“A reverse mortgage has brought me bountiful solutions to resolving financial issues.  Its benefits enabled me to achieve the means to better enjoy living in my own home.  The equity available was spent in several areas for home improvement.  Included were remodeling of my bathroom, new carpeting throughout my home, and installment of a sump pump to prevent basement floodings.  Herewith also personal challenges, as a pledge to my church fulfilled and travel to family weddings and reunion assured.

“With a reverse mortgage you begin to have independence anew and you begin to feel more secure.  Being free from monetary anxiety, you have better control over spending your equity.  Thus a respect for yourself increases.”

This is a letter I received from a borrower who had taken out her reverse mortgage over 5 years ago.  Through the years I have heard from other borrowers on how the reverse mortgage has made a difference in their lives.

Another borrower called a couple weeks ago to tell me that they are moving into a care center because of with his Alzheimer’s she can’t care for him and it’s not safe for him at home any longer.  As we talked she told me how thankful she was for the reverse mortgage and what a difference it and I have made in their life.  They did their initial reverse mortgage over 8 years ago and we refinanced it for them about 3 years ago.  For years the funds from the reverse mortgage allowed them to maintain their lifestyle and go to Florida and escape the Minnesota winters.  No longer able to make the trip to Florida they have used their funds for other needs including medical expenses and home care allowing them to stay at home as long as they could.

Reverse Mortgage Made Difference for MN Man

Dick really wanted to stay in his home of many years.  The reverse mortgage funds were used for home improvements and allowed him to participate in a mission trip.  Since his reverse mortgage was taken out in 2002 he has called and shared how the reverse mortgage has helped him live his life comfortably and to stay in his home as he desires.

The reverse mortgage has helped seniors retire and still have funds for their lifestyle.  Using the funds for home repairs has helped seniors keep up their home so they could remain in the neighborhood where they are familiar.  Other times the reverse has been considered a life saver to pay for home care and keep the senior at home where they are most comfortable.

I have specialized in reverse mortgages since 1999 and have helped hundreds of seniors stay in their home with security, independence, dignity, and control.  I hope to continue to receive the letters and calls from my borrowers on how the reverse mortgage and I have made a difference in their life.  It’s a good feeling knowing that seniors have a better life and more respect for themselves.

For more articles on how reverse mortgages have helped seniors, read:  “Finance Retirement with A Reverse Mortgage,” “Know A Senior Who Wants Security, Independence, Dignity, and Control?,” “Reverse Mortgages Help Celebrate Independence,” “Reverse Mortgages Answer Prayers.”  “Reverse Mortgages Finance Home Care” and  “Be Educated About Your Options of Care and Financing of Care” address the advantages of using a reverse mortgage for home health care.

© 2009 Beth Paterson http://bethsreversemortgageblog.wordpress.com 651-762-9648

Are you a caregiver, one who is taking care of a loved one?  And as a caregiver are you also balancing your career, family, home and life activities?  Are you stressed from all of this?  Are you overwhelmed at trying to handle everything and find options to help your loved one?

When taking care of your loved one are you wishing you could focus on being the child or spouse instead of paying the bills, managing the budget, preparing the meals, ensuring their needs are met, medicines are taken, managing the household or being the nurse?  Are you trying to finance their needs along with your own?  Are you wishing you could just sit and visit, read to them, go for a walk, go out for a relaxing lunch, or go shopping instead of dealing with everything else?

A reverse mortgage may be the answer to help you.  With a reverse mortgage you can reduce your stress and hire the assistance from a care manager, companion service, home care agency, daily money manager and/or find services to help with the yard and household chores.  With the services you can return to your role of child or spouse and do the things you enjoy doing with your loved one.

A reverse mortgage is a mortgage with special terms for senior homeowners 62 and older that allows seniors to remain in their home with security, independence, dignity and control.  The advantage for seniors is that there are no income or credit score qualifications and there are no monthly payment requirements.  The borrowers keep the title to the home and are responsible for taxes, insurance, and maintaining the home.  Unlike a conventional loan the low-interest accrues, increasing the balance with no payments due until the home is no longer the primary residence of the borrowers.  In addition, the reverse mortgage is a non-recourse loan which means there is no personal liability to the borrowers or their heirs for repayment if they our their heirs are not retaining ownership.  When there is remaining equity at the time of sale the funds go  to the borrowers or their heirs.

The funds can be used for any purpose, whatever the needs or wants of the seniors.  The advantage to you, the caregiver, is that funds would be available to get the services to help your loved one so they can remain in their home and not depend on you and you can enjoy your time with them rather than being the nurse, the money manger, the cook, the yard worker, etc..

Some of the resources available to assist you include:

• A care manager who is a professional such as a social worker or health care professional who can assist you or your family to manage the medical, psychological, and social affairs, through assessments, identifying needs, and then planning, coordinating, and monitoring services and resources to assist you in financial, legal, and housing needs.
• Daily Money Managers can assist with day-to-day finances such as paying bills, balancing they checkbook, sorting the mail.
• Companion and home care services are services provided in one’s home ranging form companion and basic home chores to medical care such as nursing, occupational, speech, or physical therapy and other medical therapies.  Home Health Care providers may hold licences and provide skilled cares which are done by licensed professionals such as a social worker, nurse, or home care aide and can provide personal care and assistance such as activities of daily living like bathing, dressing, grooming, transferring, toileting.  Companion oar personal care assistants provide companionship and supervision but cannot provide personal or nursing care.  Their services are available from minimal hours to 24 hours and live ins.

So stop being so stressed, look into a reveres mortgage to see if it is right for your loved ones to have the funds for their security, independence, dignity and control.  It could be a wonderful present to yourself.

Other Blog articles you may find helpful: “Reverse Mortgages Help Celebrate Independence“; “Having Our Seniors Share Their Memories, Dreams, and Desires To Receive Security, Independence and Control“; “Reverse Mortgages Answers Prayers“; “I Want To Stay In My Home – Don’t Tell Me to Sell!“; “Reverse Mortgages Finance Home Care“

© 2009 Beth Paterson http://BethsReverseMortgageBlog.wordpress.com 651-762-9648

With the families gathering for the holidays now is a good time to discuss memories, dreams and desires with our senior loved ones.  One of the most important things to keep in mind is having an understanding of the senior and considering what they want.  As George Santavana stated, “Before you contradict an old man, my fair friend, you should endeavor to understand him.”

Our seniors are valuable to our families and to our society.  They are not just a potted plant in the corner that looks beautiful.  They bring experience, knowledge, history and a sense of who we are.  They have and continue to contribute to our world.  While we treasure other things that are old, we often discount our senior’s opinions, needs and desires.

Sister Mary Germma Brunke wrote, “It is the old apple trees that are decked with the loveliest blossoms. It is the ancient redwoods that rise to majestic heights.  It is the aged wine that tastes the sweetest.  It is ancient coins, stamps and furniture that people seek.

It is the old friends that are loved the best.  Thank God for the blessings of age and the wisdom, patience and maturity that go with it.  Old is wonderful!”

How can we help make “old” wonderful?  As you are visiting with your loved ones ask them what they remember about moving into the house they first purchased, what they like about the neighborhood.  How do they feel about where they are living now.  Have them share memories of their friends from their youth and what they treasure about the friends in their life now.  What do they cherish?  What has value to them?  What’s important to them?

Have your loved ones define security and find out what gives this security to them.  From their viewpoint what does it mean to be independent?  How do they define dignity in their life?  What do they need to feel they still have control and choices in their life?

Listen to them without making judgments.  If they repeat the same story several times, look at it as a process or stage they are going through.  It doesn’t mean they have dementia, it may just mean that something about that time in their life has a significant impact on their life.  Find out the details of that time of their life and what it means to them now.

There’s a wonderful book by David Solie, M.S., P.A., “How to Say It To Seniors: Closing the Communication Gap with Our Elders” that provides insight into understanding and gives great suggestions on how to have the discussions with your loved ones.

As you listen to the answers of your loved ones are you discovering that they want to stay in their home?  Are they struggling financially?  Do you need a little extra help with chores or getting out to church or visiting with friends or going to a movie?  Do they need some physical therapy to help be able to do what they desire?  Is nutrition and meals a concern?  Would assistance in bathing be helpful?

There are many options available to help seniors meet their needs and desires.  If they want to stay in their home and need some extra cash, consider a reverse mortgage.  If they need some extra help, a home care agency can help them.  Home care agencies provide companion services, meal preparation, medication reminders, bathing and skilled care.  Physical therapy can be brought into the home.  Adult Day Services are an often overlooked option.  And if the family dynamics come into play, a Geriatric Care Manager can help facilitate as well as assist in determining needs and resources.

Reading some of my other blog articles will help provide you and your loved ones with information to help their life to be wonderful:

“Reverse Mortgages Help Celebrate Independence;”

“Know a Senior Who Wants Security, Independence, Dignity, And Control?;”

”Reverse Mortgages Finance Home Care;”

“Finance Retirement With Reverse Mortgages;”

“Be Educated About Your Options of Care and Financing The Care.”

“Aging is not ‘lost youth’ but a new stage of opportunity and strength.” (Betty Friedan)  Let’s honor our seniors at this stage of their life with the value they provide to us and with the opportunities available to meet their needs and achieve their desires.

© 2009 Beth Paterson http://BethsReverseMortgageBlog.wordpress.com 651-762-9648

Reverse Mortgage pays for grandma's home care

“Once we realized that we could only relieve the stress on us by contracting 24-hour [at home] nursing care for grandma, a reverse mortgage was the only way to do it.”  Liz wrote me.  Another borrower, Robert, did not want to go to a nursing home, yet he needed long term care.  George, Robert’s son, decided they should do a Reverse Mortgage to pay for the home health care needed to keep Robert at home where he had raised his children.  Robert is happy because he is living where he chooses.  George is happy the family can fulfill Robert’s wishes of staying in his home and still receive the needed care.

Last week I talked with a daughter who said that moving her dad to a nursing home would “kill him,” causing him to die faster than if he stayed in his home.  I constantly hear, “You’re going to drag me out of here (home) in a wooden box.”  “I want to go home, not to a nursing home,” is a common statement children hear from their parents after a hospital stay.”  But the challenge is how to make this happen.

Are you trying to figure out how to keep a loved one at home and have the financing to meet their needs?  Home care can provide the care and a reverse mortgage may be your financing solution.  The reverse mortgage can help seniors stay in their home and receive the care they need whether it’s long term or short term, a couple hours or 24 hours of care.  Just been released from the rehab center Margaret needed a home health care aide to assist her so she could remain in her home as she recuperated.  The reverse mortgage allowed her to hire the home care agency of her choice.

Did you know for seniors 62 and older, by converting the equity of their home into cash with a reverse mortgage…

• They own home, no one else does.
• They can stay in Their home as long as it’s their primary residence (in the case of a couple as long as one is still in the home).
• They won’t lose their home because of a reverse mortgage – they don’t have to make monthly payments.
• Tax-free money is government insured and guaranteed to be there for them (consult your tax advisor).
• There is no personal liability to them or their heirs when the loan is repaid as long as they or their heirs are not retaining ownership.
• They or their heirs get to keep any remaining equity after the loan is paid off.
• There are no out of pocket costs, income or credit qualifications for the loan.

Consider this…

• They can access more funds if their mortgage is currently paid off or has a low balance.
• Their cash flow improves when their current mortgage or lien payment is eliminated.
• They’ll have extra cash for whatever they need or want!  For example:
  • Paying for care at home
  • Make home repairs or modifications
  • Cover medical expenses
  • Pay taxes or debts
  • Cover everyday living expenses
  • Strengthen personal and financial independence

Home care and a reverse mortgage can help fulfill a senior’s wish of staying in their home when some extra help is needed.  Consider the desires of the senior, what are their wishes?  What will make them comfortable and give them peace of mind?  Don’t deny a senior based on your opinion of reverse mortgages.  Don’t let reverse mortgage closing costs scare you, they compare to the costs of conventional loans but with a lot of additional benefits and protections.  If they want to stay in their home, don’t tell them to sell, realize there are solutions right under their roof.

Know the facts about reverse mortgages and work with a lender who has knowledge and expertise in reverse mortgages – it can make a difference for your satisfaction and making your life easier.  I’m proud to have received this statement from Liz whose grandma I assisted with a reverse mortgage:  “We make phone inquiries to 7 different reverse mortgage companies. Beth at Reverse Mortgages SIDAC had the best combination of resources, years in the field, step-by-step explanation of the process, investigating and appraising us of the options, comprehensive written materials sent promptly, advanced sills in communication with us and grandma, and high degree of emotional sensitivity. We were under pressure to have the funds to pay for grandma’s care, so their skillful management of the process proved to be critical. We appreciate Reverse Mortgages SIDAC and would recommend them without reservation.”

© 2009 Beth Paterson http://BethsReverseMortgageBlog.wordpress.com 651-762-9648

Reverse Mortgage Help Their Lifestyle

When Andrew and Harriet, both in their 70’s, went to their bank to inquire about refinancing their current loan, their banker suggested a reverse mortgage and referred them to us at Prestige Mortgage, LLC, Reverse Mortgages SIDAC.  They needed some additional funds for home repairs including a new energy efficient furnace.  Anticipating future medical expenses, they liked the idea that with the reverse mortgage they could get money for their immediate needs, eliminate their mortgage payment, and still have funds for their future needs by having a line of credit.

They decided to do a reverse mortgage with the understanding that they would still own their home (as they do with their current mortgage), payments aren’t required, and the interest rate is lower than they could qualify for on a regular loan (currently under 4%).  They understand they continue to be responsible for their taxes, homeowners insurance, and maintenance of the property and don’t have to repay the loan until the home is no longer their primary residence.  They liked the idea that even if one of them goes into the nursing home, the other one can stay in the home.  Additionally, it was appealing that the funds are tax-free, Social Security and Medicare are not affected and Medical Assistance and other public benefits can still be received.

A mortgage with special terms for homeowners 62 and older, a reverse mortgage has no income or credit score qualifications and a low interest rate (averaged around 6% over the last 15 years), which offers many advantages for senior homeowners.  Allowing access to cash from the equity of the home to use now and pay back when the home is no longer the primary residence of borrower(s), when the home is sold any remaining equity goes to the borrower or their heirs.  With the reverse mortgage, if the loan balance is higher than the home can be sold for there is no personal liability to borrowers or their heirs as long as the borrower or estate are not retaining ownership.

“When a friend told me she was doing a reverse mortgage I thought, that sounds really good.  I thought, if I do a reverse mortgage, I could do some things to my home, and maybe take a vacation.  After everything was explained to me and my children in detail and in words I could understand I did a reverse mortgage.  I now am getting new windows and siding and am going on vacation with my daughter,” said Judy in St. Paul.

Happy to Repay Son-In-Law from Reverse Mortgage

A few years ago Patricia had borrowed money from her son-in-law, Brad, to pay off a loan.  Then Brad needed the money back for his own purposes.  After consulting her family and an attorney, she did the reverse mortgage.  She told us she was greatly relieved and the pressure was off her now that she no longer owed Brad money and wasn’t dependant on him.  She added as a result of consulting the attorney, “Other good benefits are that I tended to my will being made, my health directives done, and a trust fund set up.  All that is done now and I’m prepared for the future.”

The factors used to determine how much is loaned to borrowers include the home value or FHA lending limit ($625,500 through the end of 2009), the age of the borrower (the older one is the more funds they can receive), and an Expected Interest Rate.  If one doesn’t have a mortgage on their home they benefit from having more funds available to them. Cash flow will improve when the current mortgage payment is eliminated if one does have a current mortgage on their home.

Even though home values may be lower at this time, it is still a good time to do a reverse mortgage because the interest rates are so low.  When the home values go back up, it will mean there could be additional equity in the home.  If one waits to do the reverse mortgage until home values go up, the interest may be higher and consequently less funds available.

As with a conventional loan, there are traditional closing costs including an origination fee, appraisal, title fees, title insurance and recording fees.  With the FHA insured, Home Equity Conversion Mortgage (HECM) borrowers pay a mortgage insurance premium.  Because the fees are up-front, they are often perceived as high.  However, in the big picture the reverse mortgage costs less because of the much lower interest rates.

“It was a blessing when we heard of reverse mortgages.  We were behind in the property taxes and mortgage payments and faced foreclosure.  We were really in a mess.  The reverse mortgage cleared it all up and has lifted a weight from us that we can live in the house and not worry,” said Gwen and Robert.

A reverse mortgage has allowed thousands of Minnesota seniors to remain in their home with security, independence, dignity and control even during trying times.  And if you know a senior who wants to sit back and relax with security, independence, dignity, and control, a reverse mortgage may be their answer.

© 2009 Beth Paterson http://bethsreversemortgageblog.wordpress.com 651-762-9648