May 3rd, 2023 3:46 PM by Andrew Liu DRE: 01109246 NMLS#249736
What are our biggest expenses? Our housing expense is usually the biggest. Then perhaps a car payment, utility bills, insurance, and credit payments. It is generally expected that our housing expense should not exceed 30% of our income. But if you live in high-cost areas like California, your housing expense can likely exceed 50% of your income! This is a scary situation to be in. Especially if you are living on “fixed” income, meaning you get the same amount each month no matter what. People who are retired fit into this category. So much so that any significant increase in their income is celebrated on the evening news! The COLA (cost of living adjustment) that occurs with Social Security benefits was 5.9% in 2022. At that time, it was the highest increase in 40 years! Only to be topped in 2023 by an 8.7% increase. The news was posted and discussed everywhere because there are so many baby boomers who are now collecting Social Security alone or in addition to a retirement pension. It was fantastic news as the increase enabled recipients to live better. That’s exactly what we are all about at Pacificwide Reverse: helping people live better now. To that end, helping people 55 and older figure out how to make their ends meet each month is our #1 goal. If your housing expense is more than 30% of your income and that expense includes a mortgage payment, it may be time for a free consultation with one of our specialists to discuss how to make that expense more affordable. Or how to eliminate it entirely. As you probably know, having a reverse mortgage does not affect your Social Security pension. The proceeds from a reverse mortgage are not considered ‘taxable income’ as they are proceeds from a loan. Nor will having one keep you from purchasing additional property. Getting rid of your mortgage payment could help make it possible for you to live a life free of financial worry. Right now. So, aren’t you curious? Let’s talk!
Executive Vice President, Pacificwide Lending
Director, Pacificwide Reverse
Direct Line: (510) 806 5327