CHALLENGES FOR SENIOR HOMEOWNERS
For many Hawaii seniors, retirement is a mixed blessing. On one hand it is a time to enjoy family and friends, explore special interests, cultivate new skills and enjoy living to the fullest. But retirement years can present special financial challenges. Often, senior homeowners find themselves in need of extra income just to keep up with daily expenses. The cost to live in Paradise is on the rise - property taxes, healthcare, home repair . . . the list goes on and on. How can they turn the equity in their home into extra cash or monthly income without having to make high monthly loan payments?
One way of doing this is through a Reverse Mortgage. If you are 62 years of age or older and have equity in your home, a reverse mortgage can turn that equity into cash, a line of credit, monthly income or a combination of all three. Unlike a traditional mortgage, you make no monthly mortgage payments and the proceeds are tax-free (please consult your financial advisor). There is no income, credit or asset qualification and best of all, you always retain ownership of your home and can live there as long as you choose.
WORK WITH PROFESSIONALS
So you've made the decision to consider a reverse mortgage. Where do you go to get all the facts? "Working with a qualified reverse mortgage professional is critical when considering this type of mortgage financing," says Nelson Oyadomari, Regional Manager and Certified Senior Advisor at Primary Residential Mortgage's Hawaii branch. Knowing all the benefits of a reverse mortgage is just one part of your overall financial picture.
Is a traditional mortgage better for you?
Would a no-cost home equity line-of-credit be a better option?
Maybe you should sell and downsize.
Remember, one size does not fit all when it comes to financing your home. You should seek a reverse mortgage professional that is also an expert in traditional mortgages as well as other senior-related issues. "At Primary Residential Mortgage, we encourage discussions with accountants, financial planners and your children to better understand each borrowers unique situation and we plan accordingly. We frequently consult with professionals on trusts and estate plans. Although not required for a reverse mortgage, we also analyze the income and assets of every senior homeowner, as sometimes other financing options may be a better solution," explains Oyadomari.
ENJOYING YOUR GOLDEN YEARS
We all love our home. You put much time and energy into making it a place for family and friends to gather . . . where wonderful memories are made. Your home is one of the largest financial purchases you make. And for senior homeowners, it is often the most overlooked source of extra income.
The ability to remain in your home while taking care of yourself financially is important. A reverse mortgage gives many that opportunity. If you own your home outright or have a small mortgage, and if you could benefit from extra cash to supplement existing income, reduce credit card debt, cover medical expenses, help loved ones or just enjoy life a bit more, a reverse mortgage may be right for you.
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