Hello, Fellow Community Members!
As you may know, I love meeting with members of our community and learning more about them and what their passions may be.
I recently had the pleasure of sitting down with Alan Garceau, the Marketing Director of Eric S. Peterson and Associates in Ellenton, FL where they say, “Let us put the GOLD in your GOLDEN YEARS”. Though they offer a number of financial products, I really wanted to focus on the concept of Reverse Mortgages. This presented an educational opportunity for myself as well as our community. This opportunity will also help me to dispel the untruth that you lose your home when you enter into a Reverse Mortgage.
Learning About Reverse Mortgages
Alan is truly is passionate about Reverse Mortgages because he considers providing them as giving gifts to our seniors. If you are at least 62 years old of age and own and live in your principal residence, you could get a Reverse Mortgage. What truly allows a Reverse Mortgage to work is that when your home is sold, the proceeds will pay off the Reverse Mortgage loan amount plus interest. If for some reason your home loses value during the loan term, not to worry: it is federally insured so you or your family never have to come out of pocket. Note: If your principal residence is a condo or a townhouse, it will likely not be eligible for a Reverse Mortgage unless it is FHA approved. Mobile homes may qualify if the land is owned and the home is FHA approved.
Why would you consider a Reverse Mortgage? If you've considered our services (senior home care), buying a new car, taking a dream vacation, or remodeling & updating your home, a Reverse Mortgage could be a great option for you! Alan shared with me a touching story about a gentleman in our community that was always stressed and in a bad mood because he was always concerned about having funds available to pay for his day to day expenses. This affected his relationships with both family and friends because he was always unpleasant to be around. A Reverse Mortgage allowed this gentleman additional monthly income, which led to him now living a much happier life and more outgoing lifestyle.
With a Reverse Mortgage, depending on your age you can typically get between 60% to 70% of the value of the home. You will have two options in terms of the payout of the loan for the Reverse Mortgage: 60% the first year and 40% the second year -OR- a monthly payment plan. Federal Law requires that you have one hour of counseling with a certified financial planner. A list of certified financial planners is provided by the federal government. The one-hour counseling session costs $125. The closing costs are going to be about the same as a conventional mortgage. With a Reverse Mortgage, you still own your home and are responsible for the taxes and insurance.
Let's take an example of a Reverse Mortgage situation:
Home Value: $300,000
Reverse Mortgage @ 60% of the home value: $180,000
The payout for the Reverse Mortgage can be done in one of two ways:
60% of $180,000 paid out at beginning of the 1st year
40% of $180,000 paid out at beginning of the 2nd year
Monthly payment plan
Here's the beauty of a Reverse Mortgage in this situation: if in two years you passed away, you owe the $180,000 plus interest. If the house sells for 300,000, it will pay off the loan and the remainder will go to the estate. If the house sells for less than what you owe, you never have to pay because the Reverse Mortgage is federally insured.
If you have questions or would like to learn more about Reverse Mortgages, please contact my friend, Alan Garceau, Marketing Director with Eric S. Peterson & Associates or Patti Garceau, Mortgage Broker, or Eric Peterson, Mortgage Broker. They’d be more than happy to hear from you!
Alan Garceau, Patti Garceau, Eric Peterson
Eric S. Peterson & Associates
7018 US Hwy. 301 N.
Ellenton, FL 34222
Thanks for reading our blog. At Home Helpers of Bradenton, we look to not only make life easier but to also make a difference in our clients’ lives. It is truly an honor to have an opportunity to work with members of our community and we take the trust bestowed to us very seriously.
Contact Home Helpers of Bradenton, FL for care for your Senior Care needs
For information about how Home Helpers of Bradenton can serve you and your family, call 941-999-1960, email JMarsh@HomeHelpersHomeCare.com or visit Home Care for Seniors Bradenton FL - Home Helpers. Our senior home care services including homemaker care, companion care, personal care, Alzheimer's and dementia care, respite care, 24 hour care & live-in care, and monitoring and medical alert services are available in Manatee County and Sarasota County in and around the communities of Anna Maria, Bradenton, Bradenton Beach, Ellenton, Holmes Beach, Lakewood Ranch, Longboat Key, Myakka City, Palmetto, Parrish, and Sarasota. Our main office is located at 4230 59th St W, Ste C, Bradenton, FL 34209.