Posted tagged ‘reverse mortgage washington’

Cash is King for Seniors

June 24, 2009

j0433118I love the phrase “Cash is King.” Who won’t accept cash? I suppose some would prefer us to use credit so they can increase profits, but the bottom line is, having cash puts us in a position of power. It holds much value, especially in an economy that we are in today. Cash is King!

When you think about it, reverse mortgages are simply a tool that will allow those 62 or older to receive cash by simply leveraging ones home. No risks, no losing your home to the bank, no payments, just plain “risk free” cash (Yes, Cash is King)! In fact, it can provide a guaranteed source of income for as long as you live in your home. How many of us prefer cash over credit? But when cash flow is limited, sometimes we make do with credit. This can be a short term solution, but a long term disaster!

Leveraging one’s home in order to access cash is the primary purpose of reverse mortgages. It simply is choosing to use the equity to secure interest payments so that you can use the available equity for life’s needs or desires. This is cash flow at your fingertips! No hassle, no worry, no fear . . . . just freedom!

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Can a Reverse Mortgage Change a Life?

April 11, 2009

CBR001423Over the past four years of doing reverse mortgages it has been one of my routines to keep in touch with my clients. One of the things I tell them is that I am not going away. After the process is completed, my clients still hear from me. I enjoy this as I have developed a trusting relationship throughout the process.

One of my clients, Carol, called me yesterday. It has been a while since we had last talked but I’ve been in contact by mail. The reason I bring her up here is what she said. She said, “Greg, doing the reverse mortgage was the second best thing that I have ever done.” I asked her what the first best thing that she has done. She said that the cruise that she took in the Caribbean two years ago . . . of course, because of the reverse mortgage. She said, “It has literally changed my life!”

This is just one of many conversations that I have had with my clients over the years. But it is the reason why those of us that do this for a living . . . love it! It is one product that puts LIFE back into LIFE!

Delaying the Reverse Mortgage Decision

April 9, 2009

j0382674I have recently had several conversations with the seniors about waiting for the right time. In all financial decisions, timing is very important. I have posted other blogs about this very issue. However, we are at a time in the industry, as well as the economy, that waiting may be the wrong decision. Let me explain.

The reverse mortgage industry is in a unique situation. Interest rates, though in the past have not played as critical of a role as they are today. For many years, the only RM product used was a 1.50% margin. It very rarely changed, and when it did, it was an anomoly. We then saw the margins decrease to 1.0% then 1.25%. Today we live in an economic environment with live pricing. What intereste rates (spreads) were even a weeek ago, is likely different today. The secondary market (Fannie Mae) plays a critical role in these numbers.

My clients have been surprised by this phenomenon. Back in January the spread was at 2.50%, which provided x number of dollars of benefit. They thought they would wait a bit to make a decision. Well, today, that spread is at 3.25% or higher, depending on the lender. They no longer have the same amount of financial benefit that they did in January.  So, what should people do and how should they evaluate their situation. Here’s my take . . .

If, in evaluating a reverse mortgage provides the benefits that accomplishes your goals, why wait? In today’s ever changing market, home values are likely to stay level at best in the near future, and may even decline. Interest rates will likely go up, too. Margins are changing more than ever. Obviously, we want our clients to get the greatest benefit possible. But waiting for things to get better, in the short run, usually does not pencil out. More and more frustrated seniors are kicking themselves because they have waited. If the benefit accomplishes the goal, usually there is not a good reason to wait to move forward with the application. If it does not accomplish the goal, then it does not accomplish the goal and choosing not to move forward is probably the right decision.

Whenever there is confusion, it is wise to sit down with a good financial advisor . . . one who understands reverse mortgages and can assist you with decisions. I know several advisors that are non-partial and are available to give good advise, if needed.

If You Had a Friend . . . .

April 7, 2009

j04030581What an amazing experience I had today! I often will drop into local professional shops of planners, tax advisors, attorneys, etc., introduce myself and try to get to know someone in the company so that I can develop a professional relationship. Who knows where those contacts go. If I really connect with them, it is great. But most of the time I just leave some information behind for them to read, then reconnect with sometime in the future.

Today I walked into a tax advisors small business. It looked like the kind of place that many local seniors in the community might go to. Just like a small town shop. Tax advisors work with seniors and know about their financial situations. It is my hope that they see a need and pass on my information so that I can help improve their financial situation.

But this place was amazing . . . I walked in and introduced myself and the company that I represent. So far, so good right? Then the man said, “I hate reverse mortgages.” Taken back, I asked, “Oh really . . . what do you know about them?” You know what he said . . . . .  ” I don’t know a thing about them, and I don’t want to  . . .  but God Bless You!” Wow . . .

Now sometimes I’ll ask more questions, but I didn’t want to be a nuissance anymore than I already was (to them). So I just said, “And God Bless You,” and walked out.  I couldn’t help but think . . .  “what if I had the solution to his problem?” What if I held the answer in my hand that would make his life less stressful, and at peace. Financially speaking, when we are stressed, our whole life is a challenge . . . right? And this was a tax advisor.

It is amazing how some people simply don’t want to know the truth. Whether what I have is anything they need is not really the question . . . but to say that you don’t want to know about it when it may be the solution you are looking for is downright amazing. What if he had a close friend that could be helped? What if a neighbor relies on his expertise to help him? We close the door to helping anybody when we refuse to know the truth.

Preparing for the Unexpected

December 20, 2007

j0403862.jpgI don’t know about you, but as I continue along this path called “life,” I am more and more aware that every day may bring the unexpected events that make me weary. No, I don’t stress about it, but I continually am reminded that it is a part of life. Whether it be health and finances, friend’s who go through challenging times, world events, the unexpected phone call from the school, or an unexpected letter that makes our heart pump a little faster, these events are a part of our normal lives.

In working with seniors and their families, one of the things that has been a norm in many of the conversations is this idea that the unexpected events have drained them of the many of their resources, or that future events would do the same. These are the uncontrollables! How does one prepare for the uncontrollable events? Well, for some events one can prepare with insurance. From life insurance, homeowners insurance, long term care insurance . . . . the list goes on with what types of insurance one can get to protect assets. Just recently, across the river in Oregon, many people found their houses in danger due to flooding. If one had flood insurance, this is a good thing. For those who didn’t have flood insurance, well, it is not so good of a thing.

Reverse mortgages are much like insurance, though, a little different. With insurance, one needs to have purchased the insurance prior to the event. Without it, there is no coverage. As they say, “hindsight is always 20/20.” However, with reverse mortgages, one can take out a reverse mortgage during or after the actual unexpected event occurs, in most cases. Reverse mortgages are simply “Plan B,” for most people. Plan B is better than no plan right!

I have mentioned in several of my blogs the importance of simply learning about reverse mortgages. As in most financial products, timing is everything. One may not be interested, or in need of having an extra stash of cash today. However, when there is an unexpected event, it just may be the answer for tomorrow.