While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in a common newspapers and magazines. To replace with the lack of mainstream news, seniors could possibly get the most recent information by carrying out a reverse mortgage blog. For many who have fallen behind on a common reverse mortgage blog, here is the latest news that has the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Benefits of Reverse Mortgages?
It is no secret that reverse mortgages have many critics. When Home Equity Conversion Mortgages (HECMs) first became for sale 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 take advantage of their borrowers are long since over. Unfortunately, it has brought quite a long time for the industry to shake its negative reputation.
The good thing is that the industry is finally starting to obtain the recognition it deserves. While these loans aren’t meant to take the area of traditional retirement planning, many esteemed organizations, like the National Council on Aging, now work to educate seniors on these loans.
As numerous adults are acutely aware, the recent downturn in the economy has impacted retirees’assets and made it harder to save lots of for retirement. Uganda online news A write-up released by Investment News, an online news source for financial planners, reported that “reverse mortgages should be considered as a really valuable retirement tool by financial advisers of 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 will also be reporting that new loan products might be released in upcoming months. Currently, FHA has extended their $625,500 maximum claim limit on HECMs through 2012. Still, as home values continue to increase, the demand for jumbo propriety loans may also increase. It’s reverse mortgage blog owners predicting a new jumbo product will be released within the year.
However, people enthusiastic about a propriety loan should know about a few different things. First, these loans won’t be insured by the federal government. Since these loans aren’t insured, it is probable that borrowers will be required to really have a great deal of equity in their property to qualify. Still, if and when this system is released, it will be interesting to observe how these loans vary from HECMs.
Another interesting little bit of information predicted in many reverse mortgage blogs is this 1 major lender has proposed the thought of utilising the HECM Saver as something to be utilized by seniors who are not yet eligible for Social Security. While waiting for Social Security benefits, seniors would draw income from a distinct credit made available through the HECM Saver. In theory, this will give seniors a low-cost way to turn their property equity into a way to obtain income; thus allowing seniors to wait to claim benefits until they reach full retirement age, which will increase their benefits in the future. Whether or not this idea becomes a fact, the constant plans for new products prove that the industry is one driven by innovation and continued development.