Aging in Place is a very important topic. There will be 79 million Americans that will cross the threshold to retirement over the next twenty years, joining the millions of folks that are already retired.
There are Key risks that all retirees will face in the coming years:
1.Outliving their assets - with new retirees expected to live well into their 90's it may be difficult for retirement assets to support post retirement living.
2. Inadequate returns - traditional investments like CD's and bonds are not providing enough returns to support retirement. You will probably run out of money to offset inflation and taxes. Invest wisely!
3. Inflation - The rising cost of goods and services over the period of your retirement. You need to consider if inflation averages 3% over the 25 years you are retired, you will need twice as much money to maintain your current standard of living. For example it your standard of living is currently $75,000 in 2034 you will need $150,000.
4. Healthcare expenses. You could be using up to 35% of your after tax dollars to support your healthcare needs in 2030.
5. Taxes - Make sure you carefully manage your tax liabilities so that you pay as little as is legally possible to reduce the money your have to take out of your retirement funds.
Wednesday, February 24, 2010
Tuesday, February 23, 2010
New HECM reverse to purchase program
Many seniors find themselves living in a home that was suitable for raising a family and to large or ill equipped to meet their current needs. Perhaps some would rather relocate to be near children, grandchildren or warmer climates. Moving to a smaller updated home that requires less maintenance and repairs would certainly enhance their retirement years.
This new program will be providing opportunities for people over 62 to purchase homes. This new financial tool can be used to purchase a primary residence while allowing the senior to obtain the same result as paying cash for the home. The outstanding balance owed is only due and payable once both borrowers permanently live the home, by sale, disability or passing away.
There are also no credit or income requirements for this loan. There are no payments on the outstanding owed balance no matter how old they may become for as long as they occupy the home.
Advantages of the REVERSE TO PURCHASE PROGRAM
* Employment or income not necessary to qualify
*Considered a non-recourse loan a reverse mortgage can never go into foreclosure as long as one of the qualified borrowers is living in the home.
*Good credit or credit score not necessary
*No monthly mortgage payment on the outstanding balance
*It can be paid like a regular mortgage for a tax deduction or to the limit the amount added to what is owed
*Title of the property ALWAYS remains in the homeowners name, never changing ownership
*The home can be sold at any time without pre-payment penalty.
The amount needed for a down payment is based on the borrowers age and current interest rates. The older a person, the less money is needed to purchase the home. The current rate for the fixed rate program is 5.5%.
HUD counseling is required for this loan just like any other reverse mortgage program. This HUD counseling educates the borrower about the program. The counseling can be done in person or over the phone. The counselor protects the best interest of the borrower(s).
A reverse mortgage on a borrowers current residence can be used to purchase a second home. This will allow the homeowner to own a second home with no monthly mortgage payments.
For further information you can visit my website at www.dianequitmeyer.com or call 314-220-3198.
This new program will be providing opportunities for people over 62 to purchase homes. This new financial tool can be used to purchase a primary residence while allowing the senior to obtain the same result as paying cash for the home. The outstanding balance owed is only due and payable once both borrowers permanently live the home, by sale, disability or passing away.
There are also no credit or income requirements for this loan. There are no payments on the outstanding owed balance no matter how old they may become for as long as they occupy the home.
Advantages of the REVERSE TO PURCHASE PROGRAM
* Employment or income not necessary to qualify
*Considered a non-recourse loan a reverse mortgage can never go into foreclosure as long as one of the qualified borrowers is living in the home.
*Good credit or credit score not necessary
*No monthly mortgage payment on the outstanding balance
*It can be paid like a regular mortgage for a tax deduction or to the limit the amount added to what is owed
*Title of the property ALWAYS remains in the homeowners name, never changing ownership
*The home can be sold at any time without pre-payment penalty.
The amount needed for a down payment is based on the borrowers age and current interest rates. The older a person, the less money is needed to purchase the home. The current rate for the fixed rate program is 5.5%.
HUD counseling is required for this loan just like any other reverse mortgage program. This HUD counseling educates the borrower about the program. The counseling can be done in person or over the phone. The counselor protects the best interest of the borrower(s).
A reverse mortgage on a borrowers current residence can be used to purchase a second home. This will allow the homeowner to own a second home with no monthly mortgage payments.
For further information you can visit my website at www.dianequitmeyer.com or call 314-220-3198.
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