by Daniel J Turner NMLS#1016716; Geneva Financial LLC NMLS#42056

Copyright 2020 All rights reserved. Use by written authorization only.

The unexpected impact of the coronavirus has affected many aspects of our lives, including the housing market and reverse mortgages. The economic impact of the pandemic has affected the financial well being of many senior citizens in unprecedented ways, and many retired citizens are now looking for a supplemental source of income to ease the burden of a decrease in their retirement savings. If you are an older current homeowner looking for a way to boost your retirement income, a reverse mortgage is an excellent option for you. Dan Turner, with Geneva Financial, can help you learn more about this unique financing opportunity if you are interested in a reverse mortgage in Hawaii, Illinois, or Ohio.

 

How a Reverse Mortgage Works

A reverse mortgage allows a homeowner who is 62 years or older to borrow from the equity in their home, so instead of making mortgage payments to a lender, the borrower receives either cash or a line of credit. Depending on the type of reverse mortgage, the borrower has the option of receiving the money in a lump sum or it can be distributed in payments. The borrower is not required to make mortgage payments, and only pays property taxes and insurance on the home. The borrower can use the funds from a reverse mortgage for any reason they need, whether it is for living expenses, healthcare costs, home improvements, etc. The borrower gets to continue to live in the home as long as they wish, and the loan is not due until the home is sold or the owner passes away. A reverse mortgage is an excellent way for senior citizens who are on a fixed income or who lost some of their retirement savings due to COVID 19 to live more comfortably and have some financial relief.

How Is the Coronavirus Affecting Mortgages? Even though the increase in cases of the coronavirus has affected the housing industry, and has caused rates to fluctuate, the reverse mortgage market seems to be stabilizing. In fact, they are becoming an increasingly popular option with senior citizens during this time because they are able to offer an additional flow of income while allowing the borrower to stay in their home. It also suspends the payment indefinitely due to Non-recourse structure, and (unlike Congressional forbearance) there is no compelling need to make “catch-up” payments by the end of the year.

Because the virus affects a greater number of elderly citizens and they are oftentimes more susceptible to its effects, many workers in the reverse mortgage sector are taking extra precautions to keep their clients safe. Webinar “ZOOM” sessions are being used, Electric (email) Docu-sign, and other similar protective measures make it a very simple and safe process for our Clients. Even Appraisals are changing the way they evaluate your home to determine the value.

Getting a Reverse Mortgage During the Coronavirus Pandemic

With many retirement portfolios taking a hit due to the economic impact of the coronavirus, a reverse mortgage could be an excellent opportunity to enjoy your home equity and get some financial relief. If you are interested in a HECM HELOC plan in Hawaii, Illinois, or Ohio, contact Dan Turner with Geneva Financial to help guide you through the reverse mortgage process.

 

-For Financial Planners and Retiree’s living in Hawaii Kai, Kaneohe, Waikiki, Ewa Beach, Honolulu, Wapahu, Pearl City, Kailua, Mililani, Manoa, Hilo, Kapole’i, Waikoloa Village, Kailua-Kona, Kamuela, Honoka’a, Mountain View