RETIREMENT PLANNING TIPS WHEN YOU’RE IN YOUR MID-60S

Retirement planning can be quite a challenge, regardless of your age. However, there are ways to help you prepare for those golden years. Here are retirement planning tips for those currently in their mid-60s.

Once, 65 years old was the common age for retirement. Since then, much has changed. The Social Security Administration has increased the age when total retirement benefits are available. Additionally, various company-sponsored plans have shifted from defined benefit to defined contribution plans.

Retirement Planning Tips

With these updates, many savings programs are not yielding expected returns. Consequently, many people have no choice but to postpone their retirement. Even if you feel financially stable, it doesn’t always mean retirement at 65 is necessary. Many 65-year-olds still enjoy working and love their jobs. However, certain considerations must be addressed when planning retirement in Myrtle Beach during your mid-60s and beyond.

Are You Ready To Retire?

If your employer offers retirement at 65, consider if you’re prepared to quit, financially and psychologically. If not, determine if you can work a few more years or become a consultant. This should ideally be done at least one year before retirement age, as some employers start the retirement process early. Many employers now focus on hiring and retaining skilled, experienced staff to fortify their intellectual banks.

Remaining a salaried employee means steady income and employer-provided benefits. However, consulting offers flexibility and a working retirement.

Create A Retirement Budget

Seniors who have saved for years may feel they can finally enjoy their retirement money. While true, overspending can deplete savings quickly. To avoid this, budget your expenses, including new costs like travel, for a realistic calculation of what you can afford in retirement. A budget is crucial in retirement when income mostly comes from

• savings
• pensions
• social security benefits.

Use Your Home For Extra Income

Consider downsizing to a smaller, less expensive home or moving to a lower cost-of-living area. This can provide extra funds for your retirement nest egg. If you prefer staying in your home but need extra income, consider a reverse mortgage. Under this program, lenders use your home equity to provide tax-free income.

Before applying for a reverse mortgage in Myrtle Beach, ask about

• fees
• mortgage terms
• payment options

Income Management

If you need income from savings to finance retirement, aim to lower taxes and maximize what you keep. Your financial profile determines the best time to use specific income types. Generally, withdrawals from employer-sponsored plans, traditional IRAs, or other tax-deferred accounts should occur when you have a lower income tax rate, reducing the income tax owed on these amounts.

For more information on retirement planning and reverse mortgage loans, contact David Stacy Reverse Mortgage Specialist.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

REVERSE MORTGAGE AND SENIORS WITH LIVING TRUST

Seniors who need extra cash or income to cover unexpected expenses can borrow against their home equity? Yes! They can get a loan that is known as a reverse mortgage. For those who plan to put their houses in living trusts or those with one already, the path to getting this loan would be a bit trickier.

This kind of loan can provide you with the extra income. It will help cover

• home repairs
• basic living expenses
• renovations,
• unexpected costs.

Even with the loan’s known disadvantages, reverse mortgages remain popular. A reverse mortgage loan can still coexist with living trusts.

Mortgage First, Then Trust

The majority of reverse mortgage lenders won’t object when borrowers transfer the title to their houses to their living trust. They can do so even after you take out a reverse mortgage. But you must notify the lender about it.

Trust First, Then Mortgage

In the event your house is in your trust already and you find out that you are eligible for a reverse mortgage, you can still get the loan. But, your trust document as well as the beneficiaries must satisfy all the needed requirements.

Transferring A Home With A Reverse Mortgage Into A Living Trust

What if you already have a reverse mortgage loan on your house when you created your living trust? As a trustee, you can use the real estate powers given to you to transfer it into your trust. But before you initiate a transfer, you first need to notify your lender. The latter needs to check that your trust agreement will meet the requirements needed. That applies if you were a trustee obtaining a reverse mortgage loan in Myrtle Beach on a house that’s in your living trust already.

For instance, the lender would confirm that all existing beneficiaries who are named in the trust can live in the house for as long as they want. The lender may have other stipulations like asking the trust to legally assume the obligation of the borrower to pay off the debt to avoid difficulty in executive the mortgage, so immediate notification is important.

Qualifying For Reverse Mortgages

Now let us deal with the second situation. Getting a reverse mortgage for a home whose title is already in your living trust. You will most probably consider the most famous kind of mortgage, the HECM or the Home Equity Conversion Mortgage. HECMS are issued by the government but the one who backs them is the federal government. The lender will make the cash available to eligible borrowers from their home equity.

The borrowers must be at least 62 years old in order to qualify for a Myrtle Beach reverse mortgage. They must be using the house as their primary residence and should own the home or have enough home equity.

The existing interest rate, age of the borrower, and other factors will determine the amount you’ll qualify for. Approved borrowers could choose to get unscheduled installments like a line of credit, regular payments, a mix of both, or a lump sum.

Getting A Reverse Mortgage If Your House Is In A Living Trust

Let’s say you’ve qualified for a loan, you still have to get one. To get it on a house that is currently in your living trust, you have to confirm that your trust as well as all the borrowers meet the requirements set by the lender.

Before you take out a reverse mortgage loan on your home, you should check that your trust provides you with the power to get this done. Once you’ve made sure that you’ve can encumber trust real estate, you should check if you meet the requirements set by the lender for homes that are held in living trust. Whether the mortgage or your living trust came first, you don’t have to pay the loan until you as well your beneficiaries sell the home or transfer title, pass away, leave the house, or violate the terms of the loan agreement.

Call David Stacy Reverse Mortgage Specialist now for additional guidance about reverse mortgages and living trusts.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

WHY YOU SHOULD OR SHOULD NOT GET A REVERSE MORTGAGE

A reverse mortgage has had its ups and downs since they were introduced during the Reagan administration. It is a financial tool that lets older people tap the equity of their home and age in place. This type of loan can help free up cash when seniors are in retirement. And in some instances, get rid of monthly mortgage payment.

Who Can Get A Reverse Mortgage Loan?

Reverse mortgage loans are made for older people who would like to tap into the equity of their homes. When doing so, they could boost their monthly cash flow without having to worry about monthly payments. If you plan to take out a reverse mortgage, you need to be at least 62 years old. Potential borrowers should undergo a home counseling session to make sure that they understand what they are getting themselves into.

This type of loan is only for primary residences. If you are planning to take out this loan against your vacation home or investment property, then you may not qualify at all. You have to live in the house for more than six months.

Understanding The Value Of Your Home

You also need to know that you can’t borrow over 80% of the value of your home, as much as the FHA maximum of $726,525 for 2019. But the older the borrower is, the higher the loan he or she can get. Generally speaking, the percent you may qualify to borrow is your age less 12 years.

There are certain obligations you need to follow through as well. These include paying homeowner’s insurance, property taxes, home maintenance, and mortgage insurance premium. Your lender will also check whether you have enough disposable income to fulfil these obligations. In certain instances, lenders may require that the equity from the loan be set aside to cover the ongoing expenses.

Who Should Consider A Reverse Mortgage?

If you are planning to remain in your home for a very long time throughout your retirement days, and you don’t wish to pass down your home to your kids, then you are a good candidate for a reverse mortgage loan. In case you would like to preserve other investments or assets in retirement, you can get more funds through the reverse mortgage.

The best candidate for a reverse mortgage loan in Myrtle Beach is a person who has accumulated diversified and substantial retirement savings.

Who Should Avoid This Type Of Loan?

Borrowers who don’t have enough equity in their homes, a reverse mortgage in Myrtle Beach isn’t a good idea. In case you don’t have a good understanding of how this type of loan works, then you should avoid it. Also, if you plan to leave your property to your children after your death or if you plan to move out of the house eventually, then this type of loan is not for you. It’s because the balance of the reverse mortgage needs to be paid off, which can only be done by selling the house.

Call David Stacy Reverse Mortgage Specialist if you are looking for more information about reverse mortgage. We’ll help you determine if this option is right for you.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

REVERSE MORTGAGE: A PERFECT ADDITION TO YOUR RETIREMENT PLAN

Some people say that parents don’t need to save up for their kids’ college education. There are college loans to help them. But, their parents can’t find a loan that will help them live a comfortable life after retirement. But, wait for a second. Are you sure there’s no loan for that? Isn’t a reverse mortgage loan the perfect option for seniors?

What Is A Reverse Mortgage?

Reverse mortgage loans is comparable to a line of credit or loan against your home equity. One main difference is that the lender will pay you and not the other way around. Through this type of mortgage, you will have the cash you need. It will supplement your retirement funds like the benefits you get from social security.

An HECM is a popular mortgage type, which represents around 90% of the total number of reverse mortgages.

The house is one asset that seniors tend to forget. They often neglect to include them when planning for their retirement. These loans are good ways of making the most out of the equity of their house. It will pay for retirement costs while not having the need to give up their house. This type of loans may be a good option for those who are house rich but cash poor.

Who Can Get Reverse Mortgage Loans?

People who are at least 62 years old and own a home can apply for these loans. In case there is an existing mortgage on the house, the remaining balance should be small. This way, it could be settled using the money you get from your reverse mortgage in Myrtle Beach. The house which you are taking your loan against should be your primary residence. It is also important that you are not delinquent on debts like federal student loans or federal income taxes.

What Are Your Financial Obligations?

The borrower of the reverse mortgage in Myrtle Beach needs to be responsible for maintaining the house. They will also pay the HOA dues, property taxes, utility bills, flood insurance, and the homeowners insurance.

How Much Can You Get?

The amount that you will receive will depend on the younger borrower’s age, the HECM FHA limit, and appraised value. The proceeds of the loan increase with the borrower’s age and decrease if the interest rates are higher.

In case the spouse of the borrower is less than 62 years old, the spouse won’t be eligible to become a borrower. But, the proceeds of the loan would be based on the younger age of the spouse, so the spouse could stay in the home following the death of the borrower, in case the borrower passes away first.

This loan comes with a limit of 50 percent of the equity of your home. The loan applicant could borrow over 50%. This applies when they use the proceeds of the loan to settle their existing mortgage.

How Will You Get The Money?

In case you have a variable interest rate, then you can get the funds through different options. You can get it as a credit line, lump sum or as level payments. All these applies as long as you reside in the house or as level payments for a fixed term. If you have a fixed interest rate, then you will get the money as a lump sum.

Interest will be charged on how much you get, after you receive it. Because you don’t make regular payments unlike a conventional mortgage, you can expect the interest to pile up and compound, which means it will eat into the equity of your home.

Is The Loan Taxable?

Since it’s just like getting an advance on the loan, the money that you get from your loan is not taxable. Given that, loans doesn’t affect Medicare or social security benefits. But a reverse mortgage could have an affect on your public benefits like Medicaid and SSI, if you just save and do not spend the money you get from the loan.

Call David Stacy Reverse Mortgage Specialist now and find out if this type of loan is the perfect option for you as part of your retirement planning.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

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