The only people you NEED to tell about your decision to get a reverse mortgage are those who are living in your home with you. However, there are many benefits to sharing your decision with other family members — especially potential heirs. Here are 5 reasons why you might want to talk to your loved…
Reverse Mortgages News, Information and Guidance
For many people, a Reverse Home Mortgage is a good way to increase their financial well-being in retirement – positively affecting quality of life. And while there are numerous benefits to the product, there are some drawbacks — reverse mortgage disadvantages. Reverse Mortgages are providing improved financial security, a better lifestyle and real financial relief…
A reverse mortgage is a federally insured loan for homeowners who are 62 years of age and older. On this page you’ll find lots of information about reverse mortgages and a link to our reverse mortgage calculator. Use this guide to reverse mortgage calculations to help understand: How Much Money Can I Get from a…
Can a reverse mortgage line of credit provide financial security? A reverse mortgage line of credit is exactly what it says it is… It is a line of credit on a reverse mortgage. Mmmm… that doesn’t really clear it up at all, does it? Reverse mortgages can be difficult to understand. We’ll break it down…
Jumbo reverse mortgages – also known as proprietary reverse mortgages – are loans designed and offered by financial institutions that enable owners of high-value homes to access greater amounts of their home equity than is available from the government insured HECM reverse mortgages. Unlike the standard HECM reverse mortgage, jumbo reverse mortgage products generally do…
The road in retirement can have all sorts of twists, turns and probably some pot holes.If you’re not prepared, these bumps have the potential to derail your financial security. However, you can have a contingency plan for when the path gets rocky. A reverse mortgage can be a spare tire for your retirement — there…
Reverse mortgages have been commonly viewed as a last resort that should be avoided like the plague. This false “loan of last resort” reputation reduces reverse mortgage use among many retirees who stand to benefit from tapping into their home equity. However, several recent developments have transformed these products into viable financial planning tools. New…
For some homeowners over 62 years old, a reverse mortgage can be a great option for improving retirement finances and quality of life. There are, however, quite a few misunderstandings when it comes to these complex financial products. In this article we will debunk a couple myths so you can more clearly decide if a…
Used wisely, getting a reverse mortgage early in retirement can result in getting more out of both the reverse mortgage and your investments at the same time. If used strategically, reverse mortgages can be valuable financial planning tools to help retirees cover a variety of lifestyle expenses and can also strengthen the spending power of…
You might be surprised by how many people are interested in learning about reverse mortgages. There are borrowers from every state, from a wide variety of socioeconomic backgrounds and the ages of borrowers range anywhere from 62 to 95 and older and everything in between. One thing everyone struggles with is when is the best…
According to AAG, the first reverse mortgage was issued in 1961 to a widow in Portland, Maine. A banker, Nelson Haynes of Deering Savings & Loan designed the loan to help the widowed wife of his beloved former high school football coach. The idea behind these loans has always been to help seniors in need. However,…
The oddly named ‘tenure payment’ is a fixed monthly payment you can getfor as long as you live in your home. Reverse mortgages have been gaining greater attention from financial planners because they can be incorporated into retirement income plans. One of several strategies enables homeowners to use a reverse mortgage to receive monthly cash…
Many folks think that getting a reverse mortgage means they are selling their home to a lender for a reduced value and that the lender gets the benefit of the future appreciation of the home. This could not be farther from the truth. Reverse mortgages are not scams. They are loans — a business agreement…
One of the biggest draws for reverse mortgages is their ability to help older adults remain in their homes, while also providing them with some additional cash flow via their home equity. But while not everyone’s home may be physically equipped to suit their aging needs, certain features of reverse mortgages can help cover some…
Can Your Wishes Come True? New Reverse Mortgage Purchase Guidelines Make it Easier to Buy a New Home
Reverse mortgage purchase guidelines were recently eased, making it much easier to use this loan type to buy a newly constructed home. A Home Equity Conversion Mortgage, more commonly known as a reverse mortgage for purchase or an HECM for Purchase (or even H4P) is a specific type of reverse mortgage loan that lets you…
Reverse mortgages are a type of home equity loan for homeowners 62 years and older. If you have been thinking about getting a reverse mortgage, here are 9 new reasons to take a fresh look at the program. 1. You Are Protected in a Natural Disaster Floods. Fires. Earthquakes. It has been a rough few…
Reverse Mortgage Definition: A reverse mortgage is a type of home equity loan for homeowners over 62 years old. With no monthly loan payments, you accrue interest instead of paying it down. When you get a reverse mortgage, you are borrowing your own home equity. (Home equity is the difference between what your home is…
Read on to find out “How do you qualify for a reverse mortgage?” Qualifying for a Reverse Mortgage is relatively straightforward. The requirements are clearly specified by the U.S. Department of Housing and Urban Development. Reverse Mortgages are an increasingly popular loan type for older adults. The loan enables the borrower to eliminate monthly mortgage…
It used to be that reverse mortgage borrowers were seniors who were at the end of their financial rope. However, according to experts, the types of people who are applying for reverse mortgages is evolving. While people still get the loans to make ends meet, these days reverse mortgage borrowers are more likely to be…
Reverse mortgages are widely advertised on TV, radio and online. But, are they a good idea for you? Who can you believe? And, how do you get good information? A new study from Ohio State University sheds light on these topics. Researchers recently surveyed 30,000 seniors who received reverse mortgage counseling between 2006 and 2011….
The Department of Housing and Urban Development (HUD), the agency that administers the HECM reverse mortgage program announced changes that will: Reduce the amount homeowners can borrow Increase mortgage insurance premium fees for some borrowers Make it harder to qualify for the loan. (Because the loan amounts are smaller, some people with an outstanding balance…
After Oct. 2, 2017, HECM reverse mortgage maximum loan amounts will decrease In an effort to further strengthen the long-term viability of the Home Equity Conversion Mortgage (also known as the HECM Reverse Mortgage), the Department of Housing and Urban Development (HUD) announced plans this week that will ultimately make these loans more expensive for…
If you are retired or nearing retirement, you have probably asked yourself, “what is a reverse mortgage and how does it work?” Reverse mortgages can be confusing. Here are some straightforward answers about what they are, how they work, who qualifies and much more… What is a Reverse Mortgage? Let’s start with the basics: what…
Many people say that reverse mortgages are just too good to be true. However, over 1 million retirees have secured these loans and a recent study from Ohio State University finds that the vast majority of people who get a reverse mortgage are “satisfied” or “very satisfied” with their decision. When you get a reverse…
Reverse mortgage television commercials abound, but it is hard to get straightforward — easy to understand — answers in response to your reverse mortgage questions. Here are some of the most common reverse mortgage questions people have and some very surprising answers: Is it a Loan? This is one of the most common reverse mortgage…
