Archive for the ‘Reverse Mortgages’ Category

HUD issues 2014 HECM Assessment Report

The Department of Housing and Urban Development (HUD) has issued a financial assessment for the Home Equity Conversion Mortgage (HECM) program. The November 2014 report has been anticipated for several months and ensures that the assessment criteria for Reverse Mortgage borrowers will be uniform for all HECM case numbers issued on or after March 2, [...]

Updated reverse mortgage guide: New Information

On September 24, the Consumer Financial Protection Bureau (CFPB) published an updated reverse mortgage guide on its blog which explains recent changes in the HUD Reverse Mortgage program. The post highlights the new limits on the first-year Reverse Mortgage payouts as well as HUD’s new protections for non-borrowing spouses.
In the Updated Reverse Mortgage Guide: Two [...]

New Reverse Mortgage: What you Need to Know

As the effects of the 2008 recession continue to impact on retirees’ income, more and more senior homeowners are considering their options. Tapping into home equity is one such alternative and that option is an attractive one for people approaching or already at retirement age.
There are limited possibilities to enable an individual to access [...]

Reverse Mortgage Counseling Saves Senior Americans Significant Sums

Reverse Mortgage counseling agencies are expanding their activities as Reverse Mortgages become gain in strength in the mortgage industry. Following numerous changes which have been introduced over the past 2 years, counseling agencies are reporting seeing a rising number of counseling sessions this year.
According to a recent study for NeighborWorks America by the Urban Institute, [...]

The New Reverse Mortgage

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 – [...]

HECM for Purchase: A Convenient Option for Senior Home-Buyers

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 [...]

Seniors can Use their House as Retirement Income

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 [...]

Reverse Mortgage and Inheritance

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 [...]

FAQS ABOUT REVERSE MORTGAGES – PART III

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 [...]

FAQs about Reverse Mortgages – Part II

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 [...]

FAQs about Reverse Mortgages

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 [...]

How HUD’s New HECM Rules Protect Seniors

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 [...]

Seniors Can Use Their Home to Stay at Home

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 [...]

HECM for Purchase Grows in Popularity

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 [...]

Reverse Mortgages and the Retirement Crisis

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 [...]

Using a Reverse Mortgage as a Financial Planning Tool for Seniors

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, [...]

HECM Loan Obligations and Benefits

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 [...]

New Protections for Reverse Mortgage Non-Borrowing Spouses

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 [...]

How to Use your Reverse Mortgage

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 [...]