As seen on FORBES.com by Jamie Hopkins, Retirement Income Professor at The American College: “Reverse Mortgages Can Be A Retiree’s Saving Grace.” With 30 million+ members of the baby boomer generation moving into retirement….the FHA-insured Home Equity Conversion Mortgage (HECM) — the FHA-insured revamped version of the former reverse mortgage — supports strategies to help retirement-age […]
This case study compares the fortunes of two retirees who start retirement with identical securities portfolios, receive identical amounts of retirement income throughout a 30-year retirement and live in identical homes. The study illustrates how a securities portfolio (such as a 401(k) account or a rollover IRA) that provides retirement income can be substantially helped by a reverse mortgage credit line. More specifically, […]
Reverse mortgages offer a mechanism for tapping home equity for those who want to stay in their home. Nearly all reverse mortgages today are government-insured Home Equity Conversion Mortgages (HECMs). To make the HECM insurance program financially viable, and to insure that HECM reverse mortgages provide retirees with a reliable source of retirement income, the […]
This article, originally published in the Journal of Taxation, examines the conditions, requirements, and limitations on deductions of the interest accrued on reverse mortgage loans. Although the conventional approach for passing a borrower’s home equity to heirs generally results in the loss of the deduction for reverse mortgageloan interest, the deduction may be used if it […]
A decade ago, most financial advisers would roll their eyes at the mention of reverse mortgages, loans that give homeowners an advance on their home equity and allow them to delay repayment until the home is sold. However, today, some new regulations and ideas about reverse mortgages might be just the solution. See more on […]
REALTORS® looking to Increase Their Sales are INVITED to Learn a Little Known Strategy to Help Senior Homeowners Downsize to Increase Retirement Income Security. Tap into the fastest growing segment of our population (10,000 Americans are turning 65 each day). Join us to learn the Ins & Outs of building your business with the local […]
Do you know you can change your financial position by downsizing your home? The link below illustrates how you can sell your current home, and then increase your investable assets when you purchase a new one. Read more to find out how you can eliminate monthly mortgage payments and increase cash flow during retirement: Downsizing For […]
Between 1998 and 2012, the share of adults age 65 and older with household debt increased from 30 to 44 percent. Read more about how increased debt has changed retirement has changed retirement in America HERE
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
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 […]
