Looking out for Retirees
April 3, 2019 | Posted by: Mike Garganis
Parents and Grandparents have worked hard to turn their house into a home – it’s where they’ve built memories, and where they deserve to stay.
After working for 40 plus years (depending on their field, could go longer or less), people deserve to kick their feet up and enjoy life. However, life may have thrown some a curve ball or some may not have budgeted a savings plan early in life to afford even a simple lifestyle in their golden years.
Most people don't discuss their finances with family or friends whether they are ashamed or don’t want to burden others. The fact is, these should be the most enjoyable years of their life and money is a pretty important factor.
How can I help people who are retired?
The Reverse Mortgage - It’s a loan secured against the value of the home. Unlike a traditional home equity line of credit or conventional mortgage, there are no monthly mortgage payments for as long as you live in your home.
Some quick benefits:
- - There are no monthly mortgage payments until you choose to move or sell.
- - Maintain full ownership and control.
- - Retire in your home on your terms.
- - Homeowners 55 or older can get up to 55%* of the value of their home in tax-free cash.
- - Cash can be received in a lump sum or in monthly or quarterly installments.
- - It can even be used to pay off an existing loan or mortgage to eliminate all monthly debt payments.
Here's a quick example of how it looks:
In the above example, using a current home value of $700,000, let’s assume $200,000 was pulled out of the home, that can go towards paying bills, vacationing, home renovations, helping with grandkids education, etc., but if we look at 10 years later assuming an annual average of 4% appreciation, you will notice 2 things:
- The home value will be estimated at just over a $1,000,000, depending on the location, that can definitely be more.
- The homeowner will still have a great deal of equity in the home.
I’ve read many negative social media comments on this product with NO explanation. I’ve even asked these people who posted the negative comments to elaborate, none of them could.
I’m not saying this is the right product for everyone, but if you know someone 55 or older (personally I think 60 is even young, but it all depends on the situation), and they are having a hard time making ends meet, then this is a smart alternative to selling their home.
I’m sure you have questions that I may not have covered, or if you wish to discuss another product with me, I’ll be more than happy to go through all options available.