Baby Boomers want to MOVE!!!!!!

It's a fact that there are tens of thousands of people are turning 62 everyday.  If this is you or will be you soon keep reading.  According the Fidelity investments research study almost 40% of the baby boomers would like to move sometime during their retirement years.  Preferably to a warmer climate.  Even though they would like to move they currently  feel trapped by their financial situation.

Have your investments taken a beating?  Has your home value plummeted by 50% or more?  Has your dreams of buying a new retirement home vanished?  With countries like Greece going bankrupt it's directly affecting the retirees here in the U.S.  Here at home our county is trillions of dollars in debt and economist warn it's likely to get worse.  The fact is that many new retirees feel hopeless and stuck. Not being able to live out their retirement dreams.

I'm a specialist in helping people to understand how to purchase real estate with no monthly payments and without paying all cash down.  Not only that but I can show you how you can eliminate a mortgage payment.  You can sell your current home and get enough to purchase another one outright.  You probably have assets in your retirement account you could withdraw, but because they have less value than a few years ago you hate to pull it out now and need to really wait for a come back.  All this isn't your fault.  Like many you were a victim of tough economic times.  Some people are enjoying the retirement dreams right now.  They have purchase a retirement home and did it all without having a monthly mortgage payment and not paying for it with all their cash.

The HECM for purchase is a popular way to purchase a home - sell the family home that is now to big - or make needed repairs.  This is a easy way for you to capture the equity from your existing home and to take advantage of the wealth you've built with no income, assets or credit required.  However you cannot have any bankruptcies or tax liens on your record.  This is a huge opportunity for you to make your retirement dreams come true.

Have you ever imagined rental income to supplement your income?  You can do a reverse on your current residence and purchase rental property.  The rental property will create a positive "cash flow", without having to make a payment on it.

So to review, Baby boomer are more active and vibrant than the generations before them.  They can expect to live a very long life into retirement.  This HECM for purchase program was specifically designed with the baby boomers in mind.  Call me today at 314-220-3918 for a FREE quote and learn how you can move or create more income.  You can also visit my website at www.reversemortgagesspecialist.com.

Current Outlook for Boomer Retirees

Have Boomers set aside enough funds for retirement?  Researchers are suggesting their savings are not sufficient.  Relying on Social Security is not a good idea because of its impending insolvency.  The overall outlook for aging baby boomers appears grim.

Millions of Americans are still facing a dismal outlook when it comes to their own ability to retire.

Statistics to support current retirement conditions:

1.  The expected retirement age is now up to 67 from a previous 63

2.  According to AARP 40% of baby boomers consider working until they die

3.  The Employment Benefit Research Institute notes 46% of Americans have less than $10,000

     saved for retirement.

4.  Lifehappens.org reports a dismal 87% of adults feel they will not have a comfortable

    retirement.

5.  CNBS recorded 36% of Americans state they don't contribute anything to their 

     savings by an average of $117,000

6.  Ameriprise surveyed 50 - 70 year olds about their cash savings and found that

    90% had experienced a significant economic life event that negatively impacted

    their retirement savings by an average of $117,000.

7.  The Great recession created low interest rates which impaired the growth

    of retirement assets

8.  The market has declined by 55% and home equity 33% while 23% reported having

     to support grown children or grandchildren

Why has American retirement dreams been depleted?

Most respondents to the surveys point to increasing cost of living expenses preventing them from saving.  Included in the saving problem is rising healthcare and long-term care expenses.

In addition to the rising expenses it the fact that the dollar doesn't go as far as it once did because of practices by the Federal Reserve.

Putting money in the bank is probably the largest retirement mistake.  Inflation destroys 50% if you let it stay there for 22 years.  Your money has to work for you, not the bank.

The traditional forms of investment like CDs, bonds and money markets pay less than 85% less than they did just six years ago.

Tax increases implemented by the Obama Administration further complicates matters.

The United States retirement system has earned a "C" rating from the consulting firm Mercer, as compared to the "A" grade Denmark received and the Netherlands' retirement system's B+ rating.  The study further shows that other countries are willing to make unpleasant steps by workers and employers to fund a stable system.

The United States Social Security trust fund is expected to become insolvent in 2033.

As Social Security dwindles, retirees will need to look at other resources like home equity to fund their retirement.

For the first time in history less money will be available and alternative sources of income will need to be established.

Despite a drop in home values since the recession 21% of Americans expect to rely on the equity built up in their homes as a source of income.

Attempting to retire without social security requires a lot of planning, saving and investing.  It's important to plan well to create a successful retirement plan.

How to use Home Equity for retirement

Aging in Place model home being built

Some Aging in Place design elements included in an Aging in Place home include  convenience, safety and comfort for senior residents who want to remain in their home.
In Neenah, Wisconsin The CareGiver Partnership is launching a model home project that includes an automation system, environmental sensors, motion sensors, fall prevention tools and mobility features geared specifically toward the needs of older residents.
There are thousands of baby boomers turning 65 everyday and there is a severe shortage of affordable long-term care facilities and trained caregivers.  That is why Aging in Place is so important.
Many service providers, builders and manufacturers are adjusting to this growing market and developing programs to help people remain at home as long as possible.
The home in Wisconsin is scheduled to be completed on November 1 and serve as a demonstration for anyone interested.
More Aging in Place Articles

Frequently Asked Questions about HUD's Reverse Mortgages

Frequently Asked Questions about HUD's Reverse Mortgages

The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program, which enables you to withdraw some of the equity in your home.  The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.  You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, "Use Your Home to Stay at Home," a guide for older homeowners who need help now. It is smart to know more about reverse mortgages, and decide if one is right for you!
1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  However, unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
2. Can I qualify for FHA's HECM reverse mortgage?
To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online or by phoning (800) 569-4287.
3. Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
Yes.  You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.
4. What types of homes are eligible?
To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.
5. What are the differences between a reverse mortgage and a home equity loan?
With a second mortgage, or a home equity line of credit, borrowers must have adequate   income to qualify for the loan, and they make monthly payments on the principal and interest.  A reverse mortgage is different, because it pays you – there are no monthly principal and interest payments.  With a reverse mortgage, you are required to pay real estate taxes, utilities, and hazard and flood insurance premiums.
6. Will we have an estate that we can leave to heirs?
When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid.  All proceeds beyond the amount owed belong to your spouse or estate.  This means any remaining equity can be transferred to heirs.  No debt is passed along to the estate or heirs.
7. How much money can I get from my home?
The amount you may borrower will depend on:

• Age of the youngest borrower
• Current interest rate
• Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
• Initial Mortgage Insurance Premium--your choices are HECM Standard or HECM SAVER

In addition, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.  If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.  For an estimate of HECM cash benefits, select the online calculator from the HECM Home Page. Many online reverse mortgage calculators can provide you with an estimate of the amount of funds you can borrow.
8. Should I use an estate planning service to find a reverse mortgage lender?
FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender.  You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting a HECM counselor for a listing.   Services rendered by HECM counselors are free or at a low cost.  To locate a HECM counselor Search online or call (800) 569-4287 toll-free, for the name and location of a HUD-approved housing counseling agency near you
9. How do I receive my payments?
You can select from five payment plans:

• Tenure- equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
• Term- equal monthly payments for a fixed period of months selected.
• Line of Credit- unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
• Modified Tenure- combination of line of credit and scheduled monthly payments for as long as you remain in the home.
• Modified Term- combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

 10. What if I change my mind and no longer want the loan after I go to closing?  How do I do this?

By law, you have three calendar days to change your mind and cancel the loan.  This is called a three day right of rescission.  The process of canceling the loan should be explained at loan closing.  Be sure to ask the lender for instructions on this process.  Mortgage lenders differ in the process of canceling a loan.  You should ask for the names of the appropriate people, phone numbers, fax numbers, addresses, or written instructions on whatever process the company has in place.  In most cases, the right of rescission will not be applicable to HECM for purchase transactions.