How A Reverse Mortgage Can Help With Long-Term Care

How A Reverse Mortgage Can Help With Long-Term CareAnyone who has paid attention to the TV recently has likely seen a lot of commercials for something called a reverse mortgage. For those who might not know, a reverse mortgage is exactly that. In this option, people receive monthly payments from a lender in exchange for equity in their homes. In essence, this functions as an annuity.

One of the major benefits of a reverse mortgage is that it can be used to cover the costs associated with long-term care. Over the next few decades, the number of elderly individuals in the United States is projected to double. For this reason, long-term care is projected to become a major expense.

How Can A Reverse Mortgage Pay For Long-Term Care?

Long-term care is one of the biggest unexpected expenses encountered by the elderly. Often, coinsurance associated with a health insurance policy, combined with the lifetime caps on many policies, can shift significant medical costs to the individual. This leaves many elderly individuals looking for an immediate for some cash. Because many elderly individuals and families are on a fixed income, there are not a lot of options. 

This is where a reverse mortgage can come in handy. Many elderly individuals have paid off their houses entirely. This can act as an immediate source of equity, providing seniors with a much-needed cash infusion to cover the costs associated with long-term care.

Improving On Reverse Mortgages And Long-Term Care

With long-term care expected to become a bigger issue as a larger percentage of the US population reaches retirement, suggestions have been offered to address these costs. One of these suggestions has been to marry long-term care and reverse mortgages with improved social services.

Many experts have been suggesting ways to tie the equity in someone’s home to Medicare and Social Security. This could be used to create a nice safety net that might support seniors by covering the costs of long-term care. Given the stress that an unexpected medical expense can create, this can offer a much-needed respite for seniors and caregivers alike.

Taking Advantage Of A Reverse Mortgage

In the meantime, it is important for seniors to note that a reverse mortgage can offer an immediate cash infusion. This can be used to cover an unexpected cost, such as a medical bill. It will be interesting to see how reverse mortgages evolve in the future.

Call your trusted home financing professional with questions about a reverse mortgage or other options that are available in your situation.

What Does A Property Management Company Do?

What Does A Property Management Company DoFor those who are interested in learning more about real estate, property management companies are an important topic of discussion. Some people might not ever consider hiring a property management company.

Other people wouldn’t ever invest in real estate without a property management company to help them out along the way. This can be a hard decision for people to make. In order to figure out if hiring a management company is the right decision, it is important to think about what they do.

What Is Property Management?

It is the job of a management company to both maintain the quality of the residence while also keeping the occupants happy. Typically, the owner of the property will hire a third party to do this job. The management company then oversees the daily operations of everything that happens at the real estate property. 

This means that property managers respond to the concerns of the residents or tenants. If something goes wrong with one of the appliances, the property management company is typically the one who handles this issue.

If there is something wrong with one of the utilities, the management company handles this also. Parking problems are often handled by the manager as well. Property managers will also make sure that rent is collected on time.

Property managers are also busy while the property is vacant. The manager will make every effort possible to get the property filled if it is vacant. The manager will also make sure that the property is well-kept when it is empty. This means keeping it clean, updating appliances, fixing leaks, and other common issues that arise.   

Is A Property Manager Needed?

In order for someone to decide whether or not a property manager is needed, there are a few important considerations.

First, the more rental properties someone has, the more work will need to be done. It might be too much for one person to do on their own.

Next, think about how far away the property is. The farther away the property is, the harder it will be to keep an eye on it.

Finally, managing property is an active job. Those who intend to get into real estate as a form of passive income will want to hire someone else to handle this job.

Consider these questions carefully when thinking about property management companies.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

Is A 15 Or 30 Year Mortgage Right For You?

Is A 15 Or 30 Year Mortgage Right For YouWhen someone is looking to purchase a house, they need to think about how long they want their mortgage to last. While a bank can structure a mortgage to last for any number of years, the most common lengths are 15 and 30 years. While a 30-year mortgage is typically more affordable, a 15-year mortgage is cheaper overall. 

When someone is trying to decide how long they want their mortgage to last, there are a few important tips to keep in mind.

The Benefits Of A 15-Year Mortgage

There are a few important benefits that everyone should know about a 15-year mortgage. Some of the biggest benefits include:

  • With a 15-year mortgage, people are going to pay off their home more quickly. This will free up cash to spend in other places. Those who are looking to retire without a mortgage may want to go with a 15-year mortgage. 
  • Next, a 15-year mortgage is going to come with a lower interest rate. Because the bank is going to get their money back more quickly, they are going to reward the borrower with a lower interest rate. Overall, the bank is taking on less risk.
  • Finally, a 15-year mortgage is also going to be cheaper overall. With a lower interest rate and a loan that is paid off more quickly, the bank is going to take less of someone’s money over the life of the loan. 

The Benefits Of A 30-Year Mortgage

A 30-year mortgage has some notable differences when compared to a 15-year mortgage. There are a few important benefits that people need to remember. These include:

  • The monthly payments are going to lower. Those who are planning on paying for their children’s college education, or who envision a car payment in the near future, may want to have extra cash on hand to fund them.
  • As someone pays off their mortgage the interest paid on the loan is tax-deductible. Since more interest is paid on a 30-year mortgage, there will be greater tax savings as well. This means that people will get some of their money back.
  • Finally, a 30-year mortgage is also more flexible. During the loan, people may elect to make extra payments. This allows someone to pay off their home more quickly.

These are a few of the most important points people need to remember when trying to decide between a 15-year and 30-year mortgage.  As always, call your trusted home mortgage loan professional to discuss the options available for your personal situation.