Pros and Cons of a Reverse Mortgage

A reverse mortgage can be an incredibly valuable retirement plan that increases retirees income streams by using their largest assets: their home. But as is the case with most things there are both pros and cons to obtaining a reverse mortgage. A reverse mortgage allows homeowners to borrow against their home’s equity, as well as maintain ownership of their home. And, arguably the best part about a reverse mortgage is that there are zero payments involved, unlike a conventional mortgage, however, there are also a few downsides to a reverse mortgage that you should understood. Here are Becky Smith Home Loans pros and cons of a reverse mortgage: What Are The Pros Of A Reverse Mortgage? A reverse mortgage can be a fantastic tool of funding for individuals who need to greaten their income and be comfortable in their retirement. The largest asset most retirees obtain is their home. In many situations, a [...]

How Does A Reverse Mortgage Work?

Without a doubt the two most common questions that I hear in relation to reverse mortgages are “What is a reverse mortgage?” and “How does a reverse mortgage work?” A reverse mortgage, like a traditional mortgage, is a loan that’s made by the lender to the homeowner using the home as security or collateral. With a traditional mortgage, the homeowner utilizes their annual income to pay down their debt over time. In contrast, with a reverse mortgage, the loan balance increases over time because the homeowner is not filing monthly mortgage payments. Oftentimes, a reverse mortgage loan doesn’t require payment until the final homeowner has passed away or has moved out of property. However, life expectancy is a major part of costs in regards to the amount of money the borrower will receive. Typically, the older you are, the more equity you’ll have in your home and the reverse mortgage balance. [...]

How Do Reverse Mortgage Proceeds Impact Medicaid/Supplemental Security Income?

A conversation with a potential client today reminded me of an important question that comes up from time to time. Even scarier is how many times; it may not come up, thereby preventing the discussion and the subsequent necessary information to determine how best to structure their Reverse Mortgage proceeds. We all are familiar with the ads on TV and radio, often with a smiling and encouraging celebrity spokesperson lulling seniors into a sense of security with their claims, that “Reverse Mortgage proceeds will not affect Social Security benefits”.  Yes, that is true, but what about those seniors who receive Medicaid/Supplemental Security benefits or other “needs based” income?  The good news is that structured correctly, a borrower who receives Medicaid/Supplemental Security benefits, can not only improve their daily lifestyle with additional monthly income, but they can do so without affecting their “needs based” benefits.  However, without the discussion and care [...]

Rhinestone Grannies

From Broadway and Vegas to Hollywood and San Diego, the San Diego County Rhinestone Grannies are a group of talented grandmothers who share a love for dancing, singing, and entertaining. Through every dance, song, and comedy, the grannies embrace each day as a gift and encourage audience members to feel the same. 76-year-old grandmother Adrienne Hart, is the founder of the entertainment group and the leader of the troupe, and she holds dance and singing classes at La Mesa Adult Enrichment Center off La Mesa Blvd, La Mesa every Monday, and at El Cajon’s Infinity Dance Arts Studio every Wednesday. The classes range from intermediate to advanced, and they encourage participants to stay healthy and active. The Rhinestone Grannies have an important goal in mind: “to be the top resource for groups & troops that feature tappers, dancers, twirlers & cloggers over the age of 55 to meet and share [...]

Your Guide to Reverse Mortgages

What’s a Reverse Mortgage? A reverse mortgage is an available loan to homeowners that are 62 years or older, and it allows them to turn parts of the equity in their homes into cash. This process was conceived to help homeowners with limited income manage the accumulated wealth in their homes and to cover their monthly living expenses and pay for health care. Where Did the Name Come From? We call this particular loan a “reverse mortgage” because the lender is making payments to the borrower, instead of the borrower making monthly payments to a lender. Features of Reverse Mortgages With a reverse mortgage, the borrowers always has title and ownership over their home. At no point does the lender own the home, even after the last surviving spouse vacates the property. Below are some additional features of a reverse mortgage: The borrower only needs to pay back the loan [...]

Bonnie Lee’s Birthday

What a joy and honor to attend the 80th birthday celebration of my former client and now friend, Bonnie Lee, on Saturday August 13, 2016, at the Descanso Town Center in San Diego County. After a tasty potluck luncheon, we were entertained by John James who is one of the members of the infamous musical group, the Platters and the Rhinestone Grannies. The Rhinestone Grannies, range in age from 70 to 86! What a wonderful reminder that if you keep moving and doing what you love, age is just a number! Happy 80th Birthday, Bonnie Lee!!

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