If you are 62 or older – and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses – consider a reverse mortgage.  A reverse mortgage allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.

With a “regular” mortgage, you make monthly payments to the lender. In a “reverse” mortgage, you receive money from the lender, and generally don’t have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. The proceeds of a reverse mortgage are generally tax-free, and many reverse mortgages have no income restrictions.

Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits. You retain the title to your home, and you don’t have to make monthly repayments.

Reverse mortgages are the perfect solution for any baby boomer who wishes to remain in their home. Instead of moving to a new location, a reverse mortgage can help to make those ‘aging’ home improvements. Redo the bathroom with a walk in tub or shower, add a main level bedroom, redo the floors and lighting.

There are many things you can do with a reverse mortgage to help you live stress free in your golden years.

For more information about a reverse mortgage in Connecticut, contact your Reverse Mortgage Expert at Bay Area Reverse Mortgage. We have helped many seniors with the knowledge they need to live comfortably in retirement. Call (510) 214-8309 today!

Like most Americans, as you grow older, you want to live in your own home as long as possible. But, you may be finding that, as time goes on, it’s becoming more and more difficult to handle everyday tasks. The extra expenses for elder care can become a heavy burden on someone with a limited income.

Many Americans originally bought their homes as a financial resource for emergencies. But many people do not know how to make use of this resource when the time comes. One option is a reverse mortgage.

In total, these households could access as much as $695 billion in home equity through reverse mortgages. For individuals, the extra cash could go a long way to help with family caregiving and other long-term care expenses. For example, a 75-year-old homeowner living in a property worth $100,000 could receive enough funds to pay a family caregiver $500 a month for almost 12 years; $1,120 a month in adult day care services for almost five years; or $2,160 a month in home care—daily care for at least four hours—for 2.5 years.

With a reverse mortgage you don’t need a credit check, and you retain title to your home. You won’t have any mortgage payments, although you will be responsible for homeowners insurance, property taxes and upkeep on your home. But you’ll now have a monthly check to pay for those expenses, or a pool of money in the bank to cover emergencies.

To learn more about a reverse mortgage in Berkeley or the surrounding area, contact the Experts at Bay Area Reverse Mortgage. We can help answer all of your questions and give you the knowledge you need to secure your retirement future. Call (510) 214-8309 today!

Aging In Place  
Courtesy of ARAcontent

(ARA) – Aging in place – updating one’s home to accommodate changing needs and abilities as one ages – doesn’t have to mean sacrificing a home’s style and decor. From attractive lighting designed to work well for aging eyes to barrier-free shower stalls that compete in beauty and practicality with what you might find in a luxury community for those 55 and older, plenty of home modifications now make it possible to age in place gracefully and stylishly.

“It’s no longer necessary to give up your home’s good looks for a more institutional-looking appearance just to achieve a safer, more usable house,” says Eric Kozak of Premier Care In Bathing, leading makers of walk-in baths. “You can age in place and retain the style that makes living in your home comfortable and safe, and maintain your independence at the same time.”

With more than 78 million baby boomers growing older in the United States, aging in place – and how to do it well – is a hot topic for many homeowners. If you’re planning ahead or thinking it’s now time to update your home to accommodate changing needs, keep a few things in mind:

Kitchens and baths are commonly the most challenging rooms in the house for people, like many seniors, with mobility issues. Updating these rooms can go a long way toward helping you stay in and enjoy your own home for as long as possible. “Bathrooms, in particular, pose safety issues. Falls are one of the leading reasons seniors must go into nursing homes and most home falls occur in the bathroom,” Kozak says.

When renovating your bathroom, focus on the important elements, including low-level entryways, accessible grab bars, easy grip faucets and showers with safety screens. Other elements include safer, slip-resistant flooring; brighter, more flexible lighting; and safe access to the shower or bathtub.

Walk in showers

Stepping in and out of a tub or shower is one of the riskiest times for people with mobility challenges. Appropriately placed grab bars – now available in designer colors and textures – can help improve safety in these high-risk areas. Another option that’s high on safety and style is to replace a current shower or tub with a walk-in shower like those now offered by Premier Care In Bathing, whose walk-in bathtubs have made bathing safer and more convenient for thousands of Americans with mobility issues. The walk-in showers are a good option for wheelchair users or in rooms where a full-size tub is not practical.

Flooring

That tile floor that you adored in your 40s can be a slip hazard when you reach your 70s. In fact, any hard bathroom floor surface such as linoleum, vinyl or tile can put you at increased risk of slipping and falling. Carpeting might be a better option, one that is slip resistant and warmer and softer on the feet. Many manufacturers now offer materials that are attractive and able to repel moisture. If installing carpeting isn’t practical for you, use area rugs with sticky backing to help ensure safe footing in high traffic areas, like in front of the commode, sink and bathtub.

Lighting

Aging eyes not only need more light to see, they need better quality light, especially at night. Avoid dim lighting; older eyes need several times more light than younger eyes to see well, experts say. Increase the amount of light in your bathroom and consider using naturally brighter bulbs like compact fluorescent bulbs, which are also energy-efficient.

Be aware of glare, as well. Bright lights bouncing off all-white bathroom surfaces can create glare that makes it difficult to see and navigate for older people, especially at night when they may not be fully awake. If your bath is all white, paint the walls a light color in a finish that will help reduce glare. Use area rugs on white floors to help break up the expanse of white and reduce glare.

“Boomers aging in place will find more options than ever before to do so with style,” Kozak says. “Safety should be your first concern, but you can also enjoy good style and beautiful design as well.”

To find out more about a Reverse Mortgage in Oakland CA, contact Bay Area Reverse Mortgage at (510) 214-8309. Our team of experts can answer all of your questions and provide you with the knowledge you need to help you stay comfortably in your home.

9 Ways to Cut Housing Costs
By Steve Vernon

Housing costs are one-third of the average American household’s budget, the largest monthly expense for most families. And since reducing living costs is the most common way to make ends meet in retirement, it makes sense to take a hard look at your housing costs.

Since most Americans have insufficient savings to fund a traditional retirement, they’ll need to look for creative ways to make every dollar count, and finding resourceful ways to lower housing costs will help.

Here are nine ways to pare your housing budget:

•     Downsize to a smaller house, with reduced bills for utilities, maintenance, and property taxes. You might also be able to realize some home equity that can be invested to generate retirement income.
•     Move to a location that enables you to reduce other costs, such as transportation or health care. This could mean moving out of the suburbs and into a city.
•     Move to a less expensive part of the country. There are a number of Best Places to Retire sites that you can review some to give you ideas. [Read: Top 10 Retirement Towns for 2011]
•     Move to another country with dramatically reduced living costs. Panama, Costa Rica and some South American and European countries consistently show up on lists reviewing best places to live abroad.
•     Rent out a room or two for additional income. This solution works best if you don’t want to move and have a large house. After my daughter graduated from college, she rented a room from a retired couple for a year. It was win-win situation: My daughter had inexpensive housing, and the couple realized some extra spending money.
•     Share housing with other retirees — the Golden Girls solution. Not only will you share in the cost of housing, but you can also realize savings in regards to your insurance, utilities and even food. Obviously this option isn’t for everyone, but don’t dismiss it without thinking it through.
•     Consider a reverse mortgage to help you generate retirement income. This solution works for people who own their house and plan to stay for many years. If you didn’t or don’t plan to buy long-term care insurance, however, I prefer that you keep your home equity in reserve for a day when you could face high bills for long-term care.

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Reverse Mortgages have helped many seniors live stress free in their golden years by using the equity in their homes! If you have questions about a reverse mortgage, contact Bay Area Reverse Mortgage at (510) 214-8309 to learn more.

With more than 10,000 American Baby Boomers reaching retirement each day, it is more important than ever to preserve and develop alternative methods of financing retirement and the unexpected costs that materialize late in life.

For seniors trying to find the right balance of financial resources for their retirement years, having more options to consider is better than fewer, and the reverse mortgage industry is planning for that reality. The good news for those seniors is that the industry is battling to preserve as many financial tools as possible, including Home Equity Conversion Mortgages (HECMs).

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For information about a Reverse Mortgage in Walnut Creek CA, contact Bay Area Reverse Mortgage. If you are 62 or older, we can help you gain the knowledge you need to move forward toward a stress free retirement. Call (510) 214-8309.

The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program, which enables you to withdraw some of the equity in your home.  The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.  You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, “Use Your Home to Stay at Home,” a guide for older homeowners who need help now. It is smart to know more about reverse mortgages, and decide if one is right for you!

1. What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  However, unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

2. Can I qualify for FHA’s HECM reverse mortgage?

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online or by phoning (800) 569-4287.

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If you would like to speak to a Specialist regarding reverse mortgages in Oakland CA,  contact Bay Area Reverse Mortgage. We are dedicated to providing you with the information you need to plan for your future. Call (510) 214-8309 for more information.

Generally a home equity loan, a second mortgage, or a home equity line of credit have strict requirements for income and creditworthiness. Also, with other traditional loans the homeowner must still make monthly payments to repay the loans. A reverse mortgage has no income or credit requirements and instead of making monthly payments, the homeowner receives payments.

With a reverse mortgage the amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home. The older the homeowner, the lower the interest rate. The more valuable the home (up to a certain point), the higher the loan amount will be.

As stated previously, with traditional loans the homeowner is still required to make monthly payments, but with a reverse mortgage the loan is not due as long as the homeowner lives in the home. Also, with a reverse mortgage one cannot be forced to foreclose or forced to vacate the home because of a missed mortgage payment. However, the homeowner is still responsible for real estate taxes, utilities, and maintenance.

Click HERE to read more from the Reversemortgageguides.org

If you would like more information about a reverse mortgage in San Francisco CA, contact our Specialists at Bay Area Reverse Mortgage. We can provide you with the knowledge you need to make informed decisions about your future. Call (510) 214-8309.

For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home equity loan. But a conventional loan really doesn’t free up the equity because the money has to be paid back with interest.

A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person’s lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title “reverse mortgage“.

Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money to pay off debt, make home repairs, or for remodeling.

For those seniors who are in need of long term care and want to stay in their home, a reverse mortgage can create the money needed to pay for in-home personal and medical care. They can also pay for needed medical equipment and handicap adaptation to their home.

There are no income, asset or credit requirements. It is the easiest loan to qualify for.

A reverse mortgage is similar to a conventional mortgage. As an example:

•     The bank does not own the home but owns a lien on the property just as with any other mortgage
•     You continue to hold title to the property as with any other mortgage
•     The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
•     There is no penalty to pay off the mortgage early
•     The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish

False Beliefs Regarding Reverse Mortgages

•     “The lender could take my house.” The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
•     “I can be thrown out of my own home.” Homeowners can stay in the home as long as they live, with no payment requirement.
•     “I could end up owing more than my house is worth.” The homeowner can never owe more than the value of the home at the time the loan is due.
•     “My heirs will be against it.” Experience demonstrates heirs are in favor of Reverse Mortgages.

Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.

The amount of reverse mortgage benefit for which you may qualify, will depend on:

• your age at the time you apply for the loan
• the reverse mortgage program you choose
• the value of your home
• current interest rates
• and for some products, where you live

As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.

The loan is not due and payable until the borrower or borrowers no longer occupy the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries.

The most popular reverse mortgages are the so-called HECM loans. HECM loans require that the applicant meet with a government approved counseling agency to be sure the applicant understands the reverse mortgage process.

The Federal Trade Commission states:

“Before applying for a HECM, you must meet with a counselor from an independent government-approved housing counseling agency. Some lenders offering proprietary reverse mortgages also require counseling.

The counselor is required to explain the loan’s costs and financial implications, and possible alternatives to a HECM, like government and nonprofit programs or a single-purpose or proprietary reverse mortgage.

The counselor also should be able to help you compare the costs of different types of reverse mortgages and tell you how different payment options, fees, and other costs affect the total cost of the loan over time.

Most counseling agencies charge around $125 for their services. The fee can be paid from the loan proceeds, but you cannot be turned away if you can’t afford the fee.”

A Reverse Mortgage Specialist in your area can answer your questions, calculate the amount of loan you can receive and advise the type of loan for your needs.

For information about a reverse mortgage in Hayward CA or the surrounding area,  contact our team of reverse mortgage specialists at Bay Area Reverse Mortgage. We are dedicated to providing you with the knowledge you need to help protect your long term care. Call us today at (510) 214-8309.

Home Equity Conversion Mortgages can provide money for elderly homeowners in need by allowing them to tap the equity in their home as a line of credit, in one lump amount or as fixed monthly payments.

Ideal for senior citizens in need of cash to pay for health care costs and living expenses, HECM reverse mortgages allow homeowners to remain in their homes without having to make any monthly payments.

What is a reverse mortgage?

Insured by the federal government and provided by private lenders, the HECM reverse mortgage is a form of equity release that allows seniors over the age of 62 to access their home equity to cover emergencies or to pay for early retirement. The loan does not have to be repaid as long as the borrower remains in his or her home; however, the homeowner must continue to pay taxes and insurance on the property.

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Have you considered how to pay for care if you should need it? What if you need home care? You may be healthy now, but if you are 62 or older and looking at the possibility of rising medical costs, prescriptions or home care, then a Bay Area Reverse Mortgage could be the answer. Reverse Mortgages in Oakland have helped many seniors live stress free in their golden years by using the equity in their homes!  Call us today for more information, (510) 214-8309.

What Is A Reverse Mortgage?

Reverse Mortgages are a form of equity release, it allows a borrower to turn the equity that has been built up in a home into cash. This cash can be received through a lump sum payment, an ongoing monthly payment or a combination of both. What separates reverse mortgages from traditional mortgages is that the loan does not need to be paid back until one of the following occurs; the owners/borrowers sell the house, the house is no longer the primary residence (this occurs when the owner do not live in the house for a period of 364 consecutive days or more. Usually as a result of moving into a nursing home or retirement village), or they pass away.

Reverse Mortgage Requirements

There are a number of requirements that must be met before a borrower can be deemed eligible for a reverse mortgage, these requirements are as follows:

•     62 Years of age or older
•     Own home outright or have a mortgage balance that can be paid in full with the proceeds of the loan
•     Must be the principal residence of the borrower. For example, holiday homes are unable to have this type of loan applied to them
•     No income requirements as the balance of the loan (incuding interest) is paid in full at the end

There are no income or credit checks, although borrowers must not have a pending or current bankruptcy. If they do then court approval is necessary before closing.

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If you have questions about Reverse Mortgages in San Francisco, contact our Specialists at Bay Area Reverse Mortgage. We are dedicated to providing you with the knowledge you need to make decisions for your future. Call today, (510) 214-8309.