Th http://ping.fm/vU12K reverse mortgage program is a cash positive for FHA/govt. one less budgetary issue to think about
April 15, 2011
April 05, 2011
April 03, 2011
Reverse Mortgage Borrower Educated Herself and Dispelled Myths -Testimonial
Image via Wikipedia
Ms. C of Hueytown Alabama initially made an inquiry of reverse mortgages in January of 2010. Like most borrower’s she started her research online. She had heard of all kinds of bad things about reverse mortgages. Many of her friends told her not to do it. She heard things like the bank will take your house and why would you ever want to do something like that.
I contacted Ms. C after her inquiry. She was cautious (as she should be). I provided her with educational materials and followed up with her to answer questions. She told me she didn’t want the reverse mortgage and that I should take her off my contact list, which I did. November 2010, Ms. C called me and said she wanted to revisit the possibility of doing the reverse mortgage. After, researching each program and her options, she chose the LIBOR HECM adjustable program with the credit line. For her needs of a small lien payoff and a conservative immediate cash need, the credit line proved to be the most financially conservative program for her.
“Angella, Thank you for the help and patience in working with me. I appreciate all that you did. After a long time of reading and studying this was a great thing I chose to do. You are a great person to work with and a very efficient one. Hope to talk to you again, Ms. C”
When considering whether or not to do a reverse mortgage it is important not to rush into your decision, consider all your options, do your research, make a budget and make a plan. Choose someone you trust and who is willing to work with you at your pace.
If you have a reverse mortgage questions, Call Angella Conrard, Reverse Mortgage Advisor, 866-949-7030 or log onto http://www.reverse-your-mortgage.com
April 02, 2011
Spring and Summer is a Great Time to Get Moving- Check out the fun of a pedometer
Image via Wikipedia
Summer is a great time to increase your fitness level for a better quality of life. Fitness should involve more than just improving your appearance; it is really about maintaining your health. Please remember to talk to your doctor before starting any exercise Regimen.
Aerobic exercise - loosely defined as any physical activity that makes your muscles, heart and lungs work harder - is best. Walking is one of the safest, most effective and easiest forms of exercise. Experts say 30 minutes of walking 3-5 times a week can bring about significant improvements in your fitness level.
Walking can lower bad cholesterol and blood pressure while helping to maintain bone density and strengthen muscles. It also boosts your metabolism, helping your body burn more calories. Exercise releases mood-elevating endorphins.
A pedometer can help keep you accountable in your goal to become more active. It accurately counts your steps. You can get them for as little as $10 at Walmart. The more sophisticated ones cost around $30-40. Daily step count roughly correlates with these activity levels:
Less than 5,000 steps = sedentary
5,000-7,499 = low activity
7,500-9,999 = somewhat active
10,000-12,499 = active
12,500 or more = highly active
I recently discovered on days I do not purposely exercise I get less than 2,000 steps. YIKES! I GOTTA GET MOVING! Lets Go!
The reverse mortgage appraisal process
Image via Wikipedia
One of the most important components of attaining a reverse mortgage is your FHA appraisal. Your appraisal will be performed by an independent third-party licensed appraiser. His or her job is to professionally value your home.
HUD issued a mortgagee letter (2009-28) indicating that all lenders must assure appraiser independence as a third party. Most lenders use appraisal management companies to comply with these guidelines. Your lender will order your appraisal. The management company will randomly select a FHA approved appraiser from your area to perform the inspection.
There are three components of the appraisal process:
- inspection
- attain comparables
- compile and submit final report
What to expect
You must be home during the time of the inspection. The appraiser will draw a sketch of the inside of your home. As the appraiser walks through your home they will note the amenities and any updates or upgrades you've done to your home. Generally it is the appraiser's job to make notes of these items however it can be helpful if you make a list of them and provide them to the appraiser. This will reduce the chance of the appraiser missing any items or updates of value that are not obvious.
The appraiser will inspect each room and take pictures. They will also go outside and measure the outside of your home and take more pictures. The entire appraisal inspection process is usually no more than 15 to 20 min.
The appraiser will check what type of heating and air that you have in your home. Uncompleted rooms cannot be counted in your gross living area/square footage. For room to be considered a bedroom, the room must have a closet. A bath is considered a full bath if it has just a shower that it does not need to have a bathtub. And appraisal inspection is not a home inspection. The appraiser will just assume that utilities are functioning and operating. Finished basements do add value however they do not add square footage to your gross living area.
The appraiser will look for any physical damage in your home or basic flaws. Examples:
- holes in the wall
- peeling paint
- exposed wiring (ex: a missing light fixture in the ceiling must be capped)
- water damage or signs of water leakage
- cracks in the walls, ceiling
- foundation issues
- roof integrity
Any repairs that are similar to those above must be completed prior to the completion of your reverse mortgage or a contractors bid for the repairs must be submitted to the underwriting dept. If you choose to close your reverse mortgage prior to the completion of the repairs, the lender will hold back 150% of the repair bid and an administration fee. Once the repairs are completed you will need to notify the lender so that they can order the appraiser to come out to do another inspection. The lender will then release the funds held back. If you choose to complete the repairs prior to the close of your loan, the appraiser will perform a final inspection and there will be no funds held back. A final inspection is typically $100-$150.
Typically appraisals are $450-$550 through an appraisal management company and are paid prior to inspection. Once your inspection is complete your appraiser will use local comparable properties that are similar in size, age and type in the process of placing a value on your home.
If you have a reverse mortgage question, Call Angella Conrard, 866-949-7030 or log onto www.reverse-your-mortgage.com.
Do You Know What Your Home Value Is?
Image via Wikipedia
-Your home value is important in making the decision if a reverse mortgage is right for you
You may or may not have a good idea of what your home is worth on today’s market. Perhaps you are contemplating selling your home in comparison to attaining a reverse mortgage. The information is important in formulating your decision.
There are a number of websites on line will help you get an idea of your home value is. Among them are www.zillow.com and www.eppraisal.com. You can also contact a local real estate professional. Most agents will welcome the opportunity in providing you with home comparable information. It gives them an opportunity to develop a relationship with you in the event you do decide to sell your home.
There is also a service called ValuClear. For $48 this service will provide you with sales and listing home comparables, overall market condition and your neighborhood market condition. To view a sample report click here.
There is also such a report as a Broker Opinion of Value (BPO). This is a price opinion. Broker Opinion of Value includes current area rent rates, asking prices, sold prices and demographic reports. This report will help property owners understand what current property value is and why. The cost of this report can be between $45-85.
Both the ValuClear and the BPO is not only helpful information but it can also be used as a tool to argue any value arguments given by an appraiser or underwriter.
If you have a reverse mortgage question, Call Angella Conrard, Reverse Mortgage Advisor: 866-949-7030 or log onto www.reverse-your-mortgage.com.
March 29, 2011
March 14, 2011
March 12, 2011
Choosing Home Care Services That Meet Your Needs
Image via Wikipedia
Making the decision to hire a home care service to provide care for your loved one is an important decision and can, at the same time, be very difficult. If an illness or recovery from surgery requires nursing care or physical therapy, a physician may order skilled home care services that provide both skilled providers and personal aides. Your decision is then based on the obvious medical determinations made by the doctor. But what if you as the family caregiver must determine the extent of care needed without the help of a doctor?
Each home care situation is unique. In the beginning, family or friends step in to help with simple tasks and support for aging seniors who want to stay in their homes. As long term care needs progress, more time is required to manage those needs. Physical and mental conditions change with aging making usually routine hygiene and daily living activities difficult for an aging individual. Even with the healthiest of seniors, the ability to drive a car, shop for groceries or do general housekeeping eventually needs to be relinquished to the responsibility of another person.
In one example, Karen, would stop by her parents' home on her way to work every morning and again on her way home from work in the evening. She checked in the morning to see that they were up and ready for the day and Karen would take a shopping list for things they needed. In the evening she delivered the needed items she had purchased during her lunch break and sometimes she fixed a meal when one was not prepared by her mother. This worked well until Karen began to notice her father did not shave or dress during the day and both parents were forgetting their medications. Karen felt more time and supervision was needed in their care but with her own family and job, she could not do it. Non-medical or personal home care services would be a good option for Karen to consider.
Before starting your search for a non-medical or personal home care company, determine what the care needs are and how much time each week will be required for assistance from the company. You may want to consult with the family physician and other family members as well as experienced social workers or care managers to determine needs. Most home care companies, as well, will help you do an assessment at no charge. With your care needs in hand, you are ready to begin your search.
The National Association for Home Care & Hospice (http://www.nahc.org/home.html) gives the following guidelines and checklist in searching for a home care company.
- How long has this provider been serving the community?
- Does this provider supply literature explaining its services, eligibility requirements, fees, and funding sources? Many providers furnish their home care clients with a detailed "Patient Bill of Rights" that outlines the rights and responsibilities of the providers, clients, and family caregivers alike.
- How does this provider select and train its employees? Does it protect its workers with written personnel policies and malpractice insurance? Does it protect clients from theft or abuse by bonding its employees?
- Does this provider assign supervisors to oversee the quality of care clients are receiving in their homes? If so, how often do these individuals make visits? Who can the client and his or her family members call with questions or complaints? How does the company follow up on and resolve problems?
- What are the financial procedures of this provider? Does the provider furnish written statements explaining all of the costs and payment plan options associated with home care?
- What procedures does this provider have in place to handle emergencies? Are its caregivers available on notice?
- How does this provider ensure client confidentiality?
If a home care company has not previously been recommended to you, ask for a list of previous clients and call for their experience with this provider.
Following up on these guidelines can help you determine the quality of personal care that is given. Many states license non-medical home care companies and require both legal and health standards to be maintained.
Read about individual home care companies in your area on the National Care Planning Council's website www.longtermcarelink.net.
March 08, 2011
Disclaimer
The opinions expressed in this Blog and those providing comments are theirs alone, and do not reflect the opinions of iReverse Home Loans or any employee thereof. iReverse Home Loans is not responsible for the accuracy of any of the information supplied by the Blog. Please click your browser's back button if you do not wish to continue.
Search
Senior/Elder Health Links
- reverse mortgages help seniors strapped for cash
More seniors are turning to a reverse mortgage loans these days. A reverse mortgage is a loan that allows seniors to tap into their home equity and use the money to pay for things such as medical bills, groceries and even home repair. - More than 25 percent of Older Americans Using Social Media says AARP
This is great information for anyone working with older Americans; we have an expansive society! Wonderful!
Have faith, the US market will stabilize.- FHA is overwelmed with condo projects to be approved
HUD, did away with condo projects ability to be approved with "Spot Condo" proceedures to get a better hold of the data of how many FHA loans exist in what projects. Approvals are adding another month in the process of attaining a reverse mortgage for condo owners. - Older American Home Values are flattening
Golden Gateway Financial released new usage data from its online reverse mortgage calculator showing that average home values for older Americans have halted their slide after remaining flat or declining for seven consecutive quarters.
A new survey from the Center for Retirement Research at Boston College found that 40 percent of individuals 45-59 expect to retire later than they had before the downturn, with most of the respondents intending to work an additional four or more years before retirement.- Financial Planning Exchange Forum
This is an excellent forum, set up by my friend Bryan Wisda who has a passion in helping seniors and people with finances in general - Obama to Promote Annuities and Other Forms of Guaranteed Life Income
The Department of Labor and the Department of the Treasury (the “Agencies”) are soliciting comments whether the agencies could or should enhance the use of lifetime income or other arrangements designed to provide a stream of income after retirement. One of the questions is related to reverse mortgages: What are the advantages and disadvantages of approaches that combine annuities with other products (reverse mortgages, long term care insurance), and how prevalent are these combined products in the marketplace? Why the sudden interest in how the government can enhance the use of lifetime income arrangements? The New York times recently reported that the Obama Administration is promoting annuities as a tool to give Americans a better shot at a more secure retirement. - Is Reverse Mortgage Interest Deductable?
Reverse Mortgage interest deduction rules are the same for traditional loans and for reverse mortgages: Reverse mortgages are meant for the elderly who will most likely be paying their mortgage and the accrued interest only after they die so the interest deduction is usually just an afterthought. Upon death and on their personal tax returns mortgage interest may be deductible for the original acquisition debt interest, home improvement debt interest and possibly up to $100k of debt on the home for any other use but not deductible for AMT (but it probably won't make that much of a dent in their personal taxes) Qualified Residence Interest Expense. - Congressional Justification Docs Detail Possible Changes to FHA Reverse Mortgage Program
The US Department of Housing and Urban Development published the 2011 Congressional Justifications for the FY 2011 Budget which provides more information regarding the OMB’s $250 million credit subsidy request for the Federal Housing Administration’s reverse mortgage program.
