Posted by Peggy Farber on 6/8/2016

You might have seen the ads on TV about reverse mortgages, but what is a reverse mortgage? It is a loan for older homeowners that uses a portion of the home’s equity as collateral. Instead of the homeowner paying the lender, it is the lender that pays the homeowner based on the equity in the home. How much can be borrowed? The amount that can be borrowed in a reverse mortgage is determined by an Federal Housing Authority (FHA formula).  The formula considers age, the current interest rate, and the appraised value of the home. What are the requirements for a reverse mortgage? You must be at least age 62 The home must be owned free and clear or all existing liens. Any mortgage balance must be paid off with the proceeds of the reverse mortgage loan at the closing. There are usually no income or credit score requirements. How is the loan repaid? The loan cannot become due as long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA requirements (keeping taxes and insurance current). The must be repaid when the last surviving homeowner permanently moves out of the property or passes away. The estate will have approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance.  





Posted by Peggy Farber on 11/4/2015

For many seniors, the idea of selling the home that they have raised a family in can be met with some resistance. And while many seniors are perfectly capable and comfortable taking care of a large home, there are some who would much rather do away with the hassle of home maintenance and lawn upkeep, opting instead to spend their golden years in a more relaxed setting with a more comfortable climate.  If you find yourself thinking about selling your home and settling in greener pastures, then there are a few things you will need to consider.

    • Are you moving because you want to, or because you think that taking care of your home is becoming a burden?
    • Do you want to move closer to family?
    • Is the climate you currently live in aggravating any medical conditions you may have?
Firstly, you must ask yourself what you'd want in your new residence.  Do you want to live in a place where things like lawn care and home maintenance are taken care of for you, or would you just prefer a smaller home?  Would you like to stay within your community, or are you thinking about an out-of-state move?  Florida has long been known for its retirement communities, but places like Arizona and New Mexico are quickly becoming retirement hot spots due to their affordability and warm climate. A few things to consider.
      • Availability and access to medical care
      • Would you like to have access to a swimming pool for exercise?
      • Are you open to the idea of living in an area with group activities?
Once you've settled on a potential destination, it's time to establish how much your home is worth.  A qualified real estate agent can help you through this process. For more moving tips for seniors, please click here.