Are you still required to pay on a mortgage?

Donna B. was getting tired of the stress.  A residential Realtor for over 35 years, a former top performer in her market and a distant dream to just slow down.

The problem?  She had refinanced her home in order to buy investment rental homes, and the new mortgage payments just weren’t quite being covered by her rental income month in and out.

And, the worry that followed the pressure of making those mortgage payments was becoming overwhelming.

So, following the advice of a trusted friend, Donna reached out to Richard McWhorter of Ridge Reverse to see what could be done. And after a thorough review of her financial needs a solution was quickly agreed upon…

The solution?  Sell one of those rental homes, take some of the money along with a Home Equity Conversion Mortgage (HECM) to help pay off that first mortgage on her primary residence and use it to remove the pressure of those payments. Just like that, she is no longer worried about cash flow.

And now?  She is still very active in the residential real estate industry, as she has discovered what made her choose it as her lifetime of work…  the love of her day to day, the meeting new people and helping them buy their next dream home.

Today, she no longer has the hammer of making payments on that old first mortgage every month.  If she doesn’t close a loan, she skips that month.  When she does close one, she voluntarily makes a payment or two just to pay down the HECM loan balance.

Why pay it down at all?  Donna understands that every payment made goes toward increasing the line of credit balance that automatically came with her HECM loan…  a line that has no personal guarantee with the home itself as the sole collateral, that cannot be called as long as she continues to occupy the home as her primary residence, maintains the home and keeps current her taxes, insurance and HOA fees.

And the available line of credit borrowing capacity is FHA guaranteed to grow, every month, at the same rate she is paying on the outstanding loan balance regardless of the value of the home.  For how long? Again, as long as she lives in the home as her primary residence (and keeps the home in good repair and pays taxes, insurance and other fees when due).

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to hear about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Simply reach out to us at Ridge Reverse, powered by Amerifund, and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@RidgeReverse.com and find out more.

Ridge Reverse, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, Reddit, the Ridge Reverse website or contact him directly at Richard.McWhorter@RidgeReverse.com.

The post 62+, A Commissioned Salesperson and Still Worried About Cash Flow? appeared first on Ridge Reverse.

According to Pew Research, almost one-half of adults in their 40s and 50s fall into the Sandwich Generation, with about one-third (32%) of those saying they had given a parent financial support in the past 12 months. And when those middle-aged adults also have children to support, welcome to the financial cost of older parents on children.

Tom and Julie M. found themselves in just that position.  Trying to raise their children and increasingly being called upon by their parents for financial assistance.

It wasn’t that their parents didn’t have some means, but unfortunately nearly all their savings were tied up in the equity in their home.  A common occurrence in today’s older households.

But, something had to give, because the fear of the unknown expenses were causing a great deal of stress between Tom and Julie and, of course, with their parents.

Enter Ridge Reverse and Richard McWhorter, who was referred through Tom and Julie’s financial professional.  After sitting down with the family and learning of their needs, a Home Equity Conversion Mortgage Line of Credit was agreed upon as the solution.

The parent’s home had a value of $750,000 and a small first mortgage of around $100,000, but unfortunately had a $50,000 home equity line of credit that was soon to convert to its amortization period.  Not a good situation on their limited income.

So, Richard proposed a $300,000 Home Equity Conversion Mortgage that paid off the $150,000 first and second loans and left the remaining as a line of credit that could be drawn upon whenever any necessary repairs or other unexpected expenses came up.*

Why was the HECM the solution for them?

• A HECM has no personal guarantees to the parents or heirs. The home is the sole collateral.
• A HECM LOC is non-callable and non-freezable, provided one of the borrowers continues to live in the home as their primary residence and maintains the home, pays the expenses (taxes, insurance and upkeep) and honors other default provisions common to other mortgages.
• The Line of Credit has an FHA guaranteed growth rate that is the same as the rate on the outstanding loan balance and grows without regard to the underlying value of the home. (A key factor in this higher interest rate environment…)
• The HECM requires no monthly payments, freeing up the parents to forego their previously required monthly mortgage payments and substantially improve their cashflow.

But, best of all, Tom and Julie are relieved knowing that the parents are self-sustaining, that they can not just survive, but live more comfortably now that their expenditures are covered by the increased cash flow as well as the home equity when needed.

For the parents, they far preferred their equity being used to solve cashflow problems than to have to ask their children for the help.  Tom and Julie far preferred it as well!

*Note, the example used herein is for informational purposes only.  Actual equity proceeds available are based on age, appraised value and the expected interest rate as determined by HUD.

Maybe you, or someone you know, needs a similar success story but still thinks the new Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you thought you knew about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Want to know more about how access to your equity line of credit can help you thrive? 

Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post HECM And The Sandwich Generation – Relieving The Financial Cost Of Older Parents On Children appeared first on Ridge Reverse.

Jack and Irene F. had been married 52 years, raised two wonderful adult children, watched them both marry the perfect wives and had 4 perfect grand babies.

Unfortunately, those 52 years were not all rosy and some scars just can’t be repaired.  And, sometimes just riding off together into the sunset no longer seems an option.

So divorce it was… and attorneys and money being spent they really didn’t have to spend without impacting their retirement.  A retirement which now was going to be spent in separate households.

Irene wanted to stay in the home… a place with so many great memories but also with a small mortgage that must be paid.  Jack just wanted to move to a condo near one of his children, the grand babies and a golf course.

With assets being divided, their divorce attorney recommended Richard McWhorter of Ridge Reverse, for having worked with him in the past it was an easy solution.

Richard worked with Jack, Irene and their attorney to guide them through the Home Equity Conversion Mortgage process.  A process that was a win/win for everyone…  or at least as good a “win” as could be achieved under the circumstances.

Irene closed on the reverse mortgage and, due to her age, was able to get 57% of the equity value of the home in cash at closing.  Jack was then paid his share, and promptly closed on that condominium with a reverse mortgage of his own using a HECM for Purchase.

Now, neither have a mortgage payment to worry about, the children are happy that the financial strain of the divorce has been resolved without their “assistance” and all are now moving on.  Thankfully it was a relatively amicable splitting, and family holidays with everyone present remain happy occasions.

Hard to say it was a true win/win, as Silver Divorces are rarely a solution anyone wants.  But, the HECM was their best solution to the housing issues… making the division of assets at least one of the easier parts of the process.

Hopefully, you nor anyone you know will ever have to endure a divorce in retirement years.  But, should the unfortunate event occur, feel free to call us  to see how the Home Equity Conversion Mortgage and the HECM for Purchase may be the best solution available.

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (Richard.McWhorter@Amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Want to know how home home equity can help solve some of your life’s issues? Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-4810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post HECM And Silver Divorce: Sadly It Happens And Home Equity Conversion Mortgages Help Clear The Deck appeared first on Ridge Reverse.

Jim and Shirley B. saved and invested for years and had all their assets in all the right places with a trusted financial advisor.

But, with both now 75 and in great health, they just didn’t need the “big house”.  So, she fixed up the old place, made it beautiful, sold it and, because Jim didn’t want to have a mortgage payment, they paid all cash to downsize into a nice new condominium.

But while they loved the new condo, they quickly realized it just wasn’t right for aging in place. Shirley said, “I told Jim right then and there, I would never again make our home perfect for somebody else!”

The only problem was, with all their investments appropriately allocated for their age, where now to get the money to prepare their condo for their later years?

At that moment, they remembered a seminar led by Richard McWhorter of Ridge Reverse almost one year prior.  Maybe a Home Equity Conversion Mortgage (HECM, or more aptly called a Federally Insured Retirement Loan) was the solution to their problem.

What did Shirley say then?  “I told him that we weren’t going to just make our forever condo perfect for aging in place, but we were going to make our condo beautiful!”

After a complete discovery review with Jim and Shirley, Richard determined that they were perfect candidates for a HECM Line of Credit loan.  Why?  Because with their financial planner’s support, and their children on board, they were quickly able to secure a HECM LOC of $300,000 on their $650,000 condominium.

Why did their financial professional jump on board the new plan? He learned what the couple already knew, the line of credit could not be called or frozen, had no personal guarantees and was the perfect vehicle for emergency (or just because) withdrawals without harming their long-term financial plan.

Oh, and it didn’t hurt that the undrawn line balance had an FHA guaranteed growth rate equal to their interest rate on the outstanding loan balance regardless of the underlying value of the home.

The happy ending?  Jim and Shirley drew $100,000 of their $300,000 line, completely remodeled their condo to make it appropriate for their plans to live there forever and left the balance available to simply grow as part of their long-term financial plan.

And, it will continue to grow every year… even if the available balance grows to more than their home is worth.  Talk about a hedge against the next housing slump!

Oh, and with a HECM, the loan is non-recourse which means the home is the only collateral on the loan, meaning neither they nor their heirs assets can be taken to repay the loan.  It’s the only mortgage on the planet that provides that level of protection.

Success.  They didn’t touch their assets appropriately placed by their financial advisor, and they utilized their equity which had been over allocated in their home to make needed improvements and begin living the rest of their lives together.  All while continuing to have no required monthly mortgage obligations.

And their children?  Happy for their parents to live the hard-earned life they deserve.  Thankful that the home is the sole collateral and their parents would never need to ask them for emergency cash. And, knowledgeable that should their parents pass or otherwise stop using the home as their primary residence the loan options would be just like any other mortgage…  Pay off the debt or, in the unlikely case the loan balance may be in excess of the value of the home, walk away… their choice without any personal liability or damage to their credit scores.

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states.. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post Aging In Place? Jim And Shirley Were In That Place, But It Wasn’t The Place For Them… appeared first on Ridge Reverse.