by Anne Pagnoni
According to the National Alliance for Caregiving, there are more than 65 million Americans spending an average of 20 hours per week providing care for a loved one. The value of these caregiving services is estimated to be $375 billion a year. This is almost double the amount spent on home care and nursing home services combined. As a service to these caregivers, MyCareCommunity of New Jersey is hosting an educational web conference entitled, "For Those in Transition…A Community Behind You". The program will address which community support services are available, should you or your loved one choose to remain at home. Also discussed in the program will be variety of senior healthcare and housing options that are available should you or your loved one choose to move from your home.
Kevin McClarren, president and care manager of Home Care Assistance in Warren Township, has partnered with MyCareCommunity both to promote the resources that it offers to caregivers and to pull together a local panel of experts, who will be present on the webinar. “This webinar is an excellent one-stop shop for caregivers to gain insight into the variety of care options that are available to their loved ones both in the home and in other care settings. Caregivers will have the ability to ask questions and interact directly with the panel, which includes experts in the field of home care, independent living, and assisted living.”
This live and interactive consumer-oriented event will be offered April 28, 2011, at 12:00 PM EST. The hour long program will explore options regarding utilizing the services of a Senior Real Estate Specialist; Assisted Living; Independent Living; Home Care; and Geriatric Care Management.
Preregistration for the event is required. Sign up today by visiting http://www.mycarecommunitynj.org/ and clicking on the registration link. Caregivers who are unable to attend the live webinar will be able to view a playback of the presentation provided that they are preregistered for the event.
About MyCareCommunity
MyCareCommunity is a free, online caregiver support program providing caregivers and their families the support and information they need to manage their many caregiving responsibilities. For more information, please visit http://www.mycarecommunitynj.org/.
Monday, April 25, 2011
Monday, April 18, 2011
Using Your Home Equity for Long Term Care
by Anne Pagnoni
For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home equity loan. But a conventional loan really doesn't free up the equity because the money has to be paid back with interest.
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money to pay off debt, make home repairs, or for remodeling.
For those seniors who are in need of long term care and want to stay in their home, a reverse mortgage can create the money needed to pay for in-home personal and medical care. They can also pay for needed medical equipment and handicap adaptation to their home.
There are no income, asset or credit requirements. It is the easiest loan to qualify for.
A reverse mortgage is similar to a conventional mortgage. As an example:
•The bank does not own the home but owns a lien on the property just as with any other mortgage
•You continue to hold title to the property as with any other mortgage
•The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
•There is no penalty to pay off the mortgage early
•The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish
False Beliefs Regarding Reverse Mortgages
•"The lender could take my house." The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
•"I can be thrown out of my own home." Homeowners can stay in the home as long as they live, with no payment requirement.
•"I could end up owing more than my house is worth." The homeowner can never owe more than the value of the home at the time the loan is due.
•"My heirs will be against it." Experience demonstrates heirs are in favor of Reverse Mortgages.
Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.
The amount of reverse mortgage benefit for which you may qualify, will depend on
•your age at the time you apply for the loan
•the reverse mortgage program you choose
•the value of your home
•current interest rates
•and for some products, where you live
As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.
The loan is not due and payable until the borrower or borrowers no longer occupy the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries.
The most popular reverse mortgages are the so-called HECM loans. HECM loans require that the applicant meet with a government approved counseling agency to be sure the applicant understands the reverse mortgage process.
The Federal Trade Commission states:
“Before applying for a HECM, you must meet with a counselor from an independent government-approved housing counseling agency. Some lenders offering proprietary reverse mortgages also require counseling. The counselor is required to explain the loan’s costs and financial implications, and possible alternatives to a HECM, like government and nonprofit programs or a single-purpose or proprietary reverse mortgage. The counselor also should be able to help you compare the costs of different types of reverse mortgages and tell you how different payment options, fees, and other costs affect the total cost of the loan over time. Most counseling agencies charge around $125 for their services. The fee can be paid from the loan proceeds, but you cannot be turned away if you can’t afford the fee.”
A Reverse Mortgage Specialist in your area can answer your questions, calculate the amount of loan you can receive and advise the type of loan for your needs.
The National Care Planning Council (http://longtermcarelink.net/a7reversemortgage.htm) has a list of Reverse Mortgage Specialists in your area.
For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home equity loan. But a conventional loan really doesn't free up the equity because the money has to be paid back with interest.
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money to pay off debt, make home repairs, or for remodeling.
For those seniors who are in need of long term care and want to stay in their home, a reverse mortgage can create the money needed to pay for in-home personal and medical care. They can also pay for needed medical equipment and handicap adaptation to their home.
There are no income, asset or credit requirements. It is the easiest loan to qualify for.
A reverse mortgage is similar to a conventional mortgage. As an example:
•The bank does not own the home but owns a lien on the property just as with any other mortgage
•You continue to hold title to the property as with any other mortgage
•The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
•There is no penalty to pay off the mortgage early
•The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish
False Beliefs Regarding Reverse Mortgages
•"The lender could take my house." The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
•"I can be thrown out of my own home." Homeowners can stay in the home as long as they live, with no payment requirement.
•"I could end up owing more than my house is worth." The homeowner can never owe more than the value of the home at the time the loan is due.
•"My heirs will be against it." Experience demonstrates heirs are in favor of Reverse Mortgages.
Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.
The amount of reverse mortgage benefit for which you may qualify, will depend on
•your age at the time you apply for the loan
•the reverse mortgage program you choose
•the value of your home
•current interest rates
•and for some products, where you live
As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.
The loan is not due and payable until the borrower or borrowers no longer occupy the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries.
The most popular reverse mortgages are the so-called HECM loans. HECM loans require that the applicant meet with a government approved counseling agency to be sure the applicant understands the reverse mortgage process.
The Federal Trade Commission states:
“Before applying for a HECM, you must meet with a counselor from an independent government-approved housing counseling agency. Some lenders offering proprietary reverse mortgages also require counseling. The counselor is required to explain the loan’s costs and financial implications, and possible alternatives to a HECM, like government and nonprofit programs or a single-purpose or proprietary reverse mortgage. The counselor also should be able to help you compare the costs of different types of reverse mortgages and tell you how different payment options, fees, and other costs affect the total cost of the loan over time. Most counseling agencies charge around $125 for their services. The fee can be paid from the loan proceeds, but you cannot be turned away if you can’t afford the fee.”
A Reverse Mortgage Specialist in your area can answer your questions, calculate the amount of loan you can receive and advise the type of loan for your needs.
The National Care Planning Council (http://longtermcarelink.net/a7reversemortgage.htm) has a list of Reverse Mortgage Specialists in your area.
Subscribe to:
Posts (Atom)