While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in their favorite newspapers and magazines. To replace with the lack of mainstream news, seniors could possibly get the most recent information by adhering to a reverse mortgage blog. For many who have fallen behind on their favorite reverse mortgage blog, here is the latest news that’s the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Benefits of Reverse Mortgages?
It’s no secret that reverse mortgages have many critics. When Home Equity Conversion Mortgages (HECMs) first became obtainable in the late 1980’s, several lenders did adopt some questionable practices. However, as these loans have matured, the Federal Housing Administration (FHA) has tightened their regulations. The days when lenders could make the most of their borrowers are long since over. Unfortunately, it has brought quite a while for a to shake its negative reputation.
The good thing is that a is finally starting to obtain the recognition it deserves. While these loans are not supposed to take the spot of traditional retirement planning, many esteemed organizations, including the National Council on Aging, now work to educate seniors on these loans.
As many adults are acutely aware, the recent downturn in the economy has impacted retirees’assets and made it harder to save for retirement. Articles released by Investment News, an on the web news source for financial planners, reported that “reverse mortgages should be thought about as an extremely valuable retirement tool by financial advisers of all types.” While there will be critics, many blog owners are noticing this well-deserved change in attitude.
Reverse Mortgage Blog Owners Discuss Possible New Loan Products
Many blogs are also reporting that new loan products may be released in upcoming months. Uganda online news Currently, FHA has extended their $625,500 maximum claim limit on HECMs through 2012. Still, as home values continue to rise, the demand for jumbo propriety loans may also increase. It’s reverse mortgage blog owners predicting that a new jumbo product is likely to be released within the year.
However, people enthusiastic about a propriety loan should know about a couple of different things. First, these loans will not be insured by the federal government. Because these loans are not insured, it is likely that borrowers is likely to be required to really have a great deal of equity in their property to qualify. Still, if and when this product is released, it is likely to be interesting to observe these loans vary from HECMs.
Another interesting piece of information predicted in many reverse mortgage blogs is that certain major lender has proposed the notion of using the HECM Saver as a tool to be utilized by seniors who are not even entitled to Social Security. While looking forward to Social Security benefits, seniors would draw income from a distinct credit made available through the HECM Saver. In theory, this may give seniors a low-cost way to turn their property equity into a supply of income; thus allowing seniors to attend to claim benefits until they reach full retirement age, which will increase their benefits in the future. Whether or not this idea becomes a reality, the constant plans for new services prove that a is one driven by innovation and continued development.