As retirement nears, many older couples consider refinancing their mortgage on their current home. But there may be better financial options. One is the equity conversion mortgage (HECM) for purchase, a type of reverse mortgage. It could allow you to downsize your current home, buy a new one, and eliminate monthly mortgage payments. Read more about the […]
financial planning
Reverse Mortgage Pros and Cons for Homeowners
According to the Center for Retirement Research, a reverse mortgage makes sense for people who don’t plan to move, can afford the cost of maintaining their home and want to access the equity in their home to supplement their income. Read more to see the pros and cons of Reverse Mortgages and if they could […]
How Retirees Can Make the Most of Their Home Equity
Reverse mortgages have been receiving a lot of fanfare lately as seniors look for ways to finance their retirement. Surprisingly, in 2015 fewer than 1 percent of Americans age 62 and older had taken out a reverse mortgage. But that could be changing as more seniors are doing their research and becoming more open to […]
NRMLA: Seniors Holding Nearly $6 Trillion in Home Equity
Seniors drove their share of home equity to $5.76 trillion and rocketed the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) to an all-time high in Q3 2015 of 200.19 as reported by The National Reverse Mortgage Lenders Association (NRMLA). Read more about seniors and home equity from NMP online HERE
Seniors May Find Reverse Mortgage a Good Option as Other Investments Decline
Is your portfolio dwindling as the stock market is plunging right now? Perhaps a reverse mortgage is a better option. One financial advisor explains reverse mortgages as having funds that are growing on an annual basis at a time when your portfolio is shrinking. Read more on the Senior Journal Online HERE
How Did Reverse Mortgages Get Such a Bad Reputation?
Although recently reverse mortgages are getting some good press, this retirement income tool still retains a bad reputation with much of the public and significant portions of the financial services industry. But why are such negative connotations associated with reverse mortgages? Some of the troubles relate to misunderstandings, such as the idea that […]
Financial Fallout from ‘Gray Divorce’
People over age 50 who go through “gray divorce” have large negative financial consequences at just the wrong time –around retirement . The Home Equity Conversion Mortgage (HECM) is the Federal Housing Administration’s (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home. It works like a line of […]
Few Put Finances First When Retiring
When will you retire? Often we think we will retire when we are financially able to. But surprisingly, in reality this is not the case. A recent survey by Fidelity indicated that the majority of pre-retirees don’t think about the financial impact of their retirement timing. But experts agree financial stability is crucial – […]
Reverse Mortgage Borrowers Face New Financial Test
For the first time, borrowers will have to prove they can handle the ongoing property costs to qualify for a reverse mortgage. Homeowners applying for a reverse mortgage will soon have to clear a new hurdle. In the spring, all borrowers will have to prove that they can handle the ongoing costs of the loan. […]