The Federal Reserve Board has Increased the Interest Rate by a MASSIVE 0.750%. This translates into a lower amount of funds you can receive from a new Reverse Mortgage or a Higher Monthly Payment for Traditional Mortgage Borrowers. This only is the 3rd increase of several announced for 2022.
If you haven’t applied for your Mortgage yet, don’t keep waiting. Call me today at 786-262-6486 or send the information requested below.
The $10 billion Homeowners Assistance Fund (HAF) is designed to provide mortgage borrowers impacted by the COVID-19 coronavirus pandemic with financial assistance to keep their loans in good standing, with few strings attached and departments set up in every state.
The HAF fund was established by the American Rescue Plan Act of 2021, It aimed to combat the economic turmoil caused by the COVID-19 pandemic, and features $1.9 trillion of relief for Americans in the form of direct cash payments, the expansion of unemployment programs and additional funds for a national vaccination program to fight the virus.
As a component of the law $10 billion was set aside for HAF to provide direct relief to homeowners who had been impacted financially by the pandemic. Reverse mortgage borrowers qualify for HAF funds, which can be applied to delinquent taxes or homeowner’s insurance payments: two sums necessary to keep a reverse mortgage loan in good standing.
HAF is an absolute godsend to people who have run out of money and cannot pay their taxes and insurance,” “It’s a gift from the U.S. government. All they have to do is apply,
Get Homeowner Assistance Funds | Consumer Financial Protection Bureau (consumerfinance.gov)
Agency: Florida Department of Economic Opportunity Status: HAF program open Florida Program Website
Florida: Para determinar si Califica
If you closed your FHA Insured Reverse Mortgage prior to April 26, 2014 and had to take your Spouse off Title Due to being younger than the required 62 years of age, now we might be able to Refinance it, include your Spouse on the Loan and on Title, and maybe get you additional Funds with one of our Proprietary Reverse Mortgage Programs.
Send me the last Statement from your Reverse Mortgage as well as Name and Date of Birth of your Spouse.
RodKohly@gmail.com Call me today!!! 786-262-6486
Through our Proprietary JUMBO 55 Reverse Mortgage Program, We can offer Owners of 1 to 4 Families and CONDOS for a Maximum Loan of Up To $4,000,000.
The continued surge in housing prices has confounded economists, housing experts, and investors alike. Many believed that the end of mortgage forbearances or the sudden closure of Zillow’s iBuyer program was an omen of an impending crash in housing values. Next was the expectation that interest rate hikes by the Federal Reserve would at least cool the market. However, today home values continue to appreciate even after the Fed announced a series of interest rate hikes in the effort to stem inflation.
With home prices rising six times as fast as personal income it becomes clear that…
today’s housing market is both artificial and unsustainable. While the frenzy will eventually subside it won’t stop this spring which marks the height of the homebuying season.
Today homeowners are equity-rich thanks to a massive shortage of housing inventory and asset inflation as a result of the Fed’s endless money printing and near-zero interest rates. Yet there’s one group of homeowners stand to reap the rewards if they choose to secure a portion of their home’s new-found ‘equity’; Seniors.
Even if the central bank increased rates during each of its meetings this year, it’s unlikely that the resulting change in the 10-year Constant Maturity Treasury (CMT) swap rate would disqualify most thanks to the run-up in home values. Today the 10-year CMT stands at 2.0% which nearly mirrors the index’s rate in December 2019 before the outbreak of the Covid-19 pandemic.
However, should the Fed be forced to take more drastic measures to curb inflation, rate increases could escalate sufficiently to offset the recent gains in home prices with higher expected interest rates lessening available loan proceeds for reverse mortgage applicants.
Don’t sneeze as spring fever maintains today’s absurd home prices. Just like any season, this too will eventually pass, and with that passing the waning of a unique opportunity for older homeowners seeking to stop making mortgage payments.
See Reverse Mortgage Information
When this Article was written back in 2021, inflation had not reached the 11% average that it was in May 2022, Gas Prices were not in the $4.95-$10.00/gal range, groceries were not as high as they are today, and interest rates had not risen to the 5% range they are today (and the Fed announced 2 to 4 more increases this year). If you are in a fixed income, this situation is really harming you. If you are a Senior it is even worse. I call it "The Senior Silent Killer",
My Social Security Benefits went up 6.5% in January 2022 thanks to the COLA, My Medicare Premium went up 14.5%. So if inflation is an average of 8.5% and increasing, how can anyone make ends meet???Senior Homeowners with at least 50% Equity in their homes can apply for a Reverse Mortgage and eliminate Monthly P&I Mortgage Payments and even get Tax Free Cash to help them out.
Don't wait until it is too late. You deserve to live the remaining time of your Life without financial worries!!!Call me at 786-262-6486 or email at RodKohly@gmail.com or use the form below for a confidential, no cost or obligation estimate of how much could you get from a Reverse Mortgage.
Read More at: https://www.happyseniorhomeowners.com/EnglishReverse
or in Español: https://www.happyseniorhomeowners.com/ESPANOLREVERTIDA
by Robert Intelisano August 3, 2021
The Google definition of inflation is: “A general increase in prices and fall in the purchasing value of money over time. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.”
An example of inflation is the cost to cross the Marine Parkway-Gil Hodges Memorial Bridge. When the bridge opened on July 3rd, 1937, the cost to cross the bridge was between 10-15 cents, depending on the type of vehicle. The current cost is $5.09 by mail and $2.45 by E-Z Pass.
The Federal Reserve wants to keep inflation under the 2% benchmark. Right now, inflation is running around 3% which is in the danger zone. As per Barron’s, the FOMC (Federal Open Market Committee) released minutes from its June monetary policy meeting. Fed officials signaled that interest rates would rise sooner and faster than Wall Street expected prior to the meeting, as inflation is rising at its fastest pace since 2008.
What does this all mean? This means that if you are on a fixed income, your money will not go as far as it would during inflationary times. This also means, if you have investments and/or money in the bank that is “netting after-tax” less than 3%, you are losing money (purchasing power). These are important barometers that few people are paying attention to right now.
People have been cooped up (myself included) during the height of Covid-19 and many persons now have more spendable income. A combination of inflation, the Suez Canal blockage, and higher demand for travel has skyrocketed travel costs in the past month. Hotel costs in Miami Beach have risen 50% since the last week in June. Rental cars are up 110% this year and are 70% higher since the pre-pandemic in 2019. Oil prices could soon hit $100/barrel, which will also spike gas prices.
There are options where one can position assets to fight inflation or at least break even, as interest rates are likely to rise over the next 12-18 months.
Now is the time to have a short conversation about inflation. How is it impacting them? Does it change their retirement plans? What financial concerns do they have as a result? Inflation is not a selling point, but it’s certainly a reality. One where a reverse mortgage could potentially help.
CALL ME TODAY 786-262-6486
Special Financing Programs Purchase or Refinance
Programas Especiales de Financiamiento Compra o Refinanciamiento
NO Tax Returns Needed!!! For Purchase or Refinance!!!
Recently I posted an article on the effects of the high inflation rates that we are all suffering on the Reverse Mortgage Rates and how it would lower the Funds that You Would Receive!!!
(see article below this one)
This new article describes how inflation WILL lower the effect of the funds you receive from Social Security regardless of the COLA increase.
The Center for Retirement Research at Boston College
THE IMPACT OF INFLATION ON SOCIAL SECURITY BENEFITS
By Alicia H. Munnell and Patrick Hubbard*
This fall, the U.S. Social Security Administration is likely to announce that benefits will be increased by around 6 percent beginning January 1, 2022. This cost-of-living-adjustment (COLA), which would be the largest in 40 years, is an important reminder that keeping pace with inflation is one of the attributes that makes Social Security benefits such a unique source of retirement income. A spurt in inflation, however, affects two other factors that determine the net amount that retirees receive from Social Security. The first is the Medicare premiums for Part B, which are deducted automatically from Social Security benefits. To the extent that premiums rise faster than the COLA, the net benefit will not keep pace with inflation. The second issue pertains to taxation under the personal income tax. Because taxes are levied on Social Security benefits only for households with income above certain thresholds ($25,000 for single taxpayers and $32,000 for joint returns) and the thresholds are not adjusted for wage growth or inflation, rising benefit levels subject more benefits to taxation – again reducing the net benefit… Continued:
Download the entire Brief at:
With a FHA Insured Reverse Mortgage You Can Prevent The Effect of Inflation on Your Daily Life. Call Me Today at
And, Inflation Bad News Keep On Coming!!!
The Fed, last week, announced that they will INCREASE interest rates at least, THREE (3) times in 2022!!!
The 1st one should come in March!!!
Inflation is between 7%+ and 9%+. Now add the Price of Gas which will increase with suspension of oil imports from Russia now that war has started. Economists state that it will be a long time before Inflation goes down!!!
This will impact your daily life in many ways. The Price of Food at the Market, the price of Gas at the pump, the Price of Clothing on the store, etc... Especially hit will be Credit Card, Adjustable Rate Mortgages and Lines of Credit Payments.
Sales of homes will go down and so will appraised values.
For New Reverse Mortgage and FHA or Conventional Mortgages Borrowers it means that the appraised value of your home will be lower and proceeds (higher interest, less funds) will be lower too. So if you have been postponing doing it, don’t wait any longer, CALL ME TODAY
May God Have Mercy on the People of Ukraine!!!
Interest Rates are going up VERY soon!!!The Fed has announced at least 3 interest rate hikes in 2022. THE 1ST ONE IN MARCH!!!Consolidate your Hi-Interest Credit Card, Variable Rate Mortgage and Auto Loan in one low Fixed Interest Rate monthly payment!!!
Happy Friendship Day!
In Many Countries February 14th is “Friendship Day”. Friendship = Love
Enjoy this day even on the Time of the Plague. Be healthy!!!
JUMBO REVERSE MORTGAGE 55 Plus* GREAT NEWS!!!
We are now offering a new Propietary JUMBO Reverse Mortgage Available for Refinance and Purchase. Owner Occupied:1 to 2 families Residences, Townhomes, and CONDOS.
This, immediately, opens the possibility for many Hi-Value Homeowners to obtain a Reverse Mortgage for a larger Proceeds than with the FHA Reverse Mortgage. If you live in a Hi-Value Condo or Home and have not obtained a Reverse Mortgage yet, call me. See if this Reverse Mortgage could help you. Characteristics*: 1) Values from the $800,000’s up to $4,000,000 maximum loan amount.* Characteristics (cont.)* 2) Condo Projects NO FHA approval*. 3) No Mortgage Insurance required 4) 620 Minimum Credit Score 5) Minimum Age 55 years old. (all owners) (*other terms and Conditions may apply. Subject to changes without prior notice, errors and/or omissions. Condo's Lender approval required).
The "Grey" Divorce Settlement andThe Reverse Mortgage
Sadly, today many Senior Homeowners are deciding to get divorced. it is a phenomenon called "Grey Divorce"
One of the biggest hurdles the couple faces is what to do with the home they have shared for so many years.
¡Propietarios Seniors, Permanezcan en Casa Con $eguridad Financiera!
¡En Tiempos de Incertidumbre, Una Solida Solución!!!
Article on Yahoo Money about the effects of Inflation on Senior Citizens
Senior Homeowners, Stay at Home With Financial $ecurity!In Times of Uncertainty, A Solid Solution!
Interested about your home's value?
This site uses data from the "FreddieMac House Price Index" (FMHPI) to estimate the value of your home by taking into account the appreciation rate for your region.
Of course, the estimated figure generated here should not be taken as your home's actual or appraised value. But it should give you a good idea of the fluctuations and trends in your market.
A Professional Conventional or FHA Appraisal would be required if you decide to apply for a loan.
Let me help with all your Home Financing needs in Florida, including determining an estimated home value.
To Find out If you have questions regarding Home Refinancing or Financing the Purchase of your new Home in Florida, call me at 786-262-6486 or send me an
e-mail (click here)
If ever I forget...
Come and take me to the sea so I can melt into its blue...
Tell the full moon that I need to see her...
And to the stars to watch over me, so that I don't lose my light...
Remind me of every time I tried...
So that I remember that I was able...
Show me mountains, smiles and clouds...
And, tell me that they await me...
Hum to me and swing my hip so that the music returns to my lungs...
Whisper an "I love you" so that my heart remembers how it feels to beat again...
Tell me that dreams are more real than reality and that you await me there to prove it to
Bring me rains and storms to be able to take refuge at home...
Invent fantasies that make my skin tremble...
Open doors that make my soul live again and make me have faith again...
Tie me to your arm and don't let me escape...
Look me in the eyes, so that yours shout my name and I will recognize myself again...
And let me know that the sunrise does not happen without my waking up...
If someday I forget who I am, Please don't you forget...
Campaign Against Alzheimer
Please help, pass it on.
What Happens AFTER the LastReverse Mortgage Borrower Passes Away?Version En Espanol Click aqui
This question is paramount in the mind of many Homeowners that have or are planning to do a Reverse Mortgage on their homes, as well as with their heirs. NONE of the generalized information provided here is to be construed as legal advice, I AM NOT AN ATTORNEY.For the purpose of this writing, I will refer ONLY to the US Congress created, HUD regulated, FHA Insured "Home Equity Conversion Mortgage" - H.E.C.M. Reverse Mortgage. It is the only one available today and the most numerous one. There were several "propietary" Reverse Mortgages which might have different set of terms and conditions. You should consult with a competent attorney to determine which type you have.
Let's get one thing clear, the HECM Reverse Mortgage was created to help the Senior Homeowner, nobody else. Period. The Borrower owns the property, but Lender has some rights given by the mortgage like in any other type of mortgage. Neither the Lender nor the Government own or want the property. Period.
As a Senior with a HECM Reverse Mortgage on my home, and a Reverse Mortgage Professional Loan Originator since 2005, I can vouch for the fact that it has helped many thousands of Seniors. For MANY, including me, it has been a blessing.
What happens when the LAST Borrower passes away: By the terms of most loans, whether traditional or HECM, at death the loan becomes immediately due and payable. The Borrower no longer exists. Lenders subscribe to services which notify them of the death of a Borrower. The Estate should notify Lender in writing as soon as possible.
Lenders will send a “harsh” letter notifying that the loan is “due and payable” immediately and giving the Estate 30 days to decide how they are going to pay the debt. The Estate must answer within those 30 days and notify their intentions. If no answer is given, Lender will initiate Foreclosure proceedings. Please do not delay in answering.However, HUD Rules generally allow for a "reasonable" amount of time, not to exceed one (1) year (6 months and maybe UP TO 2 additional 3 months extensions if considered necessary) to pay the debt. In other words, heirs have UP TO a year to pay off the balance due as described above. Heirs must show they are doing "DUE DILLIGENCE" to pay-off the loan (refinancing, Listing for sale with a REALTOR, etc…). During that time, the estate should communicate and cooperate constantly with the Loan Servicer and seek their help and guidance. Most will try to help you if you do.
If balance due is not paid within the time allowed (up to 1 year) the Lender will initiate Foreclosure action and the property could be lost. If the estate does not cooperate and communicate, Lender does not have to wait UP TO one year to initiate the foreclosure action.Normally, any monthly advances that the LAST Borrower was receiving will stop or any unused Creditline funds will cease to be available. Consult with the Loan Servicer that sends the monthly Statements.Please note that interest, Mortgage Insurance premiums, and service fees (if any) continue to accrue until the loan is paid in full. Property Taxes, insurance, and maintenance fees (if any) must be paid during this period and the property maintained in good condition to avoid causing initiation of foreclosure proceedings. The Estate might be able to use a Tax Deduction for interest charges paid when the loan is paid off completely.Now, the HECM Reverse Mortgage is a Non-Recourse loan. In simple terms it means that the Lender (Mortgagee) CAN NOT collect one penny more than "the lesser of the balance due or the value of the home", either from the Borrower in life, or from the Estate. Not a penny more.
Let’s see some examples to make this clear.Example 1): Property Sold or refinanced or loan paid off.Home Value: $300,000Loan Balance due: $200,000Remaining Equity: $100,000 This Equity belongs to Homeowner in life or to estate.
Example 2): Property "UNDERWATER"Home Value: $300,000Loan Balance due: $350,000Shortfall: ($ 50,000) This amount can not be recovered from Borrower or from Estate.The Homeowner paid a FHA required Mortgage Insurance Premium (MIP) at closing and monthly. The Mortgage Insurance compensates the Lender for this shortfall once the property is foreclosed and sold, sold in a Short Sale, or "given" to the Lender In a "deed-in-lieu-of-foreclosure" arrangement and sold. The Lender can not, repeat, CAN NOT, recover this amount from the Borrower or the heirs.
The amount owed, will depend on several factors:(1) how many years ago the Reverse Mortgage was done.(2) the amount of loan proceeds advanced to the Borrower.(3) Plan chosen and Interest Rate of the loan.The increase or decrease in value of the property does not affect the balance due. However, it does affects whether the balance due will be smaller or greater than the value of the home.If the value of the Property is less than the balance due on the loan, the property might be sold in a "Arms Length Transaction" to a Non-Related buyer for the Lesser Of the Mortgage Balance or 95% of the Appraised Value. Heirs might be able to keep the property by paying the Lesser of the Mortgage Balance or 95% of the Appraised Value.
Spousal Rights (Non-Borrowing spouses): If a surviving non-borrowing spouse was removed from Title due to being younger than 62 years of age, or any other reason, at time of closing, there are very complicated rules, depending on the date of closing. Surviving Spouses and heirs should consult a competent attorney to interpret their Rights and options.It is important to know whether the Loan closed before or after August 4th, 2014 as on that date, Rules changed and, depending on the closing date, different Rules may apply to the Non-Borrowing Spouse. As of May 6, 2021 HUD favorably changed the Rules. For an explanation, Click Here: Florida Reverse Mortgages Blog – Juan Luis Rodriguez-Kohly, Great Florida Lending, Inc – Blog, Blogging (happyseniorhomeowners.com)
To view the Official Document CLICK HERE 2021-11hsgml.pdf (hud.gov)Non-Borrowing Occupant: Please be aware that any non-borrowing occupant MUST vacate the property opportunely. Tenants living the property might have certain rights and protections under State Law and may need to consult competent legal counsel.
I have tried to simplify the process to make it easier to understand. I sincerely hope that it is helpful. Again, this should not be construed to be legal advice, I am not an Attorney. If you have any questions, you should consult competent legal counsel.
*******Note: The information herein provided is for informational purposes only and It is subject to error and/or omissions and to change without prior notice.
The FHA HECM Reverse Mortgage Fabulous Growing CreditLine!!!
Many Seniors are not aware of one of the most attractive and valuable advantages of this Program and is insured for the life of the Loan. The Lender can NOT eliminate or change it!!!
Available only on the Adjustable Rate Plans. The Program allows you to withdraw up to 60% of the Loan amount at Closing, including closing Costs and any existing Mortgage or lien.
The Balance of the Loan Amount is deposited in a Growing CreditLine and will be available for withdrawal after one (1) Year. During the time the funds are in that Creditline, they are growing Tax Free at a Growth rate of .50% higher than the Interest rate charged for the funds owed that you withdrew at Closing. (ie: if the Interest rate for the funds owed is 2.415% annual, for one period, the Growth Rate for the funds in the growing Creditline will be 2.951% for that same period). Tax Free!!!
Any funds available at Closing, not withdrawn will be deposited in the growing Creditline and will be available for withdrawal within the 1st year.
The funds deposited in the growing Creditline are not owed nor is interest charged on them, until withdrawn. They are a Growing Tax Free Cash Reserve!!!
Another fabulous advantage is that If at anytime you decide to make a payment (x$) to lower the debt, the debt will be decreased by (x$) and, the same amount of (x$) will be credited to the growing Creditline and be available immediately for withdrawal if needed.
Don’t waste the opportunity to change your life with a Reverse Mortgage. We offer both FHA Insured as well as Proprietary Programs up to a maximum Loan amount of $4,000,000 for houses, townhouses and Condos!
Note: The information is provided for informational purposes only. It is subject to errors and /or omissions and to change without prior notice.
Fabulous Growing CreditLine!!!
May the festive lights of the Kinara, bring blessings to you and your loved ones
during this holiday celebration. Be healthy!
Que las luces festivas de la Kinara le traigan bendiciones a Ud. y a sus seres queridos durante esta Celebración. ¡Esté Saludable!
The seven symbols of Kwanzaa are:
Mkeka (m-KAY-kah): The Mat
A mat woven of fabric, raffia, or even paper. The Mkeka is important because the other holiday implements rest upon it.
Symbolizes the experiences, culture, achievements and sacrifices of our ancestors upon which our lives are built.
Kikombe cha Umoja (kee-KOHM-bay cha oo-MOH-jah): The Unity Cup
Representing family and community unity. When the Unity cup filled with water, juice, or wine, a little bit is poured out as reminder and respect for our ancestors. The cup is then passed around and shared with those gathered, with each person taking a sip.
Mazao (mah-ZAH-oh): The Crops
The fruits and vegetables that are the result of the harvest. Bananas, mangoes, peaches, plantains, oranges, or whatever might be the family favorites. The Mazao are placed on the Mkeka and are shared and eaten to honor the work of the people it took to grow them.
Kinara (kee-NAH-rah): The Candleholder
Representing our African ancestors, the Kinara holds the seven candles that symbolize the Nguzo Saba. The Kinara is placed on the Mkeka and holds the Mishumaa Saba (the seven candles).
Mishumaa Saba(mee-shoo-MAH SAH-ba): The Seven Candles
Seven candles, representing the seven principles of Nguzo Saba, which are placed in the Kwanzaa Kinara. The colors of the candles are red, green, and black which are the colors of the Bendera (or African Flag).
Muhindi (moo-HEEN-dee): The Corn
Represents the children (and future) of the family. One suke (ear) of corn is placed on the Mkeka for each child in the family. If there are no children in the family one suke is still placed on the Mkeka to symbolize the children of the community.
The Muhindi also represents the Native Americans who were the first inhabitants of the land. Without whom there would be no corn, also known as Maize. It is used as acknowledgment and respect of their contribution to the culture and ancestors of the African American.
Note: A single ear of corn can also be know as Vibunzi. Indian Corn is sometimes used.
Zawadi (zah-WAH-dee): Gifts
Kwanzaa gifts given to children that will make them better people. The gifts should always include a book, video, or other educational item that will educate and inform the child. There should also be a gift know as a “heritage symbol”. Something to remind the child of glory of the past and the promise of the future.
Interested about your home's value?
Click Here to use data from the “FreddieMac House Price Index” (FMHPI) to estimate the value of your home by taking into account the appreciation rate for your region.
¿Interesado sobre el valor de su hogar? Haga Click Aquí para utilizar los datos de “FreddieMac House Price Index” (FMHPI) (Indice de Precios de Casas de FreddieMac) para estimar el valor de su hogar tomando en consideración la tasa de apreciación en su región.
After countless denials by the talking heads on TV and financial pundits, the specter of inflation is becoming increasingly preposterous to deny. Of course, a few will downplay the surging prices of consumer goods and commodities as merely a sign of transitory or temporary inflation- a line that’s become popular with the Federal Reserve.
The bottom line is that retirement generally entails living on a fixed income.
Now, this doesn’t mean a meager or inadequate income but that most American’s rely on income sources that do not significantly increase each year. Income sources such as 401(k)s, IRAs, Social Security, or pension payments. While Social Security does provide periodic Cost of Living Adjustments of COLA, the increases are rather modest. For example, benefit increases tied to the cost of living have not exceeded three percent since 2008. The highest adjustments in the last 40 years came during another period of runaway inflation- the late 1970s and early 80s. In 1979 Social Security recipients received a 9.9% adjustment, in 1980 a 14.3% bump, and 11.2% in 1981.
Then there are payments from retirement savings. Payouts from qualified retirement plans such as IRAs and 401(k)s are neither consistent nor guaranteed. Certainly one can draw a fixed amount each month but the underlying investments rarely earn a consistent rate of return. This sequence of returns risk can lead to retirees exhausting their savings sooner than anticipated.
One doesn’t have to look far to find the pressures on a fixed income and systematic retirement withdrawals. The U.S. Department of Agriculture forecasts food prices will rise 2-3% from 2020. That follows a 3.4% food price increase from 2019-2020. The USDA also reports a number of food manufacturers have issued warnings of further price increases. Then there’s the cost of gasoline and retail goods. All this leaves retirees with two choices- cut expenses or find new sources of cash flow.
Kate Dore writes in CNBC that one can ‘fight inflation with a reverse mortgage. “The consumer price index increased by 0.8% in April from March and surged 4.2% from the previous year, the biggest jump since September 2008. As retirees weigh options to preserve purchasing power, financial experts say adding a reverse mortgage to a retirement plan may offer inflation protection.” Don Graves, president of the Housing Wealth Institute said, “There are more and more people who are looking at this strategically.” Of course, any effective strategy to address inflation in retirement should be proactive. Graves added ““The old adage was to wait until you run out of money and then do a reverse mortgage. That’s absolutely not the way it’s being used right now.”
Many older homeowners who considered taking out a HELOC or home equity line of credit are now feeling the squeeze. Last spring in the early days of the pandemic we reported that J.P. Morgan Chase and Wells Fargo pulled their HELOCs citing market risks. In fact today, many banks have not resumed offering HELOCs reports Mansion Global. Columnist Robyn Friedman writes, “Industry experts expect the three major national banks to eventually begin offering HELOCs again, but the product will be rolled out carefully. “I would expect lenders to slowly start doing HELOCs, but only where they are already in the first-lien position,” said Tendayi Kapfidze, chief economist at LendingTree. “Then, if somebody defaults, the risk of loss is pretty low.”
As the value of the dollar declines and supply-chain interruptions continue inflation of consumer goods will continue. The question is where else can one turn to buffer their monthly cash flow without having to service monthly debt payments? Outside of an inheritance or winning the lottery a reverse mortgage appears to be the only logical answer.
CALL ME TODAY 786-262-6486
Article From HECM World
Covid-19 isn’t the only pandemic spreading across our nation. Fear and uncertainty are just as contagious. Two particular groups are especially worried- older Americans nearing retirement and those who are already entered their non-working years. Kiplinger reports that one in five Baby Boomer has retired and the pace of Boomer retirement increased during the pandemic. What keeps Boomers up at night? SeniorLiving-org found that nearly 1 in 2 adults feared not having enough money saved for retirement. 1 in 4 older adults fears they’ll never pay off their existing debt. In fact, a recent U.S. Census Bureau report found 1.7 million older homeowners were behind on their mortgages and fear eviction.
Debt not only can lead to sleepless nights, but it can also be an outright nightmare. Case in point, last August the CFPB reported, “Since April 2020, the Census Bureau has tracked the number and characteristics of homeowners struggling to make their mortgage payments. As of July 2021, an estimated 682,400 older adults, defined as adults age 65 and older, were behind on their mortgage payments.” It’s quite alarming to learn that mortgage delinquencies and homeowners with zero confidence.
For such individuals Kiplinger’s advice to measure retirement preparedness with the 10X rule which says you should have saved 10 times your pre-retirement income by age 67 will do little to give them peace of mind. However, retirees who restructure how their debt is held could see the greatest benefit. For most Americans, their largest debt is their mortgage. That debt could be restructured in two ways.
The first is a mortgage loan modification. Older Americans suffering financial hardship may be able to get their interest rate reduced, extend the term of the loan, switch to a fixed-rate mortgage, roll late fees into the principal balance, or get a reduction of the principal loan balance owed.
The second is a reverse mortgage. What I like to call the ultimate loan modification. Like a traditional loan modification a reverse mortgage typically extends the term of the loan over the homeowner’s life in the home, accrued interest is rolled into the principal balance, and best of all required loan payments can be completely eliminated! Unlike a loan modification homeowners don’t have to prove their ability to make the required mortgage payments each month but rather their financial capacity to meet their existing expenses and stay current on their property charges to avoid having the loan go into default. Which do you think an older homeowner with substantial home equity would qualify for? A loan modification or a reverse mortgage? A homeowner with a decent credit history but a high debt-to-income ratio would likely not qualify for a modification. However, they may stand a better chance of restructuring their biggest debt into a Home Equity Conversion Mortgage.
Selling and downsizing are also an option but few want to move, and those who end up renting are exposed to rent inflation which is reported to be at its highest level in 30 years.
For a problem to get better one has to first acknowledge its existence. Older homeowners would do well to face their financial fears today while interest rates are low and home values are high. If not, sleepless nights may become the new normal.
In times of Uncertainty We Offer you a Solution!!!
For Reverse Mortgage Information Call me 786-262-6486 or fill out form below