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 lack of mainstream news, seniors can get the latest information by following a reverse mortgage blog. For those who have fallen behind on their favorite reverse mortgage blog, this can be a latest news that’s the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Great things about Reverse Mortgages?
It is 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 days when lenders could take advantage of their borrowers are long since over. Unfortunately, it has brought a long time for the industry to shake its negative reputation.
What’s promising 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, including 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. A write-up released by Investment News, an on line news source for financial planners, reported that “reverse mortgages is highly recommended as a very valuable retirement tool by financial advisers of all types.” While there can 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 rise, the demand for jumbo propriety loans might also increase. Uganda news It has reverse mortgage blog owners predicting that a new jumbo product will undoubtedly be released within the year.
However, people thinking about a propriety loan should be aware of a few different things. First, these loans won’t be insured by the federal government. Because these loans aren’t insured, it is probable that borrowers will undoubtedly be required to truly have a lot of equity in their home to qualify. Still, if and when this product is released, it will undoubtedly be interesting to observe these loans vary from HECMs.
Another interesting piece of information predicted in many reverse mortgage blogs is that one major lender has proposed the idea of utilising the HECM Saver as an instrument to be used by seniors that are not even entitled to Social Security. While waiting for Social Security benefits, seniors would draw income from a distinct credit made available through the HECM Saver. The theory is that, this may give seniors a low-cost way to turn their home equity into a source of income; thus allowing seniors to hold back to claim benefits until they reach full retirement, which will increase their benefits in the future. Regardless of whether this idea becomes a fact, the constant plans for new services prove that the industry is one driven by innovation and continued development.