Posts Tagged ‘seniors’

« Older Entries

If I Do A Reverse Mortgage, Will The Bank Own My Home?

Saturday, August 14th, 2010

Is there any truth to the argument that the bank owns your home if you do a reverse mortgage?

Actually, there is nothing different about a reverse mortgage, compared to a traditional mortgage when it comes to ownership. Your home becomes the collateral for the bank with either loan. Because you still own the home, you retain all the ownership rights. You are allowed to sell or refinance without any penalty at any time. In the event that you choose to sell your home, the lender will need to be paid off and any remaining equity will go to you or your heirs.

Usually, the confusion on this topic is when someone is thinking about is a life estate. This is where you sell your home to an investor, and they allow you to live there until you die. Normally this is done with a property that can be developed and in this case, you do give up the property. Don’t confuse this with a reverse mortgage. They are two different programs, not related in any way.

Just to clarify another point before you have to ask, the State does not take your home either. As long as you maintain your property taxes, you will be in their good graces. By the way, if you live in Oregon, you can have your property taxes deferred. Don’t do it before you get your loan, or you will have to pay them off. But instead, do the reverse mortgage and after that is complete, you can defer your property taxes.

Recapping, you keep ownership of your home. A reverse mortgage will never require you to give it up. The right to sell or refinance, while keeping any remaining equity, and do with it as you please, will always be yours.

The same rule applies to your heirs upon your passing. They inherit the home along with the mortgage and existing equity. If they want to keep the home, they will be required to pay off the existing mortgage. If the decision is to sell the home, any remaining equity will be theirs.

Before you commit to any reverse mortgage programs, make sure you get all the information. Visit our website for more reverse mortgage information. We have a free reverse mortgage calculator to see how much money is available to you.

Tags: , , , , , ,
Posted in Retirement | No Comments »

Why Work When You Should Be Retired

Friday, August 13th, 2010

Entrepreneurial activity is increasing among older North Americans and reducing among younger generations.

November 2009. Source: Created from Bureau of Labor Statistics data. Incorporated and unincorporated self-employment rate by age group.

Should you be searching places frequented by senior citizens if you want to find America’s entrepreneurs? The answer, from several data sources, appears to be a resounding yes.

Contrary to the popular perception that entrepreneurship is a young persons game, seniors are more likely than young people to own and operate their own businesses.

In a June 2009 report by Dane Stangler of the Ewing Marion Kauffman Foundation: In every single year from 1996 to 2007, Americans between the ages of 55 and 64 had a higher rate of entrepreneurial activity than those aged 20 to 34.

A report by the U.S. Global Entrepreneurship Monitor in 2008, shows that the rate of entrepreneurial activity rose among American seniors but fell among younger ones. Over 2007 and 2008, both the total rate of entrepreneurial activity (which combines people actively planning to start businesses and those owning operating businesses less than 42 months old) and the rate of ownership of established businesses (those more than 42 months old) indicated a decline of 8% to 9% for the 18-to-44 age segments and an equal increase in groups aged 45 to 99.

Over 75’s have the highest rate of unincorporated self-employment of any age group, a rate 7.5 times greater than for people aged 20 to 24 and 4 times greater than for people 25 to 34.

Many people who are self-employed may be independent contractors for tax and benefits reasons, older people may be more common than younger ones to be employed this way. Data shows that incorporated self-employment peaks in the 65-to-69 age group, those just past retirement age being more likely to be self-employed leads incorporated businesses than members of any age group under 65. Facts, show the incorporated self-employment rate is 4 times greater among those aged 65 to 69 than those aged 25 to 34-and an amazing 25 times greater than those aged 20 to 24.

Unincorporated self-employment over the past year among those over 65 has experienced growth (an increase of 11.1%), but reduction in the number of unincorporated self-employed of those 16 to 64 (a drop of 5.4%). Amongst those 65 to 69 (Omitting those over 70) the number of unincorporated self-employed increased 15.1% from 2008 to 2009.

The changes are unclear for incorporated self-employment because of a 4% increase in the number of incorporated self-employed among those 55 to 64. For incorporated self-employment, dividing the population at age 55 instead of 65 shows an 8.4% drop of those aged 16 to 54 and an increase of 1.7% those aged at least 55 from 2008 to 2009.

Entrepreneurial activity is greater and increasing among North American seniors but data does not tell us why. It might be a group effect. People who entered the work force in the 1960s might be more entrepreneurial than people born more recently.This might be an age effect. Seniors might be more likely to go into business for themselves because they have developed the industry and work experience that research shows enhance entrepreneurial performance.

There are probably many implications of the aging of the self employed here are a few.

* It is becoming more common among senior entrepreneurs who seek part-time self-employment than among younger ones as older entrepreneurs seek the flexibility of running their businesses on a part-time basis.

* Self-employment is seen as a second career as older North Americans retire or leave jobs to start their own businesses.

* Self-financing is becoming more common as older self-employed use savings to finance their entrepreneurial ventures.

Some senior entrepreneurs may be tempted to buy a franchised business. As starting a new business would be a daunting prospect for many seniors to embark upon, which for many would be uncharted territory. The idea is a good one in principle, yet to do so could open up a whole new set of issues, namely time and money. Many franchise businesses will require significant initial dollars as well as ongoing monthly and yearly royalties or fees. Mull over the options carefully before parting with your hard earned retirement dollars.

I fall into the over 60’s age category myself and have recently embarked on a new business venture with a group of ambitious savvy business associates who offer the support and guidance which I need to achieve my goals.

Learn more about franchise. Stop by Mac Stone’s site where you can find out all about Loyal 9 Revolution Teamopportunities and what it can do for you.

categories: Entrepreneur,Entrepreneurial,Franchise,Business,Retirement,Seniors

Tags: , , , , ,
Posted in Retirement | No Comments »

Will Waiting Until I Am Older To Do A Reverse Mortgage Will Get Me More Money?

Monday, August 9th, 2010

There are three factors that determine how much money you get when doing a reverse mortgage. In this article, we will address those.

1. Your age. You probably already know that you need to be at least 62 years old if you want to do a reverse mortgage, but does it make sense to wait until you are older to get more money? In my opinion, it does not pay to wait to get older. Interest rates may go up, and that will affect your available equity more than your age, but more on that in a minute.

I want to talk about the exception to what I just said. The exception: If you are 62 or older and your spouse isn’t, should you wait until they are? The answer is most definitely, “it depends”. If you are in a hardship, or times are tough enough where you feel you could lose the home, it probably makes sense to do it now. Also, if the younger spouse has plans to sell upon the passing of the older spouse, it may make sense. The concern is that if you are not on the loan and your spouse passes away, you will be required to pay off the reverse mortgage or refinance it or sell. This can obviously be bad for you. Remember this: Don’t remove a person from title to get more money. Unless you are avoiding a hardship, it just doesn’t make sense.

2. Interest rate is a large factor. Interest rates have reached in the low 5’s. A raise of just one percentage point could reduce the amount of money you will receive by thousands of dollars. Gambling that the rates are going to go lower in the next several years doesn’t seem like a good bet.

3. The market value of your home. You may be better off using today’s value of your home instead of waiting and guessing on what the value will be in a few years. We have had several clients wait a few years, only to have the property values drop dramatically and risk their eligibility. Guessing on real estate values is hard enough today, let alone three or four years from now.

If it works, why would you wait? What are you hoping for? If the numbers work today, just do it. You can use a reverse mortgage to enhance your retirement today, with real numbers that you can use, based on today’s information. You can see what you qualify for with our FREE reverse mortgage calculator.

Tags: , , , , , , ,
Posted in Retirement | No Comments »

Reverse Mortgage Disadvantages

Wednesday, August 4th, 2010

1. You don’t get to write-off your mortgage interest:

a. Do you recall the 1099 form from your lender that show how much interest you paid? Well, since you don’t make payments on a reverse mortgage, you won’t be getting that form. You aren’t paying interest, you are accruing interest. You will get a 1099 upon paying the interest, and that usually happens when you sell the home.

b. How important is a write off to you? Is it better to have a write off with house payments or no write-off and no house payment?

2. Accruing interest or your balance growing:

a. Interest accruing on your loan without making payments means the amount you owe on your loan will increase over the life of your loan. The interest that is charged monthly is added to your balance, making it get bigger each month.

b. No payments today in trade for a bigger payoff tomorrow. Most reverse mortgages are paid off when the borrower passes away, so they have permanently deferred the monthly payments.

3. Reverse mortgage fees are expensive:

a. A regular loan has much lower fees than a reverse mortgage. If you consider that on a normal loan you have monthly payments but on a reverse mortgage you don’t, maybe there is some justification for the higher fees.

b. Actually though, in the light of new programs, you should be able to get a reverse mortgage for about half of the prior cost. If expense was the reason you avoided a reverse mortgage, check again. It might surprise you how inexpensive they are now.

4. Your kids will get less money:

a. Spending your equity will seemingly reduce the amount of inheritance that is left to your heirs. If you are one of many who wishes to leave a sum a money to your children or grandchildren, this is really important to you. there are probably other ways to leave an inheritance.

b. Does spending your equity really deprive anyone of an inheritance? If you currently have monthly house payments, and you are able to remove it, you will have more cash for maintaining your independence. Your children are less likely to have to chip in on your expenses. This will allow them to save their money while enhancing their retirement. On the other hand, if you are fortunate enough to have your home paid for, the money you receive from the reverse mortgage could help with your medical expenses or just maintaining the home.

You will see there are two sides to these so called “reverse mortgage disadvantages”. Just weigh the objection against the need to see if the loan makes sense to you.If you would like to bounce some ideas off of someone, email me or give me a call. You can get my contact information online at www.redwoodreversemortgage.com. You will also find a lot more information on reverse mortgages there.

Are there other reverse mortgage disadvantages? Follow the links if you are looking for more reverse mortgage information. You can get a free education with no obligation. You can even use our free reverse mortgage calculator.

Tags: , , , , , , , , , ,
Posted in Retirement | No Comments »

What Age Should I Start Looking Into Long-Term Care Insurance In This Economy

Tuesday, August 3rd, 2010

The economy has taken a toll on US workers finances. What Age should I buy long term care insurance coverage in this economy is a good question. There are steps to do and guides to follow to help answer your questions. Policies for long term care cover, in home help, a facility for long-term care, and living in a care home.

These expenses are cover but what do they cover precisely is your question. Find specifics about the spouse discount, get an outline of the supported facilities, and ask about the inflation riders and life insurance riders. This kind policy will provide according to the structure of the agreement. Know what you agreed to prior to signing.

Study your present financial background to figure out the difficulty you’ll have or will not have paying monthly or annual payments. The payments should not take away from the lifestyle your live now. Start when you won’t have to stop due to money pain.

Your retirement plan should include the cost for long-term medicare. Medicaid won’t pick up all the cost but will take some and you must buffer yourself with a little extra for the unexpected. Beginning around mid-life get the lowest payments and longest payout. Waiting until retirement will make the payments high with a short term payout.

Everyone has a family history they can use to outline a possible future. Look for chronic sicknesses that are genetic and the family’s history of Alzheimer’s. Do some groundwork on your personal family and use the info to aid in making your decision. These are depressing facts to find but will help advise you what policy to pick and the specifics to have in your policy.

You can always check up on the company you plan to go with for setting up your contract. Open to the general public is, Moody’s Investors, is a service that give ratings for strength and deficiencies of insurance companies. Find out the power of the Insurance company.

The USHC, a cooperative organization gives us a few guides to follow. Follow these and you may better decide when to start. Confirm you have $70, 000 per person of assets. Is your annual income at least $30, 000? They also suggest not beginning paying premiums till your lifestyle can handle it.

Ages fifty or 55 are good ages to start a long-term medical care program. Your payments will be low with many years to payout the said amount. Wait till retirement time and the payments will double, paid out in half the time.

Replenishing your policy is a warranted provision called,’A Waiver of Premium’. This is provide you have got to draw on the benefits for a little while and won’t have to make your payments. Know the ins and outs of your polices suitability necessities and you’ll cover significant data describing precisely what your buying. Now asking yourself, When Should I Buy long term Care Insurance in This Economy, your can answer for yourself.

For more information on how Long Term Care Insurance can help prepare us as we age. Also you can get a long term care insurance quote. We represent 20 of the top LTCi providers. This gives you tremendous options.

Tags: , , , , , , , , , ,
Posted in Retirement | No Comments »

How Will Obama’s Health Reform Effect Long-Term Care Insurance

Monday, August 2nd, 2010

The subject that has been on everybody’s minds is how will Obama’s Health reform effect long-term care insurance cover plan? Everyone knows that there’s a change that is going to be taking place . But will this change help or hurt our country? Some folks are coincidentally content about the reform while others are hoping for the best but pondering the worst.

Many are wondering if this health care reform is a bad thing versus being a good. We all have come to the understanding that everything is going to be different. However, is this difference going to be a good or a bad thing for us to all have to face?

One gigantic way that Obama’s medical care reform is likely to have an effect on everyone’s lives is that everybody will be in a position to be covered. It doesn’t matter what your stature or what has happened in your life you will be ready to have the medicare that you stand short of.

For some 46 million American citizens who do not have medicare they’re applauding the reform. It just about states that despite your economic stature you’ll be covered with the essential health insurance you need.

Tax payers are going to feel a major hit to their finances. We will all be required to pay back 1 to 2 trillion greenbacks over a ten year time frame in order to rectify the cost of the reform. Even if you don’t utilise this Fed insurance you may be in charge of paying taxes on it as well .

With no regard for where you grow unwell at you will be ready to receive medical aid you need. So if you feel sick in Texas and you are from Arizona you will continue to be able to go to a Texas doctors office and be seen. Your records will be available at the push of a button.

Doctors are going to be given the right to oppose to give you any medical aid. For instance, if a cancer patient needs services for medicine, the doctor will have to compare the costs of the meds and they are going to have a right to turn the patient away if the medicine is deemed too costly.

A lot of old patients are going to be turned down for services. Elderly patients are only going to be allowed to see their doctor once a month if on this insurance. Medicare has already paid a lot for reoccurring medical patients and this new insurance isn’t going to endure it.

If you do not have the health care insurance you will be fined and put through jail time. By law everybody will need to have this insurance regardless of your economic stature.

This reform was supposed to be a great thing for the American folks as a whole, however as time passes on many think that it is just just one major cock-up. The decision does not lie in our hands anymore, so we will be able to all just hope that everything is going to pan out for the best.

For more information on how Long Term Care Insurance can help prepare us as we age. Also you can get a long term care insurance quote. We represent 20 of the top LTCi providers. This gives you tremendous options.

Tags: , , , , , , , , , ,
Posted in Retirement | No Comments »

5 Biggest Reverse Mortgage Questions

Sunday, August 1st, 2010

To make sure you have all the facts necessary to make a smart and informed decision about a reverse mortgage, Redwood financial Services has compiled a list of the 5 most commonly asked questions. The list should help you get started on learning.

1. I don’t owe anything on my home. Can I still do a reverse mortgage? Absolutely. Not owing anything is actually an advantage because you will have more cash available, since you don’t have to pay off a mortgage first.

In the more common event of having a mortgage, you can still do a reverse mortgage. The first step is paying off your mortgage(s). After that, any available equity remaining can be taken as a lump sum, credit line, or monthly installments.

2. Do I qualify if I am behind on my taxes? Definitely. It is one of the best reasons to to do a reverse mortgage. It gets the tax man off your back and takes some pressure off of you. Oregon will allow seniors to defer their property taxes, so consider that option to make a little room in your budget.

3. Does the Bank take the title to my home? The title will be used as the collateral, but you don’t give up your home. It is still your home and you retain all rights to refinance or sell. any remaining equity always belongs to you or your heirs.

4. Do reverse mortgages allow me to purchase a home? In January of 2009, there was a program introduced to allow a purchase of a home with a reverse mortgage.

5. What happens if I use up all my equity? It takes a long time to “use up” your equity. If your home appreciates at all, the time frame to use up your equity is usually 20-30 years. Using an amortization schedule will show you the expected time frame and how much equity (approximately) you have in the home. In the event you do use all your equity up, the lender cannot force you out of your home. The note is written to allow you to not repay the loan until you no longer live there as your primary residence.

Visit our website if you would like to see more questions and answers that are frequently asked about reverse mortgages. You will find free, educational information that will help you get informed before you make your decision.

Tags: , , , , , , , , , ,
Posted in Retirement | No Comments »

Provide Comfort To Loved Ones Through Burial Insurance

Saturday, July 31st, 2010

The old saying goes that nothing is certain but death and taxes. Most people find both of these to be quite unpleasant and avoid the mere mention of them. When it comes to discussing the inevitability of one’s own death, many find it quite difficult to talk about. If you can get past the uncomfortableness of the topic, you can begin to anticipate and plan for areas in which you may ease the burden of your passing on your family.

Of all of life’s challenges, one of the most difficult can be dealing with the loss of loved one. The feelings of heartbreak, sadness, and hopelessness are difficult to deal with for most people. These reactions are both common and understandable.

As you approach a period in life in which your own mortality seems less certain, thoughts of life after you passing are sure to occur. You’ll wonder whether or not your family is properly cared for, whether they have sufficient funds to maintain the lifestyle you created for them, and whether they have the resources they need to care for everything associated with your passing.

One of the simplest ways, however, that you can lighten their load is to prearrange and make the adequate preparations for your funeral and burial. This can be achieved in a number of ways, the easiest of which is through a burial insurance contract.

With burial insurance, you are able to provide the financial support that they need, and provide at comfort in at least one area. Most people do not realize the high cost of funerals. Not only are you paying for the items you would expect, but there are a great number of unanticipated expenses. When all is said and done, your bill for the funeral and subsequent burial can easily be upwards of $10,000.

The common reaction this price tag is shock or awe. When your family is hit with this bill unawares, your passing can add a new level of stress, worry, and despair. If your family is left scrambling to scrape up the cost of your death, a new dimension to their sorrow is unnecessarily added.

The burial insurance is designed to help your family meet these costs and ensures that they appropriate funding is in place before the need ever arises. The payout from the insurance policy can be given to a beneficiary or directly to the funeral director through which the policy was written. When the funeral home receives the payments, the majority of the arrangements are taken care of by the director.

Burial insurance is able to insure your family for the casket, funeral director charges, burial property, building rentals, etc? With a policy in place, your family can hold the funeral that they wish to hold and not be limited by immediate financial restrictions.

Before you take commit to burial life insurance, make sure to visit Owen Matthews online at the Life and Health Guru. The staff is focused on providing good, unbiased insurance information and cover topics ranging from general insurance to guaranteed term life insurance.

Tags: , , , , , , , , , , , , ,
Posted in Retirement | No Comments »

How Your Home Can Pay For Your Retirement

Saturday, July 24th, 2010

If you’re a Florida retiree and you’re having trouble making ends meet you may want to look into taking out a reverse mortgage. The equity that you have built up in your home over the years may be your answer to a more comfortable retirement. These flexible home equity loans allow you to choose how you want the funds distributed and don’t require repayment for as long as you continue to use your home as your primary residence. The advantages of these loans can make your retirement years much more enjoyable than you’ve ever imagined.

How Reverse Mortgages Work

The amount you can borrow from a reverse mortgage is based upon the market value of your home. The flexibility of these amazing financial products allows you to choose how and when you receive the funds. When you apply for a reverse mortgage, your home is appraised and the amount you can borrow is based upon that appraised amount. All closing costs and title fees can be financed so that there is very little out of pocket expense to you. You can then choose whether you want your funds distributed to you all at once, over a period of time or whether you want to open a line of credit. Once the last surviving homeowner passes away or moves out of the home, the loan becomes due. As long as you continue to pay your taxes and insurance, you will not be required to repay the loan as long as you continue to live in the home.

Take Control of your Retirement

Florida Reverse Mortgages

If you are currently retired, you know exactly how hard it can be to make ends meet. Using your home’s equity to refinance your retirement can significantly ease the financial burdens during your retirement years. A reverse mortgage gives you the flexibility to take out the amount you want, when you need it. You can take out the full amount your eligible to borrow at closing or you can take out your loan amount over time. Whatever you do with your money is completely your decision.

Monthly Payments from your Home

Historically, the most popular format of reverse mortgage has been the line of credit where the borrow can withdraw funds at their choosing. However, a reverse mortgage can also provide a steady monthly stream of payments to supplement other retirement income. If you’re thinking of taking out a reverse mortgage, its important that you spend time with your loan officer to explore all your options and choose the product that fits our needs. Proper use of reverse mortgage proceeds can make the difference between a difficult retirement and enjoying your golden years.

Live out Your Years in Florida Comfortably

With a reverse mortgage you are rewarded for your good financial stewardship in your earlier years. The time that you spent paying your home’s mortgage every month is repaid by the monthly checks that you can receive through the reverse mortgage. Since you do not need to worry about paying the money back, you can enjoy your later years without any financial concerns. Your home’s equity will pay the bill for you when the home is no longer yours. Reverse mortgages allow you to stay in your home and live comfortably.

Before you purchase your new retirement home, make sure you check out Reverse123, information on Reverse Mortgages and HECM for Purchase

Tags: , , , , , , , , , ,
Posted in Retirement | No Comments »

Use Your Reverse Mortgage Equity 4 Ways

Sunday, July 18th, 2010

Reverse mortgages allow you to access your home equity four different ways. We will examine those ways so you know how to access your reverse mortgage equity.

1. Lump Sum - You have the option of taking all the funds available to you at one time. You can use the money for anything you want, but the most common use is paying off the existing mortgage (if you have one) on your home.

2. Monthly Payments - Payments to you that is. The two options are payments that continue for a specified amount of time or a lifetime payment. Since the lifetime payment continues for both your and your spouse’s lifetime, it is the most common choice.

3. Line of Credit - In the event that you don’t need the money today, or you would like to keep in in reserve for an emergency, choose this option. No interest will be charged to you if you don’t take the money. It is only charged in the event you borrow it.

4. A Little of Each - If you don’t want to be tied down to one choice, then you can mix and match the above choices. It will allow you to have a line of credit for use later, a monthly income for life, and a lump sum withdrawal that you can use for anything you want. At any time, for a small fee, you can alter your program to tailor it to your current needs.

In the event you want an option other than a lump sum, know that you must take an adjustable rate mortgage (ARM). When choosing the fixed rate reverse mortgage, there is only one option - you have to take it all when you close your loan.

Prior to committing to any reverse mortgage programs, get the facts. Visit our website for more reverse mortgage information. We have a free reverse mortgage calculator to see how much money is available to you.

Tags: , , , , , , , , ,
Posted in Retirement | No Comments »

« Older Entries
Powered by WordPress Lab