Reverse Mortgages And Retirement Real Estate In Florida: How Snowbirds Can Benefit From Owning Two Homes

Real Estate Blog

If you live in the northern part of the U.S. and are retired, you probably fly or drive down to some place warm every winter. You are what is commonly known as a "snowbird", because you fly away at the first sign of snow. You own both real estate up north and your retirement real estate down in Florida. If you are looking for extra cash to pad your retirement account, but you do not want to sell either of your homes, you could benefit from reverse mortgages on both your properties.

Placing Your Property in Separate Names

To get a reverse mortgage on both of the properties which you own, place one home in your name only and the other in your spouse's. Because the homes are in separate names, both of you can request a reverse mortgage on both houses. You can have the extra funds from both reverse mortgages deposited into a single joint account or separate accounts. (Separate accounts are better, and you will see why in a second.)

Properties in Different States with Different Lenders

As long as your two homes are in different states and you have mortgages with two different lenders, you can apply for reverse mortgages on both homes with both lenders. Again, it is important that only one name appear on each mortgage. Make sure you have some equity in both properties too, or your applications could be tossed out without a second glance.

Stashing Your Reverse Mortgage Funds

If you spend half the year in Florida, it might be a good idea to let your funds from the reverse mortgage on your Florida home accumulate. After all, you will need money when you are down there, and then you do not have to worry about accumulating enough while you are living half the year up north. Likewise, you can benefit the same way from allowing the funds on your northern home to accumulate in the account you selected for the half the year that you are in Florida. There is a constant flow of funds deposited into two accounts, which builds and remains there for your use when you need it.

A Word to the Wise

Be careful about borrowing cash from one of your accounts and transferring it to the other. This will decrease the amount you have to live on when you trade locations twice a year. Having that stash of cash in another state with another home is a great real estate move, but it can backfire if you spend too much in one location or the other. 

Speak to a real estate company like Realty Executives to find out if one or more reverse mortgages would make financial sense in your particular situation.


30 December 2014

Apartment Frightmares: How You Can Live Happy Again

Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.