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!”

HECM Reverse Mortgage: Does It Affects The Social Security And Other Benefits?

HECM reverse mortgage, a viable option for the seniors that make their retirement relaxed. Indeed. But retirees do have some common concerns regarding the taxes and reverse mortgage solution. You know everything has its pros and cons and it is always better to get them clarified in the very beginning itself to prevent future confusions. Most of the seniors have this question in mind that whether their other benefits including the social security would be affected if they go with a reverse mortgage in Hawaii. Fair enough! Retirees opting for the reverse mortgage often come up with the concerns like will their pension be affected, what will happen to their Medicare and Medicaid benefits which they are already receiving and so on. Well, there are a lot of myths associated with all these queries and all they need is the facts. And this post is all about the facts that will definitely strengthen their trust in the HECM reverse mortgage.

Let’s start with the social security benefits first, you will be glad to know that HECM reverse mortgage does not hamper your social security. They will not change once you get your reverse mortgage, which means you will keep on receiving your benefits even after this mortgage solution. This was something you contributed in while you were working and receiving a reverse mortgage cannot affect these benefits. It is your right to collect your social security and no mortgage solution can prohibit you from doing that.

Next on the concern list is the pension benefits, well these were the benefits you established with your employer and this cannot be affected by receiving a reverse mortgage. Your pension is that benefit for which you worked hard and saved it for your upcoming years. In no way receiving a reverse mortgage in Hawaii can affect your pension. So just stay relaxed and enjoy your retirement in a better way.

Coming over to Medicare now, this is the part of the social security act only that was created in 1965 to help seniors with their health care costs. It was a way to provide health insurance to seniors aging 65 or above. This was a government program that was specially designed for the seniors to help them from the medical perspective. And, same is the HECM reverse mortgage that is formulated to provide financial help to the seniors. This means you can continue using your Medicare benefits even after taking a reverse mortgage in Hawaii.

Read More : The Advantages of a Reverse Mortgage Hawaii

Last but not the least is the Medicaid, the only thing that might get affected with your reverse mortgage. The eligibility for this benefit requires the seniors to have no more than $2K ($3K for couples) in assets on any day of the month. However, this does not affect your eligibility for a reverse mortgage but you may not be able to receive your Medicaid benefits once you start getting a reverse mortgage in Hawaii.

So, just make sure to consult a financial advisor before planning out anything. It is better to be safe than sorry.

A Know How About Reverse Mortgages In Hawaii

At any stage in your life, stability and success will be those two factors on which your future will depend. Sometimes, even after being successful we are unable to save enough for our upcoming years. This is usually the retirement scenario where due to shortage of funds things take a different turn. To get over this, start exploring reverse mortgages in Hawaii. These are a small fraction of the mortgage market, which is growing fast because of its tantalizing advantages. With 10, 000 people retiring daily life expectancies are rising and retirees could outlive their assets.

Today, the growing number of reverse mortgage lenders in Hawaii is recommending people to take a fresh look at reverse mortgage in order to enjoy the best retirement income. If you are still holding on to the basics then let me make this clear that the present day reverse mortgages in Hawaii are far more different from reverse mortgages 10 years ago. You must give up those age old misconceptions and start considering it as a financial planning strategy.

I agree reverse mortgages can be a difficult concept to understand especially when there is so much conflicting information about it. We don’t know whether it will prove beneficial for us or not. If you are a good candidate it can help you lower your bills, giving you another reliable source of income. The proceeds can be used for in-home care, healthcare costs, home improvements and purchase, long-term care, emergency funding, traveling, payment of property taxes and insurance and a great supplement for retirement income. All in all, reverse mortgages in Hawaii can be a good alternative for seniors who are falling short of money, yet sitting on a significant amount of equity in their homes.

However, with so many Hawaii reverse mortgage questions, this is how reverse mortgage is explained below:

•    Many people have a question that in case they are unable to pay the loan, will the lender take away their home. The answer to which is No. As long as you or one of the borrowers continues to live in the house and pays the taxes and insurance, your house is yours. Also, you can never owe more than the value of the property if you are planning to sell it.
•    Another common thing that people ask about a reverse mortgage is how much money they will get if they apply for it. Well, it will entirely depend on your age, the current interest rate and the appraised value of your home or mortgage limits for your area fixed by FHA, whichever is less.

Read More: Mortgage Solutions: Why You Must Consider It For Your Retirement

•    Last but not the least, many borrowers ask whether they will have a property to leave for their heirs or not. When you decide to sell your home, you will have to repay the amount you received from the reverse mortgage plus the interest and other fees to the lender. The remaining equity, if any, will be there for you and your heirs.

So, what are you thinking about? It’s time to enjoy your retirement on your terms!

Choosing Reverse Mortgage Lenders In Hawaii: Some Things To Ponder Upon!

Planning to get a reverse mortgage is a huge financial decision. It requires you to have significant equity in your home to be eligible for it. There are borrower obligations, the cost for insurance protection and a lot of other things that a Hawaii reverse mortgage brings along. Therefore, it is important to look for reputable reverse mortgage lenders in Hawaii who can help and guide you well. Make a wise choice about who would you like to help you.

So before you actually make your mind for a reverse mortgage in Hawaii, do ask yourself some questions regarding the choice of reverse mortgage lenders in Hawaii. Below is the list of those must-ask questions:

•    What Type Of A Lender Do You Want To Work With, Large (National) Lender or Small Lender?

Well, this entirely depends on personal preference. As the loan received is similar in both the cases so the difference will be only in the type of service you may receive and the service cost of the lender. If you will choose to go with small reverse mortgage lenders in Hawaii, you will be able to form a closer relationship with your loan officer as compared to a larger lender. But, the final call is yours. It is you who has to take the decision.

Read More : Hawaii Reverse Mortgage: Things To Consider Before Getting One!

•    Are You Being Pressurized While Deciding On A Reverse Mortgage In Hawaii?

If you feel pressured by your reverse mortgage lender, it’s high time you should rethink your choice. Your reverse mortgage lenders in Hawaii should never make you feel pressured while planning a reverse mortgage loan. They should be there to help and guide you rather than pressurizing you and complicating the things for you. Choose a lender who can answer all your questions and will keep you well-informed by being truthful to you in all aspects. Go with the one who is transparent in his conduct and will offer an honest helping hand to get you a reverse mortgage in Hawaii.

•    Is Your Company Reputed?

Dealing with finances demands utmost safety and trust. That is why it is important to pick some trusted firm to handle your money. A reputable company will not only save you from falling prey to scam artists but will also manage your finances effectively. So, research as much as you can before hiring reverse mortgage lenders in Hawaii. Your right pick will definitely make getting a reverse mortgage in Hawaii simple and easy.

Must Read : A Deeper Insight Into Hawaii Reverse Mortgage

•    How Efficient Is Your Chosen Company? Can They Provide You All The Info You Need?

While planning to get Hawaii reverse mortgage, make sure your hired reverse mortgage lenders in Hawaii are able to provide you all the information that you need to know about the reverse mortgage. They should not charge you for any info that you could otherwise get for free, they should be capable of making you understand all the terms and conditions properly.
So for great results, just keep these questions in mind before applying for a reverse mortgage in Hawaii.

Reverse Mortgage Hawaii : Feature, Pros and Cons

Most of us cherish a lifetime motive to own a home, which generally materializes being in an active economic pursuit. We have heard a lot about reverse mortgage Hawaii on television, internet or from friends but we are not pretty sure about what exactly it is.

What is Reverse Mortgage?

Numerous seniors wind up with a constrained pay, however a lot of value in their homes. A reverse mortgage Hawaii is a tool that permits you to remove the value from your home without selling it or make payments. Like the name suggests, a reverse mortgage honolulu or Hawaii is the invert of a customary home loan. The estimation of your home is separated into value and obligation. With a conventional home loan you make installments on your advance to the bank every month, expanding your value and diminishing your obligation. In the end, if you remain in the home, you will claim it without a worry in the world.

Features of Reverse Mortgage Hawaii

• It is intended for property holders matured over 60 years. If the life partner is a co-candidate, then there is a base age prerequisite for both co-candidates.
• The candidate must be the proprietor of the house to be sold, with clear titles and no question. Numerous banks may require confirmation that the property is the essential private address of the candidate. If the candidate moves out of this house, the bank should be educated.
• The most extreme credit sum raised can be up to 60% of the market estimation of the property and the greatest home loan term by and large is 15 years, however a few banks are presently offering 20 year terms.

Must Read : What to Look for Reverse Mortgage Lenders Hawaii?

• The advance gets to be expected when the last surviving borrower kicks the bucket or offers the house. The bank gives a choice to the legitimate beneficiary to settle the credit inside a given day and age, falling flat which the loan amount is settled by auctioning off the property.
• Foreclosure of reverse mortgage Honolulu or Hawaii is additionally permitted in the event that the candidate does not wish to proceed with it.

Pros of Reverse Mortgage

• Reverse home loan is the ideal budgetary solution for senior subjects who remain alone with no sort of money related support.
• If the candidate is remaining in a property that he wouldn’t like to sell for reasons unknown, then this is the main method for getting money related support.

Read More : How a Reverse Mortgage Distinguish From a Conventional Mortgage?

• There is additionally an alternative of single amount installment to the candidate rather than month to month or quarterly premise, to deal with sudden needs. The residency choices are likewise adaptable.
• The sum got through reverse mortgage Honolulu is completely tax exempt.

Cons of Reverse Mortgage

• HECM credit adjusts increments after some time. .
• Fees can be higher than a customary home loan.
• Initial FHA Mortgage Insurance Premium.
• Annual FHA Mortgage Insurance Premium.
• Loan start charge might be higher than traditional home loans.
In order to avail the best reverse mortgage in Hawaii, you need to find professional reverse mortgage lenders Hawaii.

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

How to Choose a Reputed Reverse Mortgage Lender???

If you are considering a reverse mortgage than you should also consider which reverse mortgage lender you must use. Not all lenders are the same and this applies to reverse mortgage lenders Hawaii as well.

Of course you want to get the lowest rate and the lowest closing costs. And you want to get the type of reverse mortgage that best suits your needs. You also want the loan to close quickly. There are several good choices available that service all of Hawaii. Many seniors in Hawaii have taken advantage of the opportunity to get a reverse mortgage to help keep them afloat financially.

Must Read : Reverse Mortgage as a Useful Retiree Tool

No matter what reverse mortgage lender in Hawaii that you choose you should know that reverse mortgages are fully regulated by the federal banking regulations.

CHOOSING A LENDER

A great place to start is with the bank you are currently banking with. You can easily get the information that you need from your local bank however do not be surprised if your bank does not offer this service. If your bank does not offer reverse mortgages then your next step is to look at lenders in Hawaii that specialize in reverse mortgages and are committed to offer award-winning customer service.

DIFFERENT THAN A HOME EQUITY LINE OF CREDIT (HELOC)

Most lenders offer home equity loans which is a different way to get money out of the equity in your home. A reverse mortgage is a loan that you borrow against the equity but do not have to pay back until you sell or until the last owner passes on. A home equity line of credit on the other hand requires a monthly payment.

SPEAK TO THE LENDER

Once you have narrowed down your choices speak to the different lenders to see what they have to offer. Ask what type of documents you will need and how long the process takes so that you can make an informed decision as to which lender is best for your needs.

A reverse mortgage is an ideal way to quickly raise funds and build a financial cushion for your retirement. Reverse mortgage lenders Hawaii can help you to realize your financial dreams!

For more information and for a free, no-obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution. You can reach him directly at (808) 945-3000 on Oahu; or Toll Free at 888-532-5642 on the Outer Islands.

What to Look for Reverse Mortgage Lenders Hawaii???

In this article, we will take a closer look at the ways in which a reverse mortgage can help you to fund your retirement, as well as how you can select the best reverse mortgage lender in your area.

Guaranteed Reverse Mortgages in Hawaii

One of the more popular forms of reverse mortgages is the Home Equity Conversion Mortgage (HECM), which is the only mortgage type insured by the Federal government. FHA insures the loan and sets guidelines that every lender must follow in order to protect the senior homeowner. There are 4 ways you can receive the cash, in a lump sum, a line of credit, a monthly payment you receive instead of make or a combination of these.

Other Types of Reverse Mortgage

There are other kinds of reverse mortgage available, such as the proprietary reverse mortgage. Majority of reverse mortgages are provided by some financial institutions and major banks. The cash amount that you will receive is free of taxation, the same as is any reverse mortgage, and can be spent in any way you see fit. However, these mortgages are usually for “jumbo” loan amounts (over $625,000) and are by far the most expensive, as they charge much higher fees and interest.

Must Read : Reverse Mortgages with Aloha Mortgage Solutions

Experience Counts

One of the things that you should do before you sign any documents relating to a reverse mortgage is to make sure that you are dealing with a bona fide, experienced local company. There are many good and honest reverse mortgage lenders in Hawaii, but there are also plenty of inexperienced ones as well, so make sure that you check them out thoroughly, including references–otherwise it could cost you unnecessarily long closing times and expenses.

Read More : Top 6 Things Every Family Member Should Know

In Conclusion

A lot more people are considering the benefits of a Hawaii reverse mortgage as it is one way of getting their hands on much needed cash and supplementing there retirement income…without having to make a monthly mortgage payment every month. The repayment of a reverse mortgage does not fall due until the home is either sold, or the last remaining homeowner either passes on or moves permanently into a care home.

For more information and for a Free, No-Obligation quote, contact Daniel Nicolosi at Harbor Financial Group – Your Aloha Mortgage Solution. You can reach him directly at (808) 945-3000 on Oahu; or Toll Free at 888-532-5642 on the Outer Islands.