While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in their favorite newspapers and magazines. To replace with having less mainstream news, seniors can get the most recent information by following a reverse mortgage blog. For many who have fallen behind on their favorite reverse mortgage blog, this is actually the latest news that has the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Great things about 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 times when lenders could take advantage of their borrowers are long since over. Unfortunately, it has taken quite a long time for the to shake its negative reputation.
What’s promising is that the is finally starting to obtain the recognition it deserves. While these loans aren’t supposed to take the place of traditional retirement planning, many esteemed organizations, like the National Council on Aging, now work to educate seniors on these loans.
As much 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 An article released by Investment News, an on line news source for financial planners, reported that “reverse mortgages should be thought about as a very valuable retirement tool by financial advisers of all types.” While there will always 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 could 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 rise, the demand for jumbo propriety loans may also increase. It has reverse mortgage blog owners predicting a new jumbo product will be released within the year.
However, people thinking about a propriety loan should be familiar with several different things. First, these loans won’t be insured by the federal government. Since these loans aren’t insured, it is likely that borrowers will be required to truly have a great deal of equity in their home to qualify. Still, if and when this product is released, it will be interesting to see how these loans change from HECMs.
Another interesting piece of information predicted in several reverse mortgage blogs is that certain major lender has proposed the thought of utilising the HECM Saver as a tool to be employed by seniors who are not yet eligible for Social Security. While looking forward to Social Security benefits, seniors would draw income from a type of credit made available through the HECM Saver. The theory is that, this might give seniors a low-cost way to turn their home equity into a way to obtain income; thus allowing seniors to attend to claim benefits until they reach full retirement, which will increase their benefits in the future. No matter whether this idea becomes a fact, the constant plans for new services prove that the is one driven by innovation and continued development.