The Baby Boomer generation is growing older and many of them are sitting on huge amounts of equity in their homes, yet their retirement planning may not have kept pace with their cost of living. Many are living longer than ever before, but what kind of life do they have? Others are living ok, but are unable to help their kids or Grand kids they way they would like to. House rich and money poor comes to mind.
Many of these people may have a great relationship with their bank (“I’ve dealt with the X Bank for 50 years!, they look after me!”), yet no longer qualify for lending from that very bank due to the recent changes in mortgage rules.
New solutions to this problem are required, and they are appearing.
In the past we used to try to setup lines of credit secured to the home as a means to give people more control and access their equity. We still do this for some, however, now we have access to a specific lender who does nothing but 55 plus mortgage lending. They have numerous programs including;
- downsizing & financing; Now seniors can sell their current home, buy their smaller home and instead of using all of their equity to pay cash for the home, take out a mortgage which has optional payments. Meaning their cashflow is in their control again.
- Equity takeout of their current home; help their kids with an eto of their residence, or keep the cash for themselves. Payments again are optional making cashflow easier.
- Monthly cash out payment to improve their cashflow with no repayment until they sell.
These are only 3 of the many options available. The best part? Approval is based only on their age and property…no income or credit verification required.
More details here; Reverse Mortgage Myths
We can help you review this program for yourself or your parents/grandparents.
Michael Anthony Lloyd