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Reverse Mortgages in Saint George, Utah – Why I Love Helping Clients Here

April 9, 2016 By Leave a Comment
Camping with your family with a new found financial freedom

                 Camping with your family with a new found financial freedom

I have a special place in my heart for Saint George, Utah. Southern Utah has always captivated me with it’s unique beauty and amazing landscape. It’s a blessing to be able to live in such a special place.

I’m writing today because a recent client here in St. George is working on their “new” Reverse Mortgage. They live in Hurricane, Utah (about 15 miles from the city of Saint George) and recently bought the home in cash a couple months ago. They moved all the way from California! They decided Saint George was THE PLACE to retire! I don’t blame them! So when it came time to discuss their financial picture, we got very clear and asked all the right questions to see what their goals were with retirement.

When the topic of their home came up, they were open to seeing how they could use the equity in their home. They didn’t have anyone to leave the house to, and their heirs were relatively well-off financially. The clients had some monthly debt, yet didn’t want to keep paying a creditor every month. By working from a strategic financial angle to maximize their cash flow every month using the equity in their home, yet leave it to be able to grow and maintaing over 50% of their equity, we came up with a great plan to make sure using this Reverse Mortgage product was the right fit for them.

They were able to pay off $70,000 in debt that included a car loan, credit cards, a personal line of credit, some other miscellaneous debt. By doing this, they freed up over $1,600 dollars per month in cash flow and eliminated those other monthly payments! They also were able to put a little extra cash in their bank account AND keep over $130,000 in extra equity they could “tap into” at any time in the future. That equity will remain their’s and they can always sell the home to access that amount. It’s always their equity and home. What a huge blessing to make this happen and keep the home in their name, take advantage of the tax benefits still, and biggest of all, NEVER HAVE TO MAKE A MORTGAGE PAYMENT AGAIN!!!

These clients were so great and it was just a pleasure helping them set up their long-term financial plans for their bountiful and relaxing future! They shouldn’t have to worry about finances any more, and I am honored to have helped make that come together.

Feel free to set up a free initial consultation to review your financial picture and see if this program might be a good fit for you. It’s not for everyone, just like a regular mortgage isn’t best for some people, yet for a lot of folks it can make an immense difference in their life. It’s your Life! Time to Live the Life You Earned!

 

Give your Saint George Reverse Mortgage Consultant a call at (435) 469-1226! Looking forward to helping you Live The Life You Earned!

Filed Under: Reverse Mortgages Tagged With: , , , , ,

The Joy of the “New Reverse Mortgage”

July 18, 2015 By Leave a Comment

Mom and Daughter

 

I have a special place in my heart for the New Reverse Mortgage and the joy it can bring to others. I’ve seen complete transformations and 180 degree positive changes in lifestyles because of the special program.

I wanted to share a personal experience about one story with a client here in Utah.

She was a widow and living on a fixed income. Lynette (name has been changed to protect privacy) was struggling in her golden years and felt she couldn’t be the supportive mother and matriarch she wanted to be. Lynette wanted to be able to help her children financially and also wanted to be able to travel and visit with her grandchildren that lived far away. Her current financial situation however, didn’t allow it.

There was a sense of sadness with Lynette. I could sense her desire to want to share her time and special moments with her family. She didn’t have the ability to do what she wanted to do. It was a feeling almost of being “trapped” or “tied down”. Not being able to do so, can be very hard emotionally and physically.

It was one day in the grocery store that a friend of mine ran into Lynette. They ended up talking about this “New Reverse Mortgage” that was supposed to allow you to access a large portion of the equity in your home. Lynette owned her home outright so she was curious about what it could mean to her. My friend got me in touch with her and that’s when Lynette’s life took on a complete transformation.

Fast forward now a couple of months…

Lynette was able to access around $100,000 of the equity, or value, in her home!

Since she and her late husband, had worked so hard and put so much into their home, it was now a matter of Lynette being able to “Live the Life She Earned“, as I call it.

Lynette took a trip from the small town she felt tied down to, and saw a wonderful show with her girlfriends! In fact, she came down to St. George, Utah and had a blast on a getaway tour. She also explained to me how she was able to help her grandchildren and great-grandchildren with little things she wasn’t able to before taking advantage of “Living the Life She Earned” with a New Reverse Mortgage.

Lynette is much happier now, and doesn’t have to stress or worry about living Social Security paycheck to paycheck. She had a certain pizazz and energy about her she didn’t have before! It was wonderful to see, and I felt blessed to be able to make that desire for her become reality! She now spends more time with family and will live out her golden years to the fullest.

 

If you have similar feelings or desires, and are even a bit curious, give me a call. I personally don’t think the New Reverse is the perfect fit for everyone, yet for certain folks like Lynette, it can change your entire life!

Let’s go over your goals and your financial situation. From there, we can get a plan set up on how you can “Live the Life You Earned!”

 

 

Conatct Form

Filed Under: Reverse Mortgages

Common Concerns of a Reverse Mortgage

February 16, 2015 By Leave a Comment

livethelife-post

Are you currently “house rich and cash poor”? If so, a Reverse Mortgage Loan allows you to turn the equity in your home into hard cash. You can use this cash anyway you choose. Plus, you get to remain in your home for as long as you want.

And, with the implementation of the new Reverse Mortgage, the borrower is now better protected. However, there are still some cons of a reverse mortgage that you need to know about before taking the leap.

Common Concerns, Risks and Cons of a Reverse Mortgage Loan

These are the risks and cons of a reverse mortgage loan that every potential borrower should know about:

  • Diminishing Equity – One of the cons of a Reverse Mortgage Loan is that you are essentially spending up the equity in your home. This diminishes your estate’s value more and more over time.
  • Time – Unlike traditional mortgages, Reverse Mortgage Loans take time to process. Basically, you and your lender are at the mercy of FHA and its new Reverse Mortgage rules and regulations. However, the loan is backed by HUD, giving you much more security than a traditional mortgage loan.
  • Interest – Although you don’t have to make any payments on the loan during your lifetime (or your spouse’s), interest continues to accrue during that time. This can be a con for your heirs. However, the appreciation of the home could help your heirs break even in this department.
  • Insurance – You must purchase the required FHA mortgage insurance premium upfront. With these mortgage loans, the lender is taking all of the risk… giving you money with no expectation of payments until you’re gone. Mortgage insurance covers this, as well as any losses incurred if your heirs default on the loan later in time.
  • Costs – The closing costs and fees associated with a new Reverse Mortgage are generally higher than most traditional mortgage loans. So, if you’re planning to move out of the home within the next couple of years, this type of mortgage product may not be for you. Interest rates associated with these mortgages are generally higher as well.
  • Program Changes – When you get a new Reverse Mortgage Loan, you’re protected under the current guidelines at that time. And, although the latest program aims in the direction of protecting borrowers, the future of these mortgage products is unknown. Thinks can change at any time.

It must be made clear though that because the New Reverse Mortgage is just like any other loan. The lender will still require monthly property taxes and homeowner’s insurance to be paid. These two items are required regardless if you have a mortgage or not, however if you default on paying these items while you have started a reverse mortgage, you run the risk of a potential foreclosure. Think of it this way, the lender has allowed you to access equity in your home without having to make any payments on that advancement. They require you to keep up to date on your taxes and insurance. If you don’t make those payments, they will want to mitigate risk in the event a disaster or unforeseen event might happen, and will foreclose on the home without that assurance of insurance and taxes. As I mentioned, They are required to be paid whether or not you have a loan regardless, so just be sure to set reminders every month to pay those, or set aside a reserve to pay those yearly when they come due (check with your local state tax commission to see when the property taxes are due in your area). One very popular is to set up automatic payments from your bank account to be paid every month to keep you up to date on the taxes and insurance.

With the new Financial Assessment rules released May 1st, 2015 by the Housing and Urban Development department and also the Federal Housing Administration, requires applicants if they  meet certain guidelines, monies will be set aside from the equity you will receive to be put in a reserve account to cover any missed or late payments with taxes or insurance. You should not rely on this reserve account if you have it, rather consulting with a licensed and experienced mortgage consultant will help you to create a finacial plan to help in planning for these future responsibilities.

Educating Borrowers about the New Reverse Mortgage Loan

There are some complexities related to the new reverse mortgage loan. As a result of this, you must participate in free, mandatory mortgage counseling. It must be provided by a Department of Housing and Urban Development agency-approved independent third-party. You can also turn to AARP or any other national counseling agency dedicated to helping homeowners understand alternate mortgage financing options.

Reverse Mortgages give you the power to enjoy your hard earned equity without having to worry about making mortgage payments. For more information, Contact Shaun Russon, your Reverse Mortgage Loan Specialist.

Filed Under: Pros and Cons

Benefits of a Reverse Mortgage

February 16, 2015 By 2 Comments

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Deciding how to survive financially during your golden years is one thing, yet, deciding how to truly live and enjoy life is key to your golden happiness. A “New” Reverse Mortgage is a step in a direction towards doing just that. Reverse Mortgages also called Home Equity Conversion Mortgage (HECM) Loans, may seem a bit confusing. That’s why Shaun Russon makes it his duty to educate his clients to ensure that each one makes the right decision about mortgage loan products.

Benefits of a Reverse Mortgage Loan

What is a Reverse Mortgage Loan? In short, it’s a loan where a senior homeowner taps into a substantial amount of the home’s equity. The funds are tax-free, and the borrower never makes a payment the rest of their lifetime.

Here are just five of the many benefits of Reverse Mortgages:

  1. Financial Freedom – You get to access your home’s equity and get cash you can use any way you like. Take advantage of the hard work you put into paying down your mortgage or paying off your home by accessing your hard-earned equity. You’ll get to Live the Life You’ve Earned!
  2. No Mortgage Payments – You never have to make a single mortgage payment during the course of your life, or your spouse’s. Yes, your spouse, too!
  3. Keep Ownership of Your Home – You continue to own your home, not the bank or lender. There is no chance of losing your home because of the new changes. In fact, you heirs will have 12 months to decide what to do with the home.
  4. Loan Flexibility – You have the freedom to do what you want with your home… sell it, refinance it, move and rent it out… the same things you can do with any other type of mortgage loan!
  5. Grace Period for Heirs – Your heirs gain immediate access to the home’s equity when you’re gone. And, they have a 12-month grace period before having to make a decision about what to do with the estate.

How to Qualify for a Reverse Mortgage Loan

The following are the general qualifications for Reverse Mortgages:

  • One borrower must be 62 years or older
  • Must own your home (still can have a current loan because that can be paid off through the New Reverse)
  • Must occupy the home as your primary residence (at time of application)

When determining how much you qualify for on a Reverse Mortgage Loan, these are the factors lender weigh:

  • Appraised Home Value
  • Age of Youngest Applicant
  • Balance on Any Current Mortgages
  • Reverse Mortgage Program (Yes, there is more than one product to fit your specific needs!)

Keep Ownership of Your Home

Many people are under the misconception that you must give up title to your home to qualify for a Reverse Mortgage Loan. This is simply not true. Instead, you retain ownership of your home until you say otherwise. Yourself, your spouse, the Family Trust, and whomever else will always remain on the Deed or Title!

You keep the the Title and ownership at all times. The only instance when the even of losing ownership of the home is unless you fail to pay your home insurance premiums or default on your property taxes. This is currently the exact same as any other loan program out there. Taxes and Insurance always need to be paid. (Paying taxes and aging are the only two things you can guarantee will happen in life!)  You’ll never lose your home due to non-payment on your mortgage loan because there isn’t a payment to be made! And, you get to live in the home for as long as you choose.

Want more information about Reverse Mortgages? Contact Shaun Paul Russon, your Reverse Mortgage Loan expert, today!

Filed Under: Pros and Cons
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