Seniors Drawn to Mortgages That Give Back

I came across a great article in the Wall Street Journal about reverse mortgages. I am seeing more and more positive articles about the reverse mortgage product lately. I think that the need is out there and as more people learn the truth about reverse mortgages, some of the stigma is starting to fade.

MetLife Reports on Changing Role of Reverse Mortgages in Retirement

In today’s economy, more and more senior homeowners are looking for new sources of retirement income. Many are looking to their home equity as an option to supplement other income sources.  A new report from The MetLife Mature Market Institute looks at different strategies for coping with financial shortfalls later in life.

Tapping Home Equity in Retirement was released jointly with the National Council on Aging and found that 35% of older Americans see their homes not just as secure places to live, but also as collateral for a loan. About 14% are taking cash out of their house through a home equity loan or reverse mortgage.  “Tapping home equity in a timely and appropriate way can keep small budget shortfalls from becoming overwhelming problems,” said Barbara R. Stucki, Ph.D., director of the Reverse Mortgage Initiative for NCOA.

The study highlights different options for using home equity that are not part of the current national conversation. These include:

• The use of reverse mortgages to delay the age at which one might begin to collect Social Security, thus increasing the amount of one’s ultimate monthly Social Security income.
• Reverse mortgages as a stopgap measure to consolidate credit card debt, to cover investment losses or to defer mortgage payments.
• Periodic distributions that would tap home equity to help people meet expenses if they outlive their savings/retirement income.
• Programs that combine public benefits with modest amounts drawn from home equity to help seniors stay at home.
• Home equity lines of credit for emergency spending, such as home maintenance, without which many homes decay and lose value.
• Reverse mortgages with a line of credit option for borrowers to pay out-of-pocket health and home care expenses. Borrowers only pay the amount they use from the loan.

Solving everyday financial problems is becoming increasingly complex and difficult in later life. Although there are still many unanswered questions, the financial services industry, policymakers, and consumer advocates complacent about the potential benefits and risks of using this asset to address the challenges facing older Americans.

A little bit about me

Since this is a new blog, I thought I’d introduce myself.

I have worked in the Mortgage industry for the past 7 years as a Loan Officer, Principle Lending Manager and Owner of Northfields Mortgage.

I now work at Integrity First Financial as a Loan Originator and as the Director of the Reverse Mortgage Division.

One of the greatest joys I have in the mortgage business is in being a part of something that can have a huge impact in someones life.

One loan product that can make a huge difference on the lives of my clients is a reverse mortgage. This specialized loan for people 62 and older enabling them to use the equity in their home.

It’s empowering and humbling at the same time to be able to help someone change their lives for the better, and I’m very pleased to be able to offer this service to Utah’s senior population.

Eat More Chocolate

Dark Chocolate

It’s true!  Dark chocolate is the new health food.  Recent studies have shown that a daily serving of dark chocolate may:

1. Lower blood pressure
2. Reduce the risk of diabetes
3. Keep cholesterol levels stable or even improve them
4. Enhance cognitive function by increasing blood flow to the brain
5. Boosts mood
6. Prevents cell damage
7. Improves blood sugar levels
8. Eases a persistant cough
9. Helps ease chronic fatigue syndrome
10. Raises HDL cholesterol and lowers LDL cholesterol

Dark chocolate is full of antioxidants that help fight off cell damaging molecules in the body that accelerate aging and disease.   The higher the percentage of cocoa in the chocolate, the more antioxidants it has and the better for you it is.

Health benefits are only with dark chocolate.  White chocolate doesn’t contain any antioxidants and milk chocolate contains extra ingredients that won’t let the body absorb the antioxidants.

Community Rallies To Save Seniors Home With Reverse Mortgage

The Daily Times writes that the home of 72 year old Lorraine Zickefoose is scheduled to go up for auction because she fell behind on her payments with Wells Fargo Home Loans. Hoping to save her home, she applied for a reverse mortgage with John Smaldone’s AAXA Mortgage and was approved but due to falling property values the she is about $38,000 short according to Smaldone.

“Lorraine is going on 72 years of age, she is a widow and is handicapped,” Smaldone said. “She has nowhere to go, she may be put out in the streets.” A local church group and other concerned citizens are rallying in a last minute attempt to stop foreclosure on the woman’s home.

Smaldone told RMD that he has been trying to negotiate a settlement with Wells Fargo in the amount of entitlement that Zickefoose would receive from the reverse mortgage but the company turned it down and asked its attorneys to proceed with foreclosure.

“We are still trying to stop the proceedings,” Smaldone said Tuesday. He has written letters seeking help from U.S. Rep. John Duncan and Sheriff James L. Berrong.

According to an email from Smaldone, the woman’s home was appraised $170,000 and when the lender ran its own appraisal it came back with $139,000.