Sierra Reverse Mortgage

03/04/2026

From Allaire Elder Law

In the world of elder law and Medicaid planning, there is another reason to use a reverse mortgage. If there is no other way to protect the house, then a reverse mortgage is an option to allow the value of the property to do some good. The typical situation is a single homeowner who wants to remain in their property, but needs long term care they cannot afford. This person goes onto Medicaid, which will then pay for their home care. The reverse mortgage money is available to help pay for the expenses of the home, or additional caregivers. But that money

does not need to be spent down before qualifying for Medicaid! As long as money from the reverse mortgage is never mixed with money from anywhere else, such as income, then it does not count towards the asset limit, which is typically $1,600. If the person on Medicaid cannot pay all their living costs on just their income, this is a way to have some savings as well. That way the home owner does not have to go live in a nursing home for purely financial reasons.

The benefit to the reverse mortgage is therefore that there are no monthly payments, ever. It is a great way to be able to use the value of the home in order to afford to stay there, if there is no other way to afford it. Of course, if you outlive the money the bank lends then there is

no way to afford to live there, and the house really must be sold. For this reason it does not make sense for younger people to take these out. At least not if the point is to be able to pay for the bills of the home. If you can’t afford the place, downsize. But if you are older, and having just a little extra cash will allow you to live the rest of your days in your own home, then it makes sense.

05/21/2024

Older homeowners struggling to pay their monthly bills should consider the following questions:

If I don’t tap into my home equity will we be a financial burden to our children?

Does selling and relocating to a new home make financial sense?
Would getting a HELOC to access cash be the best choice when it only adds to my monthly payments?

Do I want to return to work? If so, am I mentally and physically prepared to do so?

Would my children prefer that we live comfortably and be financially independent instead of inheriting the home?

Not everyone has the equity required to qualify for a reverse mortgage. But for those who do the flexibility of the loan and the boost to their monthly cash flow may be just the answer they’ve been looking for.

Give Bryan Wild a call and we can go over some of these questions for you. Office- 530-677-5484 or Cell - 925-788-8949.

09/21/2022

I am getting many questions about the fed raising rates and how that effects mortgage rates. Here is a great explanation of that.

Rob Chrisman writes a great daily article. I cut and pasted. He does a great job breaking it down.

How the Fed Impacts Mortgage Rates

"With the Fed decision today, I’m being asked how Fed moves impact mortgage rates. MCT offers an excellent primer that reminds us, “Many people believe the Federal Reserve, through the actions of the Federal Open Market Committee, has a direct impact on mortgage rates. It’s actually more so that speeches from Federal Reserve Committee members, announcements of what the Fed is doing, and its actions in the open market serve as useful predictors of future rate movement."

“Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and a range of economic variables (e.g. employment, output, and the prices of goods and services). The fed funds rate affects short-term loans, such as credit card debt and adjustable-rate mortgages. Long-term rates for fixed-rate mortgages are generally not affected by changes in the federal funds rate but track the 10-year U.S. Treasury yield much more closely.”

Dennis C. Smith of Stratis Financial opines, “The Federal Reserve’s stated purpose is, “Conducting the nation’s monetary policy by influencing money and credit conditions in the economy in pursuit off full employment and stable prices. The Fed has several tools available to increase or decrease the amount of money in the economy. Full employment results in greater demand for goods and services, which puts upward pressure on prices, i.e. inflation. Less than full employment decreases overall purchasing power and ability. Lower demand leads to stable, or declining prices.

“Contrary to what many believe, the Federal Reserve only controls one interest rate, the federal funds rate (referred to often as the “benchmark rate”). This is the rate that banks lend money to each other, typically on an overnight basis. Mortgage rates are determined by investors who purchase mortgages as an investment. The mortgage market is generically known as MBS, or mortgage-backed-securities. Investors want to make a profit, their decisions to purchase or not purchase any investment is based upon their opinion as to what they think will happen in the future and if their investment will be worth more or less money. In the case of MBS, this includes what they feel interest rates will be, or should be, in the future. Part of their decision-making criteria is what they feel the Fed will do in regard to monetary policy, or what the Fed has announced it will do.”

09/06/2022

As inflation and rates are going up, retirement or rather how to afford retirement is becoming a popular topic.
This article gives a very brief overview of some options. A Reverse Mortgage is becoming more mainstream. It touches some pros and cons. Keep in mind that the responsibility of the homeowner would be
1) Live in the property as their primary residence
2) Pay the property taxes
3) Pay your homeowners insurance
4) Send back your occupancy letter once a year.

If you do those things, you will never be asked to leave your home for as long as you live

To find out your options, please call 530-677-5484.

From emergency savings to annuities to tontines, there are plenty of tools for creating an income stream that lasts.

08/09/2022

Forbes’s just came out with an article on options for retirees who are cash strapped as inflation is skyrocketing.

A reverse mortgage is the top option for people who do not want to move.

Call to see what a reverse mortgage can do for you.

530-677-5484

Cash-squeezed seniors and retirees may need to explore creative ways to make ends meet.

07/14/2022

Here is a great article that looks at Social Security in a way that I have never thought of. I had to put it out there.

Instead of looking at Social Security as an investment, look at it as an insurance for living longer. This help reinforce why delaying Social Security until you are 70 is a good idea. Especially if there is a significantly younger spouse.

Why wouldn’t you want to maximize the benefit that you receive?

06/14/2022

This is a good article addressing some of the changes that have happened to reverse mortgages over the past decade. The article also goes over some of the pros and cons of reverse mortgages.
As the economy is eating away retirement portfolios, it might be time to give Reverse Mortgages a second look.
For questions, please call Bryan Wild at 530-677-5484.

Many of the negatives have been addressed with federal insurance and oversight. At the least, they’re worth considering for people who are cash poor and house rich.

06/06/2022

I am seeing a lot more articles like this one coming out. Especially as inflation is starting to eat into retiree's finances.
Financial Advisors are really beginning to utilize reverse mortgages as a tool in the retirement portfolio.

For questions on how I can help, please call 800-361-9357.

With markets volatile and housing hot, reverse mortgages are attractive to retirees looking for cash while staying in their homes.

05/24/2022

Articles centered on inflation and peoples portfolios seem to be a popular topic. Most referring to how people are having to re-examine the 4% withdrawal rule.
If you are worried about your portfolio running out, a reverse mortgage can help. And the earlier on in retirement you get a reverse mortgage, the more you are able to prolong your portfolio.

Call me for questions, or how I can help. 925-788-8949.

https://www.fool.com/the-ascent/personal-finance/articles/why-the-creator-of-the-4-retirement-spending-rule-says-it-no-longer-works/

05/05/2022

People are always looking for ways to help with finances during retirement. Here is another article from USA Today suggesting a reverse mortgage as a solution.
Even if your home isn’t paid off, a reverse mortgage can eliminate your mortgage payment. Think about it- with no more mortgage payment, you are now able to spend that money in other areas. $1500 no longer being paid to a mortgage company now allows you to spend $1500 in other areas like food, in home nursing, or vacations. That is a $3,000 swing in your monthly budget. That is huge!
For scenarios, please call Bryan Wild at 530-677-5484.

If you're retired or your golden years are fast approaching, don't panic. Here are some unexpected sources you could turn to for retirement income.

04/27/2022

It is happening across the board. Inflation is eating into all forms of income. Some people are getting hit a bit harder than others. Our retirement community is one of the most vulnerable.
Pensions and other fixed incomes just don’t keep up with inflation.
This article goes into detail about it.
Keep in mind with this inflation, home values are at an all-time high. This includes retiree’s.
A reverse mortgage could be your tool to combat inflation eating away your income.
Please call 530-677-5484. We can go over details.

Pensions' cost-of-living adjustments largely aren't keeping up with inflation. The dynamic is most acute for state and local government retirees, experts said.