We are thinking of a reverse mortgage to bridge us for early retirement. I turn 55 May of 2024... hubby is 60. We have no savings, or very little, but we also have no cc debt. We have no children, and plan to travel 6 months out of the year. We will still owe about $165,000 on our mortgage. Do you think we should just sell? Or reverse mortgage?
Hi Terri, I apologize but I wouldn’t be able to make any sort of a recommendation on whether you should sell or not. What I would recommend is giving me a call so we can thoroughly discuss your options and that should help you and your husband be better positioned to make a confident decision.
Absolutely my pleasure! Happy you are finding them helpful. We are actually working on getting our license up and running in Florida right now. Should be completed very soon.😊 And always happy to answer any questions you may have, even before then.
If you need or want the extra cash take it at closing because a line of credit can be canceled at any time by the lender. The cash can be reinvested with a return and available as a liquid asset if needed.
Hi Richard! With all due respect, you are 100% incorrect about the line of credit. A reverse mortgage line of credit CANNOT be cancelled by the lender at any time. The federally insured reverse mortgage guarantees that line of credit to the borrower(s). This is actually one of the major advantages the reverse mortgage credit line has over a HELOC. Maybe a HELOC is what you are thinking of. I'd suggest watching my video on the reverse mortgage credit line (link below). It explains all about how that works. Thanks for the comment! th-cam.com/video/O8rY0tqZtv8/w-d-xo.html
@@reversemortgageeducation And that's why I watch your videos. Good to know, thank you. If the home value increases over time can the line of credit be increased without refinancing?
My pleasure! And the line of credit has a built in growth factor that is equal to the loan interest at any given time, plus .5% for the mortgage insurance. Meaning, whatever money is left in that credit line will grow at the same rate you are being charged for interest plus mortgage insurance. This growth factor is, essentially, built in to try to account for home appreciation. Although, if the home is appreciating quicker and would allow more of a line of credit than what your initial credit line has grown to, you would have to refinance to take advantage of that.
Hi Richard. No, anything left in the line of credit is not charged interest or mortgage insurance. It isn’t until an amount is drawn out that the money then gets added to the loan balance and then begins to incur interest and MI. 😊
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We are thinking of a reverse mortgage to bridge us for early retirement. I turn 55 May of 2024... hubby is 60.
We have no savings, or very little, but we also have no cc debt.
We have no children, and plan to travel 6 months out of the year.
We will still owe about $165,000 on our mortgage. Do you think we should just sell? Or reverse mortgage?
Hi Terri, I apologize but I wouldn’t be able to make any sort of a recommendation on whether you should sell or not. What I would recommend is giving me a call so we can thoroughly discuss your options and that should help you and your husband be better positioned to make a confident decision.
Thank you for this video it was helpful,,,
My pleasure! I’m glad it was helpful.😊
Thanks for your channel. I have learned a lot about reverse mortgages from your chats. I just wished that you were licensed in Florida.
Absolutely my pleasure! Happy you are finding them helpful. We are actually working on getting our license up and running in Florida right now. Should be completed very soon.😊 And always happy to answer any questions you may have, even before then.
If you need or want the extra cash take it at closing because a line of credit can be canceled at any time by the lender. The cash can be reinvested with a return and available as a liquid asset if needed.
Hi Richard! With all due respect, you are 100% incorrect about the line of credit. A reverse mortgage line of credit CANNOT be cancelled by the lender at any time. The federally insured reverse mortgage guarantees that line of credit to the borrower(s). This is actually one of the major advantages the reverse mortgage credit line has over a HELOC. Maybe a HELOC is what you are thinking of. I'd suggest watching my video on the reverse mortgage credit line (link below). It explains all about how that works. Thanks for the comment!
th-cam.com/video/O8rY0tqZtv8/w-d-xo.html
@@reversemortgageeducation And that's why I watch your videos. Good to know, thank you. If the home value increases over time can the line of credit be increased without refinancing?
My pleasure! And the line of credit has a built in growth factor that is equal to the loan interest at any given time, plus .5% for the mortgage insurance. Meaning, whatever money is left in that credit line will grow at the same rate you are being charged for interest plus mortgage insurance. This growth factor is, essentially, built in to try to account for home appreciation. Although, if the home is appreciating quicker and would allow more of a line of credit than what your initial credit line has grown to, you would have to refinance to take advantage of that.
@@reversemortgageeducation Thank you. Is interest and MI charged on unused money in a credit line?
Hi Richard. No, anything left in the line of credit is not charged interest or mortgage insurance. It isn’t until an amount is drawn out that the money then gets added to the loan balance and then begins to incur interest and MI. 😊