Homeowner’s Insurance Premiums are Surging in These Five States by Shannon Hicks September 19, 2023
Money.com reports these five states saw the largest increase in premiums from May 2021 to May 2023.
The spike in premiums is attributed to a perfect storm of a spike in natural disasters, record insurance losses, and higher construction prices.
Natural disasters such as hurricanes have long-lasting impacts. For example, in the wake of Florida’s most destructive hurricanes, insurers began hiking homeowners insurance premiums. The same can be said for Colorado, Idaho, and California. In the wake of the disastrous and deadly Maui Fire island residents will soon face the same challenge.
As a result of the surging cost of premiums, many older homeowners without a mortgage on their home have chosen to forego homeowners insurance altogether. The Insurance Information Institute reports that 5% more homeowners have not purchased homeowners insurance than just two years ago.
Many homeowners are very likely house-rich but cash-poor. Even worse, their greatest source of wealth is now at risk of being wiped out. One disaster could push an older homeowner into complete financial ruin or possible homelessness.
Have you seen an increase in homeowners insurance policy premiums? A reverse mortgage could provide the means needed to purchase a policy and protect what’s likely your largest asset.
The homeowner wins by protecting their home. but most importantly, helps eliminate the risk of a homeowner losing their home to a disaster or fire.
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Inquire on how a Reverse Mortgage can help you cover your insurance costs, protect your home and give you financial peace of mind. It did to me and millions of other Seniors.
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Get a free, No Obligation Estimate of the Funds you could receive from a Reverse Mortgage. Call me today at 786-262-6486 or email me at rodkohly@gmail.com or Click on the link below
Quick Reverse Mortgage Quote Form (seniorreverseflorida.com)
Hurricane Season is upon us. You Must be Ready!!!
More Info:
https://www.fema.gov/
https://www.ready.gov/hurricanes
FL Dept of Elder Affairs 2021 Disaster Resource Guide for Older Adults (elderaffairs.org)
CALL ME TODAY 786-262-6486
The "Grey" Divorce Settlement andThe Reverse Mortgage
Sadly, today many Senior Homeowners are deciding to get divorced. it is a phenomenon called "Grey Divorce"
One of the biggest hurdles the couple faces is what to do with the home they have shared for so many years.
Continue Reading...
What is Elder abuse?
How big is the problem?
Elder abuse is a serious problem in the United States. The available information is an underestimate of the problem because the number of nonfatal injuries is limited to older adults who are treated in emergency departments. The information doesn’t include those treated by other providers or those that do not need or do not seek treatment. Additionally, many cases are not reported because elders are afraid or unable to tell police, friends, or family about the violence. Victims have to decide whether to tell someone they are being hurt or continue being abused by someone they depend upon or care for deeply.
Elder abuse is common. Abuse, including neglect and exploitation, is experienced by about 1 in 10 people aged 60 and older who live at home. From 2002 to 2016, more than 643,000 older adults were treated in the emergency department for nonfatal assaults and over 19,000 homicides occurred.
Some groups have higher rates of abuse than others. Compared with women, men had higher rates of both nonfatal assaults and homicides. The rate for nonfatal assaults increased more than 75% among men (2002–2016) and more than 35% among women (2007–2016). The estimated homicide rate for men increased 7% from 2010 to 2016. Compared to non-Hispanic Whites, non-Hispanic Black or African American persons, non-Hispanic American Indian/Alaskan Natives, and Hispanic or Latino persons have higher homicide rates (2002–2016).
Overall and firearm-specific older adult homicide rates increased between 2014 and 2017. Of the 6188 victims, 62% were male. The perpetrator was an intimate partner in 39% of firearm homicides and 12% of non-firearm homicides. Common contexts of firearm homicides were familial/intimate partner problems, robbery/burglary, argument, and illness-related (e.g. the homicide was perpetrated to end the suffering of an ill victim, both victim and perpetrator had an illness, or the perpetrator had a mental illness).
What are the consequences?
Elder abuse can have several physical and emotional effects on an older adult. Victims are fearful and anxious. They may have problems with trust and be wary of others. Many victims suffer physical injuries. Some are minor, like cuts, scratches, bruises, and welts. Others are more serious and can cause lasting disabilities. These include head injuries, broken bones, constant physical pain, and soreness. Physical injuries can also lead to premature death and make existing health problems worse.
How can we prevent elder abuse?
There are a number of factors that may increase or decrease the risk of perpetrating and/or experiencing elder abuse. To prevent elder abuse, we must understand and address the factors that put people at risk for or protect them from violence.
The older adult population is growing faster in the U.S. than are younger populations. Many older adults require care and are vulnerable to violence perpetrated by a caregiver or someone they trust. More research is needed to uncover the causes for, and solutions to, violence against older adults.
*****Download 124 pages Booklet by the CDC https://www.cdc.gov/violenceprevention/pdf/EA_Book_Revised_2016.pdf
How to Report Elder Abuse,: 1-800-962-2873
How to Report Elder Abuse, Neglect, and Exploitation. To report by phone – call Florida Abuse Hotline at 1-800-96-ABUSE (1-800-962-2873). Press 2 to report suspected abuse, neglect or exploitation of a vulnerable adult. This toll free number is available 24/7.
Interested about your home's value?
This site uses data from the "FreddieMac House Price Index" (FMHPI) to estimate the value of your home by taking into account the appreciation rate for your region. Of course, the estimated figure generated here should not be taken as your home's actual or appraised value. But it should give you a good idea of the fluctuations and trends in your market. A Professional Conventional or FHA Appraisal would be required if you decide to apply for a loan. Let me help with all your Home Financing needs in Florida, including determining an estimated home value.
To Find out If you have questions regarding Home Refinancing or Financing the Purchase of your new Home in Florida, call me at 786-262-6486 or send me an e-mail (click here)
Rosh Hashanah is a Jewish holiday that marks the beginning of the Jewish New Year. It is also known as “The Head of the Year” as it is considered the holiest days in Judaism.
Please Celebrate with our Jewish Brothers and Sisters such a Happy Day!
Happy Rosh Hashana!
Rosh Hashaná es una festividad de los Judios que marca el inicio del Año Nuevo Judio. Tambien se le conoce como “La Cabeza del Año” y es considerado como el día mas sagrado en el Judaismo.
¡Por favor Celebremos juntos a nuestros Hermanos Judios tan Feliz día!
¡Feliz Rosh Hashaná!
AARP “Smart Driver” Course
Recently I took an AARP “Smart Driver” 6 hours Course which I consider must be a “Must Take” course for any Senior driver.
I urge any responsible Senior drivers to look into this course, not only for the valuable information about safe driving habits, Laws, dangers, etc…, but you also might get a sizable premium discount from your auto Insurance premium. I did.
These courses are offered in English ( Español en Dade County) throughout every county in the State of Florida.
You get a 123 pages guide for future reference and home study.
Check at http://AARP.org or toll free at 1-866-850-8317
You do not have to be a Member to Register.
12 Retirement Questions Financial Advisors Hear Most Often
By Rudri Bhatt Patel Published Fri, Mar 3 2023
Figuring out if your finances are on track for retirement can be tricky. If you have retirement questions, you’re probably not alone. We asked financial advisors what questions about retirement finances their clients ask the most, and here’s what they said.
You may find multiple answers to a question you’ve been wondering about here. But even if you do, it’s important to remember that every financial situation is different. Many people may have the same question, but the answer will differ for each. These answers can help put you on the right track, but make sure you consult with a financial advisor of your own before making any major financial decisions.
Looking at a person’s financial plan will determine the best course of action for their mortgage, says Austin L. Nold, CEO of the Austin, Texas-based financial planning investment firm Nold Bryant. Paying off the mortgage, sometimes, isn’t the best option, says Nold, “a large withdrawal could cause unnecessary taxes or an unnecessary drawdown on assets.”
If a client’s plan looks great either way, he thinks it comes down to personal choice. So, he shows them the short-and-long-term financial impact. “One consideration people need to have in the current inflationary environment is that with rapidly rising interest rates. Sometimes there may be safe options to get higher returns than their mortgage, and they may not be able to borrow money again at that low a rate anytime soon.”
Retirees may collect Social Security as early as 62. But some may want to defer payments until later. Brendon Dunuwila, a financial advisor of the Fayetteville, New York firm Dunuwila Wealth Management, says the latest an individual can defer Social Security payments is age 70. There is an advantage to this strategy.
“The longer you wait to elect, the larger your check will be. While most Americans elect to take their Social Security early, most financial advisors would encourage an individual to wait until age 70 if financially possible,” Dunuwila says.
Many clients feel overwhelmed when they need to start using these nest eggs, says David Edmisten, a Phoenix, Arizona, certified planner and founder of Next Phase Financial Planning.
“With the different types of accounts many retirees have, there’s potential for penalties and higher taxes for incorrect withdrawals,” he says.
It can be difficult for new retirees to know how to shift investments to create a reliable retirement income. So Edmisten says to put a structure in place that dictates appropriate amounts of cash, income investments, and longer-term growth assets.
“This can give them the confidence to spend as they need in retirement without worrying about current market conditions,” Edmisten says. It’s important to understand all aspects of a financial plan to make withdrawals and investment decisions as tax-efficient as possible, he adds.
Nold finds many people don’t take advantage of all the tax savings opportunities that different investment options may provide. For example, a business owner who doesn’t consider a retirement plan or a SEP IRA is missing out on an important tax-saving vehicle. Another example is someone who could benefit by contributing to a Roth IRA via a back-door Roth contribution but doesn’t. He thinks “people often underestimate the long-term tax savings of making small changes during their working years.” He also observes that people make investments that aren’t tax efficient, for instance, some mutual funds that may be subject to high capital gains.
The universal answer to this question is that it depends. Boris Castillo, a San Diego, California, financial advisor for Cuso Financial Services, says to ask yourself how much passive income you would need to walk away from your work today.
To determine that amount, he recommends totaling your monthly expenses. Remove expenses that will eventually sunset out, like a mortgage or a car loan. Then look at them with the following metrics:
To answer this question, Chicago-based financial advisor and founder of SIS Financial Group, Cynthia Pruemm, asks clients to note what is important to them in retirement. The range of objectives varies from “whether they want to leave a legacy, or do they want to contribute to their grandchildren’s 529 college plan,” she says.
Another concern she hears is that cognitive issues may run in their family. These people are concerned about long-term care or want to retire before they become eligible for Medicare. “Whatever their concerns are, we complete a retirement analysis and offer them solutions to the gaps in their plan,” Pruemm says.
The short answer is no. Nayan Ranchod, a Scottsdale, Arizona, financial planner with Silver Lining Wealth Advisors, says people should not worry about market volatility, especially if their portfolio is based on financial planning that reflects their long-term goals. A carefully thought-out portfolio already takes into consideration the fluctuations of the market.
“A market downturn is the time to reassess what’s really important in your life and adjust the portfolio and expenses accordingly to make sure we use this as an opportunity for the next growth cycle,” Ranchod says. In his opinion, you can use the market to set clear future goals.
“As a fiduciary, an advisor can only give assurances that your interests go ahead of any other entities (other than the law),” says Castillo. However, he cautions that this says nothing about the investment strategy itself. For example, in the last few years, “many have taken risks in their portfolios that they ideally wouldn’t take. The economic environment almost dictated this since the US experienced historically low-interest rates persistently. There was little yield to be had anywhere else but in equities,” Castillo says.
With the recent shift in interest rates and asset valuations, many are finding out the hard way that they took on more risk than anticipated. “This is why we always run scenario analysis on any investment strategy. Knowing how far or fast an investment’s returns can change can benefit an investor since it can manage their expectations. But always keep in mind that the advisor doesn’t control the markets,” adds Castillo.
It can be easy to look at a portfolio as a snapshot, but in reality, they change with the market. Retirees need to focus on an overall financial strategy instead of reacting to the fluctuations in the market, says Jennifer Lee, a financial advisor in Sarasota, Florida, and founder of the advisory firm, Modern Wealth. Lee believes people have been conditioned to think that everything will bounce back immediately. But that isn’t necessarily the case. Clients need to be clear on their ability to tolerate risk and to stay the course when things get bumpy.
“Review your timeline to retirement or a particular goal, and ask, ‘Can I sustain the type of investments I have?’ and ‘Is my portfolio positioned to provide me with adequate income in retirement?’ In a down market, we do not want to have to be reactive and reassess risk.” says Lee.
Most financial advisors think retirees should give advance thought to long-term care. Waiting may mean settling on an option that isn’t ideal. “This is a more complicated question as, for some clients, it can make sense to self-fund for this risk. For others, it is better to work closely with an estate planning attorney to discuss asset protection and Medicaid options,” Dunuwila says.
Castillo believes an index fund is a nice vehicle for low-cost market exposure. “However, it doesn’t ask the most fundamental question any investor should ask themselves: ‘How much risk do I really need?’ Without a financial plan, most investors are flying blind and following the crowd, leading them to make all types of mistakes. Your financial situation is as unique as your fingerprint: many look similar, but no two are identical. The most efficient method is taking on the appropriate risk that fits your overall goals and financial situation. An index fund may result in too much risk, or, in some cases, not enough,” Castillo says.
Financial advisors don’t have a standard cost or fee, but the key is to ask this question early in the process. “Every investment strategy will have its costs or fees. Some advisors charge flat rates for advice, some a percentage of assets under management, or some traditional commissions,” Castillo says. He believes that an investor needs to determine what approach is the most appealing to them.
“Pragmatically, the most efficient method to begin the investment journey (since longevity and discipline are the keys to the most rewarding outcomes of most investment strategies) is to know yourself, know how you’re most comfortable dealing with a professional. The markets will give you enough opportunities to second-guess any strategy over time, so why compound the uncertainty by utilizing an approach you’re not comfortable with?” Castillo says.
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.
***** MY Notes: A Reverse mortgage can be a blessing for may Retirees. I can vouch for that. It could help you achieve a financial worry-free retirement,
Call 786-262-6486 or email RodKohly@gmail.com today to get more Information about the funds you can get from a Reverse Mortgage
GREAT NEWS!!!
If you closed your FHA Insured Reverse Mortgage prior to April 26, 2014 and had to take your Spouse off Title Due to being younger than the required 62 years of age, now we might be able to Refinance it, include your Spouse on the Loan and on Title, and maybe get you additional Funds with one of our Proprietary Reverse Mortgage Programs.
Send me the last Statement from your Reverse Mortgage as well as Name and Date of Birth of your Spouse.
RodKohly@gmail.com Call me today!!! 786-262-6486
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Through our Proprietary JUMBO 55 Reverse Mortgage Program, We can offer Owners of 1 to 4 Families and CONDOS for a Maximum Loan of Up To $4,000,000.
The FHA HECM Reverse Mortgage Fabulous Growing CreditLine!!!
Many Seniors are not aware of one of the most attractive and valuable advantages of this Program and is insured for the life of the Loan. The Lender can NOT eliminate or change it!!!
Available only on the Adjustable Rate Plans. The Program allows you to withdraw up to 60% of the Loan amount at Closing, including closing Costs and any existing Mortgage or lien.
The Balance of the Loan Amount is deposited in a Growing CreditLine and will be available for withdrawal after one (1) Year. During the time the funds are in that Creditline, they are growing Tax Free at a Growth rate of .50% higher than the Interest rate charged for the funds owed that you withdrew at Closing. (ie: if the Interest rate for the funds owed is 2.415% annual, for one period, the Growth Rate for the funds in the growing Creditline will be 2.951% for that same period). Tax Free!!!
Any funds available at Closing, not withdrawn will be deposited in the growing Creditline and will be available for withdrawal within the 1st year.
The funds deposited in the growing Creditline are not owed nor is interest charged on them, until withdrawn. They are a Growing Tax Free Cash Reserve!!!
Another fabulous advantage is that If at anytime you decide to make a payment (x$) to lower the debt, the debt will be decreased by (x$) and, the same amount of (x$) will be credited to the growing Creditline and be available immediately for withdrawal if needed.
Don’t waste the opportunity to change your life with a Reverse Mortgage. We offer both FHA Insured as well as Proprietary Programs up to a maximum Loan amount of $4,000,000 for houses, townhouses and Condos!
Note: The information is provided for informational purposes only. It is subject to errors and /or omissions and to change without prior notice.
Fabulous Growing CreditLine!!!
By Miranda Marquit
Published Mon, Aug 14 2023
Inheriting a house can offer a variety of choices in making use of a valuable asset. For example, you can sell the home and collect the resulting cash as a windfall, use the property for rental income, or live in the house and potentially reduce your overall living costs.
As you decide what to do with an inherited home, there are a few things to consider. Here’s what you need to know.
Laws are different in each state, but, in general, if you inherit a home, you will need to go through some type of legal process. The executor of the will needs to be consulted, and there might be probate issues to resolve.
if you inherit a house, it won’t actually be yours until all the legal formalities are complete and your name is on the title.
Some of the issues the executor and probate will address include:
Consider speaking with an estate planning specialist or other professional to help you navigate the situation and review your options. You may also need to consider a mediator if you have co-inheritors who disagree with you about the best way to handle the situation.
Once you’ve established your right to the home and have your name on the title, you can start trying to figure out what to do next. You’ll need to consider the impact of owning this home on your personal finances. Considerations you’ll need to make include:
Regarding what you’ll do with the property, you have three options:
If you have a family member as a co-inheritor, you might also need to make other decisions. Perhaps they want to move in, and you need to make an arrangement. The easiest solution is to sell the home and split the net proceeds (after taxes and other costs have been paid). However, if you want to keep the home and don’t want other co-inheritors involved, you might need to buy them out.
Inheriting a house can be a way to improve your finances and make the most of your money. However, before you decide to accept the inheritance, or decide what to do with the house, make sure you consider your situation and needs to make a choice that makes sense for you financially.
???Call 786-262-6486 or email RodKohly@gmail.com today to get more Information about the funds you can get from a Reverse Mortgage
What Will the Future Bring?
Many Seniors, worried, have recognized the uncertainty that they face in their Golden years.
1) Will my retirement income be enough to live the rest of my life with sufficient dignity? 2) Where am I going to get enough income to maintain a satisfactory standard of living?
3) Will I be able to maintain my financial Independence for much more time?
4) Will I have to become a financial burden to my children?
5) Will my children be able to help me if I need it?
6) Will I have to sell my beloved home?
7) Where do I move to? How much will it cost me? a) 6% REALTOR Comissión: $_________ b) Doc Stamps Tax For Sale of Property: $______ c) Cost of Moving: $__________
8) and, a thousand other questions…
Watch a Short Presentation of what the Reverse Mortgage is:
NO Tax Returns Needed!!! For Purchase or Refinance!!!
Special Financing Programs Purchase or Refinance
Programas Especiales de Financiamiento Compra o Refinanciamiento
JUMBO REVERSE MORTGAGE 55 Plus* GREAT NEWS!!!
We are now offering a new Propietary JUMBO Reverse Mortgage Available for Refinance and Purchase. Owner Occupied:1 to 2 families Residences, Townhomes, and CONDOS.
This, immediately, opens the possibility for many Hi-Value Homeowners to obtain a Reverse Mortgage for a larger Proceeds than with the FHA Reverse Mortgage. If you live in a Hi-Value Condo or Home and have not obtained a Reverse Mortgage yet, call me. See if this Reverse Mortgage could help you. Characteristics*: 1) Values from the $800,000’s up to $4,000,000 maximum loan amount.* Characteristics (cont.)* 2) Condo Projects NO FHA approval*. 3) No Mortgage Insurance required 4) 620 Minimum Credit Score 5) Minimum Age 55 years old. (all owners) (*other terms and Conditions may apply. Subject to changes without prior notice, errors and/or omissions. Condo's Lender approval required).
When this Article was written back in 2021, inflation had not reached the 11% average that it was in May 2022, Gas Prices were not in the $4.95-$10.00/gal range, groceries were not as high as they are today, and interest rates had not risen to the 5% range they are today (and the Fed announced 2 to 4 more increases this year). If you are in a fixed income, this situation is really harming you. If you are a Senior it is even worse. I call it "The Senior Silent Killer",
My Social Security Benefits went up 6.5% in January 2022 thanks to the COLA, My Medicare Premium went up 14.5%. So if inflation is an average of 8.5% and increasing, how can anyone make ends meet???Senior Homeowners with at least 50% Equity in their homes can apply for a Reverse Mortgage and eliminate Monthly P&I Mortgage Payments and even get Tax Free Cash to help them out.
Don't wait until it is too late. You deserve to live the remaining time of your Life without financial worries!!!Call me at 786-262-6486 or email at RodKohly@gmail.com or use the form below for a confidential, no cost or obligation estimate of how much could you get from a Reverse Mortgage.
Read More at: https://www.happyseniorhomeowners.com/EnglishReverse
or in Español: https://www.happyseniorhomeowners.com/ESPANOLREVERTIDA
by Robert Intelisano August 3, 2021
The Google definition of inflation is: “A general increase in prices and fall in the purchasing value of money over time. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.”
An example of inflation is the cost to cross the Marine Parkway-Gil Hodges Memorial Bridge. When the bridge opened on July 3rd, 1937, the cost to cross the bridge was between 10-15 cents, depending on the type of vehicle. The current cost is $5.09 by mail and $2.45 by E-Z Pass.
The Federal Reserve wants to keep inflation under the 2% benchmark. Right now, inflation is running around 3% which is in the danger zone. As per Barron’s, the FOMC (Federal Open Market Committee) released minutes from its June monetary policy meeting. Fed officials signaled that interest rates would rise sooner and faster than Wall Street expected prior to the meeting, as inflation is rising at its fastest pace since 2008.
What does this all mean? This means that if you are on a fixed income, your money will not go as far as it would during inflationary times. This also means, if you have investments and/or money in the bank that is “netting after-tax” less than 3%, you are losing money (purchasing power). These are important barometers that few people are paying attention to right now.
People have been cooped up (myself included) during the height of Covid-19 and many persons now have more spendable income. A combination of inflation, the Suez Canal blockage, and higher demand for travel has skyrocketed travel costs in the past month. Hotel costs in Miami Beach have risen 50% since the last week in June. Rental cars are up 110% this year and are 70% higher since the pre-pandemic in 2019. Oil prices could soon hit $100/barrel, which will also spike gas prices.
There are options where one can position assets to fight inflation or at least break even, as interest rates are likely to rise over the next 12-18 months.
-Shannon Hicks-
Now is the time to have a short conversation about inflation. How is it impacting them? Does it change their retirement plans? What financial concerns do they have as a result? Inflation is not a selling point, but it’s certainly a reality. One where a reverse mortgage could potentially help.
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The continued surge in housing prices has confounded economists, housing experts, and investors alike. Many believed that the end of mortgage forbearances or the sudden closure of Zillow’s iBuyer program was an omen of an impending crash in housing values. Next was the expectation that interest rate hikes by the Federal Reserve would at least cool the market. However, today home values continue to appreciate even after the Fed announced a series of interest rate hikes in the effort to stem inflation.
With home prices rising six times as fast as personal income it becomes clear that…
today’s housing market is both artificial and unsustainable. While the frenzy will eventually subside it won’t stop this spring which marks the height of the homebuying season.
Today homeowners are equity-rich thanks to a massive shortage of housing inventory and asset inflation as a result of the Fed’s endless money printing and near-zero interest rates. Yet there’s one group of homeowners stand to reap the rewards if they choose to secure a portion of their home’s new-found ‘equity’; Seniors.
Even if the central bank increased rates during each of its meetings this year, it’s unlikely that the resulting change in the 10-year Constant Maturity Treasury (CMT) swap rate would disqualify most thanks to the run-up in home values. Today the 10-year CMT stands at 2.0% which nearly mirrors the index’s rate in December 2019 before the outbreak of the Covid-19 pandemic.
However, should the Fed be forced to take more drastic measures to curb inflation, rate increases could escalate sufficiently to offset the recent gains in home prices with higher expected interest rates lessening available loan proceeds for reverse mortgage applicants.
Don’t sneeze as spring fever maintains today’s absurd home prices. Just like any season, this too will eventually pass, and with that passing the waning of a unique opportunity for older homeowners seeking to stop making mortgage payments.
See Reverse Mortgage Information
Recently I posted an article on the effects of the high inflation rates that we are all suffering on the Reverse Mortgage Rates and how it would lower the Funds that You Would Receive!!! (see article below this one)
This new article describes how inflation WILL lower the effect of the funds you receive from Social Security regardless of the COLA increase.
The Center for Retirement Research at Boston College
THE IMPACT OF INFLATION ON SOCIAL SECURITY BENEFITS By Alicia H. Munnell and Patrick Hubbard*
This fall, the U.S. Social Security Administration is likely to announce that benefits will be increased by around 6 percent beginning January 1, 2022. This cost-of-living-adjustment (COLA), which would be the largest in 40 years, is an important reminder that keeping pace with inflation is one of the attributes that makes Social Security benefits such a unique source of retirement income. A spurt in inflation, however, affects two other factors that determine the net amount that retirees receive from Social Security. The first is the Medicare premiums for Part B, which are deducted automatically from Social Security benefits. To the extent that premiums rise faster than the COLA, the net benefit will not keep pace with inflation. The second issue pertains to taxation under the personal income tax. Because taxes are levied on Social Security benefits only for households with income above certain thresholds ($25,000 for single taxpayers and $32,000 for joint returns) and the thresholds are not adjusted for wage growth or inflation, rising benefit levels subject more benefits to taxation – again reducing the net benefit… Continued: Download the entire Brief at:
https://crr.bc.edu/wp-content/uploads/2021/08/IB_21-14.pdf
With a FHA Insured Reverse Mortgage You Can Prevent The Effect of Inflation on Your Daily Life. Call Me Today at
786-262-6486
The Federal Reserve Board has Increased the Interest Rate by a MASSIVE 0.750%. This translates into a lower amount of funds you can receive from a new Reverse Mortgage or a Higher Monthly Payment for Traditional Mortgage Borrowers. This only is the 3rd increase of several announced for 2022.
If you haven’t applied for your Mortgage yet, don’t keep waiting. Call me today at 786-262-6486 or send the information requested below.
We’ve all heard that "laughter is the best medicine." But who took it seriously?
All kidding aside, IS laughter really the best medicine? Could a daily dose of "ho ho ho" heal what’s wrong, or is it just a sick joke?The health benefits of laughter have been praised since biblical times, with proverbs like, "A cheerful heart is good medicine." Shakespeare wrote years later, "Merriment bars a thousand harms and lengthens life."And today, laughter therapy research and laughter yoga tend to agree.
Laughter has been found to boost your immune system, reduce pain, heal your heart, decrease stress and increase your feel-good hormones. But best of all, laughter is fun, free and has no negative side effects.The Health Benefits of Laughter TherapyMore than likely, if you go to a doctor or a shrink for some ailment, they’re not going to write a prescription that includes a good belly laugh.But "laughter therapy" is a new use-your-mind to heal-your-body approach that is growing rapidly in popularity. "And it’s as real as taking a drug," says Dr. Lee Berk, Professor of Medicine at Loma Linda University.As Norman Cousins tells us in his book, Anatomy of an Illness (As Perceived by the Patient), when he was diagnosed with a terminal disease, he was unable to move, given little hope and in constant pain.Cousins credited his recovery to a prescription for watching funny movies. With every 10 minutes of laughter, he got two hours of pain-free sleep.Years later, using movies to rate the effectiveness of laughter therapy on cardiovascular health, Dr. Michael Miller from the University of Maryland School of Medicine discovered that laughter is great for your heart.The American College of Cardiology presented his breakthrough research.Dr. Miller's team measured the blood flow from healthy participants both before and after they watched two very different films: the graphic war movie, Saving Private Ryan and the hilarious comedy, Kingpin.The blood flow differences were quite dramatic – a 35% DECREASE after the war movie and a 22% INCREASE for the comedy. Dr. Miller's conclusion? Laughter may be as good for your heart as exercise!The Health Benefits of Laughter YogaThe benefits of laughter yoga include all the benefits of laughter therapy, plus laughing yoga combines laughter with yoga breathing exercises.Laughing yoga is a body-mind approach to laughter, which means you don't need to find a way to feel happy. You "fake it until you make it" and that fake laughter soon turns into the real thing with real benefits.Here are the main health benefits of laughter therapy and laughter yoga:
Most hospitals today encourage patients to laugh. Many have TV comedy channels, comedy rooms and regular visits from clowns. As Groucho Marx said, "A clown is like an aspirin, only he works twice as fast."Turn Your Frown :-( Upside Down :-) and Start Clowning Around ;o)Studies show the perfect prescription for a long, happy life is to eat a healthy diet, exercise regularly and tune into the cosmic laugh-track.So, do the benefits of laughter prove that laughter is the BEST medicine?The answer is it doesn’t really matter. Because whether you use a laughter therapy mind-body approach or body-mind laughter yoga, if you want to feel good as often as possible, you’ll laugh every chance you get!
How Does a Reverse Mortgage Work?
By Rudri Bhatt Patel
Published Mon, Aug 30 2021
Just the name “reverse mortgage” suggests that this type of mortgage works a little differently than more common mortgage types. Here’s what you need to know about how reverse mortgages work.
A reverse mortgage is a loan that lets qualified homeowners tap equity without selling their home. Borrowers choose how they receive proceeds either as a lump sum, monthly payments, a line of credit, or a combination. Read on to learn more about how reverse mortgages work.
Government backed reverse mortgages are called home equity conversion mortgages (HECM). Not all reverse mortgages are HECMs, but all HECMs are reverse mortgages. Individual lenders also offer proprietary reverse mortgages. The terms of these mortgages can vary depending on the lender. Proprietary reverse mortgages are not insured by the government.
With a traditional mortgage, borrowers take a specific amount of money to purchase a home. They make monthly payments with interest toward the loan balance for a predetermined term. Standard terms are 10, 15, or 30 years. Though they owe the lender a certain percentage of the home’s value, they fully own the home. The loan will be paid off by the end of the term, assuming the borrower makes all agreed-upon payments.
Although you can purchase a home with a reverse mortgage, people more commonly use them to access equity in homes they own. Like with a traditional mortgage, the borrower always retains full ownership of the house. Instead of the paying the mortgage for the life of the loan, nothing is due until the loan comes to term. When the last borrower on the loan leaves or passes away, the loan comes due.
Both cash-out refis and reverse mortgages allow borrowers to borrow against the equity they’ve built up in their homes. There are a few notable differences:
To apply for a reverse mortgage, borrowers must certify that they have undergone reverse mortgage counseling through a Housing and Urban Development (HUD) approved agency. This counseling ensures that the borrower fully understands the terms of their mortgage and what they are agreeing to.
In addition to the mandatory counseling, the basic requirements to qualify for a reverse mortgage are as follows:
?It’s not enough for a borrower to meet the qualifications of a reverse mortgage; the property must also be eligible.
Broadly, single-family homes are eligible for a reverse mortgage. The definition of a single-family home can cover a variety of structure types. According to the Federal Housing Administration (FHA), a single-family home is a stand-alone unit or one attached to a building. This definition includes:
HUD considers buildings with more than five units commercial properties and they are not eligible for a reverse mortgage.
Reverse mortgage borrowers must live in their mortgaged home. That means rental properties are not eligible for reverse mortgages. It is perfectly fine, however, for reverse mortgage borrowers to rent out rooms in their homes, or units on the same property (provided they are under four). Borrowers will still need to comply with their HOA rules regarding rentals.
Because reverse mortgage borrowers don’t make required payments to their mortgage until the loan comes due, staying on good terms with a reverse mortgage is relatively simple.
Borrowers can keep their loan in good standing by complying with the following terms:?
As part of complying with the terms of the mortgage, reverse mortgage borrowers must sign an affidavit annually to verify they still reside in the home. Every year, the loan servicer will send borrowers a home occupancy certificate to their primary residence. Borrowers must sign and send the certificate back within 30 days of receiving it.?
If a borrower fails to comply with the terms of the reverse mortgage they risk default and the loan may come due and payable. Anyone struggling to meet the terms of their mortgage should communicate with their servicer early on.
During the life of the loan, a reverse mortgage requires very little cash out of pocket from the borrower. While reverse borrowers do not make required monthly mortgage payments, they do need to keep up with home repairs, home insurance, and property taxes. Income taxes aren’t levied on reverse mortgage loan proceeds because the IRS considers reverse mortgage payments loan proceeds, not income.
Though there are no required monthly mortgage payments, borrowers can choose to pay down the balance as they see fit.
When taking out the loan, borrowers must pay a counseling fee, as well as regular closing costs and fees, many of which borrowers can pay with loan proceeds. Interest and mortgage insurance premiums accrue on the loan balance monthly. The borrower does not need to make payments on them until the loan comes due, at which point the full amount of the loan plus accrued interest and mortgage insurance premiums must be paid.
Homeownership involves a number of risks that even the most conscientious homeowner can’t completely eliminate. If your home is located in a specific disaster-prone area, adequate insurance coverage is essential. As a reverse mortgage borrower, should your home be damaged or destroyed by fire, flood, or some other unforeseen event, your insurance coverage will be instrumental in rebuilding. It is also essential that you notify the loan servicer immediately. If you intend to rebuild or bring the house back to its previous state, you will stay in good terms with the reverse mortgage.
Several factors determine how much money you can borrow through a reverse mortgage. Those factors include your age, the interest rate offered, the home’s value, and how much equity you have in the home. A reverse mortgage calculator will estimate how much money is available to borrow and your remaining equity. The borrower must supply their age, home value, and any current mortgage balance, if applicable.???
Borrowers can receive money as a lump sum, monthly payments, a line of credit, or a combination of all these options. The best course of action will depend on the individual financial situation and strategy.
It is worth mentioning that all HECMs are subject to the 60% utilization rule. This limits the amount any reverse mortgage borrower can take in the first year to the higher of 60% of the principal limit or mandatory obligations like an existing mortgage plus 10% of the loan amount. The remainder of the available principal will be available to the borrower in the 13th month of the loan and come from an established line of credit.?
Reverse mortgages can have fixed or variable rates. Unlike traditional mortgages, for which borrowers often prefer a fixed rate, most reverse mortgages have a variable rate. Though fixed-rate reverse mortgages are available, they commonly do not allow the borrower to access as much equity as they can with a variable rate. Reverse mortgage borrowers who choose the fixed rate only have the option of taking a one-time cash payout. Because of the 60% utilization rule mentioned above, that payout will only be a fraction of what would be available with a variable rate that does not have a single payment restriction.
The majority of reverse mortgage borrowers opt for the flexibility that the variable rate mortgage offers. Because the term of the loan is open-ended, borrowers do not know in advance how much interest will accrue on the loan over time (they do receive an amortization table that estimates accrued interest over the life of the loan). However, the flexibility in payment options, including a line of credit that offers increased borrowing power over time, as well as the availability of more equity, usually makes this type of interest structure more attractive.
It is not possible to remove or add a person to a reverse mortgage. In the cases of death, remarriage, or divorce, to add or remove a party, the remaining borrower will need to refinance the loan.
In a married couple in which one person is not included on the reverse mortgage, the spouse not on the mortgage is called a non-borrowing spouse. There are legal protections that help prevent eligible non-borrowing spouses from being removed from their homes in the event the borrower passes away or has to move into an assisted living facility. Though an eligible non-borrowing spouse may remain in the home, they no longer have access to remaining funds, including those set aside to pay taxes and insurance.
Whether divorcing non-borrowing spouses remain in the home or leave is between the borrower and their attorney. The specifics of the divorce settlement may allow the non-borrowing spouse to be refinance in their name or any number of other arrangements.
Selling a home with a reverse mortgage works very much like selling a home with a traditional mortgage. When the home is sold the proceeds from the home sale are applied to the reverse mortgage balance. The remaining money goes to the borrower or their heirs.?
It is also possible to refinance a reverse mortgage. Generally, people choose to refinance a reverse mortgage if they want to add a new person to the mortgage, say in the case of marriage, or if the house has increased substantially in value and they would like to tap additional equity.
There are three ways for a reverse mortgage to come due:
When the last borrower dies, heirs need to decide what to do. Heirs are not responsible for reverse mortgage debt. However, when the mortgage comes due, they do need to decide how they would like to resolve the debt. Options include the following:
Depending on your retirement strategy and goals, a reverse mortgage can help alleviate the stress in your golden years. A reverse mortgage isn’t complicated to understand, but it’s important to consult a financial advisor before making this or any important financial decision.
And, Inflation Bad News Keep On Coming!!!
The Fed, last week, announced that they will INCREASE interest rates at least, THREE (3) times in 2022!!!
The 1st one should come in March!!!
Inflation is between 7%+ and 9%+. Now add the Price of Gas which will increase with suspension of oil imports from Russia now that war has started. Economists state that it will be a long time before Inflation goes down!!!
This will impact your daily life in many ways. The Price of Food at the Market, the price of Gas at the pump, the Price of Clothing on the store, etc... Especially hit will be Credit Card, Adjustable Rate Mortgages and Lines of Credit Payments.
Sales of homes will go down and so will appraised values.
For New Reverse Mortgage and FHA or Conventional Mortgages Borrowers it means that the appraised value of your home will be lower and proceeds (higher interest, less funds) will be lower too. So if you have been postponing doing it, don’t wait any longer, CALL ME TODAY
May God Have Mercy on the People of Ukraine!!!
Interest Rates are going up VERY soon!!!The Fed has announced at least 3 interest rate hikes in 2022. THE 1ST ONE IN MARCH!!!Consolidate your Hi-Interest Credit Card, Variable Rate Mortgage and Auto Loan in one low Fixed Interest Rate monthly payment!!!
Happy Friendship Day!
In Many Countries February 14th is “Friendship Day”. Friendship = Love
Enjoy this day even on the Time of the Plague. Be healthy!!!
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