Reverse Mortgages News, Information and Guidance

Why Home Equity is Your Strongest Weapon Against the Economy

Economic hardship is not news to many seniors. Most of us feel stress about our finances. At the top of our concerns? We believe that we will run out of savings in retirement. In fact, the majority of Americans feel this worry. According to the latest findings from Northwestern Mutual’s 2016 Planning & Progress Study,…

HELOC vs HECM

Over 62? Which is Better a HECM or HELOC for Tapping Home Equity in Retirement?

If you are like many retired American homeowners, you may have seriously considered accessing your home equity through a  Home Equity Line of Credit (HELOC). Utilizing a traditional HELOC can be a great short term solution to bridge the gap on unexpected expenses, consolidate higher interest debt, or make home improvements.  However, this type of…

Reverse Mortgage Popularity

Where Are Reverse Mortgages Most Popular?

Reverse mortgages are available — and hugely popular — for retirees living almost everywhere in the United States, but you might not know if the loans are the norm where you live because people are often secretive about their personal finances. You might not know it, but reverse mortgages are hugely popular throughout the United…

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Reverse Mortgage Limits: The Government Limits How Much Money You Can Get in the First Year

The government-insured reverse mortgage program has undergone major changes in the last few years to better protect borrowers, including one that limits how much money borrowers can get in the first year of the loan. What?!?!???  Less money? How limited is access to your own home equity? Why is limiting how much money you can…

reverse mortgage after death

What to Do About a Reverse Mortgage After Death: Reverse Mortgage Heirs Responsibility

Managing all of the responsibilities of an estate after death can be incredibly stressful.  If your family member had a reverse mortgage, it is particularly important for heirs to quickly figure out what to do about the reverse mortgage after death.  The heirs of reverse mortgage borrowers have a set of duties, even if they…

reverse mortgages explained

Reverse Mortgages Explained: What is the Real Truth About These Loans?

You probably want reverse mortgages explained in a clear straightforward way.  The loans can seem incredibly confusing and many retirees have had slightly negative views about them. However, popular opinion is swinging and reverse mortgages may turn out to be the red wine of financial products — something once considered bad that is now thought…

reverse mortgage information

How Reverse Mortgages Work: Do You Agree With the Top 6 Reverse Mortgage Objections?

At NewRetirement we understand that it is almost impossible to save enough cash for retirement.  We hear awful stories of seniors suffering financially. However, many of you have paid off or paid down your mortgages and actually have substantial savings in your home equity.  You are just not interested in using it even though this…

reverse mortgage comparisons

Your Retirement: 3 Areas Where Backwards is Better

We are always trying to move forward in life.  However, in retirement, there are at least three areas where you might want to hit reverse and go backwards: Reverse Aging: Where is that fountain of youth anyway? While creams and potions promise to reverse aging, there are actually a few things proven to make us…

how do reverse mortgages work

How Your Home Can Function as a Pension Plan for Your Retirement

Ah, the good old days of defined benefit pension plans. Pensions used to be common and a wonderful source of retirement income. But these benefits are increasingly rare.If you are feeling the stress of funding retirement, it is likely because you simply lack the guaranteed pension income that your parents probably had.  You have worked…

reverse mortgage

Retirement Headed for the Rocks? How a Reverse Mortgage Can Light the Way to Security

Retirement can feel scary.  In fact, it sometimes feels like you are in a tiny boat up against a huge and unpredictable storm with a rocky shoreline ready to break up your way of life. However, you have navigated your financial life this far and — believe it or not — you can chart your…

reverse mortgage reviews

Reverse Mortgage Reviews: Why Rants Have Become Raves

Respect for and acceptance of reverse mortgages is growing by leaps and bounds. New reverse mortgage rules give retirees reasons to jump for joy! While, reverse mortgages once had many detractors, recent changes to the FHA reverse mortgage program have helped many people change their reverse mortgage reviews.  More people are beginning to see just…

The Older You Are, The Greater Your Reverse Mortgage Benefits

Reverse mortgages provide older homeowners with an additional source of cash flow to supplement, and even enhance, their retirement savings. Depending on a borrower’s age, there are several ways that older retirees can maximize their reverse mortgage potential. A reverse mortgage allows homeowners age 62 and older to convert a portion of their home equity…

Rich or Poor, Here’s How To Get the Most Out of a Reverse Mortgage

Reverse mortgages offer retirees a number of benefits. Not only can they provide extra cash flow to support a more comfortable  retirement, but when used strategically, they can also protect your investment accounts. A reverse mortgage allows homeowners age 62 or older the ability to convert their home equity into tax-free proceeds, which can be…

The Tax Implications of Reverse Mortgages

The Tax Implications of Reverse Mortgages It’s tax season.  For both new and prospective reverse mortgage borrowers it brings to mind questions about how the money from a reverse mortgage is best handled from a tax perspective.  In either case, there are a few things you should know from a tax perspective. Reverse mortgages enable…

Protect Your Retirement Savings from New Medicare Fees with a Reverse Mortgage

Earlier this year, Medicare introduced a new program framework that will make paying for certain coverage options more expensive in the future.  Covering these new surcharges would normally have to come out of other income or by drawing down your investments.  But, it doesn’t have to come out of pocket, or even out of your…

Is a Reverse Mortgage Right for You?

Reverse mortgages have undergone substantial changes over the past year to make them safer for retirees. But just like many other financial products on the market today, reverse mortgages are not for everyone. A reverse mortgage allows homeowners age 62 and older to convert their home equity into tax-free proceeds, which they can use at…

Financial Guru Jane Bryant Quinn Recommends a Fresh Look at Reverse Mortgages

Reverse mortgages aren’t what they used to be. Recent program changes have not only made these loans safer for borrowers, but they’ve also made them better financial planning tools. And this has convinced many financial experts to change the way they look at reverse mortgages. One of those experts is Jane Bryant Quinn, one of…

Four Predictions for Reverse Mortgage in 2016

If you’re considering getting a reverse mortgage, you’ve probably done your homework on loan basics and how a reverse mortgage differs from a traditional “forward” mortgage. (If you still have homework to catch up on, check out our introduction to reverse mortgage here.) What you might not have considered is that the reverse mortgage market,…

Is Your Nest Egg Hidden In Your Nest?!

Do you have a nest egg? You might, but you may not even know it. That’s because your nest egg may actually be your “nest,” that is, the home you live in now. If you own a home and have paid off all or a good portion of your mortgage after making years of payments…

The Top 3 Reasons To Get a Reverse Mortgage

If you’re approaching retirement, or have already stopped working full time, you might be eyeing your savings and your investment portfolio wondering: will it last? For at least these three reasons, you should look into reverse mortgages. For some Americans, the answer is “yes.” For many, it’s “no.” And for a good portion, it’s “maybe.”…

How to Most Effectively Use Reverse Mortgages in Retirement Planning

In the past, reverse mortgages were often considered loans of last resort, only to be used after a homeowner has exhausted all other financial assets.  Today, a national discussion has sprung up discussing how reverse mortgages can be effective when used as part of a coordinated retirement planning strategy.  Why now?  These loans underwent several…

New FHA Condo Rules for Reverse Mortgages Offer Lot of Sizzle, No Steak

New FHA Condo Rules Make Reverse Mortgages More Accessible

The federal government recently updated policies that impact the eligibility of condominiums for reverse mortgages.  This followed an outcry from lawmakers and various mortgage industry groups. But while the policy change is meant to ease rules, critics argue much more needs to be done, especially for condo residents looking to obtain reverse mortgages. In November,…

You’ve spent years caring for your home. Why not let it return the favor?

You Have Cared for Your Home, Now Let it Care for You

If you’re like most Americans approaching retirement, you’ve worked for decades with your end goal in mind. Most likely, you’ve carefully set aside savings for the future (or at least you’ve tried to), whether you have invested it conservatively or more liberally. But with costs of health care rising and the average lifespan increasing with…

reverse mortgage

Beware of a FREE Lunch: Reverse Mortgage Pros and Cons

There’s no such thing as a free lunch, right? While that may be true, there are some ways to get a little extra bang for your buck—and that can apply directly in the case of your home equity. If you’re like at least half of Americans, the majority of your wealth is being stored up…

reverse mortgage facts

14 Important Reverse Mortgage Facts

Many people are aware of reverse mortgage loan options due to the ongoing advertising campaigns and celebrity endorsements of these products. But do you know your reverse mortgage facts? With all of the buzz about retirement financing options today, it can be difficult to distinguish between complete and incomplete information about the reverse mortgage products…

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What is Your Retirement Financial Back-Up Plan?

Most Americans have contingency plans in case something goes wrong: a flashlight in the glove box in case of an auto emergency, or a generator in the garage should the power go out for an extended period of time. If you are like most people, you probably have a spare tire in your car in…

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Using Home Equity Strategically vs Tactically for Retirement – which is best?

Recently a leading academic voice on Retirement Security, Alicia Munnell, of Boston College’s Center for Retirement Research came out and highlighted 3 Keys to fixing the retirement crisis: Work longer Shore up Social Security Leverage Home Equity This article illustrates how using mortgage debt and home equity strategically can be a smart choice for people…

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Home Equity Can Give You Choices for Retirement When the Stock Market Goes Crazy

The stock market may have seen historic gains and ongoing rallies following the recession, but it’s still never a sure thing—especially when it comes to investing for retirement. Stocks can be up one day and down the next. The problem isn’t that dips, dives and swings existing in financial markets.  The problem for people approaching…

retirement plan b

Does Your Retirement Need a Plan B?

Life is full of the unexpected. And if you are a retiree, or soon-to-be retiree,  you are probably looking for a backup plan to insure you won’t run out of money in retirement! Does your retirement plan need a safety net? The stock market fluctuates, illnesses occur, family emergencies happen and people are living longer…

Reverse Mortgage

Who Wants Reverse Mortgage Information? Why? And, What Can They Get from These Loans?

Reverse mortgages are popular financial products and popular debate topics.  Many people get a reverse mortgage to help finance retirement while some argue their value.  However, it seems that everyone wants reverse mortgage information and to estimate their potential reverse mortgage loan amounts. Who are these people?  What does a reverse mortgage offer them?  Why…

Reverse Mortgage Line of Credit

Why a Reverse Mortgage Line of Credit May be Better than a Traditional HELOC

Let’s face it, most of us cannot predict the future. Otherwise, we would probably be set for life financially. The stock market is volatile and the housing market is sensitive to economic turmoil. The cost of living continues to increase while government benefit adjustments are too small or non-existent. Most of us look to our…

Is a Reverse Mortgage Right for You? 3 Questions to Ask Before Contacting a Lender

  Reverse mortgages can help us successfully age in place during retirement, while also providing some extra cash flow via the most valuable asset most of us own: our home. But like all financial products on the market today, reverse mortgages are not for everyone and there are some things to consider when determining if these…

retirement

Ideas for a House Rich and Cash Poor Retirement

Going into retirement we plan for unexpected emergencies, we hope the economy improves, we tighten up our belts if need be, but mostly we sacrifice. We sacrifice our finances for our children’s futures, we sacrifice our health and relationships for the benefit of our careers and ultimately our employers, and we sacrifice the most precious…

House Prices at All Time High: Can You Afford Retirement Now?

According to the National Association of Realtors (NAR), the national median sales price for existing homes is currently at an all time high and sales have risen at their highest pace in over eight years. Lawrence Yun, NAR chief economist, is quoted in a press release saying, “Buyers have come back in force, leading to…

Five Creative Ways To Do More With Your Retirement

Doing more with less has never been so enjoyable. That’s all, folks. For those of us over sixty, the dream of an easy retirement is now officially deader than a doornail. According to the Pew Research Center, two thirds of us are having to say farewell to the lifestyle we’d hoped to have at this…

My Grandmother and Her Reverse Mortgage

In 2009 my grandmother in law was a 91 year old widow.  She had 7 children, 19 grandchildren and 16 great grandchildren.  She loved family parties, playing golf and reading. It was at this time, however, that she began to experience financial stress. Her house was worth $500,000, but she was having trouble paying the…

A Disagreement Between Old Friends About Reverse Mortgages

Have you ever overheard someone trying to win an argument with completely wrong facts? This happened to me recently while having dinner with the family at The Old Spaghetti Factory. We were celebrating Nana’s 86th with nine grown grandchildren and their spouses and six great grandchildren in attendance. There were also a few family friends…

Does the Government Steal Your House When You Get a Reverse Mortgage?

A reverse mortgage is a loan that enables homeowners aged 62 or older to borrow against the equity in their home without having to sell the home, give up title, or take on a monthly mortgage payment. These loans  are very popular but are often misunderstood.  A common reverse mortgage misconception has to do with…

Reverse Mortgage Ads Are Very Misleading: Get the Facts Here

If you watch TV, you have probably seen commercials that promote the various benefits of reverse mortgages. Usually, it’s a well-known celebrity spokesperson, explaining how reverse mortgages work and how to become eligible for these loans. But what you have heard in these ads may be misleading. The Consumer Financial Protection Bureau (CFPB) recently conducted…

Should You Use a Reverse Mortgage to Renovate Your Home?

A reverse mortgage can be used to tap into home equity, and can allow aging Americans to remain in their homes. The proceeds of a reverse mortgage, including the line of credit option taken by many reverse mortgage borrowers today, can also be used for a very important purpose: home improvements. Whether updating features to…

Henry Winkler Reverse Mortgage

Henry Winkler Reverse Mortgage? Fred Thompson Reverse Mortgage? Why Do Celebrities Pitch Reverse Mortgages?

If you’ve never seen a reverse mortgage commercial featuring the familiar face of a celebrity, you’re probably in the minority. Reverse Mortgage lenders have long elected to work with famous faces to help them get the word out about reverse mortgage products. It’s a common practice. Baby boomer celebrities represent brands across all product and…

What is a Reverse Mortgage? Who is Behind these Loans?

A reverse mortgage is a loan taken against the equity that you have in your home. If eligible, older Americans can use a reverse mortgage to help them offset mounting costs or simply provide an additional revenue stream in retirement. What is a reverse mortgage? The financial tool enables qualifying homeowners aged 62 or older…

Reverse Mortgage Information: What You Need to Know About New Product Coming in April

A new reverse mortgage is debuting in late April and, in some ways, how to qualify for a reverse mortgage will soon look a lot like that of getting a traditional “forward” mortgage. Historically, reverse mortgages have been known as loans that did not require credit or income requirements — but that’s changing. Come April…

Retirement Taxes: Reverse Mortgage Tax Implications

Tax season can seem like an overwhelming time of year. As you’re busy gathering all the receipts, statements and other necessary documentation on your retirement assets, you might want to consider how alternative investments, like getting a reverse mortgage, can impact your retirement taxes. In recent years, reverse mortgages have been garnering greater acknowledgement within…

Forget the Heirs — I Need Money Now: 1/3 of Reverse Mortgage Borrowers Are Unconcerned About Leaving a Legacy

Living longer than expected, insufficient savings, higher cost of living and medical expenses are just some of the things making it difficult for many older Americans to pay for retirement. Securing a reverse mortgage is one solution many people are exploring.  A reverse mortgage allows homeowners who are 62 or older to borrow their home…

Reverse Mortgage Financial Assessment Set to Begin in April: What it Means to You

The reverse mortgage Financial Assessment, which was originally supposed to take effect March 2, 2015, has been pushed back several weeks to allow both lenders and prospective borrowers more time to prepare for the upcoming rule change. Now, borrowers who get a reverse mortgage on or after April 27, will be subject to the Financial…

Reverse Mortgage Borrowers: Have No Fear as Financial Assessment Nears

In short time, homeowners who are considering taking out a reverse mortgage will run into a few changes. But industry experts say these changes are nothing to fear. In an effort to better protect borrowers and the reverse mortgage program, the Department of Housing and Urban Development (HUD) has issued new guidelines that will impact…

Reverse Mortgage Information: The 5 Biggest Reverse Mortgage Complaints

Reverse mortgages are complex financial tools that, when utilized to their full potential, can be instrumental in helping you plan for retirement. But not used under the right circumstances, they have recently made headlines for consumer complaints about them. What are the biggest reverse mortgage complaints? In February, the Consumer Financial Protection Bureau (CFPB) highlighted…

New Options for Reverse Mortgage Non-Borrowing Spouses

For many years, non-borrowing spouses of reverse mortgage borrowers had few protections when the borrowing spouse passed away. That’s because the reverse mortgage, and its terms, apply only to those people who are named on the home title. For some non-borrowing spouses, that has meant they are left to repay the loan, or leave the…

The Reverse Mortgage Financial Assessment: What You Need to Know

This year, reverse mortgages will undergo yet another transformation in a long line of recent program changes designed to make these loans safer retirement planning mechanisms for the borrowers they serve. Starting on April 27, 2015, borrowers age 62 and older will be subject to a financial assessment before they can take out a reverse…