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HECM Reverse Mortgage Changes 10/2 – Seniors may benefit by acting soon

Written by Clay on . Posted in FHA, HECM, Refinance, reverse mortgage, Social Security, Uncategorized

Big Changes for HECM Reverse Mortgages October 2nd: Higher UpFront Cost – Lower Limits – Lower Insurance Premiums

Seniors on the fence considering a HECM reverse mortgage line of credit with a zero or low upfront draw may want to act quickly to get their reverse mortgage started before big changes go into effect October 2, 2017.

Three changes will impact the HECM Reverse Mortgage Program for FHA case numbers assigned beginning October 2nd. Upfront Mortgage Insurance Premium paid to FHA will now be 2.0% across-the-board. Previously borrowers accessing less than 60% of the principal limit only had a 0.5% upfront mortgage insurance premium and those with mandatory obligations over the 60% were charged 2.5% for the upfront mortgage insurance. Annual Mortgage Insurance Premium accrued on an outstanding balance is reduced from 1.25% to 0.50% which will be a benefit to those borrowers that carry a balance on the reverse mortgage but negatively impact the growth factor used when borrowers obtained a line of credit reverse mortgage. Principal Limit Factors were adjusted to be more conservative reducing the amount of funds available to an average borrower by about 5%. I will be spending some time looking at the impact by age group and share that a bit later. The net impact seems intended to discourage the use of a line of credit reverse mortgage. When taken out early on the growth in the credit line if left unused was dramatic and can be an important part of a overall financial plan providing flexibility and security with access to funds well into the future. Increasing the upfront cost; decreasing the growth rate by reducing the mortgage insurance premium; and lowering the principal limit factors all reduce the benefits of a line of credit reverse mortgage. Seniors on the fence may want to consider acting sooner rather than later. An application and counseling must be completed prior to securing an FHA case number so if this makes sense it would be best to act quickly and get a case number well before September 29, 2017. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage before these changes take place, please give me a call or send me an email: clay@104.238.124.149. I’d be happy to help!   Learn more about mortgage at mortgagebrokernearme.co.uk Clay Selland, Signet Mortgage Corporation clay signature blackcontact-block-1

9 Ways to Use a Reverse Mortgage

Written by Clay on . Posted in reverse mortgage, Social Security, Tax

A good summary of 9 ways to use a reverse mortgage was published by Mary Beth Franklin – in Investment News June 2016.  Investment News is a leading reference source for Financial Planners.  Titled “9 surprising ways to use a reverse mortgage” is an excellent summary of how a reverse mortgage can compliment a solid financial plan.  
  • Reverse Mortgage Money and HousePay off an existing mortgage
  • Replace a home equity line of credit
  • information on credit scoring
  • Protect your portfolio
  • Fund future long-term care or income needs
  • Create a Social Security bridge following basic tips
  • Manage Taxes
  • Pay Roth conversion taxes
  • Buy a new home
  • Gray Divorce Strategy
  • Seek help from fixmy.credit
    Working with an experienced reverse mortgage loan officer is the key to make sure the guidance and education shared with a client is on point and considers the overall financial plan of the senior. Clay Selland is a CPA and the owner broker of Signet Mortgage Corporation. Clay is uniquely qualified to assist about demountable office partitions for your workspace as they consider financing of their home including conventional and reverse mortgage financing and how it fits with their financial plans now and going forward. Contact me today to find out if a Reverse Mortgage is the best option for you! clay signature black         Clay Selland, President Signet Mortgage Corporation 925-807-1500 x303 Clay@SignetMortgage.com NMLS#183492  

Social Security benefits – MarketWatch

Written by Clay S. on . Posted in Current Events, Social Security

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Social Security benefits – should you consider benefits as part of your fixed income portfolio allowing a greater allocation to equities?  A thoughtful discussion of the opportunities and risk.

http://www.marketwatch.com/story/social-security-as-part-of-your-portfolio-2013-08-19? Honestly after reading this it provoked a lot of thought, however conclusions would be based on your own personal assessment of risk. I would tend to side with counting Social Security monthly income as cash flow much like a fixed income portfolio. If you want to have a simple and affordable DIY home security kits to complete smart home security solutions that connect all your wired devices and allow control and monitoring from your phone or tablet, click here! We’ve got security needs covered. If you would like to talk  with a mortgage advisor who thinks long-term and strategically about your financial investments including your liabilities – please give me a call. clay signature black