Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Reverse Mortgage Maximization
Have your home's appreciation grow twice as fast.
For Seniors over the age of 62 a Reverse Mortgage is a tool that, while new to many, is increasingly being used to maximize their retirement income. A Reverse Mortgage frees up large amounts of equity to be used in investment vehicles, insurance policies, and savings plans that add to the safety and enjoyment of many seniors' lives.
When a Reverse Mortgage is employed, it allows you to keep earning appreciation on the home, while also earning growth on the equity. Equity normally has no growth. Example: Two people A and B buy the same home for $200,000. Person A puts a down payment for $200,000 while Person B puts down $10,000 and invests the difference. In 5 years both homes are worth $250,000. Person A's equity experienced no growth while Person B invested the $190,000 not locked in the home and enjoyed 2 times the growth of Person A.
Reverse Mortgages are a very safe way for seniors to release the equity trapped in their homes. A Reverse Mortgage is a Federally regulated and insured loan that uses home value and age as a calculator to extract a portion of the equity that Seniors have built in their homes. A good way to estimate the amount that can be received is to subtract the amount of purchase price and current mortgage from the estimated sale value. This is the equity that can be reasonably expected to be obtained with a Reverse Mortgage. Reverse Mortgage Nation provides a free online calculator.
The differences between a Reverse Mortgage and a standard equity loan are that the Reverse Mortgage NEVER requires the Senior to make a monthly payment. For as long as the applicant lives in the home, there are no payments required. All of the money that is generated with a Reverse Mortgage is 100% tax-free and will not affect any social security or Medicare benefits.
One generally overlook strategy in doing a Reverse Mortgage is managing the interest growth. The home is the only tax-beneficial financial investments in existence. If you earn a large return on a bond or in the stock market, you will experience taxes based on the size of your return. With a Reverse Mortgage, you pay zero tax for any money generated, and because Reverse Mortgages have no-prepayment-penalty, you can receive these funds tax-free, pay off the accrued interest for the year, then take additional tax-deductions on the interest that is accruing. All this with no risk of default or foreclosure because there are never any payments required.
Troy Shellhammer is a Reverse Mortgage Loan Officer with
Reverse Mortgage Nation (NGFS, a division of 1st Mariner Bank).
He can provide illustrations and examples of these strategies for
yourself, a friend, a client, or an elder parent.
MORE RESOURCES updated Sun. May / 28 / 2023
Today's Mortgage, Refinance Rates: May 28, 2023 | Rates Spiked Last Week and Remain High - Business Insider
Today's Mortgage, Refinance Rates: May 28, 2023 | Rates Spiked Last Week and Remain High Business Insider
The Great Pandemic Mortgage Refinance Boom - Liberty Street ... Liberty Street Economics -
Compare Today’s Refinance Rates | U.S. U.S News & World Report Money
What is mortgage refinancing and how does it work? Yahoo Finance
Today's Mortgage, Refinance Rates: May 21, 2023 | Rates are Flat for now, but Should Drop Later This Year - Business Insider
Today's Mortgage, Refinance Rates: May 21, 2023 | Rates are Flat for now, but Should Drop Later This Year Business Insider
How to get a low-cost mortgage refinance Yahoo Finance
How to Refinance a Second Home in 2023 Investopedia
Banks to be stuck with 'mortgage prisoners' as those who can refinance their home loan search for a better interest rate - ABC News
Banks to be stuck with 'mortgage prisoners' as those who can refinance their home loan search for a better interest rate ABC News
What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... - Federal Reserve Bank of New York
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... Federal Reserve Bank of New York
Monthly Mortgage Payments Could Increase Rapidly if the U.S. ... The Motley Fool
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders - CNBC
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC
How To Remove PMI: A Complete Guide Zing! Blog by Quicken Loans
CFPB: Choosing a Cheaper Mortgage Lender Could Save You ... The Truth About Mortgage
How does mortgage refinancing work? CBS News
Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal
Here’s how sharply mortgage refinancing has dropped off Yahoo Finance
CFPB Launches Effort to Spur New Opportunities for Homeowners ... - Consumer Financial Protection Bureau
CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau
Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business
Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post
Small Business Loan Refinance Bankrate.com
Why Older People Can’t Get New Mortgages The New York Times
VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider
11 Home Refinance Loans For Bad Credit (May 2023) BadCredit.org
Debt-Ceiling Deal Is Close. Recession And Stock-Market Drop May ... Investor's Business Daily
Current 15-Year Refinance Rates Today Business Insider
Refinance Closing: An Overview Zing! Blog by Quicken Loans
7 Refinancing Programs for Seniors Total Mortgage
Compare Current 30-Year Refinance Rates Business Insider
Heloc vs. Cash Out Refinance Credible