Reverse Mortgage - Debbie Cooley Mortgage

TAKE A SECOND TO BREATH

Debra Cooley-Guy — Wed, 01 May 2024 17:28:27 +0000

Access Equity with No Additional Monthly Mortgage Payments Required*

HomeSafe Second is a new fixed-rate reverse loan that allows you to tap into your home equity via a second mortgage. There is no additional monthly payment requirement and no change to the interest rate on your first mortgage, for example you have a first mortgage at 2.9% you would want to keep and not refinance at today’s higher rates.

HomeSafe Second is for people who need to:

• Consolidate high-interest credit card debt

• Cover rising costs at the pump and the grocery store

• Fund long-term care, medical expenses, or emergencies

• Pay off an existing 2nd mortgage

How it works: You need to be 62 years or older. HomeSafe Second loans you a portion of your home equity via a second mortgage. There are no additional monthly mortgage payments required until you leave your home, stop paying property charges, or do not meet the terms of the loan.

Contact Debbie Cooley-Guy at Innovative Mortgage for more information. 727-688-2851 NMLS 210817

DebbieCooleyMortgage.com NMLS 836635 Equal Housing Lender

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Reverse Mortgages for Home Healthcare: Leveraging Your Home Equity

Debra Cooley-Guy — Thu, 21 Sep 2023 15:09:56 +0000

Affording home healthcare can be a significant financial burden, especially for seniors who don’t want to deplete their investment accounts. Imagine being a 70-year-old woman dealing with the challenges of multiple sclerosis (MS), owning a $900,000 home free and clear, and having it listed for sale. The looming costs of real estate commissions, closing expenses, and capital gains taxes can seem daunting. However, in this article, we’ll explore an alternative solution: the use of a reverse mortgage to access home equity and ensure that seniors like our hypothetical woman can stay in their homes while covering the costs of much-needed home health care.

Reverse Mortgages for Home Healthcare: The Dilemma of a 70-Year-Old Woman with MS

A recent client of Debbie Cooley Mortgage, let’s call her Sarah, found herself in a challenging situation. Her MS had progressed to a point where she required regular home healthcare. To cover these expenses, she had initially decided to sell her $900,000 home. However, after discussing her options with her accountant and reviewing the potential costs involved, including real estate commissions, closing costs, and capital gains taxes, Sarah began to reconsider her decision.

The Reverse Mortgage Solution to Home Healthcare

With the prospect of selling her home seeming less attractive due to the financial implications, Sarah began exploring alternative options. One of these was a reverse mortgage. A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into tax-free cash without having to sell the property. For someone like Sarah, this presented a lifeline.

By tapping into her home equity through a reverse mortgage, Sarah could access a source of funds that would enable her to stay in her cherished home while comfortably affording the home health care services she needed. This decision provided her with the financial freedom she required during this critical phase of her life.

The Role of Financial Planners and Mortgage Experts: Rever

Navigating the complexities of reverse mortgages, especially in the context of financing home health care, can be challenging. That’s where professionals like Debbie at Debbie Cooley Mortgage come into play. Debbie was able to connect with Sarah’s accountant and financial planner to create a comprehensive financial strategy.

Debbie explained the intricacies of a reverse mortgage and how it could help Sarah not only save money on taxes and other fees but also access the necessary funds to cover her home health care expenses. This collaboration between financial planners, mortgage experts, and accountants ensured that Sarah’s financial well-being was safeguarded while allowing her to remain in her home.

Your Path to Financial Freedom that Includes Home Healthcare

If you or a loved one find yourselves facing a similar situation, where home healthcare expenses seem overwhelming, it’s essential to explore all available options. Reverse mortgages, when used wisely, can provide a secure source of funds to support your needs without the burden of selling your home.

To learn more about how you can leverage your home equity to pay for home health care and receive personalized guidance, reach out to Debbie at Debbie Cooley Mortgage, 727-688-2851, and take the first step toward securing your financial future while ensuring you or your loved ones receive the care they deserve.

The financial challenges associated with affording home health care can be alleviated through creative solutions like reverse mortgages. By working with knowledgeable professionals and exploring all available options, individuals like Sarah can retain their independence, stay in their homes, and ensure they receive the care they need without depleting their investment accounts.

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REVERSE MORTGAGE USED FOR DREAM HOME PURCHASE

Debra Cooley-Guy — Mon, 11 Sep 2023 22:18:20 +0000

Reverse Mortgage is a strategic tool that allows adults 62 and over to increase their buying power for the purchase of their new dream home while eliminating required monthly mortgage payments.

Move closer to family and loved ones
Buy on the beach, the golf course, or wherever your dreams take you
Downsize to reduce cleaning and maintenance needs
Increase buying power for a home previously out of reach
Eliminate your monthly mortgage payments
Improve cash flow and preserve savings
Heirs not personally responsible for the loan balance

Learn how Reverse for Purchase can elevate your home-buying opportunities.

Call Debbie Cooley-Guy at 727-688-2851

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

The post REVERSE MORTGAGE USED FOR DREAM HOME PURCHASE first appeared on Debbie Cooley Mortgage.

WHY MORE FINANCIAL ADVISORS ARE RECOMMENDING REVERSE MORTGAGES

Debra Cooley-Guy — Fri, 14 Jul 2023 15:18:30 +0000

Over several decades, reverse mortgages have gone through an evolution of policy and legislative changes that incorporate key protections for borrowers. Thanks to improved regulations and education and a changing financial landscape, these financial tools, once considered questionable by many financial advisors, are now getting a second look.

Here’s what financial advisors see in reverse mortgages that have made them change their minds and start recommending them to their clients.

Safer Than Ever

In the past, multiple factors, including terms that didn’t advantage the borrower, consumer confusion, and a lack of guide rails, led to a poor reputation in the financial community that has been difficult to shake. However, over the past thirty years, multiple safeguards have been implemented to ensure these loans are not used improperly and that borrowers benefit. Here are some of the most notable changes.

Government-insured. In 1987 the Federal Housing Authority (FHA) passed legislation to insure home equity conversion (HECM) mortgages. This legislation also made reverse mortgages non-recourse.
Increased transparency. Later legislation required lenders to reveal the total annual costs of a reverse mortgage loan.
Borrower education. Since 1998, all reverse mortgage borrowers have been required to participate in third-party counseling to ensure they understand reverse mortgage obligations.
Lender awareness. Lenders must conduct a financial assessment before offering a reverse mortgage to determine if a homeowner can keep up with home maintenance costs, property taxes, and home association dues.
Limited available equity. Before 2013, borrowers were allowed to take 100% of their proceeds at closing. Current legislation mandates that borrowers can take out only 60% of available funds during the first year.

Client Needs Are Changing

One possible reason for the change in financial advisors’ attitudes toward reverse mortgages is a changing client profile that necessitates finding alternate ways of funding retirement.

Retirement-aged Americans are holding historically high amounts of equity, while at the same time, many people in the same group are lagging in retirement savings and planning. Many financial advisors see an avenue for closing retirement planning gaps in that excess equity. Reverse mortgages offer a safe way of tapping that equity while remaining in their homes.

Not only do reverse mortgages remove monthly mortgage payments, offering retirees the benefit of increased cash flow, but their flexible payout options support a range of strategies that financial advisors can tailor to their client’s individual needs and financial situations.

4 Ways Financial Advisors Are Using Reverse Mortgages for Their Clients

As financial advisors begin to understand the flexibility and opportunities reverse mortgages offer their clients, they are finding more ways of leveraging them to their client’s advantage. The following are some of the ways financial advisors are using reverse mortgages as part of larger retirement strategies:

Fund a Roth-IRA Conversion

Converting a traditional IRA to a Roth IRA is a common strategy that requires paying taxes on the existing account balance. Retirees whose portfolios would benefit from a Roth-IRA conversion but don’t have the necessary funds to pay the taxes may use non-taxable reverse mortgage proceeds to pay for the conversion.

Hedge Against Future Risks

A reverse mortgage line of credit functions differently than a HELOC. Once established, the unutilized credit amount grows over time and cannot be canceled as long as the borrower upholds the terms of their loan. Unused credit is not charged interest. This line of credit offers future borrowing power when and if the borrower needs it. During downturns in an investment portfolio, a retiree can access available capital anytime.

Preserve Current Investment Portfolio

Market fluctuations are bound to happen, but a retiree can preserve an investment portfolio with loan proceeds from a reverse mortgage. Using proceeds as an income alternative, retirees retain the benefit of watching their portfolio grow. The retiree leaves the portfolio alone, allowing it to rebound with the market potentially.

Allow Retirees to Age in Place

Having a reverse mortgage is a feasible option to allow retirees to age in place. Retirees can use their homes as assets and leverage the equity to skip monthly payments, use loan proceeds for daily expenses, or fund necessary renovations.

The Reverse Mortgage Recommendation Catch-22

As reverse mortgages help more and more people achieve their financial goals, their reputation continues to improve. But because financial advisors are keen to protect the interests of their clients, many have been slow to even investigate reverse mortgages as a possibility. Without the input of their financial advisors, many people who could benefit don’t learn about opportunities they may have for using their equity to their advantage. This reverse mortgage Catch-22 is slowly correcting itself as the industry’s reputation improves.

If you think a reverse mortgage might help you and your financial advisor hasn’t brought it up, ask! You may be opening a door of possibility for yourself and others who find themselves in a similar situation.

This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a

reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional. To find out how to use your home equity to live your best life call Debbie Cooley-Guy at 727-688-2851.

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

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Demystifying Reverse Mortgages

Debra Cooley-Guy — Fri, 05 May 2023 19:17:29 +0000

Reverse mortgages have been around for decades, but there are still many misconceptions and myths surrounding this financial product. A reverse mortgage is a type of home equity loan that allows homeowners who are 62 years or older to convert a portion of their home’s equity into cash. Unfortunately, these misconceptions and myths have prevented many seniors from considering a reverse mortgage as a viable option. In this blog, we will address some of the most common reverse mortgage myths.

Myth #1: The lender will own the home.

One of the most common reverse mortgage myths is that the lender will own the borrower’s home. This is not true. The borrower retains ownership of the home and must continue to pay property taxes, and homeowners insurance, and maintain the property.

Myth #2: The heirs will be responsible for the loan repayment.

Another common myth is that the borrower’s heirs will be responsible for repaying the loan. However, the reverse mortgage is a non-recourse loan, which means that the borrower or their estate will never owe more than the value of the home at the time of repayment. If the loan balance exceeds the home’s value, the lender absorbs the loss, and the borrower or their heirs are not responsible for the difference.

Myth #3: Only people with financial difficulties get a reverse mortgage.

Many people believe that only those with financial difficulties get a reverse mortgage, but this is not true. Many people use a reverse mortgage as a financial planning tool to supplement their retirement income or pay for unexpected expenses.

Myth #4: The borrower cannot sell the home after getting a reverse mortgage.

This is also not true. The borrower can sell the home at any time and use the proceeds to repay the reverse mortgage. Any remaining equity after the loan repayment is theirs to keep or pass on to their heirs.

Myth #5: The borrower can owe more than the home is worth.

As mentioned earlier, a reverse mortgage is a non-recourse loan, which means that the borrower or their estate will never owe more than the value of the home at the time of repayment. This is one of the most important protections of a reverse mortgage.

Reverse mortgages can be a valuable financial tool for seniors looking to supplement their retirement income or pay for unexpected expenses. However, it’s important to do your research and understand the facts before making a decision. Debbie @ Debbie Cooley Mortgage is available for a free consultation or call Debbie 727-688-2851

#ReverseMortgage #DebbieCooleyMortgage #HECM #SeniorHousing #FinancialFreedom

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

The post Demystifying Reverse Mortgages first appeared on Debbie Cooley Mortgage.

How a Reverse Mortgage can help seniors purchase a home.

Debra Cooley-Guy — Mon, 03 Apr 2023 17:03:37 +0000

A reverse mortgage can be a useful financial tool for seniors looking to purchase a home. It allows individuals to use the equity in their current home to obtain a loan for the purchase of a new home without requiring monthly mortgage payments. When seniors are looking to downsize by selling one home and purchasing another one they may find the need for a little extra cash. One option for obtaining a reverse mortgage. Some seniors don’t realize the benefits of using a Reverse mortgage for purchases.

Expertise and Experience

Debbie Cooley Mortgage has been in business for over 20 years and has extensive experience in the reverse mortgage industry. Their team of experts can guide you through the process and answer any questions you may have.

Flexibility

The HECM for Purchase program allows seniors to purchase a home with a reverse mortgage, without having to make monthly mortgage payments. This can be particularly beneficial for those on a fixed income.

No Income or Credit Requirements

A reverse mortgage does not require income-to-debt ratios, unlike traditional mortgages. This can be particularly helpful for seniors who may not meet traditional lending requirements.

Access to Equity

A reverse mortgage allows seniors to access the equity in their current home to purchase a new home. This can be particularly helpful for those who have built up equity over time.

Financial Freedom

A reverse mortgage can provide financial freedom and security for seniors, allowing them to purchase a new home without worrying about making monthly mortgage payments. This can be particularly beneficial for those on a fixed income who may have limited funds.

In conclusion, using Debbie Cooley Mortgage for a reverse mortgage to purchase a home can be a smart financial decision for seniors. With their expertise and experience in the reverse mortgage industry, seniors can be confident in purchasing a new home and enjoy the financial freedom that comes with it.

#ReverseMortgage #DebbieCooleyMortgage #HECM #SeniorHousing #FinancialFreedom

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

The post How a Reverse Mortgage can help seniors purchase a home. first appeared on Debbie Cooley Mortgage.

Guide to Reverse Mortgage for Children and their heirs

Debra Cooley-Guy — Wed, 01 Mar 2023 13:53:32 +0000

When heirs learn about a reverse mortgage after losing a loved one, they may not appreciate the many benefits their parents received. In addition, they may have some confusion about their responsibilities and what will happen with the loan next. This guide is to help children and heirs navigate a reverse mortgage once their loved one has passed away. Here, we address the processes surrounding a home equity conversion mortgage (HECM) or federally guaranteed mortgage.

Why Did Your Parents Take a Reverse Mortgage?

Ideally, when parents take out a reverse mortgage, they share that information with their children and heirs. Those talks might focus on the purpose of a reverse mortgage, the terms of the loan, and what heirs and children need to do should they want to keep the house after the last surviving borrower passes away.

Often, however, parents don’t discuss their financial decisions with their children. Hopefully, the borrower left loan details with all other important financial documents for their heirs in these cases. But even if they receive proper documentation, heirs who were unaware that their parents had taken a reverse mortgage may feel disappointed and confused.

If your parent took a reverse mortgage without informing you, it can be helpful to understand that people take reverse mortgages for a variety of reasons, including achieving financial flexibility that otherwise might not have been possible.

With a reverse mortgage, the equity they have built up in their home over many years can offer a needed source of income or an avenue to continue living in a home they love. In some instances, a reverse mortgage allows people to remain financially independent in their later years.

Though it can seem selfish, parents often take a reverse mortgage to avoid placing a financial burden on their adult children. Everyone’s situation and motivations are different, but looking at the terms of the reverse mortgage can help you contextualize the benefits your parent and even you received in the transaction. It can be painful to realize you will not receive something you believed you would, but perhaps even more painful is imagining what your parents’ and your life might have been like if it had not been available.

What Happens After the Last Borrower’s Death

Once the last borrower on a reverse mortgage dies, the loan becomes due and payable. This sounds very harsh and final, but it does not mean heirs are required to come up with the money immediately or at all. It does, however, set in motion a chain of actions that will lead to the termination of the loan.

Heirs have up to 12 months to repay the loan balance from the date of the borrower’s death. In certain cases, an extension may be granted. Still, it is usually in your best interest to pay the loan back as soon as possible because interest continues to accrue on the balance until the loan has been paid. Any additional equity still in the home will be diminished the longer the heirs avoid taking action.

One of the first actions to take when heirs learn about a reverse mortgage is to contact the loan servicer to inform them of the last borrower’s passing. The heirs should give the loan servicer the will and any court documents giving them authority to deal with the home. After providing this documentation, heirs can also request an estimated payoff to determine the amount of equity remaining in the home.

A Reverse Mortgage Timeline

The following timeline is what heirs can expect after a reverse mortgage comes due.

30 days. The lender will send a due and payable notice to the estate within 30 days of receiving a notice of death. This notice will contain information on how heirs can proceed and the eligibility requirements of any extension periods. The wording of this letter may seem harsh, but lenders are required to follow specific FHA guidelines and verbiage.
60 days. Heirs must obtain an appraisal of the home no later than 30 days after the due and payable notice is sent. An appraisal is not required if the home is sold and the loan is paid in full. There is also flexibility on this timeline if heirs provide evidence that the home is listed to be sold.
2 – 6 months. A decision needs to be made about selling the home, or how the heirs will satisfy the loan requirements.
6 months. Lenders may start foreclosure on the home if no actions have been taken to repay the loan. Again, this is in the case that heirs have not contacted the servicer, or otherwise made their intentions for the loan clear.

Regardless of where they are in the decision-making process, it is a good idea to maintain constant communication with the servicer. If children or heirs are not making any attempt to sell the property or repay the loan and haven’t requested an extension, FHA guidelines require the servicer to foreclose on the home.

Debbie Cooley-Guy is an excellent resource for any of your mortgage needs from the first-time home buyer to the last mortgage of a lifetime. Call Debbie @ 727-688-2851

for a free consultation.

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

#reversemortgage #seniorliving #Financialfreedom #aginginplace #equityrelease #independentliving

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Debbie Cooley-Guy Knows the Trinity Reverse Mortgage Market

Debra Cooley-Guy — Wed, 08 Feb 2023 18:19:28 +0000

Debbie Cooley-Guy is a knowledgeable Loan Originator at Debbie Cooley Mortgage, a branch of Innovative Mortgage she has extensive experience working with clients in the Trinity, Florida area. She understands the unique characteristics of the Trinity community and how Reverse Mortgages can be an excellent option for its residents. Especially since the downturn in the stock market. Rather than pull money from their portfolio in a down market seniors can use the equity in their homes and wait for the stock market to rebound.

Unique Characteristics of the Trinity Community

Trinity is a vibrant community in the heart of Florida’s Nature Coast. It’s known for its scenic beauty, friendly neighborhoods, and close proximity to the Gulf of Mexico. The community has a strong sense of community spirit and a thriving cultural scene, which includes a wide variety of outdoor recreational activities, dining options, and cultural events.

Reverse Mortgages in Trinity

Reverse Mortgages can be a fantastic option for people who live in Trinity. As homeowners in the community reach retirement age, they often find themselves with much equity in their homes, but with limited monthly income. A Reverse Mortgage can provide them with a way to access that equity and use it to supplement their monthly income, pay off existing debts, or make home improvements.

With a Reverse Mortgage, the homeowner borrows against the value of their home and receives the funds as a lump sum, a line of credit, or a series of monthly payments. The loan doesn’t need to be repaid until the homeowner sells the home, moves out, or passes away. This means that the homeowner can enjoy the benefits of their equity without having to worry about making monthly mortgage payments.

Why Choose Debbie Cooley for Your Reverse Mortgage Needs – The Trinity Expert

Debbie Cooley-Guy has the expertise and experience needed to help homeowners in the Trinity area navigate the Reverse Mortgage process. She understands the unique characteristics of the Trinity market and can help you find the best solution to meet your financial needs. Debbie processes the loan from start to finish, which means you don’t have to talk to multiple people during the loan process.

If you’re interested in learning more about how a Reverse Mortgage could work for you, contact Debbie Cooley at Debbie Cooley Mortgage. You can reach her at 727-688-2851 or visit her website at https://www.debbiecooleymortgage.com/. Debbie will provide you with the guidance and support you need to make informed decisions about your financial future.

#reversemortgage#Seniors#nomortgagepayments

Debbie Cooley Mortgage | NMLS #836635

Debbie Cooley Guy, Loan Originator NMLS #210817

Equal Housing Lender

The post Debbie Cooley-Guy Knows the Trinity Reverse Mortgage Market first appeared on Debbie Cooley Mortgage.

IMPROVE RETIREMENT WITH NO MONTHLY MORTGAGE PAYMENTS

Debra Cooley-Guy — Thu, 02 Feb 2023 21:14:18 +0000

If you are 62+ *** homeowner, a reverse mortgage can free up your monthly cash flow and improve retirement.

Get access to your home equity, stay in the house you love, or use those funds to purchase a new one.

Use proceeds to pay off the existing forward mortgage.

Make home renovations, pay off other debt, fund in-home care, or travel the world,

Get Tax-free proceeds with No monthly mortgage payments required.

Rest easy knowing your heirs are never personally responsible for the loan.

Provide a living inheritance and help pay for children’s homes or grandkid’s college tuition,

If you have been turned down for a reverse mortgage in the past, you may be eligible now.

Call today to find out how you can retire with no monthly mortgage payments 727-688-2851.

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THINKING ABOUT A REVERSE MORTGAGE?

Debra Cooley-Guy — Fri, 20 Jan 2023 17:59:06 +0000

GET A REVIEW OF ANY DOCUMENTS YOU MAY HAVE ALREADY RECEIVED

Reverse mortgages can be a confusing process, especially for senior citizens who may be unfamiliar with the paperwork involved. If you are struggling to understand your reverse mortgage documents or are not receiving the level of service you deserve, Debbie Cooley Mortgage is here to help.

Why Choose Debbie Cooley Mortgage for Reverse Mortgage Paperwork Reviews

Experienced professional: Debbie has been in the industry for years and has the knowledge and expertise to guide you through the process.
Personalized service: Debbie offers free reverse mortgage reviews and will take the time to understand your unique financial situation.
Comprehensive review: Debbie will review every aspect of your reverse mortgage documents, including the margin of the loan, the value of your home, and any closing costs or fees.

How Debbie Cooley Mortgage Can Help With Reverse Mortgage Paperwork

Margin of the loan: The margin is the amount added to the index rate, which determines the interest rate on your loan. Debbie will make sure that the margin on your loan is in line with the current market, helping you to save money on monthly payments and overall loan costs.
Value of your home: Many people rely on the tax value of their home to determine its worth, but this is not always the most accurate measure. Debbie uses various techniques to determine the actual value of your home, ensuring that you are getting a fair deal.
Closing costs and fees: Debbie will carefully review any closing costs or fees associated with your reverse mortgage, ensuring that you are not being overcharged.
Increasing your line of credit: Debbie will explore ways to increase your line of credit, if possible, providing you with additional financial flexibility.

Conclusion:

Don’t let confusing paperwork stand in the way of your financial security. Contact Debbie Cooley Mortgage today at 727-688-2851 to schedule a free reverse mortgage review and get the help you need.

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