Arlene Friedman
Arizona Homeowner October | 2010
Associate Broker
Established & Recognized
REVERSE MORTGAGES: THE FACTS
So, what exactly is a reverse mortgage? Simply put, it’s a loan that allows homeowners aged 62 or older to tap into the equity that’s been built up in their home. The homeowners can then use the proceeds in a variety of ways – such as covering monthly living expenses, making improvements to the home or paying for prescriptions and healthcare. There are other important benefits as well: • The borrower continues to own and live in the home – even if one of the co-borrowers passes away. Of course, the homeowners must continue to pay property taxes, have homeowners insurance and maintain the home, but the proceeds from the reverse mortgage can be used to pay for these routine expenses. • No repayment is required until the borrower sells the house or does not live in the house for more than 12 months. When the house is sold, the loan is repaid along with accrued interest. If the borrower leaves the house for more than 12 months, such as for a stay at a nursing home facility, then the loan also becomes due. • There are no monthly payments required. Although there are monthly mortgage payments, interest accrues on the portion of the loan amount disbursed. And while the funds received from a reverse mortgage do not impact regular Social Security or Medicare benefits, certain needs-based benefits, such as Medicaid and Supplement Security Income (SSI) may be affected. Prospective borrowers should contact their tax professional about their specific situation. • A prospective borrower can still qualify, even if he or she is still paying on a conventional mortgage. The proceeds from reverse mortgage will be used to first pay off the existing mortgage. • Closing costs can be rolled into the reverse mortgage itself, so there’s no immediate financial impact to contend with. • Borrowers have a choice of how they receive their proceeds, based on their needs and preferences. They can choose: — A single lump sum payment — Monthly income for as long as they live in the home, or, if they prefer, for a specified period of time — A line of credit they can draw on as needed — Any combination of these options A reverse mortgage can make all the difference, and help you to live better today and be more prepared for the future. I’m here to answer your questions about buying and selling. I can offer you a free analysis of your home’s value as well as guide you to exceptional purchase opportunities. Please call and we can discuss your specific goals and how I can help you to achieve them.
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Metro Phoenix Population Projections MPA Avondale Buckeye Carefree Cave Creek Chandler County Areas El Mirage Fountain Hills Gila Bend Gila River Gilbert Glendale Goodyear Guadalupe Litchfield Park Mesa Paradise Valley Peoria Phoenix Queen Creek Salt River Scottsdale Surprise Tempe Tolleson Wickenburg Youngtown Total
Total Resident Population 2000 37,800 16,700 3,000 3,900 185,300 85,300 8,700 20,500 2,300 2,700 119,200 230,300 21,200 5,200 3,800 441,800 14,100 114,100 1,350,500 7,400 6,500 204,300 37,700 158,900 5,000 7,400 3,000 3,096,600
Total Resident Population 2010 82,100 58,600 4,000 5,100 260,000 92,900 29,700 24,700 2,800 3,200 202,800 290,400 61,300 5,200 7,000 537,900 15,200 160,800 1,700,300 18,900 7,400 253,100 115,200 176,400 6,100 7,700 5,400 4,134,400
If your home is currently listed, this is not a solicitation for that listing.
Total Resident Population 2030 161,400 380,600 4,900 12,900 288,600 138,000 33,100 30,700 17,800 5,200 290,500 312,200 330,400 5,600 14,200 647,800 15,900 253,400 2,187,500 88,100 7,500 292,700 395,500 196,700 6,300 16,000 6,600 6,140,000
Colin Powell’sRules
1. It ain’t as bad as you think. It will look better in the morning.
8. Check small things.
2. Get mad, then get over it.
10. Remain calm. Be kind.
4. It can be done!
• Associate Broker • Graduate Realtor Institute • Who’s Who in Residential Real Estate in North America • Lifetime Member Phoenix Board President’s Roundtable • Lifetime Member Scottsdale Board Million Dollar Club
Total Resident Population 2025 141,600 275,500 4,800 9,800 287,000 124,600 32,200 30,400 12,500 4,700 281,900 309,800 247,400 5,500 13,700 630,300 15,800 232,200 2,101,600 73,100 7,500 289,600 312,300 192,700 6,200 14,800 6,300 5,644,000
Source: Maricopa Association of Governments, Interim Projections
3. Avoid having your ego so close to your position that when your position fails, your ego goes with it.
Business: 480.998.0676 Cell: 602.549.9114 ArleneFriedman@cox.net
Total Resident Population 2020 122,500 153,400 4,800 5,800 286,600 109,900 31,400 30,400 6,000 4,200 280,300 308,100 161,100 5,500 13,700 617,800 15,700 206,600 2,022,500 58,300 7,500 287,300 213,300 189,200 6,200 10,000 6,200 5,164,100
5. Be careful what you choose, you may get it. 6. Don’t let adverse facts stand in the way of a good decision. 7. You can’t make someone else’s choices. You shouldn’t let someone else make yours.
9. Share credit. 11. Have a vision. 12. Be demanding. 13. Don’t take counsel of your fears and naysayers. 14. Perpetual optimism is a force multiplier. 15. You never know what you can get away with unless you try.
Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
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