New Reverse Mortgage applicants are encountering a new term when they go to speak to their loan representative – the “New Reverse Mortgage.” Consumers are tired about hearing products referred to as the “new this-or-that” every time a small change is made, but in the case of the Reverse Mortgage, the term is accurate – [...]
Archive for the ‘Reverse Mortgages’ Category
New home buyers are generally believed to be young couples just starting out but statistics show that most new home buyers have been homeowners before. Some buyers want to move to a different neighborhood, buy a larger house or need to relocate due to their job. Others, mainly seniors, have other reasons for moving. Some [...]
If you had the option to continue to improve your quality of life after you stop working while living on your retirement income, would you do it?
Reverse Mortgages aren’t the answer for everyone but increasing numbers of senior Americans are finding that they can fund their retirement by using the equity that they have in [...]
One of the central questions that many retirees have about Reverse Mortgages involves how such a loan affects their ability to leave an inheritance to their heirs.
In short, if you take out a reverse mortgage, you can leave your home to your heirs when you die, but you won’t be leaving them the entire worth [...]
Over the past few weeks we’ve been taking a detailed look at the Reverse Mortgage product. HECM loans have undergone significant changes over the past 2 years and it was time to summarize these revisions into a comprehensive guide which will provide potential borrowers with a complete summary of the loan.
In parts 1 and 2 [...]
The rising popularity of Reverse Mortgages continues to create questions. Potential borrowers are obligated, by the HUD HECM rules, to complete a counseling session with a HUD-approved counselor before they formally apply for the Reverse Mortgage loan.
These sessions, however, don’t always address all of the issues that are raised when an individual considers taking out [...]
Reverse Mortgages are a growing force in the economy but many seniors don’t explore the option because they don’t fully understand the product. There are different types of Reverse Mortgages but the most common type of Reverse Mortgage today is the FHA-insured Home Equity Insurance Mortgage. HECMs enable senior homeowners to access a percentage of [...]
New rules which have been and will be announced by the U.S. Department of Housing and Urban Development (HUD) will make reverse mortgages safer for senior citizens.
A HECM reverse mortgage allows homeowners aged 62 or older to borrow against the equity in their homes. These loans do not involve repayments, provided that the home remains [...]
Senior homeowners who wish to access a reliable and free resource that provides them with an overview of their options for obtaining a Home Equity Conversion Mortgage Loan can look to the National Council on Aging’s free booklet, Use Your Home to Stay at Home. This booklet serves as a guide to older homeowners who [...]
The image that people have of the typical senior citizen generally involves a genial elderly person who’s content to putter around the home. Yet statistics tell us that retirees are, more than ever, on the go. Senior citizens are traveling more, working more, volunteering more and even picking up and moving to new homes. Some [...]
The United States is facing a retirement funds crisis as a rapidly growing number of people enter their 60’s without the ability to support themselves during ever-increasing life spans. One tool which could help deal with the crisis involves the HECM (Home Equity Conversion Mortgage), the reverse-mortgage program which allows seniors to convert some or [...]
Historically, there have been two major drawbacks to reverse mortgages. First, their closing costs were relatively high, including the insurance cost and the loan’s interest rate. Secondly, too many people took out their Reverse Mortgage funds as a lump sum draw, leaving them without adequate resources to pay their loan obligations.
Over the past 2 years, [...]
The TV advertisements make Reverse Mortgages sound like a no-risk opportunity to access money in which your home equity can finance your retirement. According to this view, taking out a HECM loan will enable you to stay in your home without ever making a payment.
What the ads forget to mention is a Reverse Mortgage is [...]
As the generation of Baby Boomers age the United States finds itself facing a retirement funds crisis – more and more retirees lack the financial capacity to support themselves during their ever-increasing life spans. Financial advisors are working with these individuals to help them explore ways in which they can stretch their existing income and [...]
You’ve decided to take out a Reverse Mortgage and are looking for the wisest way to use it? Financial advisors offer an overview of the Reverse Mortgage product as well as some suggestions as to how the Reverse Mortgage can be used efficiently for your long-term financial security.
What are the biggest misconceptions about reverse [...]
New FHA Letter Cautions Potential Borrowers to be Cautious about Misleading Practices with Reverse Mortgages
Recently the Federal Housing Administration published a mortgagee letter that reiterates its policies against potentially misleading advertising practices which, it writes, it has observed in industry marketing techniques. Reverse Mortgage lenders target “baby boomers” – individuals who are in their 60s or approaching that age and are thinking about ways that they can supplement their [...]
When the Federal Housing Administration (FHA) changed the regulations regarding the percentage of a home’s equity that a Reverse Mortgage borrower could access, along with a change in the options that the borrower had for receiving those funds, most financial observers predicted that Reverse Mortgages would decline. The change, which took effect in the summer [...]
Home Equity Conversion Mortgages (HECMs) have become popular among older homeowners who are searching for additional sources of income. That’s because this type of loan, which is only available to homeowners who are 62 years or older, allows property owners to turn part of the equity that they have in their homes into regular cash [...]
Long-awaited new guidelines have been announced by the Department of Housing and Urban Development to allow the spouses of deceased borrowers to stay in their home without the threat of foreclosure. As of August 4th, these surviving spouses will not be evicted from their homes as long as they continue to pay taxes, insurance and [...]
This fiscal year has brought significant Reverse Mortgage changes, both for borrowers and for lenders. Under the Reverse Mortgage Stabilization Act of 2013 new changes are aimed at making these loans less risky and less prone to default.
Home equity conversion mortgages (HECMs) are for senior homeowners who are at least 62 years of age. The [...]