Backpedaling the Retirement Course with Reverse Mortgage
Ever find yourself in distress over things you cannot control? It’s not only an agonizing process, but a rather futile and unproductive one to boot. Innumerable studies have cautioned against fretting, due to its taxing repercussions – physically, emotionally and psychologically. Yet despite the warnings, we’ve all succumbed to the harmful ‘worrying’ routine at some point.
While honing-in on the whys associated with worry related distress, Fool.com reported that Prior to the Covid-19 pandemic: “59% of Americans worry about money constantly.” We can only surmise an increased struggle with anxiety after the recent, subsequent economic downturn.
It’s amazing how quickly a context shift could shape perspective. Shared by many is the stock saying: “Money isn’t everything.” In a general sense, we’d agree on the philosophical significance, but its truth validity is purely subjective. And we appreciate the phrase’s inherent message that above all else we’re to ‘remain grounded,’ withholding our ethical values to the highest of standards. But in circumstances where the notion of wants overshadows a reality of needs, the proverbial money tree grows into a greater importance: whether one’s afforded or not a much ‘needed’ means to live.
The Senior Struggle
According to MarketWatch.com, “It’s not being bored, unable to travel or even death itself that scares older Americans most about retirement – it’s running out of money.” Golden-agers dread outliving retirement investments and savings – and it’s taking a mental precedence over all else. And while seniors long for confidence in a reliable retirement, the ‘money’ burden entirely defeats its point and purpose.
Retirement should be anticipated as a time of celebration to an arrival. Instead, our elderly population is struggling with the threatening strongholds of stress and anxiety. Worries related to sustenance are not only robbing elders their peace of mind, it’s affecting their well-being. Harvard Health listed out that “symptoms of stress [in seniors] may include tension headaches, indigestion, heart palpitations, anxiety…” and many more potential health damagers. Among the many events prompting worry in a senior’s life, fears associated with healthcare needs, aging, loss of independence and/or death of a spouse present a heavy enough load – a compounded cash shortage problem only intensifies the pressure.
Senior citizens aren’t the only group taking notice of changing times and retirement woes. Even those in the 50+ age group are moving toward ‘next chapters’ and expressing uneasiness about their financial security.
A Transamerica Center for Retirement Study asked a sample of 50+ aged workers about their greatest fears:
Those surveyed above ranked the category “Feeling isolated and alone” as the least of their retirement worries while “Outliving savings and investments” among their highest. By connecting the dots, the conclusion draws us to look again at financial security – which would likely pose remedy to the remaining ‘fear driving’ categories.
Reservations with Reverse Mortgage
With so many seniors facing financial struggle and uncertainty, it’s perplexing to imagine why more aren’t signing-up for a Reverse Mortgage. Unfortunately, volumes of misinformation are leaving seniors feeling unequipped to navigate through it all – in fact, there’s plenty of elderly homeowners who aren’t even aware Reverse Mortgage exists.
Let’s face it: times are feeling strange and uncertain. And granted, there’s a crisis – or more – for every generation. But today’s retirees have been hit with serious economic events provoking feelings of fear and instability. They are needing now more than ever a safe, illuminating voice of reason.
The Reverse Mortgage is a specialized loan designed exclusively for this exceptional group, yet too few understand it. And without the educational guidance of a trusted loan advisor, an apprehensive senior may never work-up the courage to explore or learn more. The challenge is in the education.
And while you may assist an already retired or pending retiree by working through the program’s ‘facts from fiction’ – you might also inspire a dramatic retirement plan makeover in the process. Thousands of Reverse Mortgages have provided seniors flexible relief year-over-year. Step out and learn how the program might also help your borrowers too!
Reverse Mortgage FACTS
There are common myths discouraging borrowers from considering a Reverse Mortgage – let’s clear the record on a few:
With a Reverse Mortgage, does a borrower ‘retain’ ownership?
YES! The lender does not own the home, the borrower does. So long as the borrower continues maintaining the property’s taxes, insurances and upkeep, he/she would retain ownership and remain on title—just as they are now.
Can a borrower sell their home with a Reverse Mortgage?
YES! The Reverse Mortgage is a home loan. The borrower may sell their home and payoff the loan’s balance at any time.
Can a borrower continue making mortgage payments with Reverse Mortgage?
Outside of the property’s required payments to Homeowner’s Insurances, Taxes and Upkeep, the HECM loan is a payment free structured program. Borrowers may choose to make payments or not make them.
What happens to the home when the last remaining borrower passes away?
When the last remaining borrower no longer occupies the property as their primary residence, the loan becomes ‘due’. Heirs may choose to sell/pay-off the reverse mortgage or keep the property via their own financing.
Reverse Mortgage Qualifications
Borrower Must…
Be aged 62 years or older
Property Must…
Be borrower’s primary residence
Have an LTV at 55% or less
In order to encourage 62+ers to take necessary charge over their circumstances, they also need to discern with confidence what’s available. You may not have an ability to resolve your borrowers’ every uphill battle, but you can offer hope in helping to address one major financial one. And while it’s true the abundance of Money isn’t everything, it certainly counts…by a lot. Most often, money could work as a key driving freedom maker or dismantling, dreams breaker. And to those with so little of it to spare, viable access to a safety netted financial resource might possibly mean everything.
To learn more about the Reverse Mortgage Program and Referral Compensation, reach out to HECM411@PRMG.NET. We welcome your referrals today!