Recently, hurricane IDA left homeowners in Louisiana devastated. Homes have been damaged and destroyed and some seniors are still trying to recover the cost of their damages.
If that is not enough, those homeowners are now paying more for their homeowner’s insurance premiums, making their cost to maintain the home more expensive. For homeowners who have existing mortgages with escrows, their monthly mortgage payment will go up, which reduces monthly cash flow. The question is why?
What Is The Reason For The Increase
Due to hyperinflation, everything we purchase has increased in price. You see it in the grocery store and feel it at the gas pumps.
Today the housing market has become a sellers’ market. With a shortage of homes, bidding wars are now common and the cost of home sales has increased.
Building supplies have hit an all-time high. Lumber prices alone are four times higher than pre-pandemic. The cost of wood today is $1,670.50 per thousand board feet.
The higher cost associated with supply shortages of building materials, and the increased costs of labor, we’re now seeing it reflected in the estimated replacement cost of the home. This can be found under (Coverage A) of your premium.
This estimated replacement cost in a hurricane zone is what ultimately drives the increases in insurance premiums.
How Much Is The Increase
The increase of the homeowner insurance premiums can range anywhere from 15 – 20%. That is hundreds of dollars that will make it harder for seniors to afford their insurance.
The increase in their monthly mortgage payment will be significantly higher as well. It is a double whammy, and for some, It’s simply more than they can manage. What do you do if you find yourself in this situation?
There Is Hope; How A Reverse Mortgage Can Help You
Higher home values and a lower interest rate market create the perfect time to take out a reverse mortgage. Working with me to get a reverse mortgage will benefit you in the following ways:
- you can pay off your existing mortgage
- eliminate the principal and interest payments
- create better cash flow
- receive a line of credit to help pay for expenses
- cover the cost of damage if insurance isn’t enough
As the holidays approach, senior homeowners can have the money they need for Thanksgiving dinner and Christmas presents. And for those who haven’t seen their children and grandchildren in person for a long time, a reverse mortgage could provide money for travel expenses too. Get the guest room ready!
Reverse Mortgages To The Rescue
The reverse mortgage process takes about 40 days from start to finish. So there is plenty of time to have money available before the holidays if you start right now.
Did you know you can do a reverse mortgage with or without an existing mortgage on the property as long as you have at least 50% equity or more?
If there is no mortgage currently on the property, you have 100% equity in the home so borrowers can decide how they want to receive the funds.
If there is an existing mortgage on the property, then that mortgage must be paid off with the reverse mortgage first and then any remaining funds can be used at the borrower’s discretion.
Sometimes all of the money available is used to pay the closing costs and pay off the existing mortgage. In this case, the borrower frees up the monthly principal and interest payment that they have been paying, which improves their cash flow. Pass the turkey, please.
Experience Equals Results
As a Certified Reverse Mortgage Professional and Assistant Vice President, with over 25 years of experience in reverse mortgages, I can guide you through the process to help offset the cost of the increases in both homeowners insurance premiums and higher mortgage rates to increase your cash flow.
Don’t wait too long to reach out to me. When you are ready to talk about how I can help you with your specific needs, you can reach me at (504) 289-6464 or email me at firstname.lastname@example.org
Now is the time to take out a reverse mortgage with America’s Mortgage Resource while homeowners insurance premiums are increasing for people in Louisiana.