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Showing posts with label HECM. Show all posts
Showing posts with label HECM. Show all posts

Wednesday, November 12, 2014

Age is a State of Grace - Dream Jobs for Elders

Age Is a State of Grace, Part 2: Dream Jobs for Elders

AMARA ROSE NOVEMBER 11, 2014 0
“114 isn’t as old as it used to be; they say it’s the new 104.”
~ Craig Ferguson
reverse mortgage newsLast month we discussed how some seniors look down their noses at the idea of retiring from the work world, as though the suggestion is an errant piece of lint on their clothing, and focused on just how essential these extra dollars might be for someone in their 60s and 70s.
Such concerns seem like child’s play for some of the nation’s oldest workers, who have vowed never to retire — primarily because they enjoy their jobs so much.
Take Betty Reid Soskin, 93 — but don’t take her too far from the Rosie the Riveter/World War II Home Front National HistoricalPark in Richmond, California, where she’s been a park ranger since she was a youthful 86. Soskin says all her previous jobs, in politics, as a record store owner, and as an office worker, have been preparation for her current work, in which she shares with park visitors what it was like to work in a segregated union hall during World War II. “It’s rather an enviable spot to be in,” says Soskin proudly. “I wouldn’t think of retiring.”
At 91, Kenneth Curzon is a cruiser. Though he could certainly be relaxing on the front porch of his house with a reverse mortgage to fund his days, even if he had a HECM, you wouldn’t find him sitting on the porch. Instead, Curzon cruises the parking lot of Scripps Memorial Hospital starting at 6:15 a.m., a job he’s loved for the past 24 years. The hospital CEO doesn’t believe he’s ever arrived before Curzon in the morning. “If they came to me and said I need to step aside then I would do that, but I would probably look for another job,” Curzon said.
Novaleen Slatton, 90, says the same: “I don’t want to stay at home by myself and look at four walls. So many people have retired, and then they say they’re bored to death.” Instead, Slatton works three days a week as receptionist at her local Chamber of Commerce, using her earnings to contribute to savings accounts for her three grandchildren, who are in college or just launching their careers. When she’s not at work, Slatton goes to the races — that’s horse races — with her brother.
Do any of your reverse mortgage clients or prospects still work, not necessarily because they need the money but to continue to contribute their skills and wisdom to the world? If some of your senior contacts are experiencing low spirits, perhaps a part-time dream job could be the cure.

Friday, June 27, 2014

FHA Makes More Reverse Mortgage Proceeds Available for Older Borrowers

FHA Makes More Reverse Mortgage Proceeds Available for Older Borrowers

June 27th, 2014  |  by Elizabeth Ecker Published in FHA, News, Reverse Mortgage
The Department of Housing and Urban Development is making more proceeds available for some reverse mortgage borrowers, under new principal limit factors(PLFs) released Friday.
The new PLF tables now include borrowers who are under 62 years old, following a decision by HUD to allow for non-borrowing spouses of new reverse mortgage borrowers after August 3 to remain in their homes following the passing away of the borrower, under certain terms and conditions. The PLFs reflect loans for borrowers who are age 62 and older, but also loans for married couples where one borrower does not meet the traditional 62 year old age requirement.
A “special table” now includes PLFs for loans where one of the parties is age 18 to 61.
The new tables also make the Home Equity Conversion Mortgage program more sensitive to interest rates than previously.
“The biggest impact of these updated tables will be the reductions in PLF for higher interest rate scenarios, making the HECM market more sensitive to interest rates than it is currently,” says John Lunde, president and co-founder of Reverse Market Insight. “Right now home price appreciation is the biggest factor behind HECM to HECM refinance volume, and while that is likely still the case these new tables put more of a balance in place between home price appreciation and interest rates.”
HUD announced the new PLF tables via Mortgagee Letter 2014-12 on Friday, noting the change since last year’s PLF update. The new factors will go into effect as of August 4, 2014.
“The new Principal Limit Factor (PLF) tables have been wholly revised and now also include PLFs for use where the Borrower has a Non-Borrowing Spouse younger than 62,” HUD writes in its description.
Last year the agency slashed PLFs, resulting in a roughly 15% cut across the board for all borrowers. The newest change raises the amount of proceeds for the older spectrum of borrowers in a lower rate environment, but reduces PLFs for most borrowers in a higher rate environment.
The shift in the latest tables adjust depending on age and rate, resulting in different impacts versus the 2013 PLFs. PLFs increase in a lower interest rate environment whereas they will decline materially as rates rise.
For those on the younger end of the age spectrum, PLFs are reduced slightly versus the 2013 tables. At an interest rate of 5%, they increase for those who are 64 and older. At an interest rate of 6%, those who are 78 and older will see greater principal limits versus the previous table.
NewImage
Chart courtesy of Ibis Software. 
“The older people benefit more,” said Jerry Wagner of Ibis Software. “The new PLFs are much more leery of rising rates.”














For more information contact Diane, the Reverse Mortgage Expert at 314-220-3918 or email fourquits@aol.com.

Monday, March 31, 2014

Retire at 62????? Monte Carlo Scenario explains HOW

GOAL:  Retire at age 62



Profile:  US Citizen - Age 61.5 - Marital Status: Single -

Social Security Benefit: Earning Basis


Scenario 1: without reverse mortgage         Scenario 2:  with a reverse mortgage
Income total:                         $75,000             Income total:                  $75,000
1.  Salary (100% taxable)              75,000   1. Salary  (100% taxable)   $75,000
Begins at 61, ends at 62                                      Begins at 61, ends at 62
2. Social Security Monthly          1,222     2.  Social security amount    $2,141
FV 85% taxable                                                 FV 85% taxable
Annual increase                                   2%        Annual increase                      2%
Begins at 62, ends at 90                                   Beings at age 70, ends at 90
                                                                      3. Reverse Mortgage Monthy Amount
                                                                          (PV, 0% taxable)                       $1,223
                                                                           Annual increase                              2%
                                                                The income begins at age 62,ends at age 70

Expenses                               Annual Total            Assets
Housing                                             $7,800          Home value
Transportation                                     5,400         Mortgage or liens
Food, beverage, clothing,
personal care, cash                           9,900            Home equity  $0
Medical                                               7,200          Bank Accounts $0

Entertainment                                      5,900          Qualified Retirement Accounts   $300,000

Other                                                  1,300          Investment acounts                    $200,000
                                                                                  Total Market Value                 $500,000

                                                                              Liabilities: $0 Life insurance: NONE

                           Description            Required need      Desired Need             Total Need
RETIREMENT
Needs               Housing                       $8,034                       $0                           $8,034
                           Transportation              5,562                                                         5,562
                           Food, clothing etc     $10,197                                                    $10,197
                           Medical                           7,416                                                      7,416
                           Entertainment                     $0                  $6,077                        $6,077
                           Other                               2,575                                                     2,575
                           tax on prior yr returns   4,375                                                        4,375

                  TOTAL                                $38,159                  $6,077                      $44,236







Has objective been met?                            Has objective been met?
Scenario 1:  Without a Reverse                  Scenario 2:  With a Reverse
Based on the analysis of your retire          Based on the analysis of your retirement
ment income needs, expected                    income needs, expected income sources
income sources and available                    and available assets, your retirement
assets, your objective will be                      income objectives will be completely
will be satisfied until age until                    satisfied.
age 86.  At retirement, additional
funds of $50,386 will be needed.

Scenario 1 (without reverse mortgage): Has Objective been met?

Age     Total      Social        Additional    Needed        Required        Asset   (Shortgage)
             Needs   Security    Income       fm Assets    Distributions   WD      Unmet Needs

61     $47,100       $0          $47,100           $0                       $0                 $0            $0
62       42,738    12,321               0          $30,307                  0         $30,307             0
63       41,456    12,679               0            28,776                  0            28,776            0
64       45,502    12,933               0            29,569                  0            29,569            0
65       43,572    13,191               0            30,380                  0            30,380            0
66       44,665    13,455               0            31,210                  0            31,210            0
67       45,784    13,724               0            32,059                  0            32,059            0
68       46,927    13,999               0            32,928                  0            32,928            0
69       48,096    14,279               0            33,817                  0            33,817            0
70       49,290    14,564               0            34,725         17,801           16,924             0
71       50,645    14,856               0            35,789         18,479           17,310             0
72       52,036    15,153               0            36,884         19,180           17,704             0
73       53,466    15,456               0            38,010         19,900           18,111             0
74       55,070    15,765               0            39,305         19,855           19,450             0
75       56,722    16,080               0            40,642         19,714           20,928             0
76       58,424    16,402               0            42,022         19,457           22,565             0
77       60,176    16,730               0            43,447         18,974           24,473             0
78       61,982    17,065               0            44,917         18,417           26,500             0
79       63,841    17.406               0            46,435         17,578           28,857             0
80       65,756    17,754               0            48,003         16,512           31,490             0
81       67,729    18,109               0            49,620         15,181           34,440             0
82       69,761    18,471               0            51,290         13,535           37,755             0
83       71,854    18,841               0            53,013         11,516           41,497             0
84       74,009    19,217               0            54,792           9,056            45,736            0
85       76,230     19,602              0            56,628           9,025            50,603            0
86       78,517     19,994              0            58,523           6,025            31,499           0
87       80,872     20,394              0            60,479               0                     0          (24,620)
88       83,298     20,802              0            62,497               0                     0          (60,479)
89       85,797     21,218              0            64,580               0                     0          (62,497)


Scenario 2 (with reverse mortgage) Has Objective met?
Based on the analysis of your retirement income needs, expected income sources and available assets, your retirement income objective will be completely satisfied.

Age     Total      Social        Additional    Needed        Required        Asset    (Shortage)        

             Needs   Security    Income       fm Assets    Distributions   WD      Unmet Needs

61     $47,100       $0          $47,100           $0                       $0                 $0          $0
62       42,738         0             12,431       $30,307                  0         $30,307            0
63       41,456         0             12,679        28,776                  0            28,776            0
64       42,502         0             12,933        29,569                  0            29,569            0
65       43,572         0             13,191        30,381                  0            30,381            0
66       44,665         0             13,455        31,210                  0            31,210            0
67       45,784         0             13,724        32,059                  0            32,059            0
68       46,927         0             13,999        32,928                  0            32,928            0
69       48,096         0             14,279        33,817                  0            33,817            0
70       49,290    21,761               0           27,529         17,801             9,728             0
71       50,699    22,196               0           28,503         18,479           10,024             0
72       52,148    22,640               0           29,508         19,180           10,328             0
73       53,638    23,093               0           30,544         19,904           10,640             0
74       55,168    23,555               0           31,613         20,653           10,960             0
75       56,742    24,026               0           32,716         21,427           11,289             0
76       58,424    24,507               0           33,917         21,818           12,099             0
77       60,176    24,997               0           35,180         21,925           13,254             0
78       61,982    25,497               0           36,485         22,053           14,432             0
79       63,841    26,007               0           37,835         21,973           15,862             0
80       65,756    26,527               0           39,230         21,767           17,463             0
81       67,729    27,057               0           40,672         21,411           19,261             0
82       69,761    27,598               0           42,163         20,876           21,287             0
83       71,854    28,150               0           43,704         20,125           23,579             0
84       74,009    28,713               0           45,296         19,114           26,182             0
85       76,230    29,713               0           46,942         17,670           29,272             0
86       78,517    29,873               0           48,643         15,857           32,786             0
87       80,872    30,471               0           50,401         13,604           36,798             0
88       83,298    31,080               0           52,215         10,821           41,397             0
89       85,797    31,702               0           54,095           7,399           46,696    




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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.