Information For Trusted Advisors in Salem Oregon

Special Information and Facts for Financial and Legal Advisors in Salem Oregon

A reverse mortgage just isn’t for everybody. Our intention is to try to collaborate with trusted financial and legal professionals in Salem OR in order to help decide if a reverse home loan accommodates the needs of your Salem client. We are able to achieve this by providing detailed reverse mortgage scenarios to you (with the client’s permission) as well as consultation together with out experts to be able to help reach decision that’s in the best interest of all of the individuals, this includes adult children. I am straightforward with all of our clients about the benefits and drawbacks of a reverse mortgage.

Positive aspects

Reverse mortgages furnish numerous benefits for the senior borrower. The following is a short list of just a few:

  • Tax-free loan proceeds don’t have an impact on Social Security or Medicare
  • Frees up an illiquid asset (equity)
    Could allow a senior to acquire a new property without any monthly mortgage payment
  • Can easily supply a income source while the borrower allows for their investment funds to recover as a result of market losses
  • Enhances a senior’s quality of life or enables them to live their dreams
  • Pays off existing mortgage loan, in many cases freeing up thousands in mortgage payments or preventing foreclosure. No more monthly home loan payments
  • Makes it possible for the senior to help maintain their self-reliance while staying in the property
  • Supplies proceeds for in-home health care or medical-related expenses

Disadvantages

  • Consumes a part of the home equity that could be passed on to the estate or children
    Increasing reverse mortgage amount, decreased home equity with time
  • May affect qualifications for need based services for instance Medicaid
  • For individuals itemizing tax deductions, a reverse mortgage wipes out the deductions for home
  • Closing costs and upfront mortgage insurance are costly which means the borrowers should plan on living in the property for many years to minimize overall costs

The Proper Borrower in Salem OR

You will find no stereotypical reverse mortgage borrower in Salem, there’s standard aspects you’ll be able to look for with a potential reverse mortgage client.

  • Cash poor, house wealthy
  • Wishes to make improvements to life style and they have no concern about spending home equity which would go to the estate
  • Has taxable income source they wish to delay, while accessing tax free source of income from a reverse mortgage loan
  • Recognizes their property is a retirement asset that they live would like to use their house to improve their present life-style
  • The success rates in their retirement plan are low and they would like to increase those success rates.