How a Reverse Mortgage Can Ease Retirement Anxiety
Retirement is supposed to be a time to relax and enjoy life, but for many senior homeowners, it’s filled with stress, uncertainty, and growing anxiety. Rising costs, limited income, and the fear of outliving savings have left many wondering how they’ll manage in the years ahead. If you’ve found yourself lying awake at night, you’re […]
Reverse Mortgage Interest Deduction Tax Strategy
When it comes to home financing and tax planning, understanding acquisition indebtedness is crucial. Many homeowners and financial professionals overlook the tax advantages associated with reverse mortgages. Recent research has explored how a reverse mortgage interest deduction strategy can be used to maximize tax deductions, making it a powerful tool for retirement and tax planning. […]
Using a Reverse Mortgage to Buy a Home: What You Need to Know
Many retirees dream of moving into a home that better suits their lifestyle—whether it’s downsizing, relocating closer to family, or upgrading to their ideal retirement home. What many don’t realize is that a reverse mortgage can be used to buy a home, offering a powerful way to purchase a property while eliminating the burden of […]
Unlock More Possibilities with the Reverse Mortgage 2nd Mortgage
Introducing the Reverse Mortgage 2nd Mortgage: A New Solution for Homeowners 55+ For years, homeowners have turned to reverse mortgages as a way to access home equity and create greater financial flexibility in retirement. However, one common challenge for many was the need to refinance their existing mortgage, which meant giving up historically low interest […]
How to Use Home Equity in Retirement: A Smart Strategy for Financial Security
As we plan for retirement, one key question often arises: How can I make the most of my home’s value in retirement? For many retirees, home equity can be a valuable resource, offering financial flexibility and helping to cover living expenses, healthcare costs, and more. In this article, we’ll explore how using your home equity […]
Jumbo Reverse Mortgages: Maximize Your Housing Wealth
As the housing market evolves, homeowners with high-value properties are increasingly exploring financial tools to enhance their retirement planning. One such tool gaining prominence is the Proprietary Reverse Mortgage, commonly referred to as a Jumbo Reverse Mortgage. This financial product is specifically designed for individuals whose homes exceed the Federal Housing Administration’s (FHA) lending limits, […]
Reverse Mortgages: A Solution for Inflation and Rising Costs Across the U.S.
As inflation continues to affect Americans nationwide, many retirees are feeling the pinch in their budgets. From rising grocery prices to increasing utility bills, the cost of living has skyrocketed, leaving many wondering how to stretch their retirement income further. For homeowners aged 55 and older, there’s a solution that could help ease financial strain: […]
How Reverse Mortgages Can Help Retirees in Las Vegas Combat Rising Inflation and Secure Their Financial Future
Retirement should be a time to relax and enjoy the fruits of your labor. However, for many retirees in Las Vegas, rising inflation and the increasing cost of living are making it harder to make ends meet. With higher prices on essentials like groceries, utilities, and healthcare, living on a fixed income can feel like […]
Origins: When a reverse mortgage saved a client from bankruptcy
Rick Rodriguez of VIP Mortgage came into the reverse mortgage industry with doubts, but he quickly saw the benefits for a client December 19, 2024, 5:11 pm By Chris Clow After initially entering the mortgage business in 2003 following a career change from accounting, Rick Rodriguez was reading a book about mortgages that included a chapter on […]
Protect Retirement with Reverse Mortgage: A Safety Net for Seniors in Disaster-Prone Areas
As natural disasters become more frequent and severe, seniors in disaster-prone areas face unique challenges. With retirement savings often tied up in real estate, the risk of losing these assets in the aftermath of a hurricane, flood, or wildfire can be devastating. However, a reverse mortgage can serve as a critical financial tool to protect […]
Leveraging Reverse Mortgages to Fund Long-Term Care
As healthcare expenses rise, long-term care costs represent a major financial challenge for retirees. With many aging Americans facing the need for costly care services—whether in-home or at a facility—traditional funding sources, such as savings, pensions, and insurance, often fall short. This leaves seniors and their families searching for alternative ways to cover these expenses. […]
Secure Your Retirement Income with a Reverse Mortgage
Is Your Retirement Income Secure? Here’s How You Can Use a Reverse Mortgage For Retirement Income Security As retirement approaches, one of the most pressing concerns for many individuals is whether their income will be sufficient to maintain their desired lifestyle. With increasing life expectancy and rising healthcare costs, it’s crucial to ensure that your […]
How A Reverse Mortgage Loan Could Help Protect You And Your Home In Uncertain Times
Can you protect something? Maybe your home?
Do you remember in 2008 what had happened before and after the housing market bubble? The market was going up, home values were increasing, and we had low unemployment rates before the bubble crashed. Before the crash, when houses in larger cities went up for sale, a few hours later, it would have multiple offers over the asking price. Then shortly after the housing bubble crashed, home values had started to drop, and the time frame for selling homes became much longer. After the bubble, the Home Affordable Refinance Program (HARP) became a popular loan option because a lot of people owed more on the mortgage than what they were worth from the home’s declining values.
Fast-forward to today, where you see more and more seniors continue to stay in their homes longer, and starter homes are getting harder and harder to find. Millennials are looking to buy starter homes, and the supply for entry-level homes is going down. Prices and demand for entry-level homes for the past few years have been significantly increasing.
Before Covid-19, the market was going up, Las Vegas home values were increasing, and we had low unemployment rates. According to thebalance.com, the unemployment rate for 2019 was at 3.5%, which the last time we had seen rates that low was since 1969 when Nixon took office and just before the mild 1969-1970 Recession. Do you believe history tends to repeat itself, and all ships rise or fall with the tide? Are you concerned about your home values going down just like the stock market has decreased recently?
There is a lot of worry and fear being caused currently from the Covid-19 virus in the news lately. For some, the market’s recent downswing of 30% in their retirement funds is causing even more fear. We are all hoping this will be a fast rebound like the 1969-70 mild recession, like a rubber band pulled back, testing its limits, and shooting forward with a stronger force behind it. Hopefully, it will not take several years, like the 2008 housing bubble, took to recover. The question is, what can you do about it, so you’re not just sitting and hoping things change. If your 62 or older with some equity in your home, you may have the ability to use a reverse mortgage loan.
Here are some reasons why I believe a reverse mortgage loan is going to become a popular loan option like the HARP loan was after the 2008 bubble.
1. Are their better places to pull your money from besides your 401k accounts?
There have been many studies done that show it’s better for your portfolio’s survivability if you pull the money from a growing reverse mortgage line of credit in market downswings than from your investments.
Are you currently using your home equity to potentially strengthen your portfolio? Are you presently pulling money out of investments? Wouldn’t it be beneficial to have the funds come out of another source of funds rather than what you have in the stock market now*? If not your home, where else are you going to get the funds to meet the cash flow you need? The interest rate on a reverse mortgage loan is pretty low right now. Wouldn’t you rather leverage your available assets than ignore them to prevent you from having to sell your investments?
2. Are you concerned about your home values going down?
A reverse mortgage loan is a non-recourse loan. The definition from Investopedia for Non–recourse debt is a type of loan secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount.
So if you are concerned about home values going down as they did after the 2008 housing bubble a reverse mortgage loan would be a good loan to consider. If your home value drops, the lender is not able to request their funds back that they already borrowed you.
3. What could the benefits of having additional cash flow be?
One of the first things said about reverse mortgage loans in most advertisements is no monthly mortgage payments except for taxes, insurance, and maintenance. In times of fear and concern tend to be the best time to have additional cash flow. The best time to help people is highest when there is a need when people are struggling. You can use the additional cash flow to help your loved ones who may be struggling with recently becoming unemployed and struggling to keep up with life essentials as buying food. If home prices, the market, and other items continue to lower in price, you can use the additional cash flow to purchase things at discounted prices. Whatever the reason is, I’ve never heard anybody complain about having additional cash flow.
It’s often wise to take the time to learn something new, and it doesn’t pay to wait. Rick R. Rodriguez is your local Certified Reverse Mortgage Professional, CRMP, who has been specializing in reverse mortgages since 2005 and has first-hand experience with how reverse mortgages helped homeowners back in 2008 to help you navigate through our current conditions. Whether you are looking in Las Vegas for a reverse mortgage or beyond, contact our team for more information.
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