By: Duane Blankenship | Category: Financial Services | Issue: November 2007
Bill Simms, certified senior advisor, specializes in reverse mortgages.
Bill Simms is a Certified Senior Advisor and Reverse Mortgage Specialist. “Reverse mortgages are proven, safe products,” he says. “They keep senior homeowners, age 62 and older, in their homes while capitalizing on the equities of their homes.” A reverse mortgage can be used for any purpose, including the supplementation of retirement income, helping to fund healthcare, paying for home modifications, and even securing cash reserves.
While most people have probably heard about reverse mortgages, they may not know exactly how they work. Most people do not realize that reverse mortgages could be a good choice for themselves or for loved ones. Record numbers of seniors have discovered reverse mortgages to be a smart financial solution.
An individual’s home is probably his or her largest asset. Using its equity in a reverse mortgage requires serious thought. Simms understands his clients’ concerns and wants to make sure that a reverse mortgage is the best option. “Reverse mortgages may not be for all seniors, but they certainly do help a great many,” he says. Before committing to the plan, it is recommended and required for the homeowner to be guided by U.S. Department of Housing and Urban Development counselor. This is typically done over the phone at no cost. Counseling can help clients understand the program, and it provides the opportunity to review alternative options. During the course of a reverse mortgage, the flow of payments is reversed, and the lender actually pays the homeowner. Clients are, however, responsible for keeping up payments on homeowner’s insurance and property taxes, and they must keep the home in good repair. Seniors can stay in their homes, and the titles stay in their name. The proceeds from a reverse mortgage are nontaxable, but clients should check with their tax advisors.
At the conclusion of the reverse mortgage, the amount owed to the lender is repaid by the heirs selling the home. In no event will the repayment amount exceed the value of the home at the time the loan is due. If sales proceeds exceed the amount owed on the reverse mortgage at the time the home is sold, the excess money goes to the heirs.
One unique feature of the Home Equity Conversion Mortgage Program is the Mortgage Insurance Premium. This guarantees that if the company managing the account, commonly called the loan “servicer,” goes out of business, the government will step in and make sure the homeowner has continued access to his or her loan funds. In other words, the program is insured by the federal government.
A reverse mortgage could be an excellent financial planning tool to help enrich your retirement years. Bill Simms is dedicated to help homeowners get all the facts before making this important life decision. Give him a call today at (918) 693-8068.
Blankenship graduated from the University of Oklahoma and has enjoyed a lifetime career in advertising. He started his own advertising business in 1993 and enjoys creating graphic art and writing. Hobbies include hunting, fishing and pencil drawings. Duane and his wife, Janice, have been married over 50 years and are active in their church and community. He has been a contributing writer for Value News/Values Magazine since 2005.