Category Archives: Active Adult Living Financial Tips

Are You a Senior Seeking a Job After Retirement?

When Time is at Hand After Retirement, How do You Find another Job?

Retirement may be all exciting in its early stages. However, it can get boring when you have nothing but time on your hands. This may prompt the thought of returning to work, at least on a part-time basis. Are you seeking re-entrance to the workforce, now that you have thoroughly enjoyed some time in retirement? If so, there are a few factors that you should consider before applying for a job.

Parkside by Schell Brothers

Awarded Community of the Year, Parkside by Schell Brothers, located in the Appoquinimink School District, is nestled around a picturesque town park and community center where neighbors become your friends.

Innovative street designs feature charming walkways that invite you outside to visit a friend, walk the dog, or head to the community clubhouse that includes a pool, tennis courts, and playground. We have a variety of floorplans that include single-level, 2nd-floor owner’s suites, tons of storage, open kitchen and great rooms, and private courtyards. Some of our homesites also offer you the option to include a basement.

Best of all, all of our new homes In Parkside include Schellter™ Advanced Building Science Technology, delivering high performance and healthy living. You’ll love the comfort, durability and the savings that our energy efficient new homes provide.

Make A Will Month

64% of Americans don’t have a will. Rocket Lawyer is trying to fix this big gap and bring awareness to the importance of having your will in place. This August, Make A Will Month allows you to create a will for only $10 on Rocket Lawyer’s site. The process for creating a will take less than 30 minutes. You can save, print, edit, and download your document, and we’ll keep it safe in your secure online account so you can access it whenever you need it.

If you’re looking to complete your entire estate planning, it could cost between $1,000-$2,500 if done by an attorney. The process could also take up to two weeks to be finalized. By becoming a Rocket Lawyer member, for as little as $39.95/month, you can complete your entire estate plan, including a power of attorney, living trust, memorial plan and more. You have the ability to do it for yourself as well as your entire family. Plus, you can consult with local lawyers and have your documents reviewed at no extra charge. With Rocket Lawyer, you can cancel your membership anytime you’d like, and reactive it if you need to make changes to your estate plan down the line.

Get your estate planning completed during Make A Will Month, so you can save time, money and much needed sleep. Having this to do crossed off the list will allow you and your family to rest easy at night.

The 411 on Applying for an HECM Loan

Part IIIYou’re 62, and have substantial equity in your home to tap into, but may be wondering where to go from here? Once you’ve satisfied the eligibility requirements for an HECM, and found a lender that will help set your financial goals into action, it’s time to apply for your loan.  We’ve learned how a Home Equity Conversion Mortgage can benefit home owners by eliminating their mortgage payment, offers a variety of disbursement options, and frees up funds for a vacation, savings, etc.  Planning ahead, and mapping your financial forecast is step one in the loan process.

In the last two segments of this HECM series, we covered the basics, and many of the nuances associated with this type of loan. An education in HECM is first, and foremost, and hopefully this series as well as advice from your lender will help you make a more informed decision.

To submit your application, you will be required to complete a counseling session by a HUD approved counselor and these certificates cost from $125 to $200.  They will sit down with you either face to face or telephone to discuss the legalities, and obligations of an HECM, evaluating your unique situation to ensure this type of loan is the right option for you. The more questions the better, so ask away! To find a HUD counselor in your area visit http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmlist

After you’ve completed your application, and you receive an estimated loan cost, it’s appraisal time to find out how much equity you have to work with, and ultimately determine the amount of your loan. The appraiser must be FHA approved, and they will evaluate for any major defects, to ensure your home is structurally sound. Serious issues such as a roof leak will need to be addressed before moving forward.

You’ll be required to carry three forms of insurance.  A home hazard policy which you should already have as home owner, federally mandated government insurance that ensures that what must be repaid won’t exceed your home’s value, and title insurance, one that is required to protect the lender, with the option of title insurance to protect you as the borrower.

Once you’ve decided how you’ll receive your loan proceeds, and you’ve signed the closing documents, you’ll have three days to back out should you choose to cancel the mortgage.

An HECM can be a wonderful way to take advantage of your home’s value, and enjoy your hard earned retirement with money in the bank.  Talk to a lender today, to find out if an HECM is right for you, and get your financial game plan rolling.

The Advantages of Choosing a HECM Loan

So you’re considering a Home Equity Conversion mortgage, aka. HECM, and may be wondering if you qualify, or what you might do with money. A trip to Tahiti? Pay off debt? Last time we discussed the fundamentals of an HECM, and how it compares to a traditional mortgage. In this second installment, we’ll get into eligibility requirements, and ways this loan could benefit your financial future.

The basic qualifiers when applying for an HECM, are you must be 62 or better, and own your home as a primary residence as well as having an ample amount of equity. But what if you live in a condo or manufactured home? Aside from Co-Ops which are ineligible, condominiums, and manufactured homes approved by the U.S Department of Housing and Urban Development (HUD), 1-4 unit homes, and some land lease properties qualify for an HECM.

Can you apply if you already have a mortgage? If you don’t own your home outright, most folks considering an HECM already have a traditional loan that must be paid off by the proceeds of the HECM. This is where having enough equity comes in because you want there to be enough to cover the remaining loan balance, plus what you may be putting cash back in your pocket.

What are the benefits of an HECM? The best part about this type of loan, is your house is still your own without having a mortgage payment. Without that big chunk of change going out every month, it leaves money to perhaps tackle a renovation project, buy that Italian leather sofa you’ve been eyeing, or add to your nest egg.

The money you borrow from your home’s equity is not considered taxable income by the IRS, and can be used as you wish. As a federally insured loan, your heirs aren’t held liable for repayment even when the home sells for less than the loan amount.

An HECM can be of great help for older adults trying to achieve financial security. There are options to how you receive the money from your home’s equity. You can choose to take it as a lump sum, use it as a line of credit, receive a monthly payment for a set period, or a tenure that pays you monthly for as long as you or any other owners reside in your home. Needing a down payment for a purchase? HECM funds can also be issued as an advance along with monthly income payments.

Once you decide that an HECM is the way to go, shopping for a lender you feel comfortable working with is crucial. Don’t settle if it doesn’t feel right! Before you sign the dotted line, tune in next time where we’ll take a guided tour of the application process.

HECM vs. Traditional Mortgage 101

In this series, we’ll be exploring the ins and outs of a Home Equity Conversion Mortgage or HECM as the pros call it. Find out how it compares to a traditional mortgage, how to qualify, and the benefits of going this route. From application to closing, learn how to make your home work for you, and get the most out of your retirement years!

Sounding a bit like hi-tech medical equipment, the HECM acronym translates to a Home Equity Conversion Mortgage. The basic idea of this loan is the ability to either replace the existing loan and/or borrow against the existing equity in your home, and not make a payment until you no longer occupy the home as your primary residence, sell the home, or the last homeowner has passed away. Unlike a traditional mortgage where you will pay the piper until the end of the loan term, an HECM provides the option to receive a monthly tax free disbursement from the loan proceeds.

Qualifying for a traditional mortgage requires a decent credit score, and proof of sufficient income to make the monthly payments. With a HECM loan, income, and credit is reviewed for the minimum required to cover expenses such insurance, HOA fees, and property taxes.

In a reverse mortgage scenario, the loan balance increases over time whereas a traditional home loan balance is paid down each month. Ultimately the more equity you have in your home, and the less you owe on your current mortgage the greater the payout will be on your HECM loan.

Jumbo Reverse Mortgage? The big sister to the FHA reverse mortgage loan, a Jumbo Reverse Mortgage allows folks in higher priced homes to tap into a greater amount of equity than what traditional HECM loans are limited to. For more information, visit https://www.aag.com/news/aag-introduces-jumbo-reverse-mortgage-loan

If you’re on the fence about whether to go traditional or HECM, next week we’ll delve into eligibility requirements, and how a reverse mortgage could benefit you.

Sun City Hilton Head by Del Webb

This Del Webb community is nestled in the heart of South Carolina’s Treasured Coast and is home to Sun City Hilton Head, where the natural beauty of the Low country coexists with world-class amenities and inviting destinations. At this Del Webb community you don’t just buy a home, you become part of a vibrant, active and growing community where you will meet new friends and enjoy first-class amenities, clubs and activities. Also, the Del Webb communities of Hilton Head Island, Beaufort, and Savannah are just a short drive away. This Del Webb community offers an impressive 5,200-acre which offers the choices in homes, neighborhoods and lifestyles that are as unique as you.

You can find more information on this Del Webb community by clicking here.

How to Reduce Expenses in Retirement

Many seniors find it very difficult to manage with the fixed income they have in retirement. This makes a significant impact on how they live during their golden years. If you are worried about your cost of living, during retirement, here are some ways you can reduce expenses in retirement.