Can’t Seniors Get A Break?

  • August 13, 2016

The price that seniors pay to maintain their residence, pay their bills and pay medical costs are certainly on the rise.  Yet for most, their income is not on the rise.  The CNBC article we feature this week describes a double whammy.  Flat Social Security payment projections and higher Medicare costs.  It also offers one possible solution, a reverse mortgage.  The fact that a mainstream news organization mentions the HECM (Home Equity Conversion Mortgage} program from HUD is evidence of its acceptance today as a safe, useful tool for financial planning.  There is still a great deal of inaccuracy out there but we are grateful for the positive press!  Please note that the article is wrong when it states that to use the HECM program a home has to have no mortgage or only a very small one.  Depending on the homeowners’ ages, they can receive up to 75% of the home’s value.  A 65 year old will get 54.2% of the appraised value.  The older the borrower/s the higher the amount available is.  There are 25 ways to use a HECM to improve life.  One is to produce monthly income to overcome conditions that elderly Americans are facing right now. Ask me for a list of the other 24.  Please see the CNBC article here.