Australia: Reverse mortgages not thicker than blood,
Parents who use a reverse mortgage to lend funds to their children could face losing part of their pension on a technicality, said Louise Biti, head of technical services at Asteron.
“Children in a great deal of debt may place pressure on their parents to take out a reverse mortgage in order to help them financially,” Biti said.
She said assuming the parents have other assets and are over the threshold amount and used a reverse mortgage to lend to their children, they run the risk of transferring an ‘exempt asset’ into an ‘assessable asset’.
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Written by News & Feeds on October 7th, 2007 with no comments.
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More Seniors Tap Their Homes for Income,
These loans help homeowners turn their equity into cash.
More older Americans wanting to take advantage of the rise in home prices over the past decade without having to move are considering a reverse mortgage to tap their equity. About 150,000 homeowners will apply for one this year — twice last year’s number, reports the National Reverse Mortgage Lenders Association.
With a reverse mortgage, you receive tax-free cash instead of making payments. Your debt increases rather than decreases, but you do not have to repay it until you move. If you die, your estate settles up. Payout options include a line of credit or fixed monthly payments for life or a specific period. You must be 62 to qualify.
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Reverse mortgage market grows to $1.8b,
Australia’s reverse mortgage market has ballooned in the past 12 months to be worth $1.8 billion and is likely to keep growing as baby boomers look to fund a more comfortable retirement.
Reverse mortgages allow retirees to borrow against the equity in their home.
The loan, plus interest, is usually paid back at once when the borrower sells the house - either when they move into a retirement home or die.
The first reverse mortgage was issued in Australia in 1986 by Advance Bank before it was bought by St George Bank Ltd, which is now a major player in the market.
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Five important questions to ask when selecting a reverse mortgage lender,
With the introduction of new product and pricing options, there has never been a better time for seniors to consider a reverse mortgage. In the first half of 2007, the industry has seen a flurry of new, lower-priced products that offer greater benefits to the consumer, as well as a range of new providers. This is great news for senior homeowners who are considering reverse mortgages - but it can also cause confusion when choosing the right lender or the product best suited the senior’s needs.
Financial Freedom, the nation’s largest provider of reverse mortgages, has identified five important questions that prospective borrowers should ask when discussing reverse mortgages.
1. Are you a member of the National Reverse Mortgage Lenders Association (NRMLA)?
Not all lenders are created equal. NRMLA is the industry’s trade group are requires members to follow a best practices model and code of conduct. Even though reverse mortgages have numerous built-in consumer safeguards, it’s a good idea to select lending organizations with a national presence.
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Written by News & Feeds on October 7th, 2007 with no comments.
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California HECM Activity Down,
For years, California has dominated the reverse mortgage scene accounting for nearly one-third of the total HECMs endorsed as recently as CY2006. Figures through September 2007, however, show that HECM endorsements in the Golden State have fallen sharply when viewed as a percentage of the total HECM activity.
Florida HECM production, meanwhile, continues to be strong and growing in 2007. Indeed, Florida appears poised to surpass California as the top state for HECM endorsements. (more…)
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Written by News & Feeds on October 7th, 2007 with no comments.
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Reverse Mortgages Will Help Fuel Home Remodeling Growth,
We came across a recent forecast from Harvard University’s Joint Center for Housing Studies that projects the long-term outlook for the home remodeling industry. Here’s a summary of the key findings that are relevant to the reverse mortgage arena:
the number of households will increase by about 15 million by 2015, of which approximately 12.1 million will be owner households. This means that the number of homeowners will rise from 74.2 million to 86.3 million between 2005 and 2015.
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Full post here Reverse Mortgage Information
Written by News & Feeds on October 7th, 2007 with no comments.
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Reverse Mortgage Growth Sputters in September,
The number of HECM reverse mortgage endorsements moved lower for the second consecutive month in September. The 7,695 HECM loans endorsed in September was the lowest monthly total since November 2006 and represented a steep 14% drop below the 12-month moving average trend line for HECM loan growth. (more…)
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Full post here Reverse Mortgage Information
Written by News & Feeds on October 7th, 2007 with no comments.
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