Gary & Shannon Kiernan

Phone
(480) 323-0855

E-Mail Us

Dominion Real Estate Partners

6501 East Cave Creek Rd. Suite 6
Cave Creek, AZ 85331

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Contact Info.

Gary & Shannon Kiernan

Phone
(480) 323-0855

E-Mail Me

Dominion Real Estate Partners
6501 East Cave Creek Rd. Suite 6
Cave Creek, AZ 85331

Reverse Mortgages

Our Blog About Reverse Mortgages

Reverse Mortgages Help Phoenix Homeowners

Yes, you can have your cake and eat it, too! Use your hard earned home equity to make ends meet in your twilight years.

A few days ago, Mrs. K was talking on the phone to Grandma, who was lamenting the fact that Grandpa never "believed" in life insurance so he had never taken out a life policy. Later, as we discussed it, I pointed out that while there had been no insurance windfall after his demise, he had provided for his spouse by ensuring that their home was paid off in full. In fact, Grandma has not had a mortgage payment in twenty years.

It is unusual for a realtor to cover this subject as it is somewhat out of our area of expertise. Which is Realtor-speak for "I don't make any money from this." It's like when your mechanic says of the mystery squeak "They all do that" is mechanic speak for "I don't know how to fix it".

I digress; eventually the conversation led to reverse mortgages and people's perception of them. Most folks think it is a scam. And they could not be more wrong. I do not intend to cover all the intricacies of a reverse mortgage in this article, but I will provide links at the end so that you, dear reader, may undertake further research.

Very simply put, if you are over the age of 62 and, either, own your home outright or have sufficient equity to pay off the loan and still have equity remaining, you are in business. You must also live in the home.

You may never be kicked out of your home or owe more than its value. You can receive the equity in any of the following ways: As a single lump sum, as a credit line account from which to withdraw funds or to be left to grow as an interest-bearing fund. You may elect to collect a fixed monthly stipend for as long as you live in your home. Or, you may concoct a combination of all of the above to best suit your needs.

From a practical standpoint, the only other requirements are that you keep both taxes and insurance on the home current.

Remember that this is a H.U.D. program under the auspices of the F.H.A. If a member of your family is sceptical, and they have a right to be cautious, reassure them that this could be a way to ease their financial burden.

In fact, our Grandma decided to downsize from her 2 acre property to a more manageable condo. The surplus cash will be invested wisely to provide a monthly income, thereby preserving all capital whilst still retaining the flexibility to obtain a reverse mortgage in the future if needs require it.

Anyway, that nice Jim Rockford advertises them on T.V. so how bad can they be?

Resources used:

http://www.rmaarp.com
http://www.hud.gov
http://www.ftc.gov

Reverse Mortgages Can Help Some People

We were attending a class for Real Estate renewal hours the other day and Guy Vetrano spoke a little about reverse mortgages and some of the changes in loan limits that are imminent. He is extremely knowledgable on a subject that is frequently misunderstood and shrouded in mystery. There are many different ways to tap into the equity in your home. You may obtain a lump sum; monthly payments; or a line of credit. Below, we have attached two theoretical examples of reverse mortgages at different stages of your life. Clearly, in order to make the most of your financial strength, it is imperative to talk to an expert. If you have questions about this product, or indeed any other lending-related inquiries, may we suggest you contact Guy directly. Please let him know that Gary and Shannon sent you.