Gene Mundt - Let's Talk Mortgages & Real Estate!

     Facts will tell you ... what is medicinal and of assistance physically to one person, is pure poison to another.  

     That is certainly the truth when talking of mortgage loan programs.  One has to look no further than the notorious ARM programs of this last decade to verify that statement.  They were a godsend to some consumers ... and lethal to others.

     Currently, you need not look any further than the Reverse Mortgage Loan to view a Devil and Angel comparison either.  Some financial analysts view them as a sure sign of senior abuse, while other analysts will tell you that these loans deliver salvation. 

     I've come to state ... Reverse Mortgages are neither.  They are a loan tool much like any other.  As stated above, good for some people and bad for others, a determination to be made based on FACTS.

     I like to present simplistic facts regarding Reverse Mortgages first and let my clients (along with any counsel they may have) decide on how to proceed any further.  These facts along with others, in tandem with the clients' personal financial scenario, will dictate the final determination of the good or evil of pursuing a Reverse Mortgage any further.  

     To that end, I have included a listing of questions and scenarios that will explain whether your knowledge or preconceived ideas of Reverse Mortgages are true, false, or somewhere inbetween.  Some may surprise you.  Others may need further clarification.  To that end, if you have questions ... please contact me.  The flyer attached has my contact info included to make that easier.  

     Again ... personal financial considerations must be taken into account to make a final decision regarding the validity of pursuing a Reverse Mortgage.  That determination can be made only after talking to a Reverse Mortgage specialist/lender.  Pre-Qualification and communication must be done thoroughly just as it has to be with any other lending program. 

     Communication and peace of mind is absolutely vital when seeking facts and determining a future financial path regarding these loans.  Make sure the time is taken to do the needed research for yourself or a loved one.  Ask all the questions you need to, so you move forward knowing for sure that you did the right thing for YOUR financial and personal circumstances.    

Many myths and prejudices surround the topic of Reverse Mortgages.  While it is true that these types of loans are not for every senior, in some instances they can provide well-needed benefits to some.  With the consultation that is required for seniors thinking of utilizing this form of lending, seniors and their caregivers should be well-versed and educated about the benefits and drawbacks associated with their loan by the time a decision is to be made. 

Following is a short synopsis and outline of many of the features of these loans.  If you or a loved one of yours is of this age and you wish to plan for the future, please take the time to read and consider the information contained.  The next step is to contact a qualified mortgage banker for clarification of any questions you have and additional information you require.  Special certification is required to provide this type of loan, so make sure that you are working with someone that has the necessary education and certification demanded.   

If you are 62 years of age or older, own your own home and reside within that home more than one-half  of the year, you may be eligible for a Reverse Mortgage. 

• Reverse Mortgages eliminate & payoff monthly payments or debt
• Reverse Mortgages never include monthly payments
• Reverse Mortgages are for those 62 yrs. & older
• Reverse Mortgage-holders retain title/ownership of home
• Reverse Mortgage-holders can receive a monthly, lump sum, or combination payment 
• Reverse Mortgages DO NOT interfere with inheritances
• Reverse Mortgage consultation is FREE                    

Reverse Mortgages turn the value of a home into cash without making a move from the owner's  home necessary.   No income is needed from an applicant in order to qualify for a Reverse Mortgage. No monthly repayment of the loan is scheduled or needed.  Cash proceeds received from a Reverse Mortgage can be paid out in several ways to a senior home owner.  A one-time lump sum cash disbursement can be made. 

A monthly "payment" advance or an account with a "creditline" are also options from which to choose and offer flexibility of timing and dollar disbursement amounts.  A combination of payment methods is possible and an option for consideration.  Typically, Reverse Mortgages are repayable upon death, the sale of the home, or permanently moving from the home.              

Many older Americans are concerned about their relatives/caregivers migration to distant locales, increasing personal health issues, rising health care costs, financial legacy and estate taxation.  Reverse Mortgages can provide alternatives and solid solutions  to address many of these important concerns.  For older children involved in the care and management of aging parents or relatives, the utilization of a Reverse Mortgage option can provide welcome financial and personal assistance to a family and budget stressed by health and monetary concerns.  It can also make it possible to keep a loved one within their familiar and well-loved family home when it would be impossible to do so otherwise. 

For seniors with health concerns, the flexibility, benefits and peace-of-mind reaped by securing this type of loan can be enormous.  The usage of Reverse Mortgage proceeds can become a key component to estate planning.    Seniors, or their caregivers, considering a Reverse Mortgage should consult with a qualified tax advisor, financial planner and their professional mortgage banker to discover their best individual and   personal financial options and benefits. 

                            "Mortgage Update & News"  -  Gene Mundt, Chicago Bancorp        www.genemundt.com