One of the biggest concerns of seniors in Kansas City is having an emergency fund that they could easily tap if needed. Many feel it would give them additional security and more importantly peace of mind so they can sleep better at night.
What if there was a way to have an emergency fund or nest egg that is "GUARANTEED" to grow tax free every year? (The 20 year average growth rate is 6.54%) Would that give you the peace of mind to allow you to sleep better at night?
Imagine living your "Golden Years" without the stress of living with the "what if's" of life. What if I have a medical emergency? What if my car breaks down and needs major repairs? What if I need to make modifications to my house to allow me to continue living here? What if? I'm sure there are many more.
Assuming you had $100,000 currently available to you, if it grew at the 20 year average of 6.54% and you didn't need the money for 20 years you would have upwards of $368,000 available to you. Would that give you peace of mind?
The next question is where do I get the $100,000, right? Well chances are you are sitting on it. Your house! I know that's taboo to mess with the house, right?
So let's say you have a $180,000 house that appreciates at 3% a year and in 20 years you needed a bunch of money. The house would be worth $325,100 and who knows what the real estate market would be at that time so let's assume you would net 90% selling it. That's $292,590, but where would you live?
Where getting a $100,000 reverse mortgage letting it grow (assuming 6.54% 20 year average) you would have access to $368,000 vs. $292,590 or about $75,000 more money AND you could still live in your house for life with no payments.
Another option, if you could qualify for a loan, you could get maybe 80% of that $325,100 house that's $260,080, but you would have a HUGE payment to stay in the house (at 6% it would be $1,559.30). You could get a reverse mortgage at that time, but that amount would be less than any of the other options. Depending on guidelines at that time it wouldn't be any more than about 75% of the value minus closing costs.
So the "fall back" plan of using the equity in your house either through selling or getting a loan when you likely would have trouble qualifying and even more trouble making house payments gives you MUCH less than getting things set up right now. Bet you didn't know that did you?
Well, if you would like more information about the options involving Reverse Mortgages contact Kurt Jackson he is a Certified Mortgage Planner with more than 17 years of industry experience and would be happy to answer your questions about Reverse Mortgages. He even conducts a Free Seminar "Insider Secrets Revealed! The Truth about Reverse Mortgages: Is a Reverse Mortgage Right for You?" They are held every Thursday at 1:30PM at 12 Westwoods Drive in Liberty. Seating is Limited. Call for reservations at 816-415-1737 or email kurt@stayinyourhomekc.com.
Comments(0)