WSB Mortgage is licensed to do Reverse Mortgages in 21 states and we have over 30 of experience in the financial services business. We are one of the Nation's leading lenders, we are members of the Better Business Bureau, I could go on an on with many different reasons.
The most important reason is we have gone above and beyond all the licensing requirements needed to become FHA approved in 21 states and we have become Certified Reverse Mortgage Advisor's. We have 700+ loan officers across the country and we try to get them to become CRMA's. If you wish to work with a CRMA please call us and let us know we will refer you to one in your area.
Wednesday, June 10, 2009
Protect yourself from what's coming!
With all the money the government is spending is a crash is coming?
There are repercussions for the actions of today's government spending and it will most likely hurt you more than help you!
As the government gives more and more money away the Dollar gets weaker and weaker. To entice investors to invest in the United States the government will have to raise interest rates, this will fuel inflation and in a down real estate market the economy may crumble. I am sure many of you remember the days of Jimmy Carter and interest rates well above 10%, I believe we will see those days again soon. Hopefully you have not lost a lot of your worth in the stock market, because as inflation kicks in you may need to access those Dollars. What can you do to protect yourself from what's coming?
A HECM may be the answer. Through a Home Equity Conversion Mortgage you can set up a credit line that grows year by year (guaranteed by FHA) giving you access to more money. This may be the cure for all of this for many American Homeowners.
Why should you do this now versus waiting until the problem presents itself?
Well actually you should have done this 3 or 4 years ago when home values were at an all time high and Interest Rates were at an all time low, but we won’t fault you for that, you may not have met anyone who has explained this to you like we are now.
Here is why you should do it now. Home values have not totally dropped yet so you still may have some equity to work with. A HECM is a loan based on the equity you have in your home so you will need to have some, if home values continue to drop it you may be too late. Interest Rates are on the rise, as Interest Rates rise the amount of money you can qualify for goes down, there may be a point where you will not qualify for any money under this program, we are already seeing that a lot of Homeowners can't get the HECM and if you are waiting until there is a problem it may be too late.
It is a painful thing to watch, when I see someone wait until there is a problem and there is nothing I can do to help... It really does hurt me to see people in that situation, knowing that I could have helped them if we would have crossed paths earlier, assuming they would have listed to what I had to say.
Now is the time to act. If you believe any of what I am predicting you should look into how we can help you. I urge you to get in touch with us... You never know when it may be too late.
Riley Bangerter, VP, CRMA
WSB Mortgage Services
www.reversemortgage4u.com
866-309-6626
There are repercussions for the actions of today's government spending and it will most likely hurt you more than help you!
As the government gives more and more money away the Dollar gets weaker and weaker. To entice investors to invest in the United States the government will have to raise interest rates, this will fuel inflation and in a down real estate market the economy may crumble. I am sure many of you remember the days of Jimmy Carter and interest rates well above 10%, I believe we will see those days again soon. Hopefully you have not lost a lot of your worth in the stock market, because as inflation kicks in you may need to access those Dollars. What can you do to protect yourself from what's coming?
A HECM may be the answer. Through a Home Equity Conversion Mortgage you can set up a credit line that grows year by year (guaranteed by FHA) giving you access to more money. This may be the cure for all of this for many American Homeowners.
Why should you do this now versus waiting until the problem presents itself?
Well actually you should have done this 3 or 4 years ago when home values were at an all time high and Interest Rates were at an all time low, but we won’t fault you for that, you may not have met anyone who has explained this to you like we are now.
Here is why you should do it now. Home values have not totally dropped yet so you still may have some equity to work with. A HECM is a loan based on the equity you have in your home so you will need to have some, if home values continue to drop it you may be too late. Interest Rates are on the rise, as Interest Rates rise the amount of money you can qualify for goes down, there may be a point where you will not qualify for any money under this program, we are already seeing that a lot of Homeowners can't get the HECM and if you are waiting until there is a problem it may be too late.
It is a painful thing to watch, when I see someone wait until there is a problem and there is nothing I can do to help... It really does hurt me to see people in that situation, knowing that I could have helped them if we would have crossed paths earlier, assuming they would have listed to what I had to say.
Now is the time to act. If you believe any of what I am predicting you should look into how we can help you. I urge you to get in touch with us... You never know when it may be too late.
Riley Bangerter, VP, CRMA
WSB Mortgage Services
www.reversemortgage4u.com
866-309-6626
Monday, June 8, 2009
How do you know that a HECM is not for you?
If you have never received a quote as to how much you may qualify for with a Home Equity Conversion Mortgage how do you know if it is right or not for you?
If you would like to see how much you qualify for with this unique loan please visit our site at:
www.reversemortgage4u.com
We will provide you with a FREE NO OBLIGATION quote so that you can make your own informed decision!
If you would like to see how much you qualify for with this unique loan please visit our site at:
www.reversemortgage4u.com
We will provide you with a FREE NO OBLIGATION quote so that you can make your own informed decision!
How The Reverse Mortgage Loan Will Effect My Taxes And My Heirs Inheritance!
Lets touch on the tax issues first.
I am not a tax professional so please consult your tax preparer before making any tax decisions.
With that said; A reverse mortgage is a loan, a very unique loan.
As a result, the proceeds from a reverse mortgage loan are not considered taxable income by the IRS and it will not have an effect on your social security and the interest on a reverse mortgage is tax deductible.
However, the tax deduction can only be claimed in the year in which the interest is repaid.
As a result, the size of the potential tax deduction builds up until the year when the reverse mortgage loan is repaid by the homeowner or their estate.
The reverse mortgage loan has no effect on your obligations to stay current on your property taxes, homeowner's insurance, etc.
So, the homeowner must continue to pay these costs, you could request that these costs be put into an escrow account with the reverse mortgage, but this practice is rare due to the size of the equity that is set-aside.
What about My Estate and My Heirs Inheritance?
The big concern for homeowners considering a reverse mortgage is making sure that their heirs are not saddled with debt and will inherit the home.
When the home is worth more than the reverse mortgage balance your heirs can refinance the reverse mortgage into a traditional mortgage and keep the home or the heirs/estate can sell the home, pay the balance of the reverse mortgage, and keep the remainder of the home's value.
The heirs/estate have six months to sale or refinance the home with the addition of two 90 day extensions-plus if needed, giving your loved ones one year-plus.
For example:
* A $300,000 home is inherited by the estate with a $125,000 reverse mortgage balance.
* The heirs decide not to keep the home.
* The heirs sell the home for $300,000, pay the lender $125,000, and pocket $175,000.
When the home is worth less than the reverse mortgage balance the heirs or the estate have no obligation.
The home can be turned over to the lender who will sell the home to repay as much of the balance as possible or the heirs can refinance the reverse mortgage into a traditional mortgage and keep the home.
Get a Free QuoteThe Top 10 Reasons NOT to get a Reverse Mortgage
The Top 10 Reasons you should NOT get a
Reverse Mortgage Now
Reason #1: I want to wait until I’m older
If you’re thinking of waiting until you’re older so you can get more money, then your reasoning is only one third correct. While getting older will get you more money, rising interest rates and declining home values mean less money.
If you consider the trends right now in the housing market you can see that the future is uncertain at best. Interest rates are trending upwards and home values are trending down.
Ask yourself a simple question: is my home worth more or less now than it was a year ago? It is most likely worth less which means less money to you from a Reverse Mortgage.
For more information on this topic see our Free Special Report: “Secrets of the Housing Market: Why Now is the Right Time for Your Reverse Mortgage.”
Reason #2: I will only get enough to pay off my existing mortgage
Only getting enough to pay off your existing mortgage? Don’t think that’s worth getting the Reverse Mortgage?
I fully understand that it would be nice to get the extra cash that maybe your friends or neighbors have gotten from their Reverse Mortgage.
Although, wouldn’t it be beneficial to increase your income by $400, $800, $1200 or more each month depending on what your mortgage payment is? Remember the old adage “A penny saved is a penny earned”? Well, a thousand dollar mortgage payment saved is a thousand dollars earned!
Lets say you have a $1000/ month mortgage payment. Without making that payment you could have an extra $12,000/ year. Over 10 years that $12,000 is now $120,000 or more if invested properly!
So now how does it sound to “only be able to pay off your mortgage”?
Reason #3: I want to leave my home to my kids
Of course you want to be able to leave something for your kids. This is a perfectly reasonable action for parents to take.
But consider this, would your kids rather have your money, or see you live a more comfortable and healthy lifestyle? Only you know the answer to this, but I believe that most of your kids would rather see you live a happy and health lifestyle, rather than get your money. And for those kids who are just waiting around for you to die so they can get their hands on their inheritance, well they probably don’t deserve it anyway!
Another thought is being able to contribute something to your kids or grand kids now, rather than waiting for when you wont be around to enjoy the results.
Here are some ideas on how a Reverse Mortgage can be used to help your family NOW, instead of waiting until after you are dead and gone:
• Pay for grandchild’s education.
• Pay for a new home or down payment for the kids/ grand kids.
• Travel with the kids/ grand kids...show them the world and share your experiences with them.
• Donate to your favorite church or charity through the purchase of a charitable annuity. With this you donate cash and receive an income!
• Use a portion of the proceeds for a life insurance policy.
• Buy a second home closer to where the kids and grand kids live.
• You don’t have to use up all of your equity. Take only a portion of the equity in the Reverse Mortgage so you save some for you heirs for after you pass away.
These are just some ideas, but you get the point. The real question is, do YOU want to enjoy your money now, or let your kids enjoy it later?
Reason # 4: It’s too expensive
When you start looking at all of the fees and costs associated with a Reverse Mortgage, it can seem like a very expensive proposition. Mortgage insurance, origination fees, closing costs, interest on the loan...
Thank goodness you don’t have to pay any of these costs out of your own pocket!
The fact is that Reverse Mortgages are loans, and loans cost money. Banks are not in the business of giving away money, they are in the business of making it.
Now, that being said, Reverse Mortgage fees and costs are quite similar to other mortgages, but are disclosed and allocated differently. Mortgage insurance premiums, origination fees, interest, and closing costs are all part of regular home mortgages.
Reverse Mortgages are actually more up front when disclosing what you are paying. With Reverse Mortgages, interest rates can’t be altered, fees are set and capped , and everything is fully disclosed. With other mortgages, the lender might waive the origination fee, but you can be sure that they will make it up somewhere else.
Why? Because banks are in business to make money!
Reason # 5: My son-in-law/ insurance agent/ friend told me it was a bad idea
It is important for you to be comfortable with your decision to get a Reverse Mortgage, and your trusted advisors play a big role in that decision. Be careful however. It is very likely that you are much more educated on the Reverse Mortgage process than many of the people who you may be talking to.
The reality is that Reverse Mortgages still remain misunderstood and many misconceptions still exist. If any of your family members, friends, or advisors question why you are getting a Reverse Mortgage, have them read the material that you have been given. Or better yet, have your Reverse Mortgage representative sit down with all of you together and answer any questions that they might have.
Education is the key to understanding the benefits of a Reverse Mortgage. That not only applies to you, but to the people you count on to help you make your important decisions.
Reason #6: My home is worth $300k/ $500k/ $800k and I can only get $100k/ $200k/ $300k
Yeah, you got us there. I mean, $300,000 of tax-free money that you never have to pay back and can use for anything you want...that is a bad deal.
OK, seriously now. No, with a Reverse Mortgage you will not be able to get a hold of 100% or even 75% of the equity in your home. But, you can’t tell me that getting your hands on a couple hundred thousand dollars of your equity with no payments as long as you live in your home couldn’t come in handy.
The fact is that the money that is in your home now isn’t doing anything for you, so the ability to get a hold of even half of it is better than what you have now.
In the end it comes down to looking at what you can get, instead of what you can’t.
Reason #7: My kids will help me financially
It’s always good when kids can help out the folks. I mean, you helped the kids out for all of those years, it’s nice when they can give a little back when you need the help.
But wouldn’t it be nice if you didn’t need to depend on the kids for the help?
Lets face it, it’s great that you have raised your kids well enough that they can help you in your later years, but wouldn’t it be better if you could retain your independence and continue to help yourself?
Also, what are you going to do with your home when you pass away? Leave it to your kids? So are you taking money from them now, just to give it back to them later?
Take the money that you already have saved up in your home, and use it to live a better life. You will feel better about your independence, and so will your kids.
Reason #8: I’m able to live on the income and savings I have now.
This may be the case, and if you are living a comfortable lifestyle on what you have now, then maybe you don’t need a Reverse Mortgage. But ask yourself a few questions:
• How secure is your lifestyle now, and could it be improved with a little extra cash in your pocket?
• Do you have enough cash reserve in case of an emergency?
• Are you living, or just getting by?
• As your costs of living increase, will your income be able to continue supporting you?
• If your spouse dies, will you be able to get by without his or her income?
• Do you know when you will run out of money?
• Can you afford to pay for long term care expenses?
The answers to these questions may be a better indicator for weather or not you could use a Reverse Mortgage. Seniors are living longer and longer, but your money is limited and having a backup may be a good idea. Don’t wait until it’s a crisis, when you can establish a reserve now and help secure your future.
Reason #9: I’m planning on moving into a nursing home.
If you are planning on moving into a nursing home, then you won’t want to continue living in your house, and a Reverse Mortgage may not make sense. You have already given thought to how you will be more comfortable in a nursing home than you would be in your own home. Or have you?
Maybe you don’t realize the options available for you to receive the care that you may need right in the comfort of your own home. There are many options for in-home care for the times that you may need it, which would allow you to remain in your home. If funding in home is a concern, there are many long-term care insurance policies that can be purchased to assist in paying for this kind of care.
Which sounds better, being able to live safely and securely in your home, or moving into a nursing home? It’s your choice.
Reason #10: It sounds too good to be true!
Boy, it sure does sound that way doesn’t it. I mean, you get money, without having to make any kind of payments, or pay it back, you can use it for anything, and it’s tax free. It really is too good to be true!
Not really. Once you understand the program, you realize that it is a loan that will get paid back eventually, that there is interest paid on that loan, and it’s not just pennies from heaven. You also realize that it is a good program, that is strongly regulated, and a very powerful financial product for seniors.
While it sounds too good to be true, it is as good as it sounds.
WSB Mortgage Services, Inc.
Reverse Mortgage Now
Reason #1: I want to wait until I’m older
If you’re thinking of waiting until you’re older so you can get more money, then your reasoning is only one third correct. While getting older will get you more money, rising interest rates and declining home values mean less money.
If you consider the trends right now in the housing market you can see that the future is uncertain at best. Interest rates are trending upwards and home values are trending down.
Ask yourself a simple question: is my home worth more or less now than it was a year ago? It is most likely worth less which means less money to you from a Reverse Mortgage.
For more information on this topic see our Free Special Report: “Secrets of the Housing Market: Why Now is the Right Time for Your Reverse Mortgage.”
Reason #2: I will only get enough to pay off my existing mortgage
Only getting enough to pay off your existing mortgage? Don’t think that’s worth getting the Reverse Mortgage?
I fully understand that it would be nice to get the extra cash that maybe your friends or neighbors have gotten from their Reverse Mortgage.
Although, wouldn’t it be beneficial to increase your income by $400, $800, $1200 or more each month depending on what your mortgage payment is? Remember the old adage “A penny saved is a penny earned”? Well, a thousand dollar mortgage payment saved is a thousand dollars earned!
Lets say you have a $1000/ month mortgage payment. Without making that payment you could have an extra $12,000/ year. Over 10 years that $12,000 is now $120,000 or more if invested properly!
So now how does it sound to “only be able to pay off your mortgage”?
Reason #3: I want to leave my home to my kids
Of course you want to be able to leave something for your kids. This is a perfectly reasonable action for parents to take.
But consider this, would your kids rather have your money, or see you live a more comfortable and healthy lifestyle? Only you know the answer to this, but I believe that most of your kids would rather see you live a happy and health lifestyle, rather than get your money. And for those kids who are just waiting around for you to die so they can get their hands on their inheritance, well they probably don’t deserve it anyway!
Another thought is being able to contribute something to your kids or grand kids now, rather than waiting for when you wont be around to enjoy the results.
Here are some ideas on how a Reverse Mortgage can be used to help your family NOW, instead of waiting until after you are dead and gone:
• Pay for grandchild’s education.
• Pay for a new home or down payment for the kids/ grand kids.
• Travel with the kids/ grand kids...show them the world and share your experiences with them.
• Donate to your favorite church or charity through the purchase of a charitable annuity. With this you donate cash and receive an income!
• Use a portion of the proceeds for a life insurance policy.
• Buy a second home closer to where the kids and grand kids live.
• You don’t have to use up all of your equity. Take only a portion of the equity in the Reverse Mortgage so you save some for you heirs for after you pass away.
These are just some ideas, but you get the point. The real question is, do YOU want to enjoy your money now, or let your kids enjoy it later?
Reason # 4: It’s too expensive
When you start looking at all of the fees and costs associated with a Reverse Mortgage, it can seem like a very expensive proposition. Mortgage insurance, origination fees, closing costs, interest on the loan...
Thank goodness you don’t have to pay any of these costs out of your own pocket!
The fact is that Reverse Mortgages are loans, and loans cost money. Banks are not in the business of giving away money, they are in the business of making it.
Now, that being said, Reverse Mortgage fees and costs are quite similar to other mortgages, but are disclosed and allocated differently. Mortgage insurance premiums, origination fees, interest, and closing costs are all part of regular home mortgages.
Reverse Mortgages are actually more up front when disclosing what you are paying. With Reverse Mortgages, interest rates can’t be altered, fees are set and capped , and everything is fully disclosed. With other mortgages, the lender might waive the origination fee, but you can be sure that they will make it up somewhere else.
Why? Because banks are in business to make money!
Reason # 5: My son-in-law/ insurance agent/ friend told me it was a bad idea
It is important for you to be comfortable with your decision to get a Reverse Mortgage, and your trusted advisors play a big role in that decision. Be careful however. It is very likely that you are much more educated on the Reverse Mortgage process than many of the people who you may be talking to.
The reality is that Reverse Mortgages still remain misunderstood and many misconceptions still exist. If any of your family members, friends, or advisors question why you are getting a Reverse Mortgage, have them read the material that you have been given. Or better yet, have your Reverse Mortgage representative sit down with all of you together and answer any questions that they might have.
Education is the key to understanding the benefits of a Reverse Mortgage. That not only applies to you, but to the people you count on to help you make your important decisions.
Reason #6: My home is worth $300k/ $500k/ $800k and I can only get $100k/ $200k/ $300k
Yeah, you got us there. I mean, $300,000 of tax-free money that you never have to pay back and can use for anything you want...that is a bad deal.
OK, seriously now. No, with a Reverse Mortgage you will not be able to get a hold of 100% or even 75% of the equity in your home. But, you can’t tell me that getting your hands on a couple hundred thousand dollars of your equity with no payments as long as you live in your home couldn’t come in handy.
The fact is that the money that is in your home now isn’t doing anything for you, so the ability to get a hold of even half of it is better than what you have now.
In the end it comes down to looking at what you can get, instead of what you can’t.
Reason #7: My kids will help me financially
It’s always good when kids can help out the folks. I mean, you helped the kids out for all of those years, it’s nice when they can give a little back when you need the help.
But wouldn’t it be nice if you didn’t need to depend on the kids for the help?
Lets face it, it’s great that you have raised your kids well enough that they can help you in your later years, but wouldn’t it be better if you could retain your independence and continue to help yourself?
Also, what are you going to do with your home when you pass away? Leave it to your kids? So are you taking money from them now, just to give it back to them later?
Take the money that you already have saved up in your home, and use it to live a better life. You will feel better about your independence, and so will your kids.
Reason #8: I’m able to live on the income and savings I have now.
This may be the case, and if you are living a comfortable lifestyle on what you have now, then maybe you don’t need a Reverse Mortgage. But ask yourself a few questions:
• How secure is your lifestyle now, and could it be improved with a little extra cash in your pocket?
• Do you have enough cash reserve in case of an emergency?
• Are you living, or just getting by?
• As your costs of living increase, will your income be able to continue supporting you?
• If your spouse dies, will you be able to get by without his or her income?
• Do you know when you will run out of money?
• Can you afford to pay for long term care expenses?
The answers to these questions may be a better indicator for weather or not you could use a Reverse Mortgage. Seniors are living longer and longer, but your money is limited and having a backup may be a good idea. Don’t wait until it’s a crisis, when you can establish a reserve now and help secure your future.
Reason #9: I’m planning on moving into a nursing home.
If you are planning on moving into a nursing home, then you won’t want to continue living in your house, and a Reverse Mortgage may not make sense. You have already given thought to how you will be more comfortable in a nursing home than you would be in your own home. Or have you?
Maybe you don’t realize the options available for you to receive the care that you may need right in the comfort of your own home. There are many options for in-home care for the times that you may need it, which would allow you to remain in your home. If funding in home is a concern, there are many long-term care insurance policies that can be purchased to assist in paying for this kind of care.
Which sounds better, being able to live safely and securely in your home, or moving into a nursing home? It’s your choice.
Reason #10: It sounds too good to be true!
Boy, it sure does sound that way doesn’t it. I mean, you get money, without having to make any kind of payments, or pay it back, you can use it for anything, and it’s tax free. It really is too good to be true!
Not really. Once you understand the program, you realize that it is a loan that will get paid back eventually, that there is interest paid on that loan, and it’s not just pennies from heaven. You also realize that it is a good program, that is strongly regulated, and a very powerful financial product for seniors.
While it sounds too good to be true, it is as good as it sounds.
WSB Mortgage Services, Inc.
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