Did you know you can purchase a home, even new construction, with a Home Equity Conversion Mortgage? It’s a reverse mortgage that doesn’t require you to make a monthly payment.
I’ve had many conversations about this very issue with numerous senior clients who are concerned with having a mortgage in their 80’s and 90’s. Especially now, when the cost of living just seems to keep on rising for them.
In this time, most people are realizing the power of cash – accessible cash that is. As we age, it is important to have access to the money we have earned over the years in order to help us manage our chosen lifestyle and our health in the retirement years. A forward mortgage, such as a conventional home loan, a VA or FHA loan requires you to spend every month by paying back principle and interest, which puts pressure on your bank balance. Whereas a reverse mortgage allows you to keep your money in your pocket to use how you wish, with an option to pay or not to pay a monthly amount toward principle or interest.
Beware, not all reverse mortgages are equal. Be sure to speak to a professional who is willing to sit with you at your kitchen table (or their office) to explain the details. Online services are unlikely to do that, and may lead you into signing documents without explaining everything you need to know.
Consider this information as a tool you can use for your financial wealth.
Presented in partnership with Genie McGee a Reverse Mortgage Planner with Fairway Independent Mortgage Corporation.
If you need to know how much equity you have in your home, contact me for a complimentary real estate market analysis.
This specially-designated REALTOR can save the children of seniors a lot of time when their parents need to downsize
Not just limited to Conyers but all around Atlanta, many older adults who own homes eventually get to a point where their home no longer accommodates them as it was originally intended. They may no longer need the size of the home, be physically able to take care of the home or can afford the cost of maintaining the home. In too many cases, health challenges compress the time needed to plan for a housing transition, find a new home or other living arrangements and/or sell their current home.
The adult children will find there’s a plethora of resources, housing options and price points to consider, so finding a residence that is the perfect mix of warmth and proximity to health care providers and facilities while being functionally adequate for the challenges of aging means much time and effort is involved in considering all the options. Senior-specific financial and real estate considerations often must be handled by the children of seniors, while juggling their own careers and family life.
If your aging parent or other loved-one needs to downsize or find a residence better suited for them, a SRES®-designated REALTOR is best trained to handle your loved-one’s real estate needs. They can sift through the options and present them to your parents, saving you a lot of legwork and time.
“The challenge is that ‘many adult children of baby boomers’ rarely have the time that is needed to gather all the necessary information about the services that would be helpful to their parent. This means the parent often remains in their ‘ineffective’ situation for longer. But also, connected to this, is that often the adult child is trying to show the parent that it may be best if they no longer live in the family home that has functional issues relating to the parents’ current health conditions or lifestyle needs. The other challenge is for the adult child to find and provide solid information to parents without making the parents feel as though their child is ‘babying’ them or trying to take over. Seniors Real Estate Specialists like me can help with all of this.”
To be experienced in serving this demographic, the REALTOR must pass the National Association of REALTORS-designed course. Earning the SRES® designation means the REALTOR specializes in the needs of clients aged 50 and over who are buying and selling real estate.
SRES®-designated REALTORS are knowledgeable about these things and will save you much time by handling them for you:
Senior housing options and locations
Move Management Coordinators
Counseling strategies to help in life transition planning
Remodel/Renovation contractors in case they wish to age in place
Factors and trends in housing, retirement income and finance specific to those 50 and over
Identifying and protecting seniors from finance, mortgage and loan scams that target this demographic
Aware of Housing for Older Persons Act (HOPA), senior communities and housing restrictions
Advisers for Home Equity Conversion Mortgages, Reverse mortgages, 401k accounts, IRAs and pensions as part of wealth management and to assist in real estate transactions
Protecting a parent or senior loved-one from losing access to Medicaid, Medicare, VA or Social Security benefits when selling their real estate
SRES® REALTORS also have partners in the Senior Care Market who help make the transition to a new home as easy as possible for all concerned. Kaye Ginsberg, founder of Peace of Mind Transitions, a full service seniors relocation partner, explains:
“Senior Move Managers take the stress out of moving. We work together with the senior and their family to decide which belongings will go to the new home, then work with them to manage what to do with the rest (sell, donate or dispose). We coordinate packing and moving and then completely unpack the new home; including hanging pictures and making the beds.”
Ginsberg said, “The first step is for the senior to identify what they will take with them and what they would like family members to have – and that’s the hard part. This is the first time in history that we have two generations downsizing at once – and none of the “children” want any of their parents’ belongings. Which means that many items like china, crystal and silver are not holding up in value for re-sale. Perhaps it would be better to focus on what I like to call ‘Doing Good While Downsizing’. Why not donate items to a local charity who will make sure your items go to people in need who will appreciate them?”
Ginsberg says it’s good to strategize early: “It’s never too early to start thinking about the future. Even if you’re not ready to move now, it is wise to know what your home is worth and what other housing options are available for you. And it is certainly never too early to start thinking about what you want to do with your lifetime accumulation of possessions.”
If you are an older retiree and have been overwhelmed lately with managing your financial accounts, it might be time to consider hiring a Daily Money Manager (DMM). A DMM is a cost-effective way to help keep your financial life in order by hiring a professional to help you keep track of paying your bills on time, balancing your check book, handling insurance matters and providing tax documents to your accountant. Depending on where you live, costs can range between $75 to $150 an hour and some even charge a monthly retainer instead of an hourly fee.
Atlanta Seniors Real Estate caught up with Barbara Scurry, founder of Senior Partners. Barbara has been a DMM for 6 years and 10 years in geriatric health care/ marketing.
“I’ll share with you the story of Dorothy, a client of mine for almost four years. Dorothy was 79 years old when I started working with her. She never married, had no children, siblings, or other relatives with which she associated and she lived in an assisted-living facility (ALF).She was highly educated and detail-oriented but had stopped paying her bills and was showing early signs of cognitive decline. When I started working with Dorothy, I had great concern that she would run out of money within 12 to 18 months.”
Saving and finding money
Scurry said, “I began basic daily money management services, including opening and sorting her mail, making calls to outside vendors on her behalf, and organizing her files. But I got involved with her life issues as well and quickly realized she was not getting the care she needed (and was paying for) at the ALF where she was living. I helped her find a new ALF that saved her $2,500 per month in living expenses.”
Dorothy was also missing stock certificates that were about to be turned over to the state of Georgia, “one evening, as I was going through some old papers I finally found them! When we deposited those certificates, they ended up being worth more than $125,000! That money helped take care of her needs for the next three and a half years!”
Help with moving
Scurry even advised Dorothy on moving, a service perfectly aligned with the real estate transition services provided by Atlanta Seniors Real Estate Team.
“I referred her to a professional move management company and coordinated their services to get her packed, moved, and unpacked at her new location.”