Issue link: https://www.ifoldsflip.com/i/960198
8 WHO'S WHO IN REAL ESTATE FRIDAY, MARCH 30, 2018 SANTA CRUZ SENTINEL W e're not in Kansas anymore! Our Real-estate in Santa Cruz has an impressive track record for increasing in value over time; probably the strongest asset most of us have. The loan amounts available from a Reverse Mortgage are very conservative and not even half the value of an average home in Santa Cruz. Because of our high home values, the remaining home equity can grow faster than the cost of the loan over time. This can mean that the remaining equity for Legacy may be higher in later years than it is when the loan started. Let's use an average home valued at $750,000 for this example. Using a fixed interest rate of 4.5% and an annual appreciation rate of just 4% we can demonstrate that one of the biggest fears about a reverse mortgage is just not true for Santa Cruz Real-estate. Remember that all the Remaining Equity and all Future Equity belongs to the Homeowner. In this example a 70 year old borrower would receive approximately a $201,000 using a fixed rate plan. Higher loan amounts are available using the adjustable program, but let's be conservative here. After normal loan closing costs and mortgage insurance the homeowner would have over $181,000 to add to their retirement plan or to be used for any anything such as paying off all debt, medical expenses or increasing their monthly spendable budget and with no monthly payment. After the loan funds the homeowner would have $548,900 in home equity remaining for legacy. But here is the surprise. At the 4% annual appreciation in total home value, the equity remaining for legacy in the home after 10 years would have increased to $779,000! That's more than the home value to start with. The Senior Homeowner benefits by having access to some of their home equity to improve the quality of their retirement years and the legacy left behind has increased as well. Now that's an example of having Your Cake AND Eating It Too! There are many options available with the Home Equity Conversion Mortgage and many ways to structure a more comfortable retirement. Donald Dimitruk is a Registered Financial Consultant® and a Registered Mortgage Advisor and is available for a FREE consultation about how a Reverse Mortgage may benefit you at Countryside Financial Services. 831- 464-6464 Serving Santa Cruz for 40 years! can a reverse mortgage improve the quality of my retirement and secure a legacy for my children? by Donald Dimitruk, RFC®, RMA BIGSTOCK.COM