Posts Tagged ‘Seniors’
Sunday, August 8th, 2010
How Seniors Can Get Out and Stay Out of Debt?
by Sam Collins If you don’t have one yet, you need to consider building up an emergency fund. Try to save three to six months’ worth of expenses in an account that can access for emergencies only. This little stash of cash should help you from using high interest rate credit cards, if for some reason you run short of cash for medicine or home repairs.
If you are still working, paying down or even paying off your mortgage will be a big relief and will free up cash for unexpected expenses. You may not have the cash to do that, but if you have at least 50% equity in your home, you may want to consider utilizing a unique financial product, called a reverse mortgage.
If you are paying a higher interest rate on your mortgage than you are on your investments, you may want to consider using those funds to clear your mortgage and then turn your attention to saving that money going out monthly. This is perfect for building that stash of cash, just in case you need it in the future.
If you do use credit cards, look for ones that offer no annual fees, or low late fees and low rates of purchases or cash advances.
Some other pointers. Charge purchases to credit cards only if you can pay them off each month. If you’re already in lots of debt, stop using and be sure to pay on time. You may want to consider calling your card company and ask for a lower rate. Good credit will often assure a better rate. You never know unless you call.
Avoid all else, if you are still working, avoid payday loans. The annual rates for these loans can be close to 400%. Instead, ask your employer if you can have an advance on your paycheck. Also, don’t be afraid to ask relatives for assistance.
Last you can see credit counseling. Counselors will try to negotiate lower rates and a flexible payments with your creditors. Avoid credit counseling agencies that charge high fees or offer you advice without reviewing your situation closely. For more tips on finding a reputable counselor, go to AARP’s website, http://www.aarp.org or check out the Federal Trade Commissions web site at http://www.ftc.gov. If you want local assistance or a free analysis of what you can receive from your home with a reverse mortgage, please give us a call today.
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For a free informational package on reverse mortgage programs,
call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
********************************************************
For more information or to ask a question, you can email
Sam by using the contact form at the top of this page.
********************************************************
If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html
Tags: Counselors, Credit Counseling, Emergencies, Emergency Fund, High Interest Rate, High Interest Rate Credit Cards, Home Repairs, Late Fees, Payday Loans, Paying Off Your Mortgage, Relatives, reverse mortgage, Sam Collins, Seniors, Unexpected Expenses
Posted in Uncategorized | No Comments »
Thursday, June 10th, 2010
 One local couple decided to use a reverse mortgage to pay off their second loan they used to pay for kids to go to college to eliminate their payment and to give them a bit of piece of mind.
“The freedom of not having to pay out that $640 every month was unbelievable, especially when you’re retired,” said the woman in the Courant.
Because they have other sources of retirement income, the couple has not touched the $200,000 line of credit. “We can use it if we want or let it sit there. It gives us peace of mind to know we’ve got that $200,000 line of credit,” she said. ”You do have to sell the house after either my husband or I would pass, but our kids are O.K. with that.”
The article also details how the HECM for purchase program allows seniors to streamlies the process of downsizing by allowing them to use a HECM to purchase a home in a single transaction, to reduce closing costs.
“People were doing this anyway,” said Susanna Montezemolo, vice president of federal affairs at the Center for Responsible Lending. “This new category of reverse mortgage reduces costs.”
Unlike a traditional home equity loan or second mortgage, repayment of either type of reverse mortgage is not required until the homeowner dies, moves or sells the home.
“A lot of people think that once you run out of the money, it triggers a repayment event,” Harrington said. “That’s not the case.”
Despite some of the negative press around the product, Jeff Lewis, Chairman of Generation Mortgage, said most of the negatives floating around are dramatically overstated. ”As long as you maintain your home and pay your property taxes and insurance, you can’t be forced to leave. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell it at any time,” Lewis said.
To read the full article, Let the Buyer Beware
Tags: Hecm, Home Equity Loan, Process Of Downsizing, Retirement Income, reverse mortgage, Seniors
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Monday, May 17th, 2010
Finally, I can now qualify for a reverse mortgage!
Post by Sam Collins
Last December, I was contacted by a senior couple who applied for a reverse mortgage. Their primary goal for doing the reverse mortgage was to rid themselves of two mortgages totaling around $90,000. Mrs. Z, wanted to fully retire and did not have to worry about working. Mr. Z was unable to work, because of severe arthritic joint pain.
We took the application and ordered the appraisal. Unfortunately the home value came in around $10,000 less than we expected. This unexpected drop in value, left the loan shortfall. Shortfall is when there is not enough equity (based on appraised value) to cover the amount of money owed on the residence. In the case of Mr. & Mrs. Z the shortfall was around $3800 and they did not have enough reserves to cover the difference. Therefore, unfortunately we were unable to do their reverse mortgage in December.
Finally, some good news. About a month ago, we announced several changes in our programs. Our fixed rate HECM (reverse mortgage) program, no longer has a service fee set aside in it’s calculations, thereby yielding around $4500 more to Mr & Mrs. Z. Plus, our fixed mortgage program no longer has an origination fee, thereby yielding another $3000 for Mr. & Mrs. Z. The bottom line new calculation resulted in Mr. & Mrs. Z yielding about $3400 in cash, plus being able to pay off their two mortgages and eliminating their mortgage payment, yielding an additional cash flow of $12,000 per year.
Finally, some good news for seniors who may have had a shortfall in the past.
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For a free informational package on reverse mortgage programs,
call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
********************************************
For more information or to ask a question, you can email
Sam by using the contact form at the top of this page.
**********************************************
If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html
Tags: Cash Flow, Fixed Mortgage, Fixed Rate, Home Value, Informational Package, Mortgage News, Mortgage Program, Mortgage Programs, Mortgage Qualify, Origination Fee, reverse mortgage, Sam Collins, Seniors, Shortfall
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Saturday, May 8th, 2010
Senior Homeowners are real winners when doing a HECM reverse mortgage?
post by Sam Collins
One of the very first questions I am asked when meeting with my senior homeowner clients is, “Why are the closing costs to do a reverse mortgage are so expensive?” Thanks to recent changes within the reverse mortgage lending community, senior homeowners can now enjoy a much lower than ever expected costs to do a reverse mortgage.
Specifically most of the recent changes have affected the fixed rate HECM product. Most lenders have eliminated the service fee aside and some have eliminated or reduced origination fees. The bottom line is this; some of the highest cost associated with doing a HECM fixed mortgage have been significantly reduced.
The winner with all these changes are senior homeowners. Why? Because these reduced cost measures mean more money in the pockets for senior homeowners, making a good deal ever better.
**************************************************
For a free informational package on reverse mortgage programs,
call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
********************************************
For more information or to ask a question, you can email
Sam by using the contact form at the top of this page.
**********************************************
If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html
Tags: Closing Costs, Delaware, Fixed Rate, Free Calculator, Hecm Reverse Mortgage, Origination Fees, reverse mortgage calculator, Reverse Mortgages, senior homeowners, Seniors
Posted in reverse mortgage information | No Comments »
Sunday, May 2nd, 2010
I’m 77 Years Old & I Have No Electricity!
Post by Sam Collins
The perfect storm! You are retired, living on social security and a very small pension. The electric company knocks on your door and informs you the electric is being turned off in 30 minutes! Oh my!
Last Thursday, I received a call from a frightened daughter, who explained to me the scenario just described. Her Mom was desperate because her electric had been turned off. The only glimpse of hope was her Mom owned her home with no mortgage, “Could I help them with a reverse mortgage?”
My team sprung into immediate action to visit with the daughter and her Mom that evening. With flashlight in hand, I completed an application and by noon the next day, the daughter and her Mom had taken HUD counseling.
The next day we attempted to help get the electric turned back on in the house. Unfortunately, there was over $6000 past due. Not to detail it all, the Mom had been very benevolent and found herself in a pickle, unable to pay her electric. To top things off the house needs some repairs, but nothing that cannot be solved with a reverse mortgage.
Thanks to her daughter, her Mother will be able to stay with her, why we continue to work with social services to restore her electric. I feel confident we will have things on track soon, electric restored; Mom back in her home where she wants to live without worry! Yes, a reverse mortgage can help and improve seniors lives!
**************************************************
For a free informational package on reverse mortgage programs, call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
********************************************
For more information or to ask a question, you
can email by using the form at the top of this
page or contact me at the email below.
**********************************************
If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html
Sam Collins, President, Senior Advisor
Delaware Financial Capital Corp.
Licensed Mortgage Banker, DE, MD
Licensed by the PA Dept. of Banking
Tags: Delaware, Electricity, HUD, Informational Package, Mom, Mortgage Help, Mortgage Programs, reverse mortgage, Seniors, Social Security, Social Services
Posted in Uncategorized | No Comments »
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