Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Reverse Mortgage Maximization
Have your home's appreciation grow twice as fast.
For Seniors over the age of 62 a Reverse Mortgage is a tool that, while new to many, is increasingly being used to maximize their retirement income. A Reverse Mortgage frees up large amounts of equity to be used in investment vehicles, insurance policies, and savings plans that add to the safety and enjoyment of many seniors' lives.
When a Reverse Mortgage is employed, it allows you to keep earning appreciation on the home, while also earning growth on the equity. Equity normally has no growth. Example: Two people A and B buy the same home for $200,000. Person A puts a down payment for $200,000 while Person B puts down $10,000 and invests the difference. In 5 years both homes are worth $250,000. Person A's equity experienced no growth while Person B invested the $190,000 not locked in the home and enjoyed 2 times the growth of Person A.
Reverse Mortgages are a very safe way for seniors to release the equity trapped in their homes. A Reverse Mortgage is a Federally regulated and insured loan that uses home value and age as a calculator to extract a portion of the equity that Seniors have built in their homes. A good way to estimate the amount that can be received is to subtract the amount of purchase price and current mortgage from the estimated sale value. This is the equity that can be reasonably expected to be obtained with a Reverse Mortgage. Reverse Mortgage Nation provides a free online calculator.
The differences between a Reverse Mortgage and a standard equity loan are that the Reverse Mortgage NEVER requires the Senior to make a monthly payment. For as long as the applicant lives in the home, there are no payments required. All of the money that is generated with a Reverse Mortgage is 100% tax-free and will not affect any social security or Medicare benefits.
One generally overlook strategy in doing a Reverse Mortgage is managing the interest growth. The home is the only tax-beneficial financial investments in existence. If you earn a large return on a bond or in the stock market, you will experience taxes based on the size of your return. With a Reverse Mortgage, you pay zero tax for any money generated, and because Reverse Mortgages have no-prepayment-penalty, you can receive these funds tax-free, pay off the accrued interest for the year, then take additional tax-deductions on the interest that is accruing. All this with no risk of default or foreclosure because there are never any payments required.
Troy Shellhammer is a Reverse Mortgage Loan Officer with
Reverse Mortgage Nation (NGFS, a division of 1st Mariner Bank).
He can provide illustrations and examples of these strategies for
yourself, a friend, a client, or an elder parent.
MORE RESOURCES updated Mon. March / 01 / 2021
Today's mortgage refinance rates see little change as market holds steady | February 25, 2021 - Fox Business
3 signs you should refinance your mortgage right now Fox Business
Today's mortgage and refinance rates: February 14, 2021 | Rates down Business Insider
The 6 types of mortgage refinances — which is best for you? Business Insider
Mortgage rates are falling to unprecedented lows in 2021 — refinance now to save money - Q13 FOX (Seattle)
Mortgage rates are falling to unprecedented lows in 2021 — refinance now to save money Q13 FOX (Seattle)
Morris Bank: Making the refinancing and mortgage process easier Statesboro Herald
Mortgage Rates Decline and (Prime) Households Take Advantage -Liberty Street Economics - Federal Reserve Bank of New York
Mortgage Rates Decline and (Prime) Households Take Advantage -Liberty Street Economics Federal Reserve Bank of New York
Can Closing Costs Change On The Closing Disclosure? The Mortgage Reports
Rocket Companies reports record $9 billion profit for 2020 Detroit Free Press
Should I Refinance to Get Rid of PMI? Motley Fool
Statement on First Citizens Bank $16 Billion Community Benefit Agreement for Fair Lending & Green Homes - Milwaukee Neighborhood News Service
Statement on First Citizens Bank $16 Billion Community Benefit Agreement for Fair Lending & Green Homes Milwaukee Neighborhood News Service
Can You Use A 203K Rehab Loan For An Investment Property? The Mortgage Reports
Top 5 mortgage refinance questions answered Fox Business
Pros and cons of a cash-out mortgage refinance Fox Business
How to decide if you should refinance your mortgage Fox Business
Who's exempt from the new mortgage refinance fee? Fox Business
How to refinance your mortgage Fox Business
Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now - Fox Business
Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now Fox Business
Mortgage refinance: Everything you need to know Fox Business
How do I get the most out of my mortgage refinance? Fox Business
How a mortgage refinance affects your net worth Fox Business
Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 - Forbes
Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes
Comfort, Health and Safety are Top Motivators for Home Improvement Projects During The Pandemic - Business Wire
Comfort, Health and Safety are Top Motivators for Home Improvement Projects During The Pandemic Business Wire
What are the hidden costs of refinancing a mortgage? Fox Business
4 ways to get lower mortgage refinance rates Fox Business
Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 - Fox Business
Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 Fox Business
A record 19.4 million homeowners can now save big on a mortgage refinance, as rates hit another new low - CNBC
A record 19.4 million homeowners can now save big on a mortgage refinance, as rates hit another new low CNBC
Despite low mortgage interest rates, homeowners should research the caveats before reﬁnancing - Seattle Times
Despite low mortgage interest rates, homeowners should research the caveats before reﬁnancing Seattle Times
The best mortgage refinance lenders of February 2021 Business Insider
5 reasons to refinance your mortgage right now HousingWire
Refinancing your mortgage? Don’t make this mistake Fox Business
10 things to know before refinancing your mortgage Fox Business
Complete Checklist of Mortgage Refinancing Requirements Credible News
How often can you refinance your mortgage? Fox Business
3 Mortgage Refinance Strategies to Consider in 2021 The Motley Fool
10 tips for getting the best mortgage refinance rate, from checking your credit report to choosing the right lender - Business Insider
10 tips for getting the best mortgage refinance rate, from checking your credit report to choosing the right lender Business Insider
How to refinance your mortgage without closing costs Fox Business
How to get a low-cost mortgage refinance Bankrate.com
Today’s mortgage refinance rates climb upward — though one key rate holds steady | October 23, 2020 - Fox Business
Today’s mortgage refinance rates climb upward — though one key rate holds steady | October 23, 2020 Fox Business
How to Refinance Your Home | Home Lending Chase News & Stories