While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in their favorite newspapers and magazines. To make up for the possible lack of mainstream news, seniors will get the latest information by adhering to a reverse mortgage blog. For people who have fallen behind on their favorite reverse mortgage blog, this is actually the latest news that’s the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Advantages of Reverse Mortgages?
It’s no secret that reverse mortgages have many critics. When Home Equity Conversion Mortgages (HECMs) first became available 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 occasions when lenders could make the most of their borrowers are long since over. Unfortunately, it has brought quite a while for the to shake its negative reputation.
The good news is that the is finally starting to have the recognition it deserves. While these loans are not 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 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 news An article released by Investment News, an online news source for financial planners, reported that “reverse mortgages is highly recommended as an extremely 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 are also reporting that new loan products may 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 go up, the demand for jumbo propriety loans might also increase. It has reverse mortgage blog owners predicting that the new jumbo product will be released within the year.
However, people enthusiastic about a propriety loan should be familiar with a few different things. First, these loans will not be insured by the federal government. Since these loans are not insured, it is likely that borrowers will be required to have a lot of equity in their house to qualify. Still, if and when the product is released, it will be interesting to see how these loans differ from HECMs.
Another interesting bit of information predicted in several reverse mortgage blogs is any particular one major lender has proposed the notion of utilizing the HECM Saver as an instrument to be used by seniors that are not yet entitled to Social Security. While awaiting Social Security benefits, seniors would draw income from a line of credit made available through the HECM Saver. Theoretically, this will give seniors a low-cost way to turn their house equity into a way to obtain income; thus allowing seniors to attend to claim benefits until they reach full retirement, which would increase their benefits in the future. No matter whether this idea becomes a reality, the constant plans for services prove that the is one driven by innovation and continued development.