HEADLINE:  Is It time?

As I write today’s article (Tuesday morning), the stock market is plummeting -  again. The Dow Jones Industrial Average is well below 10,000 -- again.  And it’s unnerving.  Just when I thought my portfolio was returning to an upward trend, its value is down -- again.

If you are 62 or older, you may be even more uneasy since there is less time to see a recovery.   Wouldn’t it be nice to have financial peace of mind – again?

Homeowners can use a financial tool that can access some of the equity in their home without monthly payments.  that tool is a Reverse Mortgage.

A Reverse Mortgage is a loan, available only to homeowners 62 and older, which allows access to cash - a portion of the equity.  No repayment of principal or interest is required of the borrowers while living in the home.  Instead, interest is added to the loan and paid when the house is sold or after the homeowners move from the home.

For loans insured by the US Government, homeowners (and their heirs) can owe no more than the value of the property at time of sale (assuming an “arms-length” transaction).  This is an extremely valuable protection in a yet-volatile housing market.

Homeowners ALWAYS retain title to the home and share no appreciation with the lender.  How much a homeowner can receive varies with 4 different factors – the most important is age.  The older the homeowner is, the more he/she can receive.

Reverse mortgage proceeds can be used for any reason whatsoever. For example, historically they have been used to pay off existing mortgages and credit lines (in order to increase monthly cash flow), to fund in-home companion or medical care, and to provide access to cash in order to make home improvements to safely “age in place” in the home.

But proceeds can also be used to buy long term care insurance, life insurance or other similar tools to aid in the aging process.  For young retirees, a Reverse Mortgage may be used to supplement income and forestall initiation of social security payments that are substantially larger at an older age.  Reverse Mortgage proceeds may also be used to fund a grandchild’s education or even assist adult children in these tough economic times.

Just imagine:

• You have financial peace of mind and can maintain your independence.
• You never make a monthly payment.
• You retain ownership and control of your home – ownership is never given to the lender.
• Your loan proceeds are non-taxable.
• You can live in your home for as long as you choose.

If you would like more information about the reverse mortgage options available to you, please contact my office at (650) 591-4430.

Judy Schwartz
Reverse Mortgages Only
(650) 591-4430