California Reverse Mortgage News

I read an eye opening article recently that said we are going to double the amount of people 65 years of age and triple the amount of people living to 85 in the next 30 years. WOW!I
It's estimated that up to  70% of these people will eventually be in need of some sort of long term care and services and property modifications.

But more important than that is the issue with having to provide seniors with a way to age in place, in their existing home where they are at peace and can retain independence which can add years to their lifespan.

The key is making their home safe and at the same time have functionality for their needs.
Lower cabinets and bathroom fixtures and smart security technologies in the home can reduce the instance of in home injuries.

These changes cost money as well as any in home part time or full time care that is needed and that the Reverse Mortgage can free locked up equity which can help pay for the property modifications and care.

To read more on this article click here.

Kevin Walton
Best Capital Funding
Cell: 800-506-0632 ext. 0
Posted in:Reverse Mortgage and tagged: Reverse Mortgages
Posted by Kevin Walton on October 26th, 2015 10:25 AM
A standby Reverse Mortgage Line of Credit is becoming a must have for young retirees. However it's not to be confused with a bank HELOC.
Here's a few differences:
The Reverse Mortgage Line of Credit has a growth rate attached to it which allows the unused line of credit to grow over time, (no refinance needed)resulting in more future tax free funds to use.
A $100,000 line of credit, left unused, can double or triple in size over time, meaning more tax free funds to use when needed, a bank HELOC doesn't have this feature.

The key is to originate the Reverse Mortgage line of credit as early in age as possible.
Financial Planners like this Reverse Line of Credit feature because it serves as a hedge against rising interest rates, because as rates rise, so does the growth rate on the line of credit which translates into more future funds for the borrower to use.

If the property falls in value, that does not affect the growth rate, it keeps growing, and the Reverse Mortgage lender can not close out the line of credit for that reason, whereas on a bank HELOC, they can close the line of credit for falling property values.

The growth rate has the compound interest feature as well which allows for rapid growth over time, a HELOC doesn't allow for this, in fact it doesn't allow for any growth at all, you have to qualify for another HELOC loan to get more money. 

After allowing time for growth, which means not touching the line of credit for a period of time, once the borrower starts taking advances on the line the Reverse Mortgage line of credit doesn't require any monthly payments to pay it back, a bank HELOC requires a monthly payment.
The borrower however can make a monthly payment on the Reverse Mortgage if they like, it's up to them.  It's worth mentioning that for each month the borrower doesn't make a payment, the interest owed gets tacked on to the balance of the loan.

The standby Reverse Mortgage line of credit is another bucket of tax free income for seniors and the growth rate feature is seldom discussed, but is a powerful tool that can create wealth, protect assets, and help a senior to not outlive their assets.
Educating senior citizens, and the financial services sector will take time but is a worthwhile endeavor.

For questions on the Reverse Mortgage line of credit, feel free to give me a call or drop me an email, or visit my site.

Best, Kevin Walton
Best Capital Funding
Certified Mortgage Advisor and Reverse Mortgage Specialist
800-506-0632 ext. 0
Posted by Kevin Walton on October 16th, 2015 10:11 AM

JP Morgan is creating an investment fund where it selects companies with an eye on technological innovation when it comes to helping senior citizens stay in their homes and improving their lifestyles.
AARP is partnering with JP Morgan in this venture, and the fund is to be called, The Innovation Fund.
Guidance from AARP will help target companies in which the Innovation Fund will have $40 million in funds to invest.
To learn more about this unique fund click here.

Posted in:Reverse Mortgage and tagged: Reverse Mortgage
Posted by Kevin Walton on October 5th, 2015 10:23 AM

The reverse mortgage can be used to delay SSI benefits and drawing down personal financial portfolios.
Financial Planners are starting to catch on to how a reverse mortgage strategy can be implemented by taking advances on a reverse mortgage line of credit in lieu of taking social security benefits, or drawing from a personal investment portfolio.
To read more on this article click here.
Go to our website, to view a few videos on how to buy a home using a reverse mortgage, learn about the line of credit growth rate, and the 25 most asked questions on reverse mortgages.
Kevin Walton
Cell: 800-506-0632 ext. 0

Posted by Kevin Walton on September 17th, 2015 5:44 PM