Mortgages for seniors?,
Retirement is not what is used to be as many Baby Boomers are discovering with little to no savings or pensions. Gone are the days where a person could quit a day job and relax in the comforts of a favorite hobby, travel or just plain take a nap. Today, people are working way past retirement age just to make ends meet because what was assumed to be waiting for them in Social Security and other benefits is not there.
Government cut-backs and the lack of preparation from reliance on traditional pension funds has forced changes from the safe stream of guaranteed annuities to self-managed 401ks. Retiree health-care programs are often eliminated. This common scenario leaves people desperate and is where mortgage schemes are capitalizing. While some are just plain fraudulent, others offer relief but — of course — at a cost. One of which is called a reverse mortgage.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Local Reverse Mortgage Company Signs Pat Summerall as Spokesman,
In an attempt to expand their already growing image as the pros in the Reverse Mortgage industry, Fidelis Mortgage signed an agreement with Radio Advantage in Dallas, representing broadcasting legend Pat Summerall. Mr. Summerall recorded a new 60 second radio spot which is currently airing in the Baltimore, Maryland area. “The partnership with Mr. Summerall will ensure that we gain a much larger share of the Reverse Mortgage market than we already have in Maryland” says Eric Rittmeyer, President of Fidelis Mortgage.
With Reverse Mortgages continuing to break records year over year, it is important that homeowners 62 and over understand how they work. With rising healthcare and energy costs, many senior homeowners are finding it more and more difficult to stay in the home they love. In response to the apparent financial problem’s seniors are facing, the U.S. government created a solution to help seniors enjoy their retirement years. The solution is the Reverse Mortgage. Insured by the Federal Government, the Home Equity Conversion Mortgage (HECM), enables homeowners 62 and over to convert part of their homes’ equity into tax free income without having to sell their home, give up the title, or take on monthly mortgage payments.
“The majority of our clients are living in the home that they raised their families in. They normally have a fairly small existing mortgage against their property, and are pleased to learn that the property does not need to be free and clear to qualify for the Reverse Mortgage” says Eric Rittmeyer. After paying off existing liens, the remainder of the proceeds can be received as a lump sum, a monthly payment, an equity line to be used for future needs, or a combination of all three. There are no income or credit requirements for the Reverse Mortgage. All proceeds of the property go to their heirs when the property is sold.
Found here.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Using a Reverse Mortgage to Get Out of Tight Spots,
Homeowners across the U.S. are facing tight financial situations brought on by the expiration of teaser rates on adjustable rate mortgages (ARM) that seemed like such a wonderful deal just a few years ago. According to Forbes, nearly 2 million homeowners are expected to see their adjustable-rate mortgages reset at higher rates by the end of 2008.
And the problem isn’t just isolated to younger homeowners who bit off more than they could afford. Plenty of senior homeowners are finding themselves in this situation as well. But seniors are luckier because they have available a credit repair tool that’s not an option for homeowners under age 62: reverse mortgages. (more…)
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Full post here Reverse Mortgage Information
Written by News & Feeds on September 14th, 2007 with no comments.
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Introducing Reverse Mortgage Information Forums,
We thought it worthwhile to see if we could get a Reverse Mortgage community forum off the ground to provide a place for senior homeowners and reverse mortgage professionals to exchange ideas, ask/answer questions, and, generally, promote the free exchange of ideas. It’s our experience that a well-run, informative forum is one of the most valuable services the internet can offer.
We notice several forums having a “mortgage” tilt but with little or nor discussion related to reverse mortgages.
So, we are pleased to introduce RMI Forums. (more…)
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Full post here Reverse Mortgage Information
Written by News & Feeds on September 14th, 2007 with no comments.
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H.R. 2895 and HECM Insurance Costs,
One of the lesser known facts about HECM reverse mortgages is that the insurance premiums the FHA charges more than offset the costs/risk the government takes on because of HECMs. In short, the government makes money money on each HECM reverse mortgage. Here’s a pertinent quote from a recent Congressional Budget Office (CBO) analysis of H.R. 1852 (”Expanding American Homeownership Act of 2007″) a bill pending in Congress which would, among other things, help expand the HECM program: (more…)
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Written by News & Feeds on September 14th, 2007 with no comments.
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August HECM Figures Released,
According to figures recently released by HUD, the number of HECM reverse mortgages endorsed during the month of August was down 14% from July, once again repeating the “up-down” alternating monthly pattern evident since February of this year. Still, the August total of 9,006 HECM endorsements represents only the fifth time that monthly HECM totals have surpassed the 9,000 mark and is a 46% increase over the number of HECM reverse mortgage mortgages endorsed in August 2006.
Total HECMs endorsed so far in 2007 are 75,904 a 39% increase over the 54,512 HECMs endorsed in the first eight months of 2006. (more…)
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Written by News & Feeds on September 14th, 2007 with no comments.
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Reverse Mortgage Friendliness Update (2Q 2007),
The Office of Federal Housing Enterprise Oversight (OFHEO) has released the second quarter (June 30) 2007 Housing Price Index (HPI). HPI data are collected from mortgage purchases by Fannie Mae and Freddie Mac but does not include jumbo loans.
Nationwide, the HPI shows U.S. house prices appreciated 3.2% in the second quarter of 2007 from a year before. OFHEO also said home prices rose only 0.1% in the second quarter from the first quarter, the lowest quarterly increase since 1994.
We use the HPI to compute the Reverse Mortgage Friendliness Index. This measure compares OFHEO’s rates of home value growth over five years to the average interest rate accrued on monthly-adjusting Home Equity Conversion Mortgages (HECM) - the most popular kind of reverse mortgage - for the same period. (more…)
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Written by News & Feeds on September 14th, 2007 with no comments.
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More From Fidelity: Reasons Why Retirees Avoid Guaranteed Income Options,
We’ve written in the past about the reasons why HECM borrowers stay away from guaranteed lifetime payment options (like annuities or the HECM tenure option form of payment) despite strong research showing these are the optimal financial payment plans for most people.
Now, a new report from the Fidelity Research Institute sheds more light on the topic. As part of the recently released study Structuring Income for Retirement: addressing America’s Emerging Guaranteed Income Gap, a survey of retirees and pre-retirees was conducted to help identify barriers to selecting annuities. (more…)
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Written by News & Feeds on September 14th, 2007 with no comments.
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‘Guaranteed Income Gap’ Study Has Implications for Reverse Mortgage Borrowers,
Fidelity Research Institute has issued a new report Structuring Income for Retirement: Addressing America’s Emerging Guaranteed Income Gap. The study is yet another thorough analysis highlighting the importance of permanent income streams in retirement. Although reverse mortgages are not mentioned in the report, several of the findings are very pertinent here.
Guaranteed income, according to the report, is simply income you cannot outlive. Traditional guaranteed income sources (social security, defined benefit pensions, etc.) are dwindling in importance and will be relied on less and less by future generations of retirees. The study notes that it will be critical for retirees (more…)
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Written by News & Feeds on September 14th, 2007 with no comments.
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Larger payments, not biweekly ones, are the key
Tuesday, September 11, 2007
DEAR BOB: I have frequently heard if your mortgage calls for monthly payments, you can make a significant interest savings if you pay twice monthly. For example, my mortgage payment is due on the first day of each month. I would like to pay half of my monthly payment 15 days before the due date and the remainder on the due date. But my lender says the only way I can do this is through a third-party company, which will then charge me a sign-up fee of several hundred dollars plus a monthly fee. If I just pay the lender twice a month doesn’t the lender have to accept my payments and credit my account when received and then calculate the interest based on my payments? –Arthur L.
DEAR ARTHUR: No. You’ve been (more…)
Written by charles dennis on September 13th, 2007 with no comments.
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