While reverse mortgages sometimes make headlines, consumers can not usually find up-to-date information in their favorite newspapers and periodicals. To make up for the lack of mainstream news, seniors can get the modern information by following a reverse mortgage blog. For those who have gotten behind on their favorite reverse mortgage blog, here is the hottest news that has the mortgage industry buzzing.
Are Fiscal Experts Finally Realizing the Full Benefits of Reverse Mortgages?
It can be no secret that reverse mortgages have many critics. If Home Equity Conversion Mortgages (HECMs) first became for sale in the late 1980’s, several lenders did adopt many questionable practices. However , as these loans have matured, often the Federal Housing Administration (FHA) has tightened their laws. The days when lenders could take advantage of their borrowers usually are long since over. Unfortunately, it has taken a long time for any industry to shake its negative reputation.
The good news is that the market is finally starting to get the recognition it deserves. Whilst these loans are not meant to take the place of traditional retirement planning, many esteemed organizations, including the National Council on Aging, currently work to educate seniors on these loans.
As many people are acutely aware, the recent downturn in the economy features impacted retirees’ assets and made it harder to save to get retirement. An article released by Investment News, an online announcement source for financial planners, reported that “reverse residential should be considered as a very valuable retirement tool by fiscal advisers of all types. ” While there will always be critics, numerous blog owners are noticing this well-deserved change in approach.
Reverse Mortgage Blog Owners Discuss Possible New College loan Products
Many blogs are also reporting that new college loan products might be released in upcoming months. Currently, FHA includes extended their $625, 500 maximum claim limit with HECMs through 2012. Still, as home values keep rising, the demand for jumbo propriety loans might also increase. This has reverse mortgage blog owners predicting that a new large product will be released within the year.
However , people serious about a propriety loan should be aware of a few different things. First, these kind of loans will not be insured by the federal government. Since these loans are not insured, it is likely that borrowers will be required to have a bunch of equity in their home to qualify. Still, if and when this supplement is released, it will be interesting to see how these financial loans differ from HECMs.
Another interesting piece of information predicted in a few reverse mortgage blogs is that one major lender has got proposed the idea of using the HECM Saver as a tool to be accessed by seniors who are not yet eligible for Social Security. While anticipating Social Security benefits, seniors would draw income originating from a line of credit made available through the HECM Saver. In theory, this would supply seniors a low-cost way to turn their home equity to a source of income; thus allowing seniors to wait to claim benefits until finally they reach full retirement age, which would increase their benefits sometime soon. Regardless of whether this idea becomes a reality, the constant plans for brand spanking new products prove that the industry is one driven by innovation in addition to continued development. Get more huffingtonpost.com