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5 Things All Seniors Should Know About Reverse Mortgages

If you’re 62 or older, here are some things you need to know about reverse mortgages

A reverse mortgage is one of the most misunderstood assets available to people 62 and older. Often, people get tangled and lost in the weeds, but the simple facts about reverse mortgages aren’t that hard to comprehend. To get the best reverse mortgage outcomes, however, one needs to be armed with knowledge.

PS Mortgage Lending understands this deeply, which is why we’ve distilled a few key basics and boiled them down into easily digestible points for consideration.

1. Reverse Mortgages use your assets to supplement retirement savings and Social Security

One of the most overlooked aspects of a reverse mortgage is that is accessing what is already yours and turning it into cash that you can use when you need it. Your home has value – make it work for you and your future.

2. Reverse mortgages can eliminate regular mortgage payments

Eligible homeowners typically use reverse mortgages to settle their existing mortgage debt or home equity line of credit. This takes money that’s already yours and uses it to neutralize what is typically your biggest monthly expense.

3. Emergencies happen – reverse mortgages can help

Unexpected medical emergencies happen, especially in the Golden Years. They don’t have to be compounded by financial stress. Reverse mortgages are great ways to pay off any type of unforeseen economic expense.

And they could pay for a few vacations…

4. Unused money from reverse mortgages can grow

Some people borrow as much as they can from a reverse mortgage, use what they need, and stick the rest in a savings account.

Imagine the interest you can reap from putting $50 K in the bank? Do the math.

5. Your house will not go into foreclosure if you have the proper reverse mortgage counseling

A common misconception about reverse mortgages is that you can be kicked out of your home for whatever reason.

This is false.

The only way you can lose your home is if you fail to meet the terms of your loan. That’s why it’s so important to receive adequate counseling from a HECM counselor approved by HUD in Florida. Financial planning must be taken into consideration, with long term planning and budgeting, to account for these expenses.

There’s nothing to worry about if you work with someone who knows what they’re doing

There are more mortgages available to the public than one can even imagine, that’s why finding someone with experience in reverse mortgages matters. Phil Stevenson knows that your home and what you put into it is a culmination of years’ worth of hard work filled with memories. He’s even been featured in Forbes Magazine discussing his expertise.

Your home’s value is significant financially and priceless emotionally. Getting a HECM requires advising from someone who knows what they’re doing – and can trust – in order to plan for the future appropriately.

Are you or a loved one considering a reverse mortgage?
Reach out to Phil Stevenson and the Expert Mortgage Team at PS Mortgage Lending
to see how you can benefit!

And subscribe to The Mortgage Nerd’s YouTube Channel with our exclusive Reverse Mortgage Playlist.

We think outside the box, to help those who don’t fit in the box…

Speak to one of our experts today.

PS Mortgage Lending
(888) 845-6630
Español: (305) 791-4874
NMLS# 968090

CFPB: Goodbye, Mr. TRID!

 

Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 NMLS-365768
The CFPB (Consumer Financial Protection Bureau) has been reviewing and verifying several rules that they have implemented in the past, and the one that remains to be reviewed is the TILA-RESPA Integrated Disclosure rule, the TRID rule for short. It seems that eliminating the rule completely will be a possibility.

The TRID rule, implemented the Dodd-Frank Act directive to combine certain types of mortgage disclosures that consumers receive under TILA and RESPA, which require all creditors to submit standardized forms to perform any transaction. The rule also requires creditors to provide loan estimates and closing disclosures within three business days.

Since October 3, 2015 (when it was implemented), the TRID rule has been problematic for all mortgage and title companies, that’s why the review of the rule has become a good reason to celebrate!
The rule has only made clients wait longer for their mortgages to close, now everybody’s waiting for the “hangman” to pay it a visit. We won’t know what the results of the review will be, but at least we know that it will be placed under scrutiny of the CFPB.
This all comes as a consequence of big government decisions. Mainly because the Trump administration is seeking to get rid of unnecessary rules and processes in order to generate economic growth.

The CFPB does not want to keep this under closed door, that’s why it’s seeking public opinion on the matter. If you wish to comment, you can enter the ( CFPB website ) and write your comments once the Federal Registry officially publishes it. The closing date for comments will be January 21, 2020.

 

Reverse Mortgage Facts

Reverse mortgages help seniors with the costs of retirement by turning equity into cash, making the twilight years truly golden

 

Odds are – if you’re over the age of 62 and own all or some of your home – you’ve wondered, “what is a reverse mortgage?”  With all the negative spin and fake news attacking from every corner, it’s easy to get confused by fearmongering that distorts facts.  You have enough things going on and time would be better spent enjoying the people and things you cherish.

Thankfully, Phil Stevenson, AKA The Mortgage Nerd, and PS Mortgage Lending are here to clear up a few misconceptions and straighten out the facts.   

Here is some need-to-know info everyone should have when considering a reverse mortgage.

What is a reverse mortgage?

Reverse mortgages are federally insured loans anyone 62 and over who has equity in a home can take out as cash for their financial necessities.   

Better known as a Home Equity Conversion Mortgage (HECM), it allows you to take a portion of what you’ve invested into your property to pay off an existing mortgage and anything else you may need. Although you still have to take care of paying property taxes, homeowners’ insurance, and home maintenance costs, this frees up some money so you’re able to handle these costs.

The loan is repaid when you and your spouse can pay it back or have moved on.

Who is eligible?

There are 6 essential requirements to qualify for a HECM:

  1. Must be 62 years of age or older
  2. Own your primary property or have a considerable amount invested in it
  3. The property must be a primary residence and an
  4. Not have any delinquent federal debt
  5. Must be able to pay off property taxes, HOA, insurance, bills, etc. 
  6. Consult a HECM counselor approved by the Department of Housing and Urban Development (HUD)

Though a few other small HUD Regulations must be discussed and looked over, this is the gist of it until sitting down with a counselor.

How does a reverse mortgage work?

Five quick things to get out of the way right off the top are:

  1. If you own the home, you remain the owner of the home UNLESS YOU DON’T PAY TAXES
  2. You can sell the home or pay off the loan with no penalty
  3. No monthly payments are required, but you can make payments if you like
  4. You can receive the loan as one lump sum, in monthly payments, a line of credit, or any combination of the three 
  5. You will not owe more than the value of your home if it sells for less than you mortgaged because you have protection against declining home values since it’s a non-recourse FHA Federally insured loan

Can I get a reverse mortgage if I have a mortgage? 

Yes.

Another common misconception is that if you can’t get a reverse mortgage if you already have a mortgage of a traditional type.

This is false.

If you have a decent enough amount of equity in your property, you can turn some of it into liquid assets.

Why get a reverse mortgage?

Phil recommends people get this type of loan for a variety of reasons including:

    1. You don’t have anyone interested in inheriting the home
    2. You need to fulfill and immediate need or take care of an emergency
  • Are considering an equity loan for any reason

In other words, if you have any retirement needs, Phil recommends you seek some reverse mortgage counseling in Florida now.

How is a reverse mortgage paid back?

Quite simply, put the loan is paid back when you or your spouse leave the home – however that may be.  

The basic premise behind the reverse mortgage is that you’re able to use the equity you need now because you really can’t take it with you when you pass away.

That’s why this is such a great opportunity for those with well-off heirs or don’t have that worry.  

And if you do have legal successors, all they have to do is pay back the loan or cash in on anything that’s left.

A reverse mortgage gives you a more comfortable lifestyle in those times when you deserve to reap the benefits of your hard work.  After all, you earned it.

Can I lose my home or go into foreclosure with a reverse mortgage?

The straight answer is YES, but ONLY if you do not meet the terms of the loan.  You might be thinking, “didn’t you just say the reverse mortgage does not require payments?”  That is correct, but you must continue to pay the following, just as if your home was free and clear with no mortgage of any kind:

  1. You must continue to pay your property taxes
  2. You must continue to pay your homeowners insurance
  3. You must maintain your property, meaning you cannot let it fall into disrepair
  4. At least 1 borrower must be alive and living in the home.  If all borrowers are away from the home for more than 12 consecutive months due to physical or mental illness, then the loan is due and payable.

If one spouse is under 62 years old, can both spouses get an FHA insured reverse mortgage?

The answer is yes and no.  

Yes, the reverse mortgage can be done under the name of the spouse who is over 62.  

No, both spouses cannot be “borrowers”, but the one who is under 62 CAN be what is called a “non-borrowing spouse” or NBS.  

Yes, both spouses CAN live in the home for the rest of their lives, as long as the following criteria are met:

  1. The NBS must be living in the home and married to the borrower at the time of the closing of the reverse mortgage.
  2. The NBS must still be living in the home and married to the borrower at the time of the borrower’s death.
  3. Death of the borrower is the only that the deferral period, the period in which the NBS can stay in the home for life, can go into effect and the NBS would be “protected” under the rules.

Private or Jumbo Reverse Mortgages are not insured by FHA.  These reverse mortgages allow for borrowers to be 60 and older, and have loan amounts up to $4,000,000.

Where can I find a professional HECM counselor near me?

Finding a HECM counselor approved by HUD in Florida shouldn’t be too hard – we got a guy. 

Phil Stevenson knows that your home and what you put into it is a culmination of years’ worth of hard work filled with memories.  He’s even been featured in Forbes Magazine discussing his expertise.  Its value is significant financially and priceless emotionally.  Getting a HECM requires advising from someone who knows what they’re doing – and can trust – in order to plan for the future appropriately.   

This is not a trade or a second mortgage nor do you need to sell your home to pay back the debt.  Borrowing against your home is a big decision. It requires HUD-approved counseling for a reason and Phil understands it on a personal level.  He became interested in reverse mortgages by trying to help his beloved grandparents – abuelo y abuela – when they needed money.

Check out PS Mortgage Lending’s Reverse Mortgage Calculator and see if this is an opportunity that could benefit you.

Are you or a loved one considering a reverse mortgage?
Reach out to Phil Stevenson and the Expert Mortgage Team at PS Mortgage Lending
to see how you can benefit!

And subscribe to The Mortgage Nerd’s YouTube Channel with our exclusive Reverse Mortgages Playlist.

We think outside the box, to help those who don’t fit in the box…

Speak to one of our experts today.

PS Mortgage Lending
(888) 845-6630
Español: (305) 791-4874 
NMLS# 968090

VA Loan Facts Veterans Need to Know

It’s easy to miss out on things when you don’t understand them, so PS Mortgage Lending explains a few simple Veteran Affair Loan facts

America is proud of its warriors – from sea to shining sea – and it’s not ashamed to show it.  The only real shame is that so few of our vets take advantage of their entitlements and how many aren’t even aware of them.  Our heroes and their families have paid for our freedom with blood, earning distinguished privileges.

A good example of this is the VA Home Loan.

As a veteran, Phil Stevenson is aware of this and strives to ensure our mortgage programs help veterans get the respect they deserve, especially when it comes to owning a home in the land they fought for.  VA Loans in Miami are one of PS Mortgage Lending’s specialties because we understand their importance on a deeper level than most South Florida mortgage lenders.

What is a VA Home Loan?

VA Home Loans are mortgages backed by the US Department of Veterans Affairs available to veterans, active US Military personnel, and their families.  They’re obtainable to any duty servicepersons – Army, Navy, Marines, Air Force, National Guard, Reservists – as well as surviving spouses of veterans, cadets at the U.S. Military, Air Force or Coast Guard Academy, midshipmen at the U.S. Naval Academy, and officers at the National Oceanic & Atmospheric Administration.  A minimum term of service is necessary and must have an honorable discharge if discharged from the military.

What are some benefits of the VA Home Loan?

The basic offers of VA Home Loans are simple.

  1. They don’t require any down payment.  This is the only loan available with zero down
  2. They don’t require mortgage insurance and have low closing costs to help save money
  3. They are lenient when it comes to credit and income eligibility 
  4. They have a government guarantee
  5. They are assumable – meaning they’re transferable to a future home buyer if that person is also VA-eligible

There are other terms that apply and may change but these specific benefits appear to be established.

Who is eligible for VA financing?

The essential qualification for VA Home Loans is being or having been an active service member.  

  1. Having served 181 days of active duty during peacetime
  2. Having served 90 days of active duty during wartime
  3. Having served 6 years in the Reserves or National Guard
  4. Having a spouse who was killed in the line of duty and not being remarried 

Eligibility doesn’t expire and can be applied to any primary residence in the future.

“From one veteran to another”

To Phil, it’s an honor and privilege to help his fellow servicemen and women.  Our team of experts helps calculate your mortgage and finds something for you.  Contact PS Mortgage Lending today and see how Phil can help you.

And sign up for Phil’s YouTube Channel for professional tips, including his VA Loans Playlist.

Are you ready to move into your new home?
Reach out to Phil Stevenson and the Expert Mortgage Team at PS Mortgage Lending
to see if you can qualify!

We think outside the box, to help those who don’t fit in the box…

Speak to one of our experts today.

PS Mortgage Lending
(888) 845-6630
Español: (305) 791-4874 
NMLS# 968090

Is forgiving the student debt acceptable?

This month, we arrived to really solid ground, regarding mortgages at least. Refinancing opportunities for people who originated their mortgage in 2018 are looking good. A vast quantity of last year’s mortgages are currently carrying rates 0.75% higher than today’s average rate, which is now at 3.49%.

New data shows that more than half of US mortgagees have their mortgage locked above the prevailing rate. Refinancing would be the answer, but strange as it may be, mortgage refinance is looking at negative numbers in its activity. Truth is, if it weren’t for some predominant factors, shaving these rates would be easy as pie.
General economic uncertainty might be the main reason why we don’t see those refi numbers spike up, but this is heavily tied to a lack of financial literacy. Taking for granted that a lot of these 2018 mortgagees are new to finance practices (most of them being millennials), we know for a fact that misinformation, or the lack of information as a whole, is a big factor when talking about mortgage activity, specially refinancing.

I encourage anybody out there to check their current rate, be it to refi or just to stay in contact with your mortgage’s current status, but mainly, to have some idea of the changes that take place during periods of uncertainty, like the one we are currently going through.

Really, there’s no need to worry! Let’s talk it out, I assure your doubt and uncertainty will vanish after you take a look at your mortgage status with your own eyes. Let me explain the small print, I’m here to help with all of your questions.

We're A Dedicated Team Of Professionals With One Goal: To Help You Plan For Your Retirement

Our company is made up of highly experienced Licensed Mortgage Loan Originators and
several Certified Reverse Mortgage Loan Professionals (CRMP), and we do one thing and
one thing only, Reverse Mortgages Loans. 

MANAGABLE MORTGAGES

A reverse mortgage is a potential avenue for seniors whose monthly mortgage payment has been unmanageable and would rather put their monthly income to better use.

FUNDS FOR RETIREMENT

A reverse mortgage can be a helpful planning tool to help boost your retirement.

.

PS Financial Services is here to help you decide whether a reveres mortgage is right for you. Speak to one of our experts to find out!

PS Lending can help with All Of Your Mortgage Needs

Speak to one of our experts
today Hablamos Español (305) 791-4874
(888) 845-6630 NMLS# 968090