TAKE THE REVERSE MORTGAGE RETIREMENT PLAN TEST
REVERSE MORTGAGES are the New Retirement Plan for Baby Boomers
What is a Baby Boomer?
A baby boomer is a person born between 1946 and 1964 in a country that experienced high birth rates following World War II, a phenomenon commonly known as the baby boom.
The largest amount of money 80% of Americans have ever invested is in their house.
Can you or your parents retire today?
Evaluating one's financial ability to retire is most often the first step taken when the retirement decision is being considered. Some individuals choose to retire the day they are eligible for Social Security or a private pension. Others find they cannot afford to retire and must continue working. In each situation, it is the reality of living on a fixed income that determines wether retirement is possible or not.
What is your birth year?
Fact…According to the U.S. Census Bureau, as of 2005, 50% of workers have no retirement savings at all. The rest have very little. Of workers age 55 to 64, 75% have household retirement savings of less than $56,000. Most of these people will be forced to extend their work years or accept living in poverty. How can this disastrous scenario be avoided?
Let's look at an example of a couple with the following financial profile:
Hank and Ginger Homeowner (NO MORTGAGE)
Hank Age 64 Annual Salary $40,000
Ginger Age 62 Annual Salary $30,000
Total Savings and Retirement Plan $75,000
(above national average)
Retirement Goals
Retire at age 65
Desired income $4,600 a month
Actual Monthly Income in Retirement
Social Security $2,000.00 a month
Retirement Investments over 7 years $892.00 a month
Total $2,892.00
Shortfall -$1,708.00 a month
Fact… a survey says 75% of 55 year olds have planned on using a Reverse Mortgage as part of their retirement plan.
Fact…You can get a reverse mortgage when you have an existing mortgage; the Reverse Mortgage will pay off the first mortgage.
How much are you eligible for in a Reverse Mortgage?
For a home valued at $365,000, at an expected interest rate of 6.57%
Age Monthly Advance or Cash /Credit Line
62 $ 1,013 or $ 162,028
72 $ 1,360 or $ 200,849
82 $ 1,981 or $ 244,032
92 $ 3,867 or $ 285,060
Fact...Borrowers have the option of taking some upfront cash, leaving some money in a credit line, and having a smaller monthly advance.
Reverse Mortgage Myths
The bank owns the home…
The borrower continues to retain title and ownership.
The heirs will be stuck with repaying the loan…
A reverse mortgage is a non-recourse loan. The estate is protected from ever owing more than the value of the home.
The closing costs are too expensive…
All closing costs can be financed. The only upfront money is a $300 application deposit that is fully credited at closing. The benefits usually offset the costs.
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Custom Reverse Mortgage Analysis with Pricing. |
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