The Rite News of North Carolina November December 2017 : Page 1

AN IDEA FOR SOME OF OUR MEMBERS by William B. Brunk, 33° SGIG in North Carolina NOVEMBER–DECEMBER 2017 M ost of my articles for the North Carolina Insert of the Scot-tish Rite Journal have been devoted to the philosophies, principles, and tenets of the Scottish Rite. And it appears that our members generally appreciate the thoughts contained therein, as our members frequently relate to me how much they enjoy read-ing them. I’m going to digress a bit this month, however, and hope the comments here will be appreciated. Ours is an organization made up of men of all ages, but it is unquestionable that most of us have been around for a while (the average age of our members is decreasing, but it’s still in the six-ties). And the greatest fear that people have as they age is that of running out of money and having to significantly decrease their standard of living. But, for some people, there is a way to avoid this dilemma. the down payment, and they will have to be qualified by the mortgage issuer to ensure their ability to pay for utilities, home owners insurance, taxes, and so forth. But for cer-tain people, it will allow them to live in their homes for the rest of their lives without worry-ing about exhausting their funds or having to reduce their standard of living. In fact, some people will be able to purchase a home much nicer than that to which they are already accustomed! The pro-gram may well be helpful to some of our members, their parents, or grandparents. Many real estate agents are not familiar with it, so seeking advice from a knowledgeable professional will, of course, be in order. A Home Equity Conversion Mortgage , or HECM, is a program for people at least 62 years of age initiated by the federal govern-ment following the 2008 housing crash. It’s based on the idea that as we age, a lot of us develop a situation in which we have equity in our current home, but no longer have substantial income. Es-sentially, one can choose the home that fits their needs, make a down payment of roughly half the purchase price, enter into what is basically a “reverse mortgage” —and NEVER MAKE ANOTHER PAYMENT. The monthly mortgage payments are made from the equity that has been established by the down payment, and the program, which is insured by the Federal Housing Administra-tion, picks up the payments if the buyer should ever deplete the down payment. Additionally, the spouse can live in the house as long as she wants. What if the buyer decides to sell the house? Any remaining eq-uity belongs to the owner—which is also what occurs if the owner happens to pass away at an earlier age than is actuarily expected. The program is based on life expectancy tables and the fact that a very small portion of each monthly payment goes towards paying for the insurance that makes the program work in a sound manner. As one might guess, this program is not for everyone. Partici-pants do need a certain amount of financial wherewithal to make LODGE OF PERFECTION MEETINGS Asheville , 2 nd Thursday of each month (Advisory Council 5:00pm, and Stated Meeting 7:00pm) Charlotte , 1 ST Wednesday of each month (Advisory Council 5:30pm, Dinner 6:30pm and Stated Meeting 7:30pm) Franklin , 2 nd Monday of each month (Dinner 6:00pm & Stated Meeting 7:00pm) Greensboro , 2 nd Wednesday of each month (Dinner 6:30pm & Stated Meeting 7:30pm) New Bern , 2 nd Monday of each month (Dinner 6:30pm & Stated Meeting 7:30pm) Raleigh , 2 nd Thursday of each month (Dinner 6:30pm, Advisory Council 7:00pm, and Stated Meeting 7:30pm) Wilmington , 2 nd Thursday of each month (Advisory Council 5:30pm, Dinner 6:30pm, Stated Meeting 7:30pm) Winston-Salem , 2 nd Thursday of each month (Dinner 6:00pm, Advisory Conference 6:30 pm, Master Craftsman&KSA 7pm, Stated 7:30pm ) For more information, call the General Secretary in your Valley Rick Patton (Asheville) ................... 828-253-9911 D. C. Heilman (Charlotte) ................ 704-918-3797 Jack Williams (Franklin) ..................828 226 1976 Donald Kehler (Greensboro) .............. 336-275-3579 William Dill (New Bern) .................252-638-4031 Luigi Ammons (Raleigh) .................919-834-8873 Danny Buck (Wilmington) ............... 910-762-6452 S. Ray Ashby (Winston-Salem) .............336-723-1217 Marc Fusco (Raleigh), Editor In Chief ...... 919-247-6564

An Idea For Some Of Our Members

William B. Brunk

Most of my articles for the North Carolina Insert of the Scottish Rite Journal have been devoted to the philosophies, principles, and tenets of the Scottish Rite. And it appears that our members generally appreciate the thoughts contained therein, as our members frequently relate to me how much they enjoy reading them. I’m going to digress a bit this month, however, and hope the comments here will be appreciated.

Ours is an organization made up of men of all ages, but it is unquestionable that most of us have been around for a while (the average age of our members is decreasing, but it’s still in the sixties). And the greatest fear that people have as they age is that of running out of money and having to significantly decrease their standard of living. But, for some people, there is a way to avoid this dilemma.

A Home Equity Conversion Mortgage, or HECM, is a program for people at least 62 years of age initiated by the federal government following the 2008 housing crash. It’s based on the idea that as we age, a lot of us develop a situation in which we have equity in our current home, but no longer have substantial income. Essentially, one can choose the home that fits their needs, make a down payment of roughly half the purchase price, enter into what is basically a “reverse mortgage”—and NEVER MAKE ANOTHER PAYMENT. The monthly mortgage payments are made from the equity that has been established by the down payment, and the program, which is insured by the Federal Housing Administration, picks up the payments if the buyer should ever deplete the down payment. Additionally, the spouse can live in the house as long as she wants.

What if the buyer decides to sell the house? Any remaining equity belongs to the owner—which is also what occurs if the owner happens to pass away at an earlier age than is actuarily expected. The program is based on life expectancy tables and the fact that a very small portion of each monthly payment goes towards paying for the insurance that makes the program work in a sound manner.

As one might guess, this program is not for everyone. Participants do need a certain amount of financial wherewithal to make the down payment, and they will have to be qualified by the mortgage issuer to ensure their ability to pay for utilities, home owners insurance, taxes, and so forth. But for certain people, it will allow them to live in their homes for the rest of their lives without worrying about exhausting their funds or having to reduce their standard of living. In fact, some people will be able to purchase a home much nicer than that to which they are already accustomed! The program may well be helpful to some of our members, their parents, or grandparents. Many real estate agents are not familiar with it, so seeking advice from a knowledgeable professional will, of course, be in order.

Read the full article at http://pubs.royle.com/article/An+Idea+For+Some+Of+Our+Members/2910811/445556/article.html.

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