Reverse Mortgage – Not so Risk Free

Advertisements telling you to obtain a reverse mortgage are everywhere. They are touted as a great way to get some extra cash out of your home with little to no adverse consequences. In fact, many people think they are a risk- free government benefit. They are NOT. In fact 10% of borrowers default of their reverse mortgage, which is almost DOUBLE the rate of a conventional mortgage. This is especially hard to swallow knowing that this type of lending is targeted toward those 62 and older.

Some facts about a reverse mortgage you may not know. They accrue interest. That is right, even though the loan is not paid down monthly, it is still accruing interest. Make sure you know what your interest rate is. The loan can be collected even if you are still living in the home IF you default on insurance or your taxes. Many people think the loan will only be collected when the borrower passes away, moves or sells their home. Make sure you are always reading the fine print.

Reverse Mortgages may be the right answer for you, but make sure to get all of the facts first. There are risks, ask questions and get informed before you sign anything

Safety Tips for the Summer Sun Lover

California is set for a hot summer, which will inevitably draw people from their homes and to the pool, beach or shady park. Make sure that you are fully protected because sun exposure can lead to burns, exhaustion, sun poisoning, and dehydration. Here are a few tips from WebMD on how to make sure your time in the California Sun is not something you will later regret.

  1. Wear a sunscreen that has an SPF of at least 30 and says “broad-spectrum” on the label, which means that it protects against the sun’s UVA and UVB rays. Put it on all over about 15 to 30 minutes before going out in the sun. Reapply at least every 2 hours and after you’ve been sweating or in the water.
  2. Limit your sun exposure between 10 a.m. and 2 p.m., and remember that water, snow, and sand can intensify the sun’s damaging rays.
  3. Wear sunglasses, a hat, and protective clothing.
  4. Check on your medications. Ask your doctor if anything you take might make your skin more sensitive to sunlight.