may take advantage.
  4. Use only secure Wi-Fi networks. Don’t do online banking or share other sensitive information on public hotspots, such as libraries, hotels or coffee shops. Hackers can easily grab your information from an open network without ever touching your computer or your phone.
  5. Never open suspicious emails or click on links inside emails unless you are 100% certain of the sender. Your actual email provider, bank, Internet service, or the IRS will never ask for your personal information via email.
  6. Don’t click on pop-ups, even if they say offer quick-fixes. For example: “Your computer is slow. Click here to speed it up.”). Clicking might unleash a virus.
  7. Protect your identity. Don’t use your full name, date of birth, home address, email address, social security number to create passwords.Telephone Scams Seniors.jpg

Telephone Safety

  1. If someone calls, offering or asking for anything, be suspicious. If you call the company, you can trust what the customer service rep says. So, if you wonder whether someone is legitimate, tell them you will call the company yourself. If they call you, they could be a scam artist.
  2. Refuse to give personal information by phone. Representatives from legitimate companies will understand this and should have security protocols in place to protect your personal information.
  3. Take your time. When in doubt, do research. Don’t feel pressured to act on anything a stranger tells you over the phone.
  4. Do your part. Report fraud. If you uncover a fraudulent operation, report the incident to the FTC at 877-FTC-HELP (877-382-4357). You can also report telemarketing fraud to the FBI. Report Fraud against Seniors to FBI.jpg

If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options.

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