News provided by Quicken Loans
One of the most confusing mortgages to much of the general public is the reverse mortgage. Lots of folks aren't sure what a reverse mortgage is, who qualifies, how to apply, and where to go to get information.
These are all great questions and here we'll explain how a reverse mortgage is different from regular mortgages and explore some of the pros and cons of reverse mortgages.
First, what exactly is a reverse mortgage?
A reverse mortgage is easier to understand if you compare it to a traditional mortgage or more accurately a "forward mortgage."
A forward mortgage is the kind of mortgage you've known about all of your life and it's what you use to buy a home. The way it works is simple - debt is created against your home when you receive the loan and you pay money to a lender (usually your monthly payment) to decrease that debt. As time goes on and you make monthly payments, your debt decreases and your equity in your home increases.
A reverse mortgage, on the other hand, works just the opposite. You receive money using the equity from your home and you don't have to make monthly payments. As time goes on, your debt increases and your equity decreases. The minimum age to qualify for a reverse mortgage is 62 years old.
The Pros of a Reverse Mortgage
The most obvious benefit is that no repayment of the reverse mortgage is required until you no longer occupy the home as your primary residence. And since no monthly mortgage payments are required, your income is not a qualifying factor for reverse mortgages!
If your loan balance increases, it can never exceed the value of your home since how much you get is a percentage based on the value of your home. This means you can never lose your house and you'll never owe more than what your home is worth at the time the loan is paid.
The money you receive is tax-free* and there is no debt left to your heirs or estate.
Proceeds from the loan are not considered income and therefore, will not affect Medicare, Social Security, Medicaid or Supplemental Security Income (SSI).
The Cons of a Reverse Mortgage
Reverse mortgages can never be on a second home or vacation home. It must be on your primary residence. Also, you may not rent out any part of your home.
If you need to borrow a large percentage, say 80% of your home's value, you would have to get a conventional "forward mortgage" since the amount you receive from a reverse mortgage is a percentage based on your age. So, for example, if you're 75 years old, you can only borrow 65% of the value of your home. To borrow as much as 80%, you'd have to be 90 years old.
Interest rates and costs may be higher than a conventional mortgage, which may offer more options.
Reverse mortgages are a great way for many seniors and retirees to supplement their income. As with all mortgages, the best program depends on your individual situation. You should always do as much research as you can to find out which loan is best for you.
* As always, please consult your tax advisor before you make any financial transactions that affect your taxes.
This article is reprinted by permission from Quicken Loans © 2008 Quicken Loans Inc. All rights reserved.
Sunday, April 13, 2008
Friday, March 28, 2008
Golf Carts a way of life in Retirement Community
Sun City Center Inspects, Registers Fleet Of Golf Carts
By STEVE KORNACKI
The Tampa Tribune
Published: March 27, 2008
SUN CITY CENTER - Traveling the streets of this retirement community near Manatee County is unlike driving anywhere else in the area. There are golf carts on the main roads, parked at the Winn-Dixie and sometimes even accidentally merging onto nearby Interstate 75. Hillsborough County sheriff's Deputy Rob Thornton says it's the only city in the county where electric and motorized carts are allowed to drive anywhere cars and trucks go during daylight hours.
"I love it," said Dick Follin, 69. "I go to the store and the bank with it -- everywhere in town -- and with fuel prices what they are, this is really nice."
Follin was among more than 500 people who had their carts inspected and registered Wednesday in the parking lot of Prince of Peace Catholic Church. Almost 1,700 carts were inspected during the three-day event, which was organized by the Sun City Center Security Patrol, assisted by the sheriff's office and civic organizations.
"The inspections are important," Thornton said. "But the big thing is the registration. Many of the carts look alike, and people don't realize that one key might be able to actually start any cart. People accidentally take off in the wrong carts. We also had 16 stolen last year. These registrations enable us to get the carts back to their proper owners."
He said The Villages, south of Ocala, is the only other place he knows of in Florida where state statute 316.2125 is in effect. Under that statute, municipalities can approve the driving of golf carts on regular roads - which Sun City Center did about 20 years ago.
More than 4,000 golf carts are registered in the community, which has a population of about 19,000.
"It's a good system and a good way to get around," said Richard Grant, 73. "I've driven a motorcycle for 57 years and that helps. You have to be real careful with the older people driving these carts around town. Some of them don't pay attention that well."
Like the person who drove a cart southbound in the northbound lanes of I-75, or the man with dementia who nearly made it to Apollo Beach on U.S. 41 in a golf cart. Thornton said accidents were avoided in both instances.
Carts can't enter highways and must cross busy State Road 674 at three designated intersections: Valley Forge-Kings Boulevard, Lake Towers Drive or Pebble Beach Boulevard.
Neither a driver's license nor insurance are required to drive a cart, but Thornton said both are encouraged. Carts must have rear-view mirrors, reflective warning devices front and back and adequate brakes and tires. Those items were checked Wednesday as well as horns, lights, turn signals and an understanding of proper hand signals. Carts also were checked to see they don't surpass the allowed 19 mph.
Vivian Kann, 72, informed Thornton that she didn't have a horn on her golf cart.
"Can you yell real loud?" he asked her. "Ahh," she said, laughing and waving him off. "They can't hear anything anyway."
Golf cart inspections and registrations can be arranged by calling Sun City Center Security Patrol at (813) 642-2020.
Reporter Steve Kornacki can be reached at (813) 731-8170 or skornacki@tampatrib.com.
By STEVE KORNACKI
The Tampa Tribune
Published: March 27, 2008
SUN CITY CENTER - Traveling the streets of this retirement community near Manatee County is unlike driving anywhere else in the area. There are golf carts on the main roads, parked at the Winn-Dixie and sometimes even accidentally merging onto nearby Interstate 75. Hillsborough County sheriff's Deputy Rob Thornton says it's the only city in the county where electric and motorized carts are allowed to drive anywhere cars and trucks go during daylight hours.
"I love it," said Dick Follin, 69. "I go to the store and the bank with it -- everywhere in town -- and with fuel prices what they are, this is really nice."
Follin was among more than 500 people who had their carts inspected and registered Wednesday in the parking lot of Prince of Peace Catholic Church. Almost 1,700 carts were inspected during the three-day event, which was organized by the Sun City Center Security Patrol, assisted by the sheriff's office and civic organizations.
"The inspections are important," Thornton said. "But the big thing is the registration. Many of the carts look alike, and people don't realize that one key might be able to actually start any cart. People accidentally take off in the wrong carts. We also had 16 stolen last year. These registrations enable us to get the carts back to their proper owners."
He said The Villages, south of Ocala, is the only other place he knows of in Florida where state statute 316.2125 is in effect. Under that statute, municipalities can approve the driving of golf carts on regular roads - which Sun City Center did about 20 years ago.
More than 4,000 golf carts are registered in the community, which has a population of about 19,000.
"It's a good system and a good way to get around," said Richard Grant, 73. "I've driven a motorcycle for 57 years and that helps. You have to be real careful with the older people driving these carts around town. Some of them don't pay attention that well."
Like the person who drove a cart southbound in the northbound lanes of I-75, or the man with dementia who nearly made it to Apollo Beach on U.S. 41 in a golf cart. Thornton said accidents were avoided in both instances.
Carts can't enter highways and must cross busy State Road 674 at three designated intersections: Valley Forge-Kings Boulevard, Lake Towers Drive or Pebble Beach Boulevard.
Neither a driver's license nor insurance are required to drive a cart, but Thornton said both are encouraged. Carts must have rear-view mirrors, reflective warning devices front and back and adequate brakes and tires. Those items were checked Wednesday as well as horns, lights, turn signals and an understanding of proper hand signals. Carts also were checked to see they don't surpass the allowed 19 mph.
Vivian Kann, 72, informed Thornton that she didn't have a horn on her golf cart.
"Can you yell real loud?" he asked her. "Ahh," she said, laughing and waving him off. "They can't hear anything anyway."
Golf cart inspections and registrations can be arranged by calling Sun City Center Security Patrol at (813) 642-2020.
Reporter Steve Kornacki can be reached at (813) 731-8170 or skornacki@tampatrib.com.
Thursday, March 20, 2008
Florida Retirement New Homes are Good Investment
New homes in Florida are those homes that have just recently been built either by a private contractor or by a large corporation as part of a wide-ranging set of new homes. These homes have never been lived in by another family or other type of resident. They are fully equipped with all the necessary add-ons you will need. Florida enjoys a booming real estate market as people flock to the state for recreation, picturesque cityscapes and fine weather. Florida is an ideal locale for a new home.
Florida offers a wide range of choices for dwelling, renting, investing, or even retirement requirements. Florida has a line of New Home communities that allow the choice of condos, villas or single family homes. Many people dream of living on the beach, and some dreams come true with the purchase of some of Florida's beach homes. Luxury homes are also available in Florida with the prices ranging from $2 to $7 million approximately.
Florida retirement communities have literally changed the definition of retirement. These are communities designed to cater to your retirement needs while you enjoy fun and recreation. The manufactured communities in Florida, with their theme parks, schools, shopping complexes, and all forms of recreation and leisure, are a very sought after option in the new homes market. These communities have a variety of home styles to offer. Some of the dealers in manufactured communities are Sherwood Fortes and Mid Florida Lakes Yacht club. Investment in Florida real estate is considered a sound move by many.
Central Florida Retirement Real Estate: http://mysuncountry.com/realestate
Article Source: http://EzineArticles.com/?expert=Jimmy_Sturo
Florida offers a wide range of choices for dwelling, renting, investing, or even retirement requirements. Florida has a line of New Home communities that allow the choice of condos, villas or single family homes. Many people dream of living on the beach, and some dreams come true with the purchase of some of Florida's beach homes. Luxury homes are also available in Florida with the prices ranging from $2 to $7 million approximately.
Florida retirement communities have literally changed the definition of retirement. These are communities designed to cater to your retirement needs while you enjoy fun and recreation. The manufactured communities in Florida, with their theme parks, schools, shopping complexes, and all forms of recreation and leisure, are a very sought after option in the new homes market. These communities have a variety of home styles to offer. Some of the dealers in manufactured communities are Sherwood Fortes and Mid Florida Lakes Yacht club. Investment in Florida real estate is considered a sound move by many.
Central Florida Retirement Real Estate: http://mysuncountry.com/realestate
Article Source: http://EzineArticles.com/?expert=Jimmy_Sturo
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