Archive for the ‘Reverse Mortgages’ Category

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 [...]

Reverse Mortgage Market is Expanding

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 [...]

Tax Obligations and Reverse Mortgages

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 [...]

New Guidelines for Reverse Mortgage Spouses

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 [...]

Reverse Mortgages, Terms, Changes and Important Updates

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 [...]

Individualizing a Reverse Mortgage

Not every senior citizen qualifies for a reverse mortgage. Some seniors have not yet reached the age of 62, which is the minimum age to apply for a Reverse Mortgage. Others are still paying off their mortgage and the balance that they owe on their existing mortgage is too high for them to acquire a [...]

Who Takes Out Reverse Mortgages?

If you think that reverse mortgages are only for cash-strapped seniors without any other financial options, think again. Reverse mortgage features have been evolving over the years. Research now suggests that the Reverse Mortgage loan is actually most helpful for retirees who want to find a strategy that will allow them to manage a dependable [...]

Five Important Things to Know When You’re Checking Out a Reverse Mortgage

Reverse mortgages have gained a bad reputation over the years but experts say that acquiring a Reverse Mortgage can be a good financial move for a certain segment of the market.
Susan Tiffany, director, consumer periodicals at the Credit Union National Association says “they do make sense for people who have no other alternatives. What happens [...]

Reverse Mortgages 2014 – Are they Really More Difficult to Obtain?

You might have heard that tighter rules on Reverse Mortgages have recently gone into effect. You may be wondering whether those regulations have made it harder to get a Reverse Mortgage.
The reason that Congress mandated these changes was because they wanted strengthen the Home Equity Conversion Mortgage (HECM) product, which was suffering from a struggling [...]

Does Someone In Your Family Want to Take out A Reverse Mortgage? What You Need to Know

If someone in your family is thinking about taking out a Reverse Mortgage, they may not be completely clear about the loan requirements, obligations and benefits. You can help protect them by learning everything that you can about the Reverse Mortgage loan as you guide them through their decision-making process.
First of all, remember that not [...]