Yes, it’s about taxes and when you sell off assets for living expenses, you deal wisely or unwisely with your decisions. The government wants your money now.
Using home equity to subsidize lagging income in retirement avoids those issues. Cash from home equity is not taxed, and you can spend it on anything you choose.
So, you are at least 62, have a bunch of home equity and need to downsize. Too many bedrooms to clean, way more than enough bathrooms, stairways to climb — just too much maintenance and you’re tired of it. It’s just too much to do now.
Here’s a HECM idea to consider. Sell your home, get rid of a mortgage and the payments month after month, put the remaining proceeds in a line of credit that earns monthly income instead of monthly costs to use it.
How to “Pensionize” Any IRA or 401(k) Plan STANFORD CENTER ON LONGEVITY Steve Vernon, FSA Research Scholar Stanford Center on Longevity svernon@stanford.edu November 2017 —
These questions began to nag at me when I started replacing employers’ defined benefit (DB) plans with DC plans in the late 1980s in my role as a consulting actuary working in the private sector. Over the next two decades, I transitioned more than 20 DB plans. All that time, the above questions continued to haunt me. When replacing defined benefit plans with defined contribution plans, it may not have been a good idea to ask ordinary workers to be their own investment manager and actuary.
November 1, 2016
WASHINGTON (November 1, 2016) – The National Reverse Mortgage Lenders Association applauds the Federal Housing Administration today for insuring more than one million reverse mortgages through its Home Equity Conversion Mortgage program, which was first created 27 years ago. FHA endorsed 3,919 loans in October 2016, which brings the total number of older homeowners who have benefitted from FHA-backed reverse mortgages to 1,002,679.
Just to submit support to the Yuma Sun for printing the information on Tuesday explaining the HECM loan for those interested in using some of their home equity without repayment in their lifetime. The article is accurate and can be used to inform seniors about this great program. No lender will claim title to your home in the Reverse Mortgage process.
Since many Reverse Mortgage lenders refuse to refinance manufactured homes, it is necessary to report that we are happy to do most of them, singles, doubles and triples. The HECM HUD standards include mobiles all the way down to June, 1976 after which manufacturing was overseen by HUD government standards, so there is a wide envelope for refinances here at Patriot Lending USA. Yes, there are some complications in complying with foundation standards and often, upgrading (tiedowns) is required to make them compliant. No payments on this mortgage required in your lifetime as long as you live there as your primary home, pay taxes and insurance and maintain the home.
A MANUFACTURED HOME (FORMERLY KNOWN AS A MOBILE HOME) IS BUILT TO THE MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS (HUD CODE) AND DISPLAYS A RED CERTIFICATION LABEL ON THE EXTERIOR OF EACH TRANSPORTABLE SECTION. MANUFACTURED HOMES ARE BUILT IN THE CONTROLLED ENVIRONMENT OF A MANUFACTURING PLANT AND ARE TRANSPORTED IN ONE OR MORE SECTIONS ON A PERMANENT CHASSIS. Manufactured homes are considered for HECM refinance if constructed after June 15, 1976.
General Information About FHA Insured HECM posted on United States Federal Housing Association webpage for your review :
Reverse Mortgage was originally introduced in 1988 for homeowners, aged 62 and older.
Full Transcript of Steve Chen’s Interview with Bob Merton
Steve: Welcome to the 11th podcast for NewRetirement. Today, we’re going to be talking with Nobel Prize winner Robert Merton, a nationally recognized economist and professor at MIT about the retirement planning landscape, why do we face an impending crisis and what kinds of changes can materially improve retirement outcomes for people.