Portland Oregon Older American's and Reverse Mortgage to secure Retirement nest egg
Have you been considering downsizing because your Accountant or Financial Planner informed you that you can no longer afford your home? Or are you worried about not having an emergency nest egg in your Retirement?
Today I will share with one option that you may not have explored yet, or may not know the truth about. New Purchase money made available to Older American's in Portland Oregon that are 62 or older. Yes, you can downsize or up-size to meet your current needs without a monthly mortgage payment.
Today 10,000 people will turn 62 and the vast majority have lost their nest egg because of reasons beyond their control. In a recent poll 88% of voters are worried about "being able to maintain a comfortable standard of living through out retirement".
Mr. and Mrs. Cozby left their annual meeting with their Financial Planner in Portland Oregon devastated because they were informed that their best option was to sell their home of 35 years and either downsize or consider renting. Their Financial Planner suggested they explore their options with a HECM (Home Equity Conversion Mortgage). After meeting with Mr. and Mrs. Cozby I showed them an option that their trusted adviser agreed with.
Their current home was valued at $400,000 according to the current market conditions. However,with the help of their Realtor they found a single story home in a safe community that fit their needs and was easier to maintain that was on the market for $250,000. Based on the age of the youngest borrower of 72 the Cozby's could purchase the new home with a down-payment of $85,520 together with the FHA HECM purchase money of $161,480 to purchase the home and have no monthly mortgage. Since the Cozby's did not have a mortgage balance on their departing home they were able to put $314,480 away for an emergency nest egg. They hold the title to the home they purchased, the new home will allow them to age in place and they created an emergency nest egg that they did not have before.
Sell departing home: $400,000
Deposit$ 314,480 into an account as an emergency nest egg
Purchased new home for $250,000 (capitalizing on the down market)
HECM Purchase money $161,480
Down Payment for departing home: $85,520
Total Purchase price of new home $250,000
NO MONTHLY PAYMENT and $314,480 in the bank.
The Cozby's chose a fixed rate product that accumulates interest at 5.06 with a Total Annual Loan Cost Rate of 2.874 if they live in the home for 13 years with zero appreciation rate. These charges typically include principal, interest, closing costs, mortgage insurance premiums, annuity costs and servicing costs (but not disposition cost when you sell the home.
In future blogs I will share a story of another client who used their existing equity to purchase a second home closer to the Children and Grandchildren and spend the winter in a warmer climate.
How much do you need to put down to purchase your new primary residence? Visit my website for a free calculator! Since the program is age based the older you are the more you qualify for.
As a Home Equity Expert I have been helping Older American's get more out of their retirement for 11 years. I love my job!
Please call me for a no obligation free consultation at 541-891-5706.
Bend, Oregon: CE Credits for Realtors delivered in Oregon on the topic of Reverse Mortgage
Sharon Falvey, Vice President Northwest Sales has been effectively delivering Continuing Education Credits to Realtors accross the State of Oregon and most recently in Bend, Oregon. This class has been very well received by Realtors that thought they understood the truth about Reverse Mortgage until they took the class.
Sharon Falvey and Security One Lending were recently quoted in "Reverse Mortgage Daily" and "Reverse Fortunes" as well as other's. It brings me great joy to be able to dispel the myths about Reverse Mortgage and show Realtors how they can position themselves to use it correctly and increase their sales. We all need to make our way in these interesting times and you can never have to many tools in your belt to do so.
Dan Heater: Continuing Education Director in Bend Oregon for COAR is quoted as saying:
"Thank you Sharon so much for the great class on Reverse Mortgages you did at COAR last week. The class was very good. It is amazing that we all still have these pre-conceived ideas about what a reverse mortgage is and how it can fit into our lives as we age. All of our brokers we very impressed with the class and had all changed their minds as to the value and use of reverse mortgages both personally, and as a tool to help their customers.
The class was concise, easy to understand and gave all who attended something else to include in their presentations for their clients. I would recommend this class for anyone to take. Anyone approaching this age, with parents close to this age, or a real estate practitioner with clients of this age would gain valuable information as to how to own real estate as you approach your senior years.
And Desiree Streeter, Broker in Bend Oregon as saying:
I want to thank you so much for drawing my card for the nice briefcase. That really brightened my day! I have had some really rough times lately with caring for my mother who has been ill for the past 2 years and then my husband being in the hospital since Feb 2 and getting out tomorrow. With that and work I have definitely had a full plate!
I really enjoyed the class today. I went into it knowing nothing at all about Reverse Mortgages. It was very interesting and I gained a lot of knowledge which I will use. I will highly recommend this class to others I know when I see it posted again. I look forward to your updates!
Real Estate Broker
If you would like more informaiton as to how I can bring this to your Association or Office please do not hesitate to contact me. For more general information please visit my website or call me direct at 541-891-5706 (cell) 503-534-3546 (office). I look forward to serving your needs.
Vice President, Northwest Sales
Home Equity Specialist
My blog is a personal expression of my own thoughts, and opinions and does not necessarily reflect the thoughts and opinions of Security One Lending