Seniors Blog

HECM for Purchase Now Available

Emil Ratti — Sat, 31 Jan 2009 02:31:00 GMT

As of January 1st, HUD will allow a reverse mortgage to be used as a means to purchase a home. The qualifications are similar to a conventional reverse mortgage in some ways (must be the primary residence, must be over 62, for instance) but also has some differences. For more information you can read
HUD Mortgagee Letter 2008-33 or go to their website http://www.hud.gov/offices/hsg/sfh/hecm/faqs_hecm.cfm.

HUD Increases Loan Limit for Reverse Mortgages and Lowers Lender Fees

Emil Ratti — Mon, 01 Dec 2008 18:13:00 GMT

Washington, DC – (November 7, 2008 ) – National Reverse Mortgage Lenders Association announced that the U.S. Department of Housing and Urban Development (HUD) formally adopted a new single national loan limit of $417,000 for federally insured reverse mortgages and lowered the fees that lenders can charge yesterday. These critical reforms to the Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM) program were approved this past summer as part of the Housing & Economic Recovery Act of 2008

“By implementing these new provisions, HUD has improved financial options for senior homeowners during a critical time,” said Peter Bell, President of National Reverse Mortgage Lenders Association. “The new loan limit and other provisions will allow seniors to receive more benefit at lower origination cost to meet their retirement needs.”

The new, higher lending limit will enable borrowers to obtain a greater benefit if their home value is higher than the previous HUD limit. Previously, the HECM program assigned different lending limits by county ranging from $200,160 in rural areas to $362,790 in the highest home value areas.
Similarly, existing borrowers whose home value is greater than the new HUD limit may be able to increase their benefit by refinancing their reverse mortgage and are encouraged to contact their lenders. On the fee issue, HUD reduced origination fees to 2% on the initial $200,000 of maximum claim amount (lesser of the home value or county lending limit) and 1% on the balance thereafter with a cap of $6,000.

“As far back as 2001, we began to question whether utilizing HUD’s area-by-area loan limits made sense for the HECM program,” explained Bell. “This change is the culmination of a seven-year legislative effort by NRMLA to enhance the HECM program.”

About Reverse Mortgages
A reverse mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home. Funds obtained from the reverse mortgage are tax-free.

Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for up to life), or line of credit, or as a combination of monthly income and line of credit. No mortgage payments are due during the life of the loan.

Borrowers can use the funds anyway they wish – for home repairs and improvements, medical costs, in-home care, education, and supplemental retirement income. Borrowers make no monthly payments on a reverse mortgage during its term. The loan becomes repayable when the borrower sells the home or permanently moves out. In addition, the repayment amount can't exceed the value of the home.

Reverse mortgages are originated largely by private lenders. The most popular is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development (HUD). More than 450,000 HECMs have been made since 1989.

Charlie O. Vieni
Reverse Mortgage
Specialist

Mortgage Development
Officer
Sovereign Bank
Northern, NJ

Equal Housing Lender - Member FDIC

E-mail Me

Cell: 201 615-6343

Just for Seniors

Boomers' eagerness to retire could cost

Emil Ratti — Tue, 26 Feb 2008 20:32:00 GMT

As millions of Boomers creep closer to retirement, they question if retirement is even feasible. If Boomers retire too early they risk the reduction of benefits, and their dreams of second homes and long vacations may become more of a fantasy than reality. Retiring even a few years early can cost Boomers more than they realize!

Check out the table below:

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Baby Boomers On Social Security Video - Cartoon

Emil Ratti — Wed, 06 Feb 2008 13:37:00 GMT

http://weblogs.newsday.com/news/opinion/walthandelsman/blog/2007/11/animation_baby_boomers.html

Phased Retirement

Emil Ratti — Tue, 11 Dec 2007 12:56:00 GMT

If full retirement is unappealing or isn't financially feasible, perhaps a phased retirement is right for you. The passage of the Pension Protection Act of 2006 made it possible for employers to pay pension benefits to employees age 62 and older who are covered under a defined-benefit pension plan, even if they continue to work. Typically, employees swap a smaller paycheck for reduced or more flexible work hours. Several universities have embraced phased retirement options for faculty members. Perhaps such programs will become more widespread as corporate America begins to experience the brain drain as older Baby Boomers exit the workplace in droves. For more information and links to other resources for 50-plus workers, see an article at Monster.com. Additional information is available at the National Older Worker Career Center, Inc. Though phased retirement is often viewed as a recipe for happiness, it actually doesn’t guarantee happiness, according to research by Boston College's Center for Retirement Research.

NorthernNJSeniors.com

Baby Boomer Women Live with Friends to Fill Emotional, Financial Needs

Emil Ratti — Sat, 27 Oct 2007 01:06:00 GMT

Living with their female friends is a growing trend among baby boomer women, and is expected to intensify as the baby boom generation heads into retirement. According to an AARP survey, almost half of women between the ages of 45 and 59, and a third of women in their 60s and above, consider living with a friend an attractive way to grow old.

Women tend to outlive men and have significantly fewer resources, both facts that contribute to this type of living arrangement. In addition, baby boomers are more likely to have remained single or to be divorced compared to women in prior generations, making an all-female environment an ideal way to reduce expenses and to avoid the loneliness associated with living by oneself.

Facts from the U.S. Census Bureau about women and aging:

42 percent of women age 65 and older are widows, compared to 13 percent of men in the same age group.
In 2006, 27 percent of women age 45-64 were divorced or never married (18 percent divorced; 9 percent never married).

In 1986, only 15 percent of women in this age group were divorced or never married (11 percent divorced; 4 percent never married).

The Sandwich Generation

Emil Ratti — Fri, 12 Oct 2007 12:53:00 GMT

A study by Ameriprise Financial, Money Across Generations, shows that many Boomers are caught between financially helping elderly parents and adult children. Thus, the term "the sandwich generation." Sometimes they open their wallets too easily and don't realize that such generosity affects their ability to fund their own retirement. Only 9% of Boomers believe assisting their parents has hurt their retirement savings, but 29% believe assisting their adult children has slowed their savings progress. To assist adult children, four in ten boomers draw from "regular savings," one in six even takes out loans, and six percent pull money from retirement savings.

Baby Boomer Facts - 2007

Emil Ratti — Mon, 20 Aug 2007 13:40:00 GMT

Every day, 10,000 Baby Boomers celebrate their 60th birthday. The 55+ market is the fastest growing market in real estate. The real estate needs of 78 million Boomers are as diverse as they are numerous.

Reverse Mortgage Figures 2007

Emil Ratti — Mon, 20 Aug 2007 12:58:00 GMT

So far this fiscal year, senior homeowners have taken out over

70,000 FHA-based reverse mortgages, a 49% increase from the

same period last year (marketwatch.com).

Some Interesting Facts

Emil Ratti — Tue, 10 Jul 2007 19:57:00 GMT

Large numbers of people aged 85 and older will leave Florida as they outlive their money and move in with adult children.
Adult children are statistically guaranteed to take care of their moms longer than those moms ever took care of them. That means many may be caring for parents for more than 18 years.
Regions with warmth, sun, and gambling win the demographic lottery, with a 43% population growth anticipated in the west and southwest. Only a 6% population growth in colder areas is expected.
More people will be living in urban areas than rural regions

Published by SRES July 2007

http://www.bcnjre.com/
Top Rated Real Estate Website in Bergen, Passaic, and Essex Counties.

Seniors and High-tech

Emil Ratti — Tue, 10 Jul 2007 19:43:00 GMT

You expect technology to be important to Generation X and Gen Y groups, but seniors value it too. An Internet Home Alliance survey found that Seniors are looking for safe, comfortable, independent living. No shocker there. But some of the items they’re interested in might surprise you. For instance, 63% have home offices and 65% have broadband Internet access. Though central audio is only in 29% of respondents’ homes, 40% of Seniors who chose not to have audio wiring say they wish they’d chosen it.

www.BCNJRE.com
Top Rated Real Estate Website in Bergen, Passaic, and Essex Counties.

Really Understanding Barriers to Independent Living

Emil Ratti — Mon, 11 Jun 2007 23:09:00 GMT

Everyone’s goal is to live independently for as long as possible, but often the barriers to such an option are a physical environment that doesn’t accommodate sensory, physical, and cognitive disabilities. That’s according to research by the Division of Geriatrics and Gerontology, a part of the Weill Medical College of Cornell University, New York, N.Y.

The school’s Website, http://www.environmentalgeriatrics.com/, is aimed at teaching medical students and doctors how older adults can avoid injury through environmental changes. The unique site is of equal value to your client responsible for the care of aging relatives. Of particular interest is a section with 3D animation that allows visitors to witness virtual patients struggling with daily tasks like bathing and taking medicine. It also allows you to virtually experience visual problems—such as macular degeneration or glaucoma—and really understand almost firsthand their effect on maneuvering an environment. Beyond uncovering the lurking dangers in a typical house, there are research-based recommendations for modifications and technologies that can help to eliminate injury among those over age 50 and well beyond.

SRES^® Member Memo
June 5, 2007

Emil Ratti
Realtor
www.BCNJRE.com

Save money by knowing when to purchase.

Emil Ratti — Sun, 10 Jun 2007 15:40:00 GMT

Planning to remodel, “stage” for a sale, or furnish a new home, it pays to schedule purchases. Baby Boomer News offers some suggestions for saving money on various household items by waiting to buy during certain sale times.

Here are several months of the year to find bargains on specific merchandise:

January—Radios and TV's, small appliances, blankets, quilts, fabric, and linens
February—Bedding, floor covering, furniture, and house wares
March—Washers and dryers, air conditioners, china, and glassware
April—Kitchen ranges, paint, and wallpaper
May—Radios, TVs, and linens
June—Bedding, floor covering, furniture, and storm windows
August—Linens and rugs
September—China and glassware
October—Rugs and fabrics

SRES^® Member Memo
June 5, 2007

www.SearchBergenCountyHomes.com

www.BCNJRE.com

Boomers Children Not Talking About Future

Emil Ratti — Tue, 10 Apr 2007 11:51:00 GMT

A recent AARP survey found 67 percent of older-generation parents haven’t talked with their boomer-aged children

about the parents’ ability to live independently. The group offers boomers the following tips to begin the discussion:

-- Talk to your parents about planning for the future before a problem or crisis arises and continue talking about

independent living issues over time.

-- Use such natural conversation starters as your parents expressing their concerns, the experience of your or your

parents’ older friends, events in your parents lives or newspaper reports, magazine articles and the like.

-- Focus on such major issues as housing, activities of daily living, health care, transportation, money and insurance.

Let the discussion be guided by your parents’ concerns and needs, not your own opinions.

-- Anticipate normal resistance to these conversations. If a parent is reluctant to talk, try again later. If a parent’s

health or safety is in immediate jeopardy, take stronger measures.

-- Accept your parents’ right to make their own life choices even if you don’t agree with those choices.

Source: SRES/AARP

AGING-IN-PLACE ADVICE

Emil Ratti — Sat, 07 Apr 2007 02:30:00 GMT

Donna Christner-Lile, a Pleasanton, Calif.-based counselor specializing in elder issues, tapped her experiences in caring for her aging mother in writing her book, Aging In Place: Safely Living in Your "Home Sweet Home" Until You're 100 Plus. She addresses practical issues that need to be addressed for people to successfully remain at home as they age. The book includes worksheets to evaluate home safety issues and existing support systems, outlines useful online resources for aging adults, and offers tips on finances and incorporating universal design principles. For more information and to order the book, visit http://mentorcentral.com/book.htm.