While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in a common newspapers and magazines. To replace the possible lack of mainstream news, seniors will get the newest information by adhering to a reverse mortgage blog. For individuals who have fallen behind on a common reverse mortgage blog, here is the latest news that’s the mortgage industry buzzing.
Are Financial Experts Finally Realizing the Full Benefits 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 take advantage of their borrowers are long since over. Unfortunately, it has brought quite a long time for the industry to shake its negative reputation.
The good news is that the industry is finally starting to have the recognition it deserves. While these loans aren’t designed to take the place of traditional retirement planning, many esteemed organizations, including the National Council on Aging, now work to educate seniors on these loans.
As many adults are acutely aware, the recent downturn in the economy has impacted retirees’assets and managed to get harder to truly save for retirement. A write-up 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 most 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 increase, 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 enthusiastic about a propriety loan should be familiar with several different things. First, these loans won’t be insured by the federal government. Uganda news papers Because these loans aren’t insured, it is likely that borrowers will be required to truly have a great deal of equity in their property to qualify. Still, if and when the product is released, it will be interesting to observe these loans vary from HECMs.
Another interesting little bit of information predicted in several reverse mortgage blogs is any particular one major lender has proposed the notion of using the HECM Saver as something to be used by seniors that are not even entitled to Social Security. While awaiting Social Security benefits, seniors would draw income from a type of credit made available through the HECM Saver. In theory, this could give seniors a low-cost way to turn their property equity into a source of income; thus allowing seniors to hold back to claim benefits until they reach full retirement, which may increase their benefits in the future. Regardless of whether this idea becomes a reality, the constant plans for new services prove that the industry is one driven by innovation and continued development.