Reverse Mortgage Success Story... Another use for this Financial Tool.

I am often asked why seniors would put a Reverse Mortgage against a home that they have spent years paying off, or perhaps they own free and clear.

There is really many reasons a senior may want or need to take out a Reverse Mortgage.

What I most often explain is that a Reverse Mortgage is merely a “Financial Tool” for senior citizens… a tool that can be used for many different purposes. Yet it is not necessarily a tool that is for everyone.

I’ve decided to post “Reverse Mortgage Success Stories” on my site from time to time.

Almost every HECM (Home Equity Conversion Mortgage) that I have closed with a senior citizen, has had a unique reason for taking a Reverse Mortgage against their home. I think over time you will see the many reasons a Reverse Mortgage is a great tool for a homeowners 62 and over.

Just this week I closed a Reverse Mortgage for a great woman named Barbra. She lives just south of Portland. Barbra is in her early 70’s and lives in a home her late husband built over 30 years ago.

Barbra still works everyday for the families sewing business. She has been a seamstress for over 40 years. She works because she loves what she does, but she also needs the added income for her outgoing debts.

Barbra has owned the home free and clear in the past. A few years ago she took out a loan to do some remodeling and other home improvement items. She had a total mortgage payment of $1,300 a month.

With the equity Barbra had in her home, combined with her age, we were able to close a Reverse Mortgage for her in less than 3 weeks. She no longer has a mortgage payment worry about paying, and she opted to take a generous lump sum payment for the remaining balance allowed to her.

Now Barbra doesn’t need to work for the income to cover her old mortgage, but she can work merely because she wants too. Personally I think Barbra will take much more time off to enjoy her grandchildren and only sew for hobby. We’ll see.

I have really enjoyed working with Barbra. I am glad I was able to help her. I have made great friends while specializing in this program.

If you want to know more about this program for you or someone you know, please don’t hesitate to contact me. I can provide you with literature or even a snapshot of what a Reverse Mortgage may be able to do for you. Of course there is never an obligation to see what you may qualify for.

Contact me anytime, and thanks for reading ~Bryan

email: Bhusen@sunsetmortgageco.com

How a Reverse Mortgage stopped a Foreclosure.

I have seen many reasons for a senior to take out a Reverse Mortgage over the past years.

One example has been to simply eliminate the current monthly mortgage payments against the home.

One client last summer tapped into a large amount of equity to pursue a design/invention he has patented. (He needed funds to finish the project).

I recently did a reverse mortgage for seniors in a triplex, that wanted the additional monthly tenure payments for traveling.
This type of financing has many options for a senior to help them financially.

This month I helped close a Reverse Mortgage for a family that I think is worth mentioning. A married senior couple in their Vancouver Washington home was on track to pay off their 30 year mortgage. Unfortunately they found themselves in a situation where they have now taken on the responsibility of raising their grandchildren. Expenses had gotten out of control, and they became default on their mortgage. Due to strict lending guidelines, and limited income since they are both retired, a typical refinance to avoid foreclosure wasn’t possible.

I am happy to share that a Reverse Mortgage was able to solve their financial situation. We were able to satisfy the past due balance with the homes lender, and avoid the home from being sold on the courthouse steps. Now there is Reverse Mortgage in place and no worries of a mortgage payment again. It feels great to have been able to help this family facing a possible foreclosure and ultimately losing their home.

Remember, Credit Scores and Income is not factors in a Reverse Mortgage. This loan is a great tool and qualification is based on Age and Equity of your property.

Please feel free to call or email me anytime to see if this loan could be a good option for you.

Bryan Husen email: Bhusen@sunsetmortgageco.com

Direct at 503-594-1131

Reverse Mortgages are not 'Clunky' by any means.

Today on CNN Money there is a video piece on Reverse Mortgages. This interview was featured in Revell on Retirement.

This short video simply confirms what I have been seeing for quite sometime:

Seniors are using the equity in their home to assist financially in their retirement years.

Alicia Munnell is Director for the Center of Retirement Research at Boston College. In this interview she speaks candidly about the troubles retirees are facing today. Included was:

• The future of Social Security will provide relatively less than it does today.
• Recent events have shown that 401k plans can be decimated as people are reaching retirement.

Alicia goes on to say in her interview that she feels more people will be forced to tap into their homes equity and that the best way to do so is through a Reverse Mortgage.

I like the interview with Alicia and I agree with her key points of the advantages of this program, but I have to disagree with her describing the Reverse Mortgage of today as being 'Clunky'. She uses the term 'Clunky' because she feels these loans are still need some perfection. Alicia's opinion is that these loans are expensive, that there are limits to how much the senior can access, and dislikes the regular monthly payments (servicing charges). It is also mentioned that not a lot of banks do Reverse Mortgages, and that she hopes there becomes a more streamline system for them.

I have to kindly disagree on most of her 'Clunky' concerns in several points:

1. The reverse mortgage is expensive in comparison to a conventional mortgage. Alicia didnt note that the concern for excessive fees has been addressed and safegaurds are in place. In fact, the Fedearl housing bill from last summer addresses this and even put limits into place on what the loan officer is allowed to charge. This was a great benifit to protect the senior borrower.

2. Lending limits are also not so 'clunky' these days. In a recent blog post I explained the increase in the lending limits by more that $365,000 so that the owner of a high value property can access more of their equity. I have several borrowers since this new limit has gone into effect that have taken advantage of the additional cash now available to them.

3. I think the monthly fee Alicia is referencing is reasonable. Most of the banks that I work with, and there actually is many to choose from, charge a monthly service fee ($25-$35 a month) for the monthly statements the borrower receives and to manage the Credit Line many opt to take out.

4. In regards to streamlining the process, I know it couldn’t be any easier to take out a Reverse Mortgage today. Most of my conventional loans are being completed in 30-45 days where as a Reverse Mortgage can be completed in less than 3 weeks. This is because the banks I use to write this program specialize in Reverse Mortgages and nothing else. My average Reverse Mortgage is completed in 3 weeks or less. It doesnt get much more streamlined than that!

To view this interview in its entirty, please click here. Revell on Retirement Interview

If you are over 62 years of age, and looking for a smart way to tap into your equity, contact me today. A Reverse Mortgage may be a great options for you.

Thanks for visiting... Bryan Husen

Reverse Mortgage Loan Limits Rise By More Than $365,000.

Seniors with large homes who have been waiting for higher loan limits will be pleased to know that the Congress has effectively doubled the FHA loan limit, meaning that far-larger FHA reverse mortgages (HECMs) are now available.

The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress and signed by President Obama increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.

This is great news for many of my Reverse Mortgage clients that have homes of high value that had decided to wait on the program because they could not access as much of their equity as they wanted.

Example from this week of how this lending limit has helped:

I have a borrower that owns a home with no mortgage in Sandy OR. The home is worth over $600,000, and with the old lending limits he was only able to access $295,000. Now, with the new lending limits his available funds have increased by almost $100,000. The lending limit increase is a great benefit from the new stimulus package.

Be sure to contact me today if you would like to see how a Reverse Mortgage can benefit you at BHusen@Sunsetmortgageco.com.

Book Clubs and 401k's

Recently a realtor I work with invited me to speak at a book club she has been a part of for many years.

“Speak about what?” I wondered at first as I have never been in a book club.

Turns out there were two seniors in this group that wanted to learn more about Reverse Mortgages in a one on one setting.

I have been involved in a few larger workshops as a presenter to an audience of 30 or more people. Those types of presentations are great for the masses, but I think one on one or small group settings are the best.

Smaller groups don’t need power point projectors. No microphones. No stadium seating. Just me, front and center in the living room, explaining all aspects of a reverse mortgage.

Reverse Mortgages are getting more attention every day. There’s many reasons senior citizens are considering them today. Take this evening at the book club for example:

• Helen is in her 80’s and made her last payment of a 30-year mortgage only sixty days ago. Now she is looking at her possible options to use the homes equity in her favor. Her main excitement being there is no monthly payment to repay, as she is on a fixed income.
  
• Patti on the other hand owns a condo with plenty of equity. Her concern was that her retirement is tied up in their stock accounts. With Wall Street in such turmoil, and with her recent losses in her portfolio, she is debating what to do? Sit still? Pull her money out at a loss and pay tax penalties?
  A great option for her could be a Reverse Mortgage. She can create a credit line and only draw on its funds when needed.

Remember the “The Big 3” advantages of a Reverse Mortgage.

1. No Credit Score Requirements
   
2. No Income Requirements.
   
3. No repayment of the loan till the borrower leaves the primary residence.

Call me today if you would like a one on one to discuss Reverse Mortgages. Either in my office or in your living room.

Bryan Husen

Social Security will increase in 2009

Today I was reading that Social Security benefits will increase 5.8% effective this January. This is the largest increase for benefits in 27 years. Over 55 million seniors will see an average increase of $63 dollars a month. Not a huge amount, but I am sure every little bit will help. This is tough times for seniors. Retirees with fixed incomes have seen a 51% drop in buying power since 2000 with the near doubling in prices for home heating oil and gasoline, and more than double the cost of such staple foods as eggs and potatoes. This month AARP is reporting that nearly 60% of its members are having a hard time paying for basic groceries and medicine.

With these and many other issues seniors are facing financially, it doesn’t surprise me that more Reverse Mortgages are being written every year. This financing is becoming a common solution to free up income and create a more comfortable lifestyle for seniors.

Let me list 6 Great Benefits to a Reverse Mortgage that help you enjoy a more comfortable retirement in your own home:

• Independence - You continue to own and live in your own home


• Liquidity - Receive monthly payments instead of making them


• Simplicity - No income, credit or employment requirements needed to qualify


• Choice - You may receive funds as a lump sum, in monthly instalments, as a line of credit, or as an up-front sum plus monthly allotments


• Security - Does not affect Social Security, pension or Medicare benefits


• Ownership - Your heirs can keep the property once the Reverse Mortgage is paid in full

Every month I am seeing more interest in this this safe and insured program. Please contact me today to receive a brochure or DVD that will explain in great detail and help you to understand the benifits of a Reverse Mortgage.

-Bryan Husen

Three misconceptions many seniors have regarding Reverse Mortgages.

The phone rang today and on the other end was Donna, a very angry woman. She had received some marketing materials regarding Reverse Mortgages. Donna called to tell why these were such horrible loans, and that mortgage consultants like me shouldn't be writing them!

After I listened to her, I asked her if she could list for me the main reasons she thinks a reverse mortgage is so bad? This is what she said:

"Reverse mortgages are just programs that cause retired people to lose their homes. If the families can’t afford to pay the bank, then they stick the burden on their kids to pay for it. Reverse Mortgages also effect your social security checks, and for many people, that's the only source of income they have."

She listed three main misconceptions and assumptions that many make about these programs. Honestly, she couldn't be any further from the truth. This is how I explained the few points she made.

"Reverse mortgages cause retired people to lose their homes."
This is the most common myth currently out there about reverse mortgages, and it could not be more false! People say this because they are thinking about the concept of collateral. Collateral is something that applies to mortgages and home equity loans, but it does not apply to reverse mortgages in the conventional sense because reverse mortgages do not have monthly payments. The money that is loaned to you in a reverse mortgage is recouped when you pass away or sell your home; a reverse mortgage lender will never force you to sell your home while you are still living in it in order to get their money back.

"If the families cant afford to pay the bank, then they stick the burden on their kids to pay for it."
Once again, it is very much untrue. As mentioned above, the money is lent to you because of the large equity that you have in your house. The debt is never called in until you either pass away or sell your house and because you are using the money from your home to pay back the debt after your need for the home is gone, there is no way that the debt would be passed on and forced to be paid by your children.

"Reverse Mortgages also effect your social security checks." Social security benefits are based on the contributions you’ve made over your lifetime into the social security fund and therefore there is no way they can possibly go down based on the reverse mortgage should you choose to take it out. Even if you currently happen to be on an income tested benefit, the reverse mortgage is a loan. It is not income and therefore can not affect your benefit in any negative way.

The phone call didn't end with Donna asking me to take an application for her own reverse mortgage, but it did end with me getting her address to mail her some factual brochures, truthfully explaining the benefits of a Reverse Mortgage. (She didn't have a DVD player or I would of sent her a DVD too.)

These programs are great for the homeowner that is retired, happy with their lifestyle and location, but would like to use the equity in there home to have more disposable income every month.

Please contact me today if you too would like more information. There is no obligation to see what you may qualify for.

Housing Bailout good for Reverse Mortgages??

The housing market was the leading story in all media outlets for the past week. The main focus was the nations foreclosure rates and the strength of the banks that hold the mortgages for these homes. The housing bill (HR 3221) that was passed draws most attention to the emergency funds for Fannie Mae and Freddie Mac.

But there is some GREAT news to bill HR 3221 regarding Reverse Mortgages. The bill addresses two aspects of reverse mortgages that have sometimes made them unattractive to potential borrowers:

1. Fees. Most borrowers pay hefty upfront fees for a reverse mortgage, which reduces the amount of money available to borrow. There are many stories of unethical companies taking advantage of homeowners with this loan program.

Now... this housing bill limits origination fees for federally insured reverse mortgages to 2% for up to $200,000 of a home's value, plus 1% for the amount that exceeds $200,000. This is a great way to keep mortgages companies in check! I hate stories of people being taken advantage of.

2. Loan limits. The size of a reverse mortgage is based on the borrower's age, current interest rates and the home's value. In the past, however, the maximum home value for a federally insured reverse mortgage was capped at $200,160 to $362,790, depending on where the homeowner lived.

Now... loans limits will go to $417,000, and that the high cost area adjustments to a max of $625,500 will take effect on January 1. This is great news because it will free up more money for seniors taking out a lump sum of funds, or setting up monthly installments.

A few other points to address in the new bill regarding Reverse Mortgages are:

• Home Purchase products will become available
• Requirements on counseling protocols and quality of such counseling.

This new bill is great news for seniors wanting to secure a reverse mortgage today. Its a great day also for loan originators like myself, because it will weed out unethical loan officers and their companies, and gives us more freedom with higher loan amounts to work with homeowners who may of otherwise not have been in the right equity position to take advantage of such a great program. I think now, more than ever, seniors and their families can have confidence in a reverse mortgage, and the doors it can open for a senior financially.

Be sure to call me anytime to discuss the new changes to this program, or any other questions you may have.

Baby Boomers and Assets

The Reverse Mortgage is becoming a more popular form of financing, especially for Baby Boomers.

Today I found an article regarding Baby Boomers and the number of them going into retirement. Did you know that by the year 2030, studies by the US Census Bureau show 1-in-5 Americans will be 65 or older? This is quite a percentage of our public in retirement. There are 78.2 million baby boomers in America today.

I would think that these boomers have many concerns. One recent study I read showed that, as the baby boomers are getting older, they are finding themselves facing many issues. Health, finances, and more often, they are facing the issue of elderly parents. In my own family, my parents have taken on the responsibility of caring for my grandmother vs. her being in a nursing home or assisted living. The next challenge for them may be their own desires to retire in the next 5 years.

One other growing concern for boomers looking to retire is the amount of money needed in reserves for the lifestyle they wish to maintain. Studies show that the oldest of the Baby Boomers today are best prepared, while middle-class people now retiring face a 24% cut in their standard of living.


Have you asked yourself... "How does my retirement plan look?" With the very real possibility of living to age 90 or 100 combined with the volatility of inflation and investment returns, there is a very possible risk of outliving ones assets.


I'd encourage you to contact your financial advisor to see if your plan is stable and to visit possible future scenarios. Also know that I am a true believer that a reverse mortgage can be a great tool for you to unlock your monthly income potential by eliminating your mortgage payments. Be sure to contact me if you would like more information or a one on one evaluation of your homes potential.

Is a Reverse Mortgage right for you?

Over the weekend I attended my little brothers graduation from OSU. Great event and its always fun to get the family together to celebrate and catch up.

While at the family party, my 85 year old grandfather asked me about Reverse Mortgages.

I told him that there is great benefits to seniors, but to be careful because they may not be right for everyone. I came home and decided I should list 10 ways to know if a Reverse Mortgage is right for you.

The following tips can help you understand the ins and outs of reverse mortgages, either for yourself or for an aging parent or relative who could use a financial boost.

10 Tips: How seniors can benefit from a Reverse Mortgage

1. Age matters. For most reverse mortgages, a borrower must be at least 62 and must live in the home as a principal residence. Generally, the older you are and the more valuable your home is, the more money you can tap.

2. Learn how the loans work. Most reverse mortgages require no repayment as long as you live in your home. The loan must be repaid in full, along with interest, when the last living borrower no longer occupies the home as their primary residence.

3. Understand the lender’s role. A lender – typically a bank – will provide you with a loan in an amount ranging from 20 percent to 60 percent of your home’s equity. In exchange, the lender will receive a portion of your home’s value when you die or sell the home.

4. Choose a payment preference. The loan can be paid to you in three ways: as a lump sum, in regular monthly or quarterly installments, or as a line of credit you can tap as needed.

5. Know your responsibilities. Borrowers are responsible for property taxes, insurance and home repairs. Your loan could become due and payable in full if you fail to meet those responsibilities.

6. Get free help. If you are ready to look into a Reverse Mortgage for you situation, know that help is out there. I can give you advice and show you several scenarios. Free of charge. Also know such help is available at little or no cost from the U.S. Department of Housing and Urban Development or a HUD-approved housing counseling agency. Call HUD’s toll-free Housing Counseling and Referral Line at 1-800-569-4287 for details.


7. Assess your status. If you own your home outright or nearly so, a reverse mortgage can help you financially at a point in your life when you may really need it – or at a point when you may really want to take that trip around the world or pursue another lifelong dream. But if you still owe quite a bit of mortgage principal, you’ll usually have to pay that off first. (You can do that via a lump-sum advance on your reverse mortgage, which may or may not make financial sense for you depending on your circumstances.)

8. Assess neighborhood real estate prices. Over time, a reverse mortgage depletes your homes equity. But if you live in an area where home prices have a history of rising, your home’s equity could continue to go up despite your reverse mortgage.

9. Consider your options. A Home Equity Conversion Mortgage is insured by the federal government, and the money you borrow can be used for any purpose. As you investigate loans, clarify exactly what the fees will be. They can vary wildly – from as low as 2 percent of the loan amount to as high as 7 percent. Sometimes to secure a lower fee, you may opt for a higher interest rate, so remember to take that detail into consideration and do the math carefully as you shop around. I will show you a break down of every scenario you qualify for and explain this in detail.

10. Inform yourself. Please feel free to call me anytime for a free brochure or complimentary DVD on the advantages of a Reverse Mortgage. Call toll free to 1-800-921-2636 or in Portland call 503-594-1144.

Introductions are in order...

Hello and welcome to my blog. I am very excited to venture into the world of blogging and sharing useful information, along with my personal insight, with colleagues and clients.

The ever-changing world of the mortgage industry is my general focus as I find myself surrounded by people in the mortgage profession. I am a licensed mortgage consultant, in both Oregon and Washington, but my goal is to focus this site more closely on Retirement Planning, and the great benefits of today's Reverse Mortgage for seniors.

As many seniors are looking forward at their golden years, they start to look for creative ways to make their financing work, because lets face it... its not as easy and inexpensive to just retire at 62, and survive on social security. Seniors want to find a way to live comfortably, which is safe, secure, and has a very low level of risk. This describes virtually every family I have helped that has taken out a reverse mortgage on their home.

I personally get a great satisfaction with every Reverse Mortgage I close. I do enjoy helping a first time homebuyer. There is a great feeling when you see someone experience the excitement of home ownership for the first time. But, there is a different kind satisfaction helping someone at the end of that process. The retired person that is excited to stay in their home, and to be able to eliminate their mortgage and not have the stressful payment looming over them from month to month. Being able to help someone eliminate that monthly payment is a great feeling. Its kind of funny actually... I enjoy helping one person make on their first ever monthly mortgage payment on one hand, and I enjoy helping home owners say goodbye to the monthly mortgage payment entirely on the other hand.

I hope you will visit my site often and I look forward to exploring these great programs and the benefits they have for today’s seniors. I also plan to keep you up to date with current news, and explanations to changes in the mortgage market and how they can affect these programs for today’s seniors!

Thanks for visiting!

Bryan

A Little About Me...

I'm Bryan Husen, Mortgage Consultant with Sunset Mortgage Company. I have been in the mortgage industry for almost 5 years now, and this site is my way to keep in touch with my friends, clients and colleagues.
Let me share a little background on me. I think if you are interested in my blog, my opinions and my ideas, you should know a little more about me.

I am a native Oregonian. I was born in Southern Oregon, (Roseburg) until I was moved to Eastern Oregon (La Grande) in my early years. I spent much of my childhood years in La Grande, until the mid 80's when my family moved again. There was a quick stop to see if my parents like living in Lincoln City, before they decided to move settle down in Portland.

I grew up on the west side of town in the Hillsboro/Beaverton area where I finished High School. After fulfilling a 2-year program with Portland Community College, and putting in some time with PSU, I focused on my career with a construction company. More specifically as a Journeyman Cabinet maker with Alexander’s Manufacturing. What a great opportunity that was. I spent almost 12 years working on many of Las Vegas’ finest casinos and restaurants. One of the highlights of my career with Alexander’s was heading up the installation phase of the One and Only Palmilla in Cabo, Mexico for 3 months. (That was rough livin').

As owners changed for the cabinet shop I was with, and the market had temporarily slowed down, I decided to venture out and try something new. I dove into the world of finance with a national, retail Mortgage Company. This was a great opportunity and set the foundation for what I feel are above industry standards for work ethic, organization, and thoroughness when working in the mortgage.

I left that retail environment after a mere 6 months and became an independent Broker with licensing in both Oregon and Washington. I am with Sunset Mortgage Company, who has been in the Portland area since 1992 with several offices throughout the state and metro area.
I honestly love what I do now. It was an easy transition to trade in my tape measure for a tie. I have always been an honest, easygoing person to work with. That is one thing that you will notice as you get to know me, and you will notice it in the future as you read my posts.

I don’t think I'll ever leave the NW. I love to ski in the wintertime on Mt. Hood, and camp and hike in the summer time. I use my past woodworking skills as a hobby now. I love home improvement, and anything I can tinker with in my wood shop. I personally remodeled a 1972 fiberglass trailer, which I pull everywhere to stay in. (that’s a picture of it above in Canada 3 summers ago). I take my trailer everywhere. From skiing, to camping, hiking and storm watching.
I have 3 siblings. One sister is married and lives on the same street as me. (Family as neighbors has its privileges) I also have a little brother graduating from Oregon State University with a Master in Mathematics this year. My youngest sister is finishing up high school and recently started driving. Look out for her on the road! I have an incredible family. I couldn’t ask for much more.

I hope you come back and read this post often. I have found that I am very satisfied when I work with seniors, either newly retired, or who have been "relaxing" for some time. I enjoy seeing the benifits of a reverse mortgage work with people in there golden years. I hope this blog will have some useful information. I plan on it being a great tool for articles and Reverse Mortage info, delivered with a friendly casual approach.