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Reverse mortgage age limit lowered to 55! Early retirement here we come! An exciting change to the JUMBO reverse product known as HOMESAFE has caused quite a stir in the Reverse Mortgage industry with the lowering of the age to qualify to 55. This is having a profound effect on retirement plans of many Baby Boomers and comes at a time when many are in the prime age zone for retirement. The JUMBO reverse program investors had already lowered the qualifying age from 62 to 60 quietly, with clear success and an enthusias- tic response from borrow- ers in the higher priced homes arena earlier this year. It is impossible to pay off a high balance mortgage with a stan- dard government HECM (Home Equity Conver- sion Mortgage) without bringing in cash to make up the difference. There are many instances that this does make sense because eliminating that monthly payment from the monthly expense does make retirement possible. The evolution of the Reverse Mortgage concept that first started back in the Reagan administration has built upon its success and acceptance by making changes that have been consumer friendly and fi- nancially beneficial to se- nior homeowners over the years. The government backed HECM program still has the minimum age to qualify at 62 but also does allow a younger spouse to participate in the loan and live in the home for the rest of their life with no mortgage payments as well. The JUMBO product was originally called the proprietary or private reverse mortgage and were used almost exclu- sively for high- dollar value homes. They were much more generous when first introduced but disappeared with the market crash of 2008-09. It wasn't until 2014 that the mortgage investor market recognized the demand for larger valued homes was underserved and that opportunity to fill that gap was at hand. At first homes had to be valued at 2 million and above to fit into the profile but as acceptance grew so did the investor's interest and more programs came into the market with many different draw options. More investors mean more aggressive products and innovations. Now, a JUMBO product with no PMI expense can fit into a majority of homes in Sant Cruz providing larger loan opportunities and better choices. The result is very good for the borrowers and offers flexibility for retirement in these fast-changing times. What does the extra 5 years mean in real terms to the consumer? Well, let's say that someone has a $900,000 mortgage on a 2-million-dollar home, fixed 30-year term that was taken out 5 years ago and has 25 years to go. If the rate is 5%, the month- ly payment is $4,811 or $57,736 per year. If they had to wait 5 years to get to the old qualifying age of 60 it would cost them $288,680 while waiting. With this new change they can keep that quarter of a million dollars in their pocket, add to their retire- ment fund and get ready for a better retirement. If their financial advisor promised them an average of 4% return (a standard rate of return in that world) the number would grow to $351,223 over those 5 years. Now this is something to consider as the world gets more com- plicated and more options come our way. Donald Dimitruk is a Registered Financial Con- sultant ® and a Registered Mortgage Advisor and is available for a FREE consultation about how a Reverse Mortgage may benefit you at 831-464- 6464 T H A N K S G I V I N G ACROSS 1. "If all ____ fails..." 5. *Male Thanksgiving bird 8. Yoko's last name 11. Indian restaurant bread 12. Carhop's carrier 13. *"Kiss the Cook" garment 15. Homer's "The Odyssey", e.g. 16. *Grandpa or Grandma, often 17. Moolah or dough 18. *Pilgrim's colony 20. Allah's cleric 21. Arranges into categories 22. Chance's genre 23. *"Plains, Trains and Automobiles" star 26. Woven containers 30. Kimono sash 31. Aristotle's school 34. Part of ideal 35. Hurricane feature, pl. 37. Comedian Schumer 38. Teen worry 39. Side of a ruler 40. Left over 42. *When will the guests be here?, acr. 43. Rejuvenate 45. Expression of agreement (2 words) 47. *What Turkey Trot participants did 48. Outdoor entertainment area 50. Messy substances 52. *It makes Thanksgiving wishes come true? 55. Half of diameter, pl. 56. Flu symptom 57. Accompanies relief 59. Leaves out 60. More than a talker? 61. Isaac's firstborn 62. Skin cyst 63. "____ my party, and I'll cry if I want too..." 64. Confederate or Union, e.g. DOWN 1. Compass dir. 2. Arctic native 3. Go yachting 4. Become enclosed in a cyst 5. Freshwater fish 6. Hop-drying kilns 7. *Pumpkin pie at the first Thanksgiving, e.g. 8. Sea World's performer 9. "Cheers" regular 10. Top seed 12. Like a rosebush 13. Spy name 14. *Kind of squash 19. Toils 22. Truck brand motto: "Guts. Glory. ____" 23. Lawn trimmer 24. Toe the line 25. Designs on lemur's tail 26. Purchases 27. #39 Across, pl. 28. T in Ferrari TR 29. Thai restaurant chicken staple 32. Elder's support 33. Flightless bird 36. *Thanksgiving football game host city since 1934 38. Impromptu 40. Big coffee holder 41. Choice word 44. Desert mirage 46. Makes less tight 48. Lace loop 49. "Angela's _____," memoir 50. *Raiders vs. Cowboys, e.g. 51. Scandinavian war god 52. Dry riverbed 53. Not final or absolute 54. Exclamation of surprise, archaic 55. Propel your boat! 58. Color wheel feature ANSWERS By Donald Dimitruk RFC ® RMA