With bad news hitting our air waves everyday all day long, it is
becoming more increasing for older citizens take matters into their
own hands, and not wait for things to change you must change them
yourself. So how do you make changes in your financial situation with
all of the downturn everywhere you turn? The problem that many are
facing around the country is what we can and can not do!
The Stock Market is now down 55% of its high and predicted to go
even lower so this is not the solution.
Pension funds and many investment funds are invested into the
markets and have lost a large portion of the principle balances.
(Down as much of 75%)
Real Estate values are down all over the country as much as 60% and
foreclosures are up 22% since the beginning of the year.
Fuel costs have gone down but the up cost that the higher prices
caused have not come back down.
Unemployment rates hit 8% and in some areas as much as 10% and is
expected to increase and stay that way for sometime to come.
So what can seniors and their families do to secure that their futures
aren’t heading totally in a downward tail spin. There are solutions
and steps that can be taken to alleviate some of the economic
pressures that maybe around for many of us for the rest of our lives.
Like I said this is unprecedented in history and there is no one who
has the answers or how to fix it. The one thing is sure we need to
look out for ourselves and as seniors we need to think about the last
place there maybe money available and that is the home.
Your home may not have the value it had four or five years ago which
by the way was over inflated in the first place so don’t think you
have lost something that shouldn’t have been there in the first place.
It was FAKE!
So what is the real value of your home and how is it determined.
If you purchased your home 30 years ago and you paid your home off,
the fact is your anticipated appreciation should have been between
3-5% per year. But when the market took off ad many people cash out
the equity in their homes with hope that they would sell their homes
or would be able to pay it off from their proceeds or gains. This did
not happen! In many cases they lost no only the interest but the
principle of the
Here is good way to look at the value of your home today!
What did you pay for the home originally!
Over the years you lived in the home so what did it cost you!
What would it cost you today to replace your home if you sold?
Take the original purchase price and multiply it out by the national
average that should have taken place which would be a national
average of 5%.
Once you have done this take the value and ad 10% for improvements
if you did any.
Now you should have the value that your home should have been
without the boom years .
If your home doubled in value you are ahead of the game, because not
only did you live in it all these years but you also received tax
benefits over the years that you paid for it.
Now that you know what the value should have been you can now take a
look at what the market says that your home is worth. By visiting a
number of websites out there that can give a pretty could idea of what
it is worth if you could sell it. The biggest word in the English
language is IF……
Now for the big answer to the senior who is struggling to make ends
meet and are thinking of where to go to get the money to live off of
for the rest of their lives.
The Reverse Mortgage is the answer for many people who are in need of
having funds to use for living until they leave this world. This
program not only provides you with money to live from, but also gives
you great flexibility.
In this program called Reverse Mortgage you are in complete control
over the funds that you receive, you have the option of taking all of
the money or setting up and monthly income or having a credit line for
One of the best parts of the program is that if you plan on living in
your home for the rest of your life you can literally freeze your home
value from going down any further, unlike if you take out a
In this program you are paying a Mortgage
to the Federal Government; too not only protect the lender but to
protect you and your heirs! The lender is protected should the home
value decline and the
balance which will increase over time the
insurance would make up the difference to cover the loss. For you the
or your heirs should the home value be less the loan balance at the
time the loan is going to be paid off the insurance would make up the
difference and your heirs or you would not have to worry about having
to come up with the money. In addition; none of your other assets such
as; investments, insurance proceeds or savings can be attached to pay
the loan off this is called a NON-RECOURSE LOAN.
So as you can see this is a very important issue for many seniors and
how they can make a Reverse