Even the safest and best-advised financial moves have pros and cons and the Reverse Mortgage is no exception. Many seniors are enthralled by the Home Equity Conversion Mortgage (also known as a Reverse Mortgage), a special financing option which is taking the country by storm. While Reverse Mortgage lenders promise that the process of obtaining [...]
Archive for the ‘Reverse Mortgages’ Category
Recent studies show that the growing pressure on seniors is fueling increasing interest in Home Equity Conversion Mortgages. These mortgages, also known as “Reverse Mortgages” allow seniors aged 62 and older to access some of the equity that they hold in their home and increase their retirement income. Financial advisors have mixed feelings about these [...]
Reverse mortgages are gaining in popularity. Financial advisors have been noting this trend in recent years as cash-strapped retirees seek ways to keep pace with rising expenses and cope with the decreased value of their retirement savings which depreciated during the recession of 2009.
Reverse mortgages, also known as Home Equity Conversion Mortgages, allow homeowners age [...]
Following upheavals in the Reverse Mortgage industry of 2013, financial planners are beginning to re-examine the HECM loan as a component of a client’s financial situation. As these analysts offer their suggestions to retirees who are planning their financial strategies for their senior years they are increasingly advising the inclusion of a Reverse Mortgage loan. [...]
People have deep sentimental attachments to their homes, especially as they get older. As individuals age they may express concern about how they’ll be able to navigate living in their own home, both physically and financially. Retirement incomes have been falling over the last decade at a time when health care costs, property taxes and [...]
There have been so many changes in the Reverse Mortgage loan lately that potential borrowers are more confused than ever. The Reverse Mortgage, sometimes referred to as a Home Equity Conversion Mortgage (HECM) – is still a popular financial fallback for retired senior homeowners who have equity in their homes. However, the new regulations, which [...]
There have been so many changes in the FHA-insured HECM loan over the past year that new loan applicants may be feeling confused. If you’re considering a reverse mortgage, some of the most important aspects of the loan include:
1. You have two loan options, the HECM Standard (a combination of the former HECM Standard and [...]
If you’re planning on applying for a Reverse Mortgage in the near future, you can prepare yourself by reviewing some preliminary information about HECM loans.
The HECM Reverse Mortgage is a federally-insured mortgage that allows you to mortgage your home to a lending institution, access up to 60% of your home’s equity and continue to live [...]
The year 2013 saw the Home Equity Conversion Mortgage (HECM) go through numerous changes — the most wide-ranging and comprehensive changes that the product has seen since it was introduced in 1989. At the beginning of 2013 the Department of Housing and Urban Development, the Federal Housing Authority and Congress were reeling from a 2013 [...]
Not since the Reverse Mortgage was inaugurated in 1989 have there been so many changes to the loan product in one year. During 2013 the HECM loan was completely revamped after Congress gave the Department of Housing and Urban Development the go-ahead to initiate the changes. Financial advisors have been suggesting for several years that [...]
The new HUD Reverse Mortgage guidelines have given the HECM loan new opportunities to reach its fullest potential. Until recently uncertainty over the differences between a HECM Saver and a HECM Standard, worries about spousal rights in the event that a borrower dies, fears of high third party costs and other issues deterred many seniors [...]
The Department of Housing and Urban Development (HUD) has appealed a recent court decision regarding the position of non-borrowing spouses in a Reverse Mortgage. The case involved a Washington DC court ruling in a AARP lawsuit regarding a non-borrowing spouse who had his house repossessed after the man’s wife, the borrowing spouse, died.
In 2009 HUD [...]
For retirees 62 or older, taking a Reverse Mortgage may be a wise financial move. A Reverse Mortgage can help finance a home improvement, pay off a current mortgage, supplement retirement income, pay for healthcare expenses or help the borrower move to a home that is in keeping with his/her new needs. Reverse Mortgages allow [...]
The Consumer Financial Protection Bureau’s new mortgage rules are scheduled to be implemented in January 2014. To help consumers navigate these new rules the CFPB has launched a new tool that will help potential borrowers find local housing agencies that can answer their questions or address any of their concerns.
According to the rules of the [...]
The Reverse Mortgage industry is now completing its second month of the new rules and regulations for the Home Equity Conversion Mortgage loan. Many of the issues and concerns which arose when the new Reverse Mortgage product was introduced are being clarified as the process begins to smooth itself out. One thing that is clear [...]
New changes to the federal Home Equity Conversion Mortgage program may lead toward increased collaboration between lending institutions, financial planners and senior borrowers. This is only one of the benefits of the revised HECM program, financial analysts and Department of Housing and Urban Development strategists believe.
There are a wide range of new rules and regulations [...]
Recent changes in the Home Equity Conversion Mortgage loan (HECM) eliminated the HECM Saver option but the HECM for Purchase continues to be a valuable alternative which allows seniors, age 62 or older, to purchase a new principal residence using their loan proceeds from the reverse mortgage.
The HECM for Purchase was designed to allow seniors [...]
As baby boomers enter their retirement years they often find themselves looking for strategies that will allow them to increase their income. Many people’s pensions took a hit during the economy’s downturn of 2008 and Social Security payments haven’t kept up with inflation. Some seniors look at their family home as a possible source of [...]
Industry analysts see the recent changes to the Home Equity Conversion Mortgage (HECM) program as a move that will strengthen the loan while simultaneously taking some of the risks out of the program. These lowered risks affect the Federal government which insures the loan, lending institutions which administer the loan and the borrowers themselves.
On September 30 2013 changes to the federally-guaranteed Home Equity Conversion Mortgage were implemented, changing the product and the type of person who will be using it.
Lending institutions, on the whole, were supportive of the changes, which require that senior citizens undergo background credit checks to ascertain their ability to maintain their loan obligations and [...]