Archive for the ‘Reverse Mortgages’ Category

Estimates state that a Reverse Mortgage Could Help Boost Your Retirement Income By 30%

According to a recent Wall Street Journal article, when facilitated in conjunction with a few other retirement planning steps, taking out a reverse mortgage could help increase retirees’ annual income by up to 30%.
The information comes at a time when fears of financial security plague retirees and potential retirees. Reports indicate that few Americans [...]

CFPB Guidelines and Advice for Reverse Mortgage Borrowers

The Consumer Financial Protection Bureau is embarking on a campaign to educate the American public about Reverse Mortgages. Many people are unaware of the differences between a traditional mortgage and a Reverse Mortgage. A traditional mortgage is used to buy or refinance a home. The lender lends you the money to buy or refinance the [...]

Understand a Reverse Mortgage Before You Apply

Rose Camden’s mother passed away in 2013 after a long illness. Now Rose is about to lose her home.
Camden spent the last decade living with her mother in her house in Omaha, caring for her full-time. Rose thought she would simply inherit the house after her mother died, but she discovered that her mother’s reverse [...]

A Look at HECM Loans

Housing equity is often the most important wealth component
of senior homeowners in the United States. Reverse mortgages allow elderly homeowners to consume housing wealth without moving out of their home. Until recent years however, relatively few eligible homeowners used a reverse mortgage to access this income. Now, HECM loans are evolving. To understand the recent [...]

New HECM Guidelines for Seniors

Up until this month, one of the most attractive features of the HECM Reverse Mortgage was the lack of income or credit requirements. All homeowners 62 and older who lived in their homes in which the mortgage had either been fully paid or for which only a small mortgage balance remained were eligible for the [...]

Three Reasons that a Reverse Mortgage Might be the Right Move for You

Many seniors worry about their retirement. Some seniors are continuing to work to make up for their lack of retirement savings while others have planned for years and prepared themselves by setting aside money in 401(k)s and other investments. Some retirees rely on pensions and social security to keep them solvent during their senior years. [...]

Is This the Year to Obtain a Reverse Mortgage?

Financial analysts see that higher mortgage rates, lower down-payment loans and new mortgage regulations encompass some of the key mortgage trends for 2015. Potential Reverse Mortgage borrowers are wondering how this will affect their plans to apply for a HECM loan.
In a recent article, the Washington Post wrote” The government seems to be operating on [...]

Reverse Mortgages Pros and Cons

Over the last decade, reverse mortgages have come to be seen as an easy way for seniors to cash in their home equity to pay for living expenses. However, numerous seniors have learned that improper use of the product has led to subsequent financial problems later, including foreclosure.
Reverse mortgages can be helpful to borrowers but [...]

What Every Retiree Should Know

Millions of retirees face financial challenges as they try to make ends meet when their income drops. For many seniors, the equity they have in their home is their largest untapped asset, yet they don’t want to make the dramatic decision to sell their family home in order to access the equity that they’ve built [...]

Delayed Financial Assessment Rule

The Department of Housing and Urban Development (HUD) announced that it is delaying implementation of the long-heralded Financial Assessment rule. This announcement comes just weeks before the new rule was scheduled to take place.
HUD cited a delay in the delivery of “certain system enhancements” that were required to support the policies which had been published [...]

House Democrats are Calling for Expanded Reverse Mortgage Protections

A group of 17 Congressional Democrats sent a letter to Department of Housing and Urban Development Secretary Julian Castro, calling for more foreclosure protections for Home Equity Conversion Mortgage borrowers’ spouses.
Their letter was prompted by a group of surviving spouses, whose names were not on the titles when their partners acquired HECM loans under the [...]

Reverse Mortgages as Income Supplements for Seniors

Homeowners over the age of 62 who have built up a equity in their home and wish to stay can tap into their home’s equity with a reverse mortgage.
This type of mortgage has become a popular way for seniors to fund their retirement. In 2013 Reverse Mortgage loans totaled $15.3 billion dollars, an increase of [...]

Standby Line of Credit - Hidden Value of a Reverse Mortgage

Over the past few months the Journal of Financial Planning has published several articles which take a look at how retirement income can be enhanced by opening a standby line of credit through a reverse mortgage and using this line strategically.
According to current HECM rules, homeowners can earn additional funds if the line of credit [...]

Avoid Reverse Mortgage Surprises

Reverse Mortgage offer benefits to seniors who can access the equity that they have in their home for extra income. What happens if the borrower dies, leaving a non-borrowing spouse? Lending institutions often have to help the surviving spouse navigate the bureaucratic fallout that occurs when the borrowing spouse dies. If the surviving partner is [...]

Considering a Reverse Mortgage – Pros and Cons

Over the past decade, you might have seen reverse mortgages marketed as an easy way for seniors to cash in their home equity to pay for day-to-day living expenses. However, you should be aware that many borrowers have learned that obtaining a Reverse Mortgage without the proper consideration has led to significant financial problems down [...]

Reverse Mortgage Lenders Encounter Good News Along with New Challenges

Home Equity Conversion Mortgages increased 12 percent during December 2014 over the previous month. This put HECM endorsements at the highest level during any single month since February 2014.
This is good news for Reverse Mortgage lenders who have been waiting to see how the HUD’s recent changes to the Reverse mortgage product will impact on [...]

Preparing for Retirement with a Reverse Mortgage

In the past, most senior citizens had finished paying for their mortgage by the time that they reached retirement age. In today’s mobile society, where individuals and couples relocate frequently throughout their lifetimes, it’s not uncommon for retirees to have mortgages when they reach their 60s. For many seniors, this puts a strain on their [...]

Downsizing Your Home Without Downsizing your Pocketbook

When Gayle and Arthur Zamchuck started thinking about refinancing the mortgage on their home in Evanston IL, they assumed that they’d need to refinance in order to finance a move to a smaller home. But after speaking with a reverse-mortgage adviser the couple discovered that if they took a home-equity conversion mortgage (HECM For Purchase), [...]

New Rules for a more Viable Reverse Mortgage Product

Financial advisers have been reviewing the new regulation changes to federal reverse mortgages. The changes, the latest in an itinerary of revisions that have taken place over the past two years, are transforming Reverse Mortgages from a “loan of last resort” to a viable financial planning tool.
Advisers note that these key changes are paving the [...]

Using your Resource to Increase Home as a your Retirement Income

If you speak to a financial adviser about ways to increase your retirement income, s/he’ll probably tell you to start by reviewing your available resources and thinking of creative ways that you can maximize those resources.
For most retirees, their most valuable resource is their home. By retirement age, a person’s home is generally completely or [...]