Senior Citizen Financial Planning
Social Security experts recommend living on 70% of your pre-retirement income. So, if you earned $50,000 a year when working, you should be comfortable living on $35,000 a year.
In reality, how much you should save for retirement depends on your lifestyle.
This is how much of your total income you should be spending on housing, transportation, food and healthcare, according to the Bureau of Labor Statistics Annual Expenditure Report.
- Healthcare 12.2%
These are the four greatest expenses for people over the age of 65. After the age of 75, healthcare costs eclipse transportation, taking up 15.6% of your income, while transportation drops to 13.9%.
To be clear, these are only averages. How much each person spends on each category will vary. You shouldnt set aside 17% of your budget for transportation if you live walking distance from your usual haunts. Nor should you throw budgeting to the wind for a European vacation just because you really want to see the Eiffel Tower.
If balancing your budget proves too daunting, consider working with a reputable financial advisor or nonprofit credit counseling organization. A credit counselor can review your debts and expenses to help you reach a level of financial stability.
Managing your debts is important no matter what stage of life youre in. The father of western wisdom, Socrates, said it best with his last words:
Crito, we owe a rooster to Asclepius. Please, dont forget to pay the debt.
Do You Qualify For A Lower Interest Rate
Refinancing can offer relief from high mortgage payments. By lowering your mortgage interest rate and/or extending your loan term, you can typically reduce your monthly payment and take some pressure off your budget.
To qualify for a refinance, youll need to meet some basic criteria. But these can be very flexible depending on the loan program.
How To Request Homeowner Assistance Funds
Homeowner assistance funds are in the process of being distributed to states for redistribution to homeowners. The U.S. Department of the Treasury has provided guidance for states to use in developing their individual HAF plans.
You will request funds from your state after your states HAF plan has been approved and its system is up and running. Meanwhile, the National Council of State Housing Agencies Homeowner Assistance Fund webpage features a map showing the status of each states HAF to date.
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Stimulus Package For Homeowners 2022
It is important to refinance your mortgage since it can enable you to settle your current mortgage and obtain a new one on a fresh set of terms.
There are many reasons you could want to refinance your mortgage, including changing the type of mortgage and reducing the interest rates that you will be charged.
The government has a mortgage stimulus program that enables you to make refinancing for your mortgage more affordable. The federal stimulus for homeowners is designed to enable a more affordable getting home and the required financing.
Mortgage Relief: How To Qualify
- You must own your home.
- You must have a mortgage.
- Your mortgage balance in 2021 must be less than $548,250.
- Funds will be available to mortgage borrowers who are struggling to pay off their mortgage.
- At least 60% of the mortgage aid must be allocated to mortgage borrowers who have an income that is less than the national median income or the respective local median income, whichever is higher.
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Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our mortgage reporters and editors focus on the points consumers care about most the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more so you can feel confident when you make decisions as a homebuyer and a homeowner.
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How To Refinance Second Mortgages
Refinancing a second mortgage requires almost the same steps as refinancing the first mortgage. In most cases, youll have to wait at least 12 months from when you were approved for the second mortgage before refinancing it. Most lenders also require you to have at least 20% equity in your home. If you plan to refinance with a different lender, you may want to check with the lender who holds your second mortgage before pursuing refinancing.
It may be slightly more difficult to find a lender, as refinancing second mortgages carries more risk for the lender. If for any reason your house is foreclosed, the second lender only gets whats left over after the first lender is paid off. Nonetheless, if you have good credit, a stable income, and youve made your mortgage payments on time, you should be able to find a lender willing to help you refinance your second mortgage.
Before considering refinancing any mortgage, you should do your research, speak with your financial advisor, and calculate whether youll benefit financially by refinancing. Depending on the fees, the cost of refinancing a second mortgage may outweigh the benefits.
Once youve decided that refinancing your second mortgage is the right choice, figure out if you would qualify for favorable interest rates by checking your credit score and assessing your financial situation. Your lender may look at your other debts, so determine your debt-to-income ratio.
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What Are Salt Deductions
One more controversial aspect included in the $1.75 reconciliation bill is the extension of the State and Local Taxes deductions passed as a part of the 2017 Tax Cut and Jobs Act. Through that legislation, Republicans capped the amount of taxes households pay in SALT at $10,000.
While initially seen as a more conservative measure, some Democrats have embraced it. No Republicans plan to vote on the reconciliation bill, so its inclusion is not an attempt to garner their support.
The Committee for a Responsible Federal Budget called this move regressive and found that A five-year repeal would cost roughly $475 billion, with $400 billion of the tax cut going to the top 5 percent of households.
The CRFB also stated that he move is opposed by organizations on the right and the left including Tax Foundation, the Center on Budget and Policy Priorities, ITEP, the American Enterprise Institute, the Heritage Foundation, the Manhattan Institute, the Progressive Policy Institute, the Brookings Institution, the Center for American Progress, the Committee for a Responsible Federal Budget, and others.
While lawmakers who support the extension say that the revenue will be made up in 2026 when the tax cuts end. However, many organizations argue that the cuts could be extended again, which could lead to a trillion-dollar loss in tax revenue over the next decade.
California Mortgage Relief Program
While the COVID-19 pandemic has affected millions of Americans and created turmoil for homeowners, California is on track to receive $1 billion in mortgage relief funds from the American Rescue Plan Actâs Homeowner Assistance Fund. Homeowners who have fallen behind on their mortgage payments due to pandemic-related financial hardship can use these funds to get caught up.The California Mortgage Relief Program will be provided to homeowners through CalHFA Homeowner Relief Corporation as part of the stateâs Housing is Key initiative.
The U.S. Treasury has approved Californiaâs plan to distribute $1 billion in direct relief to homeowners who have fallen behind on their housing payments or reverse mortgage arrearages.With this approval, the California Mortgage Relief Program is one step closer to being able to provide critical assistance to homeowners. The program will begin accepting applications through an online portal on this website in the coming weeks.
- Have been current on mortgage and property taxes as of January 2020
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Lawyers And Upfront Fees
Under the MARS Rule, lawyers can ask you to pay an upfront fee, but only if they
- are licensed to practice law in the state where you live or your home is located
- are supplying you with real legal services
- are complying with state ethics requirements for lawyers
- place the money you pay them in a client trust account, withdraw fees only as they complete actual legal services, and notify you of each withdrawal
Talk To A Certified Housing Counselor For Free Legitimate Help
- Go to the Department of Housing and Urban Developments list of approved housing counseling agencies to find a counselor in your state who can explain your options.
- Visit makinghomeaffordable.gov, a website from the Department of the Treasury and HUD, or call their help line at 1-888-995-HOPE .
- Visit the websites for the Consumer Financial Protection Bureau , Federal Housing Finance Agency , and Department of Housing and Urban Development . These agencies are working together to help homeowners and renters affected by the coronavirus pandemic.
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Emergency Rescue Mortgage Assistance
- Up to $75,000 per household for expenses which may include:
- Mortgage reinstatement
- Delinquent property taxes and HOA dues/fees
- Municipal or property tax liens
- Mortgage payments, including principal, interest, taxes, and homeowners insurance
- To qualify for assistance, a homeowner must:
- Own and occupy an eligible one- to four- unit primary residence
- Have experienced a COVID-19 related financial hardship, and have been unableto remain current on mortgage payments
- Meet household income limits
- Have been current on mortgage and property taxes as of January 2020
New Biden Legislation Offers Homeowners Additional Coronavirus Mortgage Relief
The Coronavirus, Aid, Relief, and Economic Security Act directed lenders holding federally backed single-family mortgages to suspend borrowers payments for up to a maximum of 360 days if they experienced financial hardship due to the coronavirus outbreak. Similar but shorter forbearance was available to owners of multifamily units with federally backed mortgages.
Subsequent legislation, including the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021, as well as presidential executive actions, have resulted in additional mortgage relief in the wake of the 2020 financial crisis.
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Many In The Us Are Struggling To Make Mortgage Payments On Time And Looking To Congress For Help Does The Reconciliation Bill Provide Real Relief
On Monday, after weeks of negotiations between the White House and conservative Democrats Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, a deal was announced.
Press Secretary Jen Psaki told reporters that Senator Manchin says he is prepared to support a Build Back Better plan that combats inflation, is fiscally responsible, and will create jobs, adding that the plan will be fully paid for, will reduce the deficit, and brings down costs for health care, child care, elder care, and housing.
However, Joe Manchin has since stated that he will not vote on the package until its impact on the deficit is evaluated.
At the same time, Sen. Manchin has urged House Democrats to pass the bipartisan infrastructure plan quickly. This suggestion is a complete non-starter for Progressives who have made it clear they will not vote on the infrastructure plan until a vote on the reconciliation bill is held.
Is Mortgage Stimulus A Real Thing
There is a lot of debate surrounding the idea of mortgage stimulus, with many people wondering if it is a real thing. While there is no definitive answer, it seems that mortgage stimulus could potentially help those who are struggling to make their mortgage payments. By providing additional financial assistance, mortgage stimulus could give people the breathing room they need to stay afloat. However, it is important to remember that mortgage stimulus is not a cure-all and should be used in conjunction with other financial planning.
There has never been a mortgage stimulus program called that. Some federal funds have, however, been made available to assist homeowners. A Homeowner Assistance Fund is a type of loan that is available to homeowners. As a result, the fund provides nearly $10 billion to states, the District of Columbia, and other US territories.
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Va Streamline Refinance Eligibility: Lower Your Interest Rate And Monthly Payments
To qualify for a VA Streamline Refinance, you must meet the VAs minimum service requirements. Most veterans, including National Guard and Reservists and their families, can qualify.
You can typically qualify for a VA Streamline Refinance without any credit score, income or asset verification, or without a property appraisal. That means you can refinance quickly and affordably.
In addition to those minimum service requirements, you may be eligible if you meet the following criteria:
- You have made all your payments on time in the last 6 months
- Its been 210 days or more since you closed on your existing loan
- You will benefit demonstrably from the new mortgage, such as by a lower mortgage rate or monthly payment
Mortgage Relief In 2021
Most mortgage relief programs, such as HARP and FMERR, have expired. One program does exist, though, if your mortgage is backed by Fannie Mae. The High Loan-to-Value Refinance Program is a mortgage refinance program aimed at homeowners who have high interest rate loans and little equity in their homes. The property can even be under water or of lesser value than the outstanding mortgage. You can apply if you qualify:
- Your loan-to-value is at or above 97.1 percent.
- The loan originated on or after October 1, 2017.
- Youve made your payments on time with no late payments in the past nine months.
- You can prove a valid reason for the refinance.
The Mortgage Reports writes that while the CARES Act offers temporary help, the HIRO reconfigures your loan for the life of the loan without penalties or payback. Two other loan packages are available for FHA and VA loans and are known as “streamline refinancing.”
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What Is Us Congress Mortgage Stimulus Program
The United States Congress Mortgage Stimulus Program is a federal program that was created in response to the COVID-19 pandemic. The program provides funding for mortgage assistance for homeowners who are struggling to make their payments. The program is administered by the Department of Housing and Urban Development and is available to homeowners who are at risk of foreclosure.
The Homeowner Assistance Fund
The Homeowner Assistance Fund was established under President Bidens American Rescue Plan to assist homeowners struggling with their housing payments due to Covid.
HAF was funded with close to $10 billion in financial support to help families weather these challenges and remain in their homes. According to the Treasury press release, aid money will be prioritized for homeowners with pending foreclosures and those with immediate threats to housing stability.
Those who receive assistance through the Homeowner Assistance Fund can use the money for mortgage payments as well as other housing-related bills like homeowners insurance and utilities.
HAF funds are allocated state by state, and its up to state administrators to distribute the funds to individual homeowners who qualify for aid. If you think you might benefit from the Homeowner Assistance Fund, reach out to your loan servicer to talk about whether youre eligible.
You can also use this lookup tool from the Consumer Financial Protection Bureau to find active mortgage relief programs in your area.
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Colorado Emergency Mortgage Assistance Program
The Colorado Emergency Mortgage Assistance Program provides financial assistance on behalf of income-eligible homeowners who have experienced a financial hardship associated with the COVID-19 health crisis.
Households are eligible to receive Emergency Mortgage Assistance if they:
For additional questions please email
What If You Have A Non
Federal regulators believe most non-government-backed lenders and loan servicers will adopt policies similar to those mandated by the CARES Act and subsequent legislation. To find out, contact your loan servicer, ask what programs it has in place to provide mortgage relief to homeowners impacted by the coronavirus outbreak, and follow any instructions you are given.
Although the CARES Act does not require private lenders to offer mortgage assistance, if you and your lender come to any type of loan modification agreement, then the law regarding not reporting reduced or paused payments to does apply to you.
If your mortgage forbearance is set to expire soon, then you may be able to request an extensionbut you must apply before forbearance ends.
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Congress Mortgage Relief Programs
Homeowners who have experienced financial hardship during the pandemic have a few options for mortgage relief.
To help borrowers struggling with mortgage payments due to unemployment or illness, Congress enacted mortgage stimulus programs under the CARES Act and the American Rescue Plan.
Many of these mortgage relief programs have been extended into 2022 to help those who are still struggling financially. If you find yourself in need of financial assistance, current options include:
Mortgage Aid: How It Works
- The Homeowners Assistance Fund can help you pay not only your mortgage, but also your taxes, insurance, utilities and common charges like monthly homeowners association dues.
- The U.S. Treasury Department is sending money to states to distribute direct financial assistance through state housing agencies.
- The amount of mortgage aid depends on each states number of late mortgage payments, foreclosures and unemployment statistics, for example.
- States must spend this Covid-19 mortgage relief by September 30, 2025.
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