List Categories | List All Articles | List Articles By Title
Seniors Can Use a Reverse Mortgage to Fund Annuities, Investments, and Insurance Policies
For many seniors in or entering retirement, the prospect of purchasing long-term care, investments or annuities can be cut short by a lack of retirement income. Statistics show that 3 out 4 seniors will have to lower their current standard of living during retirement. Social Security, IRA's, 401k's, and other methods of retirement income usually provide enough income for living expenses and recreational activities, but do not leave much room to improve your financial future. A Reverse Mortgage is an increasingly popular solution for increasing income, and large amount of tax-free funds to safely move into investments and securities.
Reverse Mortgages are Federally regulated and guaranteed financial vehicles that allow a senior, age 62 or above, to extract a large amount of the equity locked in most senior's largest illiquid asset: the home. A Reverse Mortgage will provide a percentage of the home's appraised value, usually 20-60%, in a variety of different payout methods, but the senior is never required to make a payment on the loan for as long as they live in the home. All repayment, closing cost, and interest are repaid when the senior moves or the home is sold, so it produces a large amount of capital with absolutely no risk of default or foreclosure on the home. "There a is Reverse Mortgage myth that the bank can take your home, that is totally false" says Troy Shellhammer of Reverse Mortgage Nation.
All funds generated with a Reverse Mortgage are tax-free. They also will NOT impact any social security or Medicare benefits. This vehicle becomes very attractive when looking at ways to increase income or an investment portfolio. Example: A couple who are both age 65, with a home value of $200,000, zero mortgage, and are looking to either purchase an immediate annuity or a joint long-term care insurance policy. A Reverse Mortgage could potentially provide over $100,000 to fund the annuity or a single premium insurance policy, with interest growth and a long-term care rider.
The true power of the Reverse Mortgage as an investment tool lies in two aspect of the product. The first is that any funds generated from a Reverse Mortgage are completely tax free, and will not affect the tax bracket of the applicant. The other is the single largest asset of most seniors is their home. The home is a peculiar investment because the only way to see a real return from the growth of the home's value through its preciation is to sell the home, or liquidate the entire asset.
A Reverse Mortgage lets the savvy senior employ the appreciation of the home without having to leave the home, or make any payments on the loan. These are some of the reasons that in last three years, the average of Reverse Mortgage loans produced nationwide has risen almost 300%, along with a rise in loans done on homes with values of $500,000 and up rising almost 500%.
Troy Shellhammer is a Reverse Mortgage specialist with Next Generation Financial Services, a division of 1st Mariner Bank. He advises seniors on the Reverse Mortgage process and produces Reverse Mortgage loans nationwide. Please visit his website at http://www.reversemortgagenation.com/troyshellhammer or call 1-888-9 REVERSE for any questions, information, or an estimate on what you or your friends and relatives may receive with a Reverse Mortgage.
Secured Homeowner Loans to Reiterate that a Home Provides More than a Roof Over Your Head
"The ache for home lives in all of us, the safe place where we can go as we are and not be questioned."It is a challenge to find a place like that.
Reverse Mortgages - A Tax Free Income For Senior Citizens
I fully realize if it sounds too good to be true, it probably is and There Ain't No Such Thing As A Free Lunch (TANSTAAFL) immediately jumped into your head when you read the title of this article. However, if you are 62 or over, you may have just found the goose that laid the golden egg.
Self Employed Mortgage Loan - Getting a Mortgage When You're Self Employed
Being self employed has many benefits. When you are self-employed, you can write off all of your deductions on your taxes.
Home Equity Loan Improvements
There's more Regulation Z compliance on the way, courtesy of the Home Equity Loan Consumer Protection Act. This fall banks will have to implement the new home equity loan disclosure rules the Federal Reserve Board was required to issue under the act.
A Guide to Finding Cheap Homeowner Loans
If you're actively looking for cheap homeowner loans, there are several things that you should take into consideration to make sure that you get the best loan for your money.Before taking one of the loans offered to you, you should take the time to understand how cheap homeowner loans work, make sure that you've explored all of your loan options, and shop around for the best loan rate that you're eligible for.
What Are Mortgage Brokers And Why To Use One
"Mortgage" is formed from two words: the French word "mort" meaning "dead" and the word "gage" from Old English meaning "pledge". Sir Edward Coke (who lived from 1552 to 1634) explained the term: the land as considered "dead" to the mortgagor, as if the person never had it.
Bankruptcy and Buying a Home
Filing bankruptcy is a stressful time in a person's life. Along with discharging your debts and gaining a fresh start, you may wonder if you will be able to buy a home after a bankruptcy.
An Infinity Mortgage?
Here in Spain the concept of a mortgage period of 20 or 25 years is something new. The general feeling by the banks is that want their money back more quickly than banks in countries in which they are accustomed to longer periods.
Finding the Online Homeowner Loans You Want
Online homeowner loans have been growing in popularity in recent years, blossoming into a new industry of online lenders and new opportunities for homeowners who find themselves needing additional money but not wanting to pay an exceptional amount on interest.These online homeowner loans use the equity that you've built up in your house as collateral to secure the loan, and usually feature interest rates and loan repayment terms that are competitive to if not better than many loans that are offered by more traditional physical lending institutions such as banks and finance companies.
If you fall behind in your mortgage payments, you face the threat of foreclosure.Foreclosure means your lender can take over your home, and you must move out.
Why Refinance Back into a 30-Year Loan?
One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one.
A Home Equity Loan - What You Should Know?
Asking yourself, "Is a home equity loan right for me?" is the first and most important step to take.Home equity loans have become so popular today because of increasing home values.
Home Loans and Mortgages - Watch Out for Dangerous Subprime Loans
With the growing interest in real estate purchasing and speculation, more and more lenders are offering "nontraditional" types of mortgages. These include adjustable rate mortgages (ARM) of every shape and size, the more popular interest-only mortgage, and the very dangerous Option ARM mortgage, which can cause the amount you owe to actually increase as time passes.
Adverse Credit Mortgage Loan - Persistence is the Key to Getting Approved
People with bad credit that are looking to get a home mortgage loan or to refinance their existing home mortgage loan, know how difficult of a job it can be to try and get approved. Adverse credit history can mean a little more legwork to get an approval for a mortgage loan, and especially to get a decent interest rate.
Home Equity Loans Online
If you are in the market for a home equity loan, consider an online lender. Home equity loans online are fast and easy.
Home Mortgages: Does It Ever Make Sense to Pay Points?
Interest rates on home mortgages are often quoted with and without points. A point equals one percent of the amount you are financing.
Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan
I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues. They got into the house with ZERO down payment, and only had to bring $600 for the closing costs.
Flexible Mortgage Tips
Outlined below are some useful flexible mortgage tips. The most prominent addition in recent years to the mortgage industry has been the flexible mortgage.
Mortgage After Bankruptcy
Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases.
I Have A Slice of the American Dream and It is a 30 Year Nightmare
Well, we did it. We are buying a beautiful, brand new house, planning our wedding, and getting ready to move.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !