Many Older Adults Plan to Age in Place, But Only 34% Are Confident They Can Afford It (2023 Study)

Key Findings

• Close to 36% of aging adults would be willing to move for a more affordable cost of living, while 34% say nothing would entice them to leave their current homes.
• Regarding ambitions to age in place, most adults are concerned about performing day-to-day activities (37%), loneliness (35%) and being able to afford at-home care (27%).
• Aging in place is easier in some areas than others: Corpus Christi, TX, Spokane, WA, and Amarillo, TX are the top three best cities to age in place.
• Across the two most popular retirement states, Florida and Arizona, only two cities rank in the top 30 to age in place: Fort Lauderdale, FL (No. 11) and Cape Coral, FL (No. 20).

Staying Independent Is a Top Priority For 48% of Aging Adults

Although research has shown that older adults who live in retirement communities are happier (and often healthier) than those who don’t, the majority still wish to age in place. Why is that?

Source: Many Older Adults Plan to Age in Place, But Only 34% Are Confident They Can Afford It (2023 Study)

Reverse Mortgage Specialist™ James Spray | CO LMO 100008715 | NMLS 257365 |

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give full attribution to James Spray.

Misconceptions thwart successful retirements | Pacific Coast Business Times

Just The Facts

“…Home equity is the largest asset of American families. Both retirees and their financial advisers may not understand that a reverse mortgage is a retirement strategy. The Home Equity Conversion Mortgage is the Federal Housing Administration’s reverse mortgage program that allows qualified retirees to stay in their own home by withdrawing some of the home equity. My study found that it improved 10 percent of the couples’ households and 9 percent of singles’ households in California. In California, 64 percent of couples’ households and 53 percent of singles’ households are eligible for HECM.”

Source: Misconceptions thwart successful retirements | Pacific Coast Business Times

 

 

Financially Speaking™ James Spray, RMLO | CO LMO 100008715 | NMLS 257365 | February 18, 2020

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct for your situation. This information is not legal advice and is for guidance only. You may reproduce this information in whole and not in part, providing you give full attribution to James Spray.

If my spouse dies or moves to a nursing home, what happens with my reverse mortgage?

It will depend on whether you and your spouse are co-borrowers on the reverse mortgage loan, and when the loan was made.

Most reverse mortgages are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Under the rules governing HECMs, if you live with a spouse, it is a good idea to make your spouse a co-borrower when you apply for a HECM if you both meet the qualifying age of 62. If you are a co-borrower, you can continue living in the home even if your spouse dies or moves out to a nursing home. A surviving co-borrower can also receive money from the loan.

Sometimes, only one of the spouses is listed as a borrower on the loan. For example, one spouse might not have been 62 yet, and would not have been qualified to be a HECM reverse mortgage borrower. In that situation, what happens to a surviving non-borrowing spouse depends the timing of the HECM.

Any HECM loans with case numbers assigned on or after August 4, 2014, allow eligible non-borrowing spouses to remain in the home after the borrower dies if they meet certain initial and ongoing requirements. To qualify as an “eligible non-borrowing spouse,” you must:

https://www.consumerfinance.gov/ask-cfpb/what-happens-with-my-reverse-mortgage-if-my-spouse-dies-en-241/

Financially Speaking™ James Spray, CNE, FICO Pro | CO LMO 100008715 | NMLS 257365 | May 13, 2019

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only.

What Are the Costs of Aging in Place?

According to an AARP study, 90 percent of people age 65 and over would prefer to stay in their own homes as they get older — and not go to a nursing home or assisted living facility.

But if you or your parents are buying, building or renovating a home to accommodate the needs of a loved one, what kind of costs can you expect to incur?

Source: What Are the Costs of Aging in Place?

Financially Speaking™ James Spray RMLO, CNE, FICO Pro | CO LMO 100008715 | NMLS 257365 | August 17, 2018

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct for your situation. This information is not legal advice and is for guidance only. You may reproduce this information in whole and not in part, providing you give full attribution to James Spray.

JUMBO Reverse Mortgage Facts

JUMBO Reverse Mortgage Facts

• Borrower(s) minimum age of 62
• SFR and 2-unit properties – minimum loan amount $850,000.00
• Condos valued over $500K – spot approval on a case-by-case basis if not FHA approved
• Maximum loan amount is $4 million
• No upfront or monthly mortgage insurance premium
• Mandatory Counseling required – specified agencies only
• Available for both refinance and purchase transactions
• Financial Assessment underwrite performed on all applicants

Examples by Age and Purchase Price of the Proprietary Purchase Reverse Mortgage

SFR & 2-Unit | Purchase Price	Age	Down Payment	HomeSafe® Proceeds
$ 850,000 (Min)	62	$ 589,594	$ 260,406
	74	493,799	356,201
	80	445,342	404,658
	88	389,674	460,326
$4,000,000 (Max)	62	$2,841,978	$1,158,022
	74	2,419,353	1,580,647
	80	2,206,203	1,739,797
	88	1,959,978	2,040,022
Condominium
$500,000 (Min) $4M (Max)	62	$ 372,490	$   127,510
	74	316,140	183,860
	80	287,720	212,280
	88	254,890	245,110

These examples are for illustration purposes only.

• The borrower(s) may retain up to four additional FINANCED properties
• New-builds must have the Certificate of Occupancy issued prior to closing

This Proprietary Purchase Reverse Mortgage is not associated with the FHA reverse mortgage (HECM) program

NOTICE: This is not an offer to extend credit

Financially Speaking™ James Spray MLO| CO LMO 100008715 | NMLS 257365 | April 9, 2018 | Copyright 2018

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct for your situation. This information is not legal advice and is for guidance only. You may reproduce this information in whole and not in part, providing you give full attribution to James Spray.

National Elder Abuse Resources and Colorado Financial Elder Abuse Mandatory Reporting Law

Elderly folks tend to be more trusting and less informed of the latest scams, making them the perfect target. To learn more about elder abuse, on the national level, two great resources are the National Committee for the Prevention of Elder Abuse and the National Center on Elder Abuse.

In Colorado, there is the Colorado Coalition for Elder Rights and Abuse Prevention.

As well, Colorado has a mandatory reporting law (including financial abuse) for certain categories of professionals and other workers.

Sadly, it is all too common where a family member is committing financial abuse of a parent, grandparent or other senior family member.

While it is encouraged that reporters of elder financial abuse contact local law enforcement, we’ve learned many local law enforcement agencies are unaware of the Colorado financial elder abuse law and are not trained on how to deal with it.

To report elder abuse in Colorado, the first option is to contact the Adult Protective Services (APS) intake office within the county department of human services were the at-risk adult lives. Click anywhere in this sentence for a current list of phone numbers to report elder abuse.

If reporting to the county APS office is not a viable option, contact the District Attorney’s office for the county in which the at-risk adult lives.

Image attribution

Financially Speaking™ James Spray RMLO, CNE, FICO Pro | CO LMO 100008715 | NMLS 257365 |August 26, 2017

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give full attribution to James Spray.

Do you prefer a ReLOC or HELOC? – Tools for Retirement Planning

Tom Davidson has written and illustrated a great article which I believe you will enjoy reading. Here are the first few paragraphs which lead into the link to his thoughtful presentation:

“HELOCs (Home Equity Lines of Credit) are widely used. Simply having one makes many people more comfortable. My wife and I had a standby HELOC for many years – ready to use as a convenience or in an emergency. Luckily that emergency never happened, but we felt well prepared knowing we had ready access to a substantial amount of cash that could be used for anything we needed. When I was a financial advisor, a HELOC was on my checklist to discuss with every client – at least those who were prudent with their money.

ReLOC: A Retirees Line of Credit

Is there a better alternative for homeowners over age 62?  A ReLOC may be a far better choice for many retirees. ReLOC is a nickname that stands for either Retirees Line of Credit or Reverse Mortgage Line of Credit. While ReLOCs share many features with HELOCs, three unique features make a ReLOC a line of credit designed for retirees:

1. The amount you can access grows every month
2. You don’t have to make payments until you permanently leave your home
3. The loan can’t be canceled, reduced, or frozen as long as you keep up with basic mortgage obligations (property tax, homeowner’s insurance, basic maintenance, and Homeowner’s Association dues).

Here’s the borrowing limits for a ReLOC and a HELOC for a 63-year-old in a $400,000 house who lives to age 99:”

Source: Do you prefer a ReLOC or HELOC? – Tools for Retirement Planning

Don’t Risk Your Credit Score In Retirement – WBRC FOX6 News – Birmingham, AL

Cancelling infrequently used credit cards may seem like a good strategy, but your credit score may be adversely affected. Adam Carroll, Founder and Chief Education Officer of National Financial Educators, explains: “When you have a long-standing trade line, which is what a credit card is considered on your credit report, and you cancel that card for whatever reason, your score will actually go down as a result because one of the main impacts on your credit score is the length of credit history.” A shorter credit history translates to higher risk in the eyes of lenders.

Sean McQuay, Credit and Banking Expert at NerdWallet, agrees but includes another reason to keep older cards, noting that closing a card account results in “decreasing your overall credit line, which basically signals that a bank trusts you less.”

In addition to decreasing your overall credit line, closing an infrequently used account raises your credit utilization your total credit in use compared to your cumulative credit line. High credit utilization suggests a greater chance of falling behind on payments and/or defaulting on debts.

To avoid these pitfalls, make periodic small purchases on all your open credit cards to keep them active and pay the balances in full at the end of each billing period. By keeping credit spending low, you can still address debts while getting the full benefits of your credit account.

It’s okay to concentrate most of your credit spending in one account to maximize rewards. Just use alternate accounts often enough to keep them from being closed for lack of activity.

Source: Don’t Risk Your Credit Score In Retirement – WBRC FOX6 News – Birmingham, AL

Reverse Mortgages For Every Income Bracket

In the terrific, brief article posted below, wealth manager Tom Davison provides clear understanding of the usefulness for reverse mortgages in every income bracket.

I encourage everyone with any interest whatsoever in wealth management to invest a few minutes and read Davison’s great blog post, reblogged below.

Reverse Mortgages: Many Users, Many Uses

Image attribution: Tools for Retirement Planning

Notice: The information provided is not intended to be an indication of loan approval or a commitment to lend. Additional program guidelines may apply. Information is subject to change without notice.

Disclaimer: This article does not represent that any of the information provided is approved by HUD or FHA or any US Government Agency.

Financially Speaking™ James Spray RMLO | CO LMO 100008715 | NMLS 257365 | June 21, 2017

The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only.

A Reverse Mortgage to Buy a Home? Here’s How – WSJ

With a home-equity conversion mortgage, seniors can finance the purchase of a new home without monthly payments

Source: A Reverse Mortgage to Buy a Home? Here’s How – WSJ