5 Facts about Reverse Mortgages, That You Should Know.
There are a lot of myths and half-truths about Reverse Mortgages, so before dismissing a reverse mortgage as an option, talk to a Reverse Mortgage Specialist to get the facts and to see if a reverse mortgage is right for you.
1) Costs for doing a reverse are comparable to a conventional mortgage…even though you always hear they are high cost. Since this is a FHA insured loan , the difference is the cost of the Mortgage Insurance Premium. All fees are regulated and only HUD allowed fees are permitted with no mark-ups or junk fees.
2) Social security and Medicare are NOT affected if you take out cash from a Reverse Mortgage, because it is a loan so the IRS does not consider the proceeds income.
3) The Lender or bank does NOT own your home..You OWN the home and are on title.
4) There are no monthly mortgage payments , however you still must pay your taxes and insurance.
5) A reverse is a non-recourse loan. This means the borrower or heirs are not responsible for any difference if the home is sold for less than what is owed. Borrowers are NOT leaving debt to their children.
To talk to a Reveres Mortgage Specialist at MSI Reverse call 855 901 3100
Do you know the difference between Medicare and Medicaid?
According to Wikipedia the online dictionary below are the definitions of Medicare and Medicaid. Many seniors believe that these two medical payment systems are all they need for healthcare without every really understanding what they do or how they work. The financial consequences of understanding how and when each of these apply can make a huge difference in a persons quality of life and/or care, it pays to know these differences.
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other special criteria like the End Stage Reneal Disease program (ESRD).
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states.[1] People served by Medicaid are U.S. citizens or legal permanent residents, including low-income adults, their children, and people with certain disabilities. Poverty alone does not necessarily qualify someone for Medicaid. Medicaid is the largest source of funding for medical and health-related services for people with limited income in the United States.
Medicaid is basically charity, and while it serves a function of assistance in society there are strict rules and regulations for qualifying. If you are concerned or interested I suggest speaking to a certified elder law attorney or one the specializes in wills, trusts or succession planning.
If you need a referral or are an attorney wishing to be referred you may contact me at crizzo@msiloans.biz
Value in having an experienced reverse mortgage loan officer
Just recently at a closing the notary paid me a wonderful compliment. She told my customers they ”were very fortunate that their loan officer (me) was there to explain all of the documents they were signing” and that “most loan officers don’t even show up at the closing”. She also stated that she is instructed “not to try to interpret the documents, just make sure everything is signed properly so that the loan funds”. This is good business advice for the title company as a notary is not a mortgage professional and could create liability for the title company by saying the wrong thing. Not really a good option for the new reverse mortgage customer.
Reverse mortgages are much different from forward mortgages by design. If you are considering a reverse mortgage two of the things that should be evaluated are the competency of the loan originator and the level of service you will receive. Is the originator knowledgeable, do they take time to make sure you understand what a reverse mortgage is and how it works? Feeling comfortable with your decisions means starting with good information, don’t be afraid to ask about experience and service.
10 Things Still Made in America!
This Christmas I made it a point to look at where the presents came from, from clothes to toys, not many made in America anymore!
So I did some checking to see what is still made in America:
Here’s are 10 things stills made here:
- Motorcycles – Harley-Davidson and Victory, also Snowmobiles by Polaris
- Baseball bats by Louisville Slugger and Wilson footballs
- Kitchen Appliances – KitchenAid and Viking
- Guitars – by Gibson
- Crayola Crayons and silly putty
- Hallmark greeting cards
- Pianos by Steinway
- Guns…Smith & Wesson
- Chopsticks! by Georgia Chopsticks
- Cars – believe it or not 80% of the parts on a Toyota Camry are made in America, 75% on a Chevy Malibu!
Have a Great New Years and all the best to everyone in 2012!
90% of seniors want ot stay in their home! A reverse mortgage can help.
“Nearly 90% of people over age 65 indicate they want to stay in their home as long as possible, and four of five in that age bracket believe their current home is where they will always live,” says AARP, which emphasized importance of accessible building standards that allow people to stay in their homes instead of having to spend money on retrofitting or relocating.
Examples of this include accessible entrance doors; entry-level hallways that are wide enough for mobility devices; ramped or beveled door thresholds; and accessible bathroom.
“Because of the profound demographic shift, state legislators will want to be aware of how the policies discussed in this report affect the ability of older adults to age in place as they consider introducing or amending similar legislation,” AARP concludes in its report. “On the whole, state adoption of policies and practices that facilitate aging in place is a prudent way to help ensure our communities are livable throughout the lifespan.
Because seniors want to stay in their homes, a reverse mortgage is an option that seniors should look at to help them have access to their equity and use it for home health care , or to make their home more handicap accessible if needed.
Read the full report, “Aging in Place: A State Survey of Livability Policies and Practices [1].”
Written by Alyssa Gerace [2]
The Holidays are a good time to talk with your parents about their finances and health.
It is not easy to talk to your folks about their future. I remember approaching my folks about this and my dad would say, ” I ain’t moving from my home, you will have to carry me out. End of discussion!” I found the holidays are a good time to reach out to your parents and approach them about their well-being.
Here are ten tips to help make the conversation a little easier and less stressful.
- Be Positive — Bring up the subject when things are going well in your parent’s life, rather than at a time of stress, problem or an incident. Allow your parents to make their own choices. Resist the temptation to push issues unless their health is in jeopardy.
- Ask for help — Ask your mom or dad to help you understand what’s important to them and what kind of assistance they would like to help them stay in their home as long as possible. Be aware of the questions they ask you..especially if they are general or vague questions. When my mother called me one day to ask to take my father to his doctor’s appointment I said no problem. However, I realized this simple question was my folks way of telling me dad’s health was failing and my mother needed assistance and wanted someone else to know.
- Make it easier your parents to accept help — Talk to your parents about your experience, or that of a friend or relative, in asking for help. Show understanding about how it is sometimes for all of us to ask for assistance from others.
- Focus on them — Focus on your parents’ needs and worries about their current and future living situation. Ask them how they feel about climbing the stairs, or other concerns they have about being safe in their home.
- Ask about daily activities — Find out what your parent would like help with the most. Is it cooking? Cleaning? Yard work? Driving? Ask them if anything about their current situation detracts from the enjoyment of daily activities.
- Know the status of their health — Ask your parents about any health problems they have and maintaining their ability to manage daily healthcare. Are they having problems taking their medications? Can they afford their medications?
- Make sure they can pay their expenses — It may be difficult to ‘butt into’ a parents finances, but it’s important to know if they can afford to pay bills, eat well and enjoy live, without worrying.
- Find out how your parents get around — Ask your parents how they get around on a typical day. Do they drive or take a bus? Are they getting rides with friends or walking? Knowing how your parents travel can help you help them find the best ways to get where they want to go safely.
- Research community resources — Check out transportation ,meals,or home care services that are readily available to make it possible for your parent(s) to remain independent.
- Compare costs and services — Do your folks have the funds to stay in their home. Look at the benefits a reverse mortgage can have. Compare the costs and benefits of remaining in the home,using a reverse mortgage with that of Assisted Living or continuing Care Retirement Communities.
For additional information call one of our Reverse Mortgage Specialists at 855-901-3100
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About MSI
Mortgage Services III's Reverse Mortgage Specialists are here to work for your best interests! Contact us today to see if a Reverse Mortgage is right for you! MSI is headquartered in Bloomington, IL with multiple offices in the Metro Chicago area. 