55+ Lifestyles / 55 Plus Lifestyles /
Elder Options / Retirement Options
Services We Provide:
When the time comes that you need to consider
selling your home, Tim Molony and Anna Morgan
are the ones to call (608-592-7306). We know how
important a decision like this can be for you.
There are many things to be consider, whether
they are financial or health, downsizing or just
moving closer to the children or medical facilities -
we will help you by giving you all the information
you need to make a comfortable and informed
decision.
We explain the services our company offers, the
benefits, and the negatives, all of the features, and
all of the pricing- we won't nickel and dime you all
along the way like some other flat fee programs.
Feel free to contact us for anything:
Call us at 608-592-7306 or our cell 608-445-8464
or email us at: molonyrealestate@yahoo.com.
Remember, a note will take longer, here is our
Address:
Molony Real Estate, LLC
PO Box 194
Lodi, WI 53555
We will come to your home or meet you anywhere
anytime at your convenience.
Just give us a call to start 608-592-7306.
Elder Options / Retirement Options
Services We Provide:
When the time comes that you need to consider
selling your home, Tim Molony and Anna Morgan
are the ones to call (608-592-7306). We know how
important a decision like this can be for you.
There are many things to be consider, whether
they are financial or health, downsizing or just
moving closer to the children or medical facilities -
we will help you by giving you all the information
you need to make a comfortable and informed
decision.
We explain the services our company offers, the
benefits, and the negatives, all of the features, and
all of the pricing- we won't nickel and dime you all
along the way like some other flat fee programs.
Feel free to contact us for anything:
 | Consulting | |
| Analysis | |
| Advice | |
| "REMEMBER THE ONLY DUMB QUESTION IS |
- THE ONE YOU NEVER ASK, SO PLEASE ASK!"
Call us at 608-592-7306 or our cell 608-445-8464
or email us at: molonyrealestate@yahoo.com.
Remember, a note will take longer, here is our
Address:
Molony Real Estate, LLC
PO Box 194
Lodi, WI 53555
We will come to your home or meet you anywhere
anytime at your convenience.
Just give us a call to start 608-592-7306.
REVERSE MORTGAGE - Not as good as the
Commercials say they are...
Reverse Mortgages = Elder Abuse
Dear Editor,
The most disgusting form of ELDER ABUSE is going on on TV and on the
radio right now. Adult Children are being encouraged to pressure their
Elderly Parents to give up all of their security in their homes by getting a
“Reverse Mortgage”.
“Need money for a down payment on your home?” “Have credit cards & bills
that you cannot payoff?” “Need money for your Child's College?” “Well, tell
YOUR parents that they can help you by taking out a loan on their already
paid for home! It’s called a “Reverse Mortgage and it was designed by the
Federal Government – so you know it’s safe!”
SAFE!!! Remember parents, the Federal Government designed the ARM’s
(Adjustable Rate Mortgages) too! These greedy thieves are encouraging
desperate adults to tap their parents dry without telling them the serious
pitfalls of the Reverse Mortgage. Remember, these are not your Local Bank
Tellers offering you these options. These players are an 800# and their
location is usually in Florida, Nevada, or boldly even a location not in the
United States. If your adult children need money and are being encouraged
to put the guilt trip on you – just remember when they were young and you
could have “saved money” by just renting an apartment to raise them
in…instead you saw the intelligence of owning to raise your children in a
home of your own, to grow equity for the future, to have a Safety Net after
retirement.
If you are still considering making the transaction, please ask yourself these
five questions before you sign on the dotted line:
5 QUESTIONS TO ASK BEFORE CONSIDERING A REVERSE MORTGAGE:
1) DO YOU REALLY NEED A REVERS MORTGAGE?
Why are you interested in these loans? What would you do with the money
you would get from one? Are the needs you intend to meet really worth the
high total cost of these loans? If you want to take a dream vacation, a
reverse mortgage is a very expensive way to pay for it. Investing the money
from these loans is an especially bad idea, because the loan is highly likely
to cost more than you could safely earn. If anyone is trying to sell you
something and recommending you use a reverse mortgage to pay for it, that’
s generally a good sign that you don’t need it and shouldn’t be buying it.
2) CAN YOU AFFORD A REVERSE MORTGAGE?
These loans are very expensive, and the amount you owe grows larger
every month. The younger you are when you take out a reverse mortgage,
the more the compound interest will grow, and the more you will owe. On
the other hand, due to high up-front costs, these loans can be especially
costly if you sell and move just a few years after taking one out.
3) CAN YOU AFFORD TO START USING UP YOUR HOME EQUITY NOW?
The more you use now, the less you will have later when you may need it
more, for example, to pay for future emergencies, health care needs, or
everyday living expenses. This is especially so if your needs suddenly grow
or your income does not keep pace with inflation. You may also need your
equity to pay for future home repairs or a move to assisted living. If you are
not facing a financial emergency now, then consider postponing a reverse
mortgage. Homeowners who decide to wait have “a reasonable expectation
of securing a better product at a lower cost in the not-too-distant future,”
according to a report by the Fidelity Research Institute.
4) DO YOU HAVE LESS COSTLY OPTIONS?
Do you have other financial resources that you could use instead of taking
out a loan? If you don’t, and if you could easily make the monthly
repayments on a home equity loan or home equity line-of-credit, these
alternatives are much less costly than a reverse mortgage. Many state and
local governments offer very low-cost loans for paying your property taxes
or making home repairs. Have you seriously looked into the costs and
benefits of selling your home and moving to a less expensive
one?
5) DO YOU FULLY UNDERSTAND HOW THESE LOANS WORK?
Reverse mortgages are quite different from any other loans, and the risks
to borrowers are unique. Before considering one, you need to do your
homework carefully and thoroughly.
I just wished that my friend up north would have done so before she lost
everything she saved so long to have
(Oh, and the kids didn’t use the money as they promised they would - and
now they still have nothing). Sometimes tough love is the only answer – I
believe that financial counseling for the adult kids would have saved them
all from financial devastation.
Sincerely,
Anna Morgan
608-592-7306
PO Box 194
Lodi, WI 53555
Commercials say they are...
Reverse Mortgages = Elder Abuse
Dear Editor,
The most disgusting form of ELDER ABUSE is going on on TV and on the
radio right now. Adult Children are being encouraged to pressure their
Elderly Parents to give up all of their security in their homes by getting a
“Reverse Mortgage”.
“Need money for a down payment on your home?” “Have credit cards & bills
that you cannot payoff?” “Need money for your Child's College?” “Well, tell
YOUR parents that they can help you by taking out a loan on their already
paid for home! It’s called a “Reverse Mortgage and it was designed by the
Federal Government – so you know it’s safe!”
SAFE!!! Remember parents, the Federal Government designed the ARM’s
(Adjustable Rate Mortgages) too! These greedy thieves are encouraging
desperate adults to tap their parents dry without telling them the serious
pitfalls of the Reverse Mortgage. Remember, these are not your Local Bank
Tellers offering you these options. These players are an 800# and their
location is usually in Florida, Nevada, or boldly even a location not in the
United States. If your adult children need money and are being encouraged
to put the guilt trip on you – just remember when they were young and you
could have “saved money” by just renting an apartment to raise them
in…instead you saw the intelligence of owning to raise your children in a
home of your own, to grow equity for the future, to have a Safety Net after
retirement.
If you are still considering making the transaction, please ask yourself these
five questions before you sign on the dotted line:
5 QUESTIONS TO ASK BEFORE CONSIDERING A REVERSE MORTGAGE:
1) DO YOU REALLY NEED A REVERS MORTGAGE?
Why are you interested in these loans? What would you do with the money
you would get from one? Are the needs you intend to meet really worth the
high total cost of these loans? If you want to take a dream vacation, a
reverse mortgage is a very expensive way to pay for it. Investing the money
from these loans is an especially bad idea, because the loan is highly likely
to cost more than you could safely earn. If anyone is trying to sell you
something and recommending you use a reverse mortgage to pay for it, that’
s generally a good sign that you don’t need it and shouldn’t be buying it.
2) CAN YOU AFFORD A REVERSE MORTGAGE?
These loans are very expensive, and the amount you owe grows larger
every month. The younger you are when you take out a reverse mortgage,
the more the compound interest will grow, and the more you will owe. On
the other hand, due to high up-front costs, these loans can be especially
costly if you sell and move just a few years after taking one out.
3) CAN YOU AFFORD TO START USING UP YOUR HOME EQUITY NOW?
The more you use now, the less you will have later when you may need it
more, for example, to pay for future emergencies, health care needs, or
everyday living expenses. This is especially so if your needs suddenly grow
or your income does not keep pace with inflation. You may also need your
equity to pay for future home repairs or a move to assisted living. If you are
not facing a financial emergency now, then consider postponing a reverse
mortgage. Homeowners who decide to wait have “a reasonable expectation
of securing a better product at a lower cost in the not-too-distant future,”
according to a report by the Fidelity Research Institute.
4) DO YOU HAVE LESS COSTLY OPTIONS?
Do you have other financial resources that you could use instead of taking
out a loan? If you don’t, and if you could easily make the monthly
repayments on a home equity loan or home equity line-of-credit, these
alternatives are much less costly than a reverse mortgage. Many state and
local governments offer very low-cost loans for paying your property taxes
or making home repairs. Have you seriously looked into the costs and
benefits of selling your home and moving to a less expensive
one?
5) DO YOU FULLY UNDERSTAND HOW THESE LOANS WORK?
Reverse mortgages are quite different from any other loans, and the risks
to borrowers are unique. Before considering one, you need to do your
homework carefully and thoroughly.
I just wished that my friend up north would have done so before she lost
everything she saved so long to have
(Oh, and the kids didn’t use the money as they promised they would - and
now they still have nothing). Sometimes tough love is the only answer – I
believe that financial counseling for the adult kids would have saved them
all from financial devastation.
Sincerely,
Anna Morgan
608-592-7306
PO Box 194
Lodi, WI 53555
We know HONEST BANKERS that have successfully
helped many Homeowners and buyers in the "Golden
Years" of their lives.
Some of these Buyers & Sellers were told by other
Bankers that they cannot get a loan or would have to take
a higher interest rate because they are now retired or
cannot produce pay stubs - yet they have enough income
invested in their Banks to pay income taxes on it, not to
mention a great credit rating and a lot of equity in their
home.
Molony Real Estate can refer Good and Honest people
to you = we just cannot pay these Good & Honest
People or receive pay from these Good & Honest
People for referring you to them.
Molony Real Estate, and other Real Estate Brokers
and Real Estate Agents, BY LAW, cannot take or
give money or anything of value (Yes, that includes the
pony) to anyone for giving or getting business from
anyone who is not currently holding a Valid Real Estate
License.
We greatly value your referrals - keep them coming!
You will always have our thanks and our friendship and
the knowledge that your family and friends will be treated
as courteously and professionally as we treated you.
Remember, when someone makes a referral to you
relating to the purchase or sale of your real estate and
they receive something special in return, who's best
interests do they really have in mind?
Real Estate
Settlement Procedures
Act - Section 8:
Kickbacks,
Fee-Splitting, Unearned
Fees and more...
Section 8 of RESPA prohibits
anyone from giving or accepting
a fee, kickback or any thing of
value in exchange for referrals from
settlement service businesses
involving a federally related
mortgage loan (most loans are).
In addition, RESPA prohibits Fee
Splitting and Receiving Unearned
Fees for Services Not Actually
performed.
Violations of Section 8's
anti-kickback, referral fees and
unearned fees provisions of
RESPA are subject to criminal and
civil penalties. In a criminal case a
person who violates Section 8 may
be fined up to $10,000 and
imprisoned up to one year. In a
private law suit a person who violates
Section 8 may be liable to the person
charged for the settlement service
an amount equal to three times the
amount of the charge paid for the
service.
HERE IS THE LINK:
Settlement Procedures
Act - Section 8:
Kickbacks,
Fee-Splitting, Unearned
Fees and more...
Section 8 of RESPA prohibits
anyone from giving or accepting
a fee, kickback or any thing of
value in exchange for referrals from
settlement service businesses
involving a federally related
mortgage loan (most loans are).
In addition, RESPA prohibits Fee
Splitting and Receiving Unearned
Fees for Services Not Actually
performed.
Violations of Section 8's
anti-kickback, referral fees and
unearned fees provisions of
RESPA are subject to criminal and
civil penalties. In a criminal case a
person who violates Section 8 may
be fined up to $10,000 and
imprisoned up to one year. In a
private law suit a person who violates
Section 8 may be liable to the person
charged for the settlement service
an amount equal to three times the
amount of the charge paid for the
service.
HERE IS THE LINK:
Molony REAL ESTATE 377 CLARK STREET PO BOX 194, Lodi, WI 53555 608-592-7306 & 608-445-8464 Website: MolonyRealEstate.com Email: MolonyRealEstate@Yahoo.com |
Molony Real Estate, LLC
| Molony Real Estate,LLC |
55+ Plus Lifestyles
55 Plus Lifestyles
Elder Options
Options for 55+
Lifestyles and
Retirement Options
Retirement Options
Your Favorite Realtor
MOLONY REAL ESTATE, LLC
377 CLARK STREET
PO BOX 194, Lodi, WI 53555
608-592-7306 & 608-445-8464
Website: MolonyRealEstate.com
Email: MolonyRealEstate@Yahoo.com
| Wheelchair Ramp Available In order to achieve the goal of expanding the availability of housing opportunities for persons with disabilities, Molony Real Estate has acquired the use of a Wheelchair Ramp. Please let us know when setting up your appointment if you will need the use of the Wheelchair Ramp or any other special accommodation. |
Elder Options
55 Plus Lifestyles
55 Plus Lifestyles
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Beware of Reverse Mortgages
- (Parade Magazine - Tuesday,
November 10, 2009)
Read about the scams here:
A Reverse Mortgage could affect benefits from Supplemental Security
Income and Medicaid, Government Assistance programs aimed at
low-income and disabled individuals, including the elderly.
Both programs have income and asset restrictions.
Reverse Mortgages
Reverse mortgages can help homeowners who are "house-rich-but-cash-poor" remain in
their homes and still meet their financial obligations. The proceeds of the loan are tax-free,
there are no minimum income requirements, and for most reverse mortgages the money
can be used for any purpose.
With a "regular" mortgage, you make monthly payments to the lender. With a reverse
mortgage, you receive money from the lender and generally don't have to repay it for as
long as you live in your home. In return, the lender holds some - if not most or all - of your
home's equity.
But reverse mortgages tend to be more costly than other loans, and there have been
cases of abuse by unscrupulous lenders.
If you're considering a reverse mortgage, it's important to understand how the loan work
and what your rights and responsibilities are.
The Basics:
There are several types of reverse mortgages:
* Federally insured Home Equity Conversion Mortgage ("HECM"), administered by the
Department of Housing and Urban Development ("HUD")
* Single-purpose reverse mortgages, usually offered by state or local government
agencies for a specific reason
* Proprietary reverse mortgages, offered by banks, mortgage companies, and other
private lenders and backed by the companies that develop them
To qualify for a reverse mortgage, you must be at least 62 and have paid off all or
most of your home mortgage. Income is generally not a factor, and no medical tests or
medical histories are required. Financial institutions offering proprietary reverse
mortgages may require similar counseling or homeowner education.
The amount you can borrow depends on:
* Your age
* The equity in your home
* The value of your home
* The interest rate
You can be paid in a lump sum, in monthly advances, through a line of credit, or a
combination of all three.
Disadvantages of Reverse Mortgages:
Reverse mortgages tend to be more costly than traditional loans because they are
rising-debt loans. The interest is added to the principal loan balance each month. So,
the total amount of interest owed increases significantly with time as the interest
compounds.
Reverse mortgages also use up all or some of the equity in a home. That leaves fewer
assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees.
How much is up to the lender.
Interest on reverse mortgages isn't deductible on income tax returns until the loan is paid
off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes,
insurance, fuel, maintenance, and other ho housing expenses.
Getting a Good Deal:
If you decide to consider a reverse mortgage, shop around and compare terms. Look at
the:
* Annual percentage rate (APR), which is the yearly cost of credit
* Type of interest rate. Some plans provide for fixed rate interest; others involve
adjustable rates that change over the loan term based on market conditions.
* Number of points (fees paid to the lender for the loan) and other closing costs. Some
lenders may charge steep costs, which your lender may offer to finance. However, if you
agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount,
which will be added to your loan balance and you'll owe more interest at the end of the
loan.
* Total amount loan cost ("TALC") rates. The TALC rate is the projected annual average
cost of a reverse mortgage, including all itemized costs. It shows what the single
all-inclusive interest rate would be if the lender could charge only interest and no fees or
other costs.
* Payment terms, including acceleration clauses. They state when the lender can
declare the entire loan due immediately.
Under the federal Truth in Lending Act, lenders must disclose these terms and other
information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable
rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report
charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
Reverse mortgages come with different provisions.
For example, with some reverse mortgages, the lender may take a share of equity
appreciation. This could create issues for the homeowner or heirs, particularly if the value
of the home rises unexpectedly during the loan. Carefully read any provision of the contract
about shared appreciation.
Also, be cautious about reverse mortgages offered by door-to-door and other home
solicitation lenders. There have been various problems with these types of lenders. Some
of the problems have involved steep points and loans that primarily seek to take the
owner's equity.
You generally have at least three business days after signing a reverse mortgage
contract to cancel it. The cancellation must be in writing.
Reverse mortgages can help homeowners who are "house-rich-but-cash-poor" remain in
their homes and still meet their financial obligations. The proceeds of the loan are tax-free,
there are no minimum income requirements, and for most reverse mortgages the money
can be used for any purpose.
With a "regular" mortgage, you make monthly payments to the lender. With a reverse
mortgage, you receive money from the lender and generally don't have to repay it for as
long as you live in your home. In return, the lender holds some - if not most or all - of your
home's equity.
But reverse mortgages tend to be more costly than other loans, and there have been
cases of abuse by unscrupulous lenders.
If you're considering a reverse mortgage, it's important to understand how the loan work
and what your rights and responsibilities are.
The Basics:
There are several types of reverse mortgages:
* Federally insured Home Equity Conversion Mortgage ("HECM"), administered by the
Department of Housing and Urban Development ("HUD")
* Single-purpose reverse mortgages, usually offered by state or local government
agencies for a specific reason
* Proprietary reverse mortgages, offered by banks, mortgage companies, and other
private lenders and backed by the companies that develop them
To qualify for a reverse mortgage, you must be at least 62 and have paid off all or
most of your home mortgage. Income is generally not a factor, and no medical tests or
medical histories are required. Financial institutions offering proprietary reverse
mortgages may require similar counseling or homeowner education.
The amount you can borrow depends on:
* Your age
* The equity in your home
* The value of your home
* The interest rate
You can be paid in a lump sum, in monthly advances, through a line of credit, or a
combination of all three.
Disadvantages of Reverse Mortgages:
Reverse mortgages tend to be more costly than traditional loans because they are
rising-debt loans. The interest is added to the principal loan balance each month. So,
the total amount of interest owed increases significantly with time as the interest
compounds.
Reverse mortgages also use up all or some of the equity in a home. That leaves fewer
assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees.
How much is up to the lender.
Interest on reverse mortgages isn't deductible on income tax returns until the loan is paid
off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes,
insurance, fuel, maintenance, and other ho housing expenses.
Getting a Good Deal:
If you decide to consider a reverse mortgage, shop around and compare terms. Look at
the:
* Annual percentage rate (APR), which is the yearly cost of credit
* Type of interest rate. Some plans provide for fixed rate interest; others involve
adjustable rates that change over the loan term based on market conditions.
* Number of points (fees paid to the lender for the loan) and other closing costs. Some
lenders may charge steep costs, which your lender may offer to finance. However, if you
agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount,
which will be added to your loan balance and you'll owe more interest at the end of the
loan.
* Total amount loan cost ("TALC") rates. The TALC rate is the projected annual average
cost of a reverse mortgage, including all itemized costs. It shows what the single
all-inclusive interest rate would be if the lender could charge only interest and no fees or
other costs.
* Payment terms, including acceleration clauses. They state when the lender can
declare the entire loan due immediately.
Under the federal Truth in Lending Act, lenders must disclose these terms and other
information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable
rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report
charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
Reverse mortgages come with different provisions.
For example, with some reverse mortgages, the lender may take a share of equity
appreciation. This could create issues for the homeowner or heirs, particularly if the value
of the home rises unexpectedly during the loan. Carefully read any provision of the contract
about shared appreciation.
Also, be cautious about reverse mortgages offered by door-to-door and other home
solicitation lenders. There have been various problems with these types of lenders. Some
of the problems have involved steep points and loans that primarily seek to take the
owner's equity.
You generally have at least three business days after signing a reverse mortgage
contract to cancel it. The cancellation must be in writing.