How You Can Make Use of a Hawaii Reverse Mortgage as a Financial Planning Tool

A reverse mortgage was primarily used as a ‘band aid’ to assist seniors in meeting their day-to-day expenses by pulling out some of the equity that they had in their houses. In many cases it was used to divert a foreclosure. It was considered only during times of an emergency.

However, many seniors today that do not need to meet a certain cash-based need, can still take advantage of the numerous benefits provided by a reverse mortgage, by using it as a tool for their strategic long-term retirement planning.

Below are ways that a reverse mortgage in Hawaii can be a viable financial strategy:

Delaying Pension and Social Security Payouts

There are seniors who may need to utilize payouts from their pensions and Social Security benefits as soon as they become accessible. However, the cash obtained from the reverse mortgage will allow the retiree to delay collecting their pension or social security allowing it to mature.

Postpone Drawing down Your Retirement Assets

It is a move that is designed to allow your assets additional time to grow. The funds you obtain from a reverse mortgagelender will make it possible for you to postpone drawing on your other resources allowing them to fully mature.

Read More : Why prefer FHA Insured Reverse Mortgage over Single-purpose or Proprietary?

Eliminate Monthly Mortgage Payments to Increase Your Cash Flow

Every time you write a check to pay for your mortgage, it takes a sizable chunk from your monthly income. However, when you apply for a reverse mortgage from a lender in Hawaii, the existing mortgage is automatically paid off.

Once it has been paid off, it means that you will remain with extra money in your pocket, which you would have normally have used to pay the monthly mortgage.  However, you will still be responsible for paying your property taxes, homeowners insurance and maintenance of your home.

You Get Access to a Line of Credit that is Low Cost, and Non-cancellable

Applying for a reverse mortgage means that you will get access to a line of credit that is ever growing. The line of credit provided by the reverse mortgage grows as time passes.
It basically means that as the years go by, the unused line of credit available to you will be larger than what you initially received.

Protect Your Investment Portfolio When the Market is down

When the stock markets are down, it means that your cash flow, as well as investment portfolio,  may not be performing at peak levels.

When you choose to get a Hawaii reverse mortgage, the payment received will be able to provide you with enough protection until the investment markets start to pick up.
To find out how much you qualify for, and whether a reverse mortgage is right for you, consult the author of this article to discuss the pros and cons. For more information you can also visit: www.AlohaMortgageSolutions.com. There you will find two short video’s, one title “Reverse Mortgages Explained;” and the other, “Testimonials of Real Hawaii Clients.”

For a FREE, no-obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution in Honolulu. You can reach him directly at (808) 799-8218 on Oahu; or Toll Free at 888-423-2468 from the Neighbor Islands. Within 10 minutes he can tell you how much you are eligible for.

“YOU’VE INVESTED A LIFETIME, NOW REAP THE REWARDS!”

Reverse Mortgage In Hawaii: What Is It And How It Is Beneficial?

A boon for senior citizens reverse mortgage in Hawaii has changed the way oldies think of living their retirement age. A type of home equity loan for older homeowners, the Hawaii reverse mortgage is aimed at streamlining the life of old people in the best possible way. The best part is they don’t have to pay the monthly mortgage payments and there are no restrictions on how the money received in this way must be used. Without a doubt, it is an amazing way to improve their monthly cash flow, which will enable them to live a stress-free and happy life.

A perfect method of monetary planning for retirement, the reverse mortgage in Hawaii is a valuable tool that allows the seniors to enjoy lots of benefits and functions, in a way, supplementing their retirement income in a better way. It is the bank who will make payments to the borrower throughout their life and this will be based on the percentage of accumulated home equity. It has many benefits for the senior citizens that help them to lighten their financial burden, which can arise anywhere between retirement planning and the actual retirement.

Check out how this reverse mortgage in Hawaii is a beneficial move:

•    It Will Relieve You From The Burden Of Hefty Monthly Payments: Yes, these reverse mortgages don’t require any monthly payments. Isn’t that great? It will only be repaid when the borrower finally decides to leave the home permanently or they are not complying with borrower obligations to the lender. With a reverse mortgage, you will get funds, which will eventually enhance the monthly cash flow of the borrower.

•    You Are Still The Owner Of Your Property: When you apply for a reverse mortgage in Hawaii you don’t lose the ownership of your home, it is still your place and not of the lender’s. This is because you have borrowed against the equity built up in your property. So, there is no need to worry about such things.

•    You Can Use The Money Received From Reverse Mortgage In Any Way: There are no restrictions on how the received money must be used. It is the sole choice of a borrower how he/she wants to spend this amount. They can use it for home repair, medicines, transportation and a lot of other things during their retirement period.

Read More : Are reverse mortgages safe

•    There Is No Maturity Date Of A Reverse Mortgage In Hawaii: Your reverse mortgage comes with no maturity date. It is a continuous process which requires the borrower to keep up with just three things:

# Home insurance and taxes
# Make home as a primary residence
# Maintenance of the property

•    Reverse Mortgage Is The Best Way To Improve The Quality Of Life At That Stage: There are many people who are unable to save for their retirement. In such a scenario reverse mortgage is a life saver and helps to improve the quality of life of senior citizens.

Well, this is the best thing one can do for his/her old age! Give it a thought!

Reverse Mortgage : Important things to Know

Sometimes people approach to their retirement noticed that they don’t have enough funds. If you are also in similar situation and you are 62 or older, a reverse mortgage can help you a lot. Reverse mortgage Hawaii is FHA-insured loan which is beneficial in maximizing the home’s equity to make you live more comfortable after your retirement period.

Here are few important things you need to know about this type of loan:

FHA-Approved Loan- This loan is also known as Home Equity Conversion Mortgages (HECM) and is approved by the Federal Housing Administration (FHA). Specially designed loan for seniors! This loan acts as a special mortgage product to ensure borrower safety and protection.

Elimination of your Current Mortgage- In case you have a mortgage on your home, this loan can be utilized to pay off the remaining balance. No monthly mortgage payments! The amount you owe increases with time. There is no need to pay the loan amount until you leave the property.

Purchase your Primary Residence using Reverse Mortgage- It is imperative to use a reverse mortgage to purchase a primary residence. It allows you to cut back your home or find a home that meets your physical requirements.

Must Read : Star Bulletin Interview with Daniel Nicolosi

Title of your Home is retained- The home is yours and remains yours as long as it remains your principal residence for at least six months. Reverse Loan isn’t due until you stop living in the home- A reverse mortgage is not due until you stop living in the home. This type of loan must be paid off once the home is sold.

Discover how the Money is Distributed- This loan is distributed as a lump sum, as monthly payments, or as an ongoing line of credit. This type of loan can be paid out in whatever way best suits your requirements.

Tax-free money from Reverse Mortgage- This type of loan provides tax-free cash and will not affect social security or medical benefits.

No Compulsory Repayments- Hawaii Reverse Mortgage does have to be repaid until you leave the house. No pre-payment penalties!

More Money when Your Home Appreciates in Value- In case you sell your home and paid off your loan, the excess amount is yours. A home that appreciates in value offers you more money.

There are some requirements to acquire this type of loan.

• All individuals must be at least 62 years.
• The home must be your primary residence.
• You cannot be offending on any federally-insured debt.
• Responsible for property real estate taxes, insurance, utilities, fuel, maintenance, and other expenses.
• These loans may have fixed or variable rates.

Read More : Is a Reverse Mortgage Safe?

It is a great financial assistance for seniors of age 62 or above. No need to pay monthly mortgage payments! Seek this loan to have physical as well as financial comfort after you retirement period.

 

How Reverse Mortgage is a Good Retirement Plan?

Reverse Mortgage have turned into the desperate property holder’s money related arranging device of decision. The principal FHA-protected reverse mortgage was presented in 1989. Such advances empower seniors age 62 and more established to get to a bit of their home value without moving.

With a reverse mortgage, more established property holders can get cash against the value in their home in the event that they either own their home by and large or have a little existing home loan.

Rather than you paying it back every month such as a common home credit, the bank pays you, and the advance just must be reimbursed when you offer the home or move out, or after your demise.

Must Read : How to Choose a Reputed Reverse Mortgage Lender?

You can get the cash as a single amount, a regularly scheduled installment or a credit extension, and the sum you can obtain at last relies on upon your aggregate value, your age (you should be no less than 62 to qualify), the length of the advance term and current loan fees.

The following are main reverse mortgage advantages:

• A typical misinterpretation of reverse mortgage Honolulu is that the loan specialist takes responsibility for home. This is false. You keep on keeping up responsibility for home, the length of you consent to the terms of the advance and pay your duties and protection.
• A standout amongst the most alluring advantages of house buybacks is that installments are made TO you, the length of you live in your home. This is entirely not the same as a customary forward home loan where you should pay stores in a month to month sum. With reverse mortgage, you get reserves. The advance is reimbursed when you offer your home, move to another main living place, or when the last borrower leaves the home.
• The reverse mortgage credit is guaranteed by the government. With government protection comes more prominent security. If the advance winds up adding up to more than the estimation of the home when sold, government protection will cover the distinction. This implies the credit will be forked over the required funds utilizing just the returns your home offers for, and no more.
• Every individual senior has diverse necessities. Along these lines, there are diverse payment choices to cover distinctive needs. This incorporates the decision to get stores in a full or incomplete aggregate, a credit extension, regularly scheduled installments, or a mix of any of these.
• Government advantage programs that don’t test money related assets, for example, Social Security and Medicare, are not influenced by reverse mortgage. House buybacks are considered advance continues and not pay. Do note, in any case, that pay recompenses, for example, Medicaid and Supplemental Security Income might be influenced.

These are just a couple of the numerous reverse mortgage advantages. For a complete perspective of how a reverse mortgage Hawaii can advantage you in your specific circumstance or to take in more about reverse mortgage upsides and downsides, contact a professional reverse mortgage lender Hawaii