Posted on May 18, 2011 by Erin
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.”
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Posted on May 10, 2011 by Erin
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.
Posted on April 20, 2011 by Jason
The newly passed federal budget cuts $88 million that was to be used for loan counseling – including Reverse Mortgage counseling — programs. A Reverse Mortgage counseling session is a requirement of securing a Reverse Mortgage and is intended to help the borrower understand the loan and alternatives to a Reverse Mortgage.
After September of this year, the federal government will not fund this counseling and it is likely that the borrowers themselves will pay the $100-$150 expenditure.
If you are considering a Reverse Mortgage, you may be able to avoid paying for this counseling session by scheduling it as soon as possible. Studies have shown that participants find these sessions useful and they are offered by independent agencies like the National Council on Aging (NCOA). They are not sales sessions.
Talk With a Pre-screened Reverse Mortgage Lender About Reverse Mortgage Counseling.
Posted on April 8, 2011 by Steve
Of course this doesn’t mean we won’t overshoot to the downside of the trendline.
Posted on February 8, 2011 by Jason
Strong opinions on Reverse Mortgages have been voiced by many national and local news outlets. The Today Show, The Wall Street Journal, CNN, Money Magazine and many others have offered both positive and negative reviews of the loans.
Recently, Fox News aired a somewhat negative segment about Reverse Mortgages. A week later, the same commentator came back on air to clarify his statements and said that he had decided that Reverse Mortgages could be a necessary and good decision for some senior homeowners.
Why the Controversy? The strong and varying commentary on Reverse Mortgages could be due to various factors, including:
- The idea that controversy gets more viewers and sells more ads.
- Reverse Mortgages are still a relatively new product and can be difficult to understand.
- The huge amount of money that home equity represents in the United States.
So What is the Truth? The decision to get a Reverse Mortgage is highly individual and largely dependent on your financial needs and values. If you have a financial need and you wish to remain in your own home, then a Reverse Mortgage can be a great way to achieve your goals.
Use the Reverse Mortgage Calculator to Instantly Estimate Your Loan Amount
or
Downloand the FREE Guide to Reverse Mortgages for More on the Pros and Cons of the Product
Posted on January 26, 2010 by Julius
A Washington Post article published this past weekend entitled “Reverse Mortgages Are Not the Next Subprime” highlights the benefits of a reverse mortgage for seniors as well as how it is completely different from the subprime fiasco. While initially reverse mortgages carried with them a senior’s fear of losing his or her home, after 1989, with the home equity conversion mortgage (HECM) program, as long as you pay the property taxes, maintain the property, and don’t change the name on the deed, you can remain in your home permanently. Also, if your lender fails, the unmet payment is taken over by the Federal Housing Authority.
Furthermore, according to a 2006 AARP study, 93 percent of people who received a reverse mortgage were happy with their choice, while only 3 percent said the effect of the reverse mortgage was mostly negative. So, if you are considering a reverse mortgage click here to find out some more information.
Posted on December 17, 2009 by Julius
A study by the National Alliance for Caregiving and the AARP shows that nearly one third of the US population are caregivers, defined as providing unpaid care to an adult or a child with special needs. On average these caregivers are providing care for 20 hours a week, which creates a great deal of stress. Many caregivers had to pass up promotions, leave jobs, and cut back on time at work to provide care. A surprising amount of caregivers (53%) reported loneliness and isolation by having to cut back on time with friends and family.
A reverse mortgage could not only help keep parents out of a nursing home and provide money for paid caregiving, but could also help prevent stress upon the child caregiver.
Use our new reverse mortgage calculator to see if a reverse mortgage is right for you.
Posted on October 30, 2009 by Julius
Yesterday Congress passed an extension to the $625,000 national loan limit for reverse mortgages through December 31, 2010. If Congress had not passed this extension then loan limits for the Home Equity Conversion Mortgage (HECM), or reverse mortgage, would have returned to $417,000 at the end of the year.
Posted on October 8, 2009 by Julius
Peter Graves returns to television, where he gained his initial fame playing Jim Phelps in Mission Impossible, as an AAG spokesperson for reverse mortgages. These commercials, which will begin airing October 12, will highlight the benefits of reverse mortgages for seniors.
Posted on September 30, 2009 by Julius
With the 10% reduction in principal limits on a federally insured reverse mortgage scheduled for tomorrow, October 1, it appears that lenders are getting swamped by last minute borrowers who want the most money for their reverse mortgage. The industry is trying its best to fill demand, but despite this fact it’s obvious that many seniors will not be able to meet the deadline. Leave a comment on reversemortgagedaily.com, and someone will contact you to let you know if you still have time.
