Advantages of Reverse Mortgages
Improve Your Cash Flow
You don’t have to make any payments, and you decide
how to get the equity in your home, or with a minimum
40% down payment, you may buy or build a new home.
Purchase More Home for Less Money
If you have $500,000, rather than using the entire sum,
you can put down $250,000, and buy a $625,000 home with
no additional payments. If you invest the other $250,000 in
bonds at 5% you increase your annual cash flow by $12,500.
“This new income can buy long term care or life insurance
for example, as a tool to complete your families’ financial
life continuum plan, thereby protecting assets,” Cohen said.
Another benefit of a reverse mortgage is that if you do
not take the full amount of the predetermined equity, then
the remainder goes to your heirs. Deferred interest deductions are also transferrable. You can slate some or all of the
increased cash flow from other investments to purchase life
insurance or an annuity to leave heirs an inheritance. In this
case, heirs do not have to rehab and sell a distant property,
they simply receive cash proceeds from the investment.
By timing a delayed taxable gain from a sale of stock or
investment property, for example, a scheduled refinance,
home sale or estate liquidation can offset the taxes that are
due with mortgage interest. You have the option to pay interest or not, by using this flexible tool even on December
31st of that year.
Refinancing Existing Loans
You can refinance a conventional loan to a reverse loan,
and get a line of credit reverse mortgage. The unused money
increases between 3. 5 to 4.0% per year. For example, if you
have a $100,000 line of credit and use $40,000, then you
have $60,000 remaining, at the end of the year you would
have $62,400 to access. As you age the available credit line
increases, unlike a conventional equity line which decreases
the older you are.
Conventional or Reverse?
It’s important to decide what is right for your specific circumstances. There are many options available.
To request a custom analysis and or determine how
much funding you qualify to receive, call: 800-689-2375 or
visit: LoansRideal.com I-L
Assisted Living or Home
What happens when you decide to move but have multiple
generations to consider? The “sandwich generation” has a lot
to ponder when it comes to relocating. You may be in your
60s with children in their 20s and parents in their late 80s.
What happens when that 80 something moves with you?
For over seven years, Scott Cohen has placed people within
assisted living and long-term care facilities. “We give people
an option to help place and move their parents to a new region
or community. We assess health care needs and provide a
budgetary analysis for the elderly. Often since I am certified by
Medicare and Medicaid, these services are free to the client.”
“We provide a full due-diligence analysis of quality assur-
ance, control and competent staffing of assisted living
communities as well as matching an area, and community to
personality and health care goals for the elderly,” says Cohen.
“Medicare advocacy with long-term healthcare planning can
cut down long-term healthcare costs, enabling the elderly to
take advantage of more care-giving scenarios from nursing
facilities to the family as caregivers. Often seniors are
vulnerable and are very trusting, so we offer protections by
overseeing government benefits and caregivers all while
preserving their estate.” For more information call
800-386-5484, or visit LaterLife.us