NewRetirement Blog » Reverse Mortgages

Reverse Mortgages More Popular Than Ever

Erin — Wed, 18 Jan 2012 21:02:31 +0000

It may be a new year, but it’s looking like the housing market may continue to be less than wonderful. In some parts of the country, home values are still declining and many people can’t seem to sell their homes. One of the ways seniors can tap into their home equity is to get a reverse mortgage.

It was reported in the Wall Street Journal that reverse mortgages are once again gaining steam. More lenders are beginning to offer the product again that allows you to take a loan against the equity you already have in your home. MetLife originated 171% more reverse mortgages in 2011 than they did in 2010! The program is tailored for homeowners ages 62 and up who want to stay in their home for a while and want to eliminate their monthly mortgage payments.

We can help you find a reputable lender in your area that can give you information on the program and tell you exactly how much money you can qualify for.

Traditional Reverse Mortgage Versus the Saver Program

Erin — Fri, 18 Nov 2011 23:02:26 +0000

We get a lot of questions around here regarding Reverse Mortgages and how they work. But recently, there’s been an uptick in people inquiring about the difference between a traditional Reverse Mortgage and a Saver Reverse Mortgage.

Both of these reverse mortgages allow you to tap into the equity you have in your home. The difference is in the fees. Often times, traditional reverse mortgages are criticized for having high fees that may price some seniors out being able to receive the loan. The Saver program greatly reduces that problem by cutting the fees in almost half when compared to the traditional. It must also be noted that though the fees are drastically cut, the amount that you can borrow is also reduced. This is why many folks choose to use the HECM Saver as a line of credit. This establishes a sort of emergency fund that can be drawn from at any time.

Want more information or need to speak to a lender to compare your traditional versus saver amounts? We can help!

Group Helping Seniors Stay in Their Homes

Erin — Thu, 29 Sep 2011 21:53:26 +0000

Stories of people doing good things are hard to come by and that’s why we wanted to include one in our blog. It’s no secret that many seniors throughout the U.S. are having a difficult time staying in their homes as values continue to decline. One option that could help seniors is getting a reverse mortgage, and a non-profit organization in North Carolina is helping do just that.

The Foundation For Homeowners is a group that helps seniors by providing free counseling services to those in danger of losing their homes. People never want to be forced from their homes against their will and through reverse mortgages, the foundation can help seniors continue to stay in their homes. The president of the foundation, Lolita Stevenson said, “We focus only on those seniors that want the reverse mortgage but are not qualifying for various reasons.” The foundation works with the homeowner to make any repairs that may need to be done to get them up to code for a reverse mortgage loan. Sometimes they may even be able to work with homes that may be considered a short sale. Currently, The Foundation For Homeowners is counseling between 15 and 20 seniors a month and their success rate for getting seniors reverse mortgages is between 70-75%.

Thinking about getting a reverse mortgage? See if one is right for you.

See how strong your current retirement strategies are by using our Retirement Calculator.

Is Your Community Aging With You?

Erin — Tue, 23 Aug 2011 21:13:15 +0000

You would think that with Baby Boomers hitting their 60s, America would be ready to age with them. Think again. In a survey entitled, “The Maturing of America. Getting Communities on Track for an Aging Population,” it was found that only 46 percent of American communities have begun to address the needs of our aging population.

What are some changes that would help support the effort to make places more senior friendly? Things such as road signs that are easier to read, adjusting the timing on pedestrian crosswalks to allow for mobility impaired adults, supporting meal delivery services and creating community centers where older adults can easily access recreation are just a few ways to create a better environment for older adults. Click here to read the full report and see what’s being done to support communities maturing with their population.

Is your community prepared to age with you? What are some suggestions you would give your city planners to improve where you live?

Are you planning on living out your golden years in your current home or exploring other options? Check out your different options, here.

Looking for a way to stay in your home and tap into it’s equity? A reverse mortgage may be right for you.

HUD Approves Extension of Reverse Mortgage Loan Limit

Erin — Tue, 23 Aug 2011 00:11:57 +0000

The Department of Housing and Urban Development (HUD) announced last week that they will be extending the $625,000 maximum loan amount for a Reverse Mortgage through December of this year. There has been major support in pushing Congress to approve this extension. According to the Mortgage Bankers Association, the temporary loan limits have benefited consumers and the housing market during these very turbulent times in our economy. With the extension, homeowners who live in high home value areas can continue to be approved for a loan of up to $625,000.

Want to get information on a Reverse Mortgage? We can help you!

Playing Retirement Catch Up

Erin — Wed, 13 Jul 2011 21:55:09 +0000

Did retirement sneak up on you? Do you not have as much money saved as you had hoped for? If you’re attempting to play catch up, financial writer and equity analyst Glenn Curtis, has some ideas of you may find come in handy. Curtis recommends taking advantage of your current job’s 401k if it is offered. In fact, he recommends funding it to the maximum amount allowed. Consider this, if you’re 40 years old and you contribute $16,500 a year to the plan, you could possibly accrue more than $1.3 million by age 65! Curtis also recommends turning your home equity into liquidity through a reverse mortgage. Though this should not be your primary source of retirement income, it does provide a way to tap into the money you have been paying into your home for all these years.

Read about more ways to quickly increase your retirement fund, here.

Curious to see how your retirement plan is shaping up? Use our free Retirement Calculator to find out!

MetLife To The Rescue!

Erin — Thu, 23 Jun 2011 21:15:57 +0000

Still wanting to get a Reverse Mortgage but worried about the recent news of Wells Fargo exiting the business? There’s no need to fear! According to Brian Lewand, Senior Vice President and Managing Director of MetLife, the nation’s third largest Reverse Mortgage competitor after Wells Fargo and Bank of America, is ramping up efforts to increase their growth in the market. Though they aren’t giving up their entire game plan just yet, it has been noted that they have begun to extend warehouse lines of credit to mortgage banking firms that originate reverse mortgages.

And MetLife isn’t the only company to do so. Peter Bell who heads up the National Reverse Mortgage Lenders Association has said that many new companies are moving into the Reverse Mortgage business.

Does the exit of the top two players in Reverse Mortgages still make you nervous? What are your opinions on Reverse Mortgages? Let us know your opinion!

Read the full article, here.

Thinking about a Reverse Mortgage? We can help you find a reputable lender.

Wells Fargo Out of the Reverse Mortgage Business

Erin — Mon, 20 Jun 2011 20:57:56 +0000

As many of you have probably heard by now, last Thursday, Wells Fargo announced it will soon exit the Reverse Mortgage business. With this announcement and Bank of America’s same announcement back in February, many are wondering why exactly the two largest providers of the loan, backed out.

The best explanation of this is that the Reverse Mortgage loans were viewed as just too risky by these banks. A Reverse Mortgage allows people age 62 and older to access the equity in their home. The homeowner is required to continue to make payments of their property taxes and homeowner’s insurance – which is where Wells Fargo saw a problem. The banks are not allowed to asses the homeowner’s ability to continue to make these payments and unfortunately, many cannot afford to continue to make their payments. If the homeowner falls into default, the bank finds themselves responsible for the delinquent borrower’s payments. This risk proved too much for Wells Fargo. Fortunately, there are still many other companies that provide these much needed loans to seniors. Unfortunately, with fewer companies competing against each other, we could begin to see a rise in fees.

Wells Fargo will be taking new application for a Reverse Mortgage until June 30th.

Thinking about getting a Reverse Mortgage before a possible raise in fees? We can help you find a trusted lender.

Could You Make it on Social Security Alone?

Erin — Wed, 18 May 2011 18:48:12 +0000

34 percent of retirees ages 65 and older, get 90 percent of their retirement income from Social Security. While the old adage, “don’t put all your eggs in one basket” definitely rings true for retirement plans, the reality is that many people have to rely on Social Security. Here are a few ways to make your retirement still happen if Social Security is your primary source of retirement income.

Boost Your Benefits: Did you know that if your hold off on taking Social Security until you are at your full retirement age (rather than immediately at 62), you can increase your payment for each year you delay your claim?
Do You Own a Home That Has Equity Invested?: Use it! Reverse Mortgages are allowing homeowners that are 62 or older and have little or no mortgage to tap into this money. Many use the loan as an emergency line of credit to fall back on if needed.
Continue Working: Maybe not the suggestion retirees want to hear when they are ready to retire! But holding a part time job doing something that you truly love can help your spirit and your wallet.

What do you think? Is it possible to retire on Social Security alone? Is it wise? What’s your plan to have a great retirement?

Read the full article, “How to Retire on Social Security Alone.”

Will You Have Enough Money to Fund Your Entire Retirement? Find Out Here

Calculate How Much Money You Could Get From a Reverse Mortgage

Will the Senate Keep Counseling Funding in Budget?

Erin — Tue, 10 May 2011 19:20:57 +0000

Last week, Housing Secretary Shaun Donovan was given the opportunity to stand before the Senate Banking Committee and plead his case on The Department of Housing and Development’s (HUD) 2012 appropriation request. Donovan argued it is critical that Congress restore funding for HECM counseling – HUD is requesting $168 million.

Just a few weeks ago, 88 million dollars was eliminated from fiscal year 2011′s budget for counseling. This is an issue for seniors because HUD guidelines require HECM counseling before borrowers are allowed to go through with the loan process. According to Donovan, if funding is not restored, after October 1st of this year, the expense will fall on seniors who are interested in a HECM Reverse Mortgage.