HECM Benefit
10% of Older Homeowners Could Benefit from HECMs, Other Equity Loans About 10% of the homeowners aged 65 and older would benefit from the use of home equity extraction tools, according to a new study from the Urban Institute — but major structural and institutional barriers remain. Researchers Laurie Goodman, Karan Kaul, and Jun Zhu…
Read MoreMust Reads: CNBC Take
Reverse Mortgage Must-Reads: Cordray’s Warnings, CNBC’s Take Another week, another host of reverse mortgage headlines, from a top regulator’s plea to spread warnings about a particular Home Equity Conversion Mortgage strategy to a major news outlet’s take on the future of the program after recent changes. Use this handy cheat sheet of the most recent…
Read MoreHECM Market
Why the HECM Reverse Mortgage Market Is Stunted – and What Can Be Done About It. by Jack Guttentag, Contributor. Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania Jack Guttentag, Contributor Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania. On the positive side of the…
Read MoreReverse Mortgage Concerns
Reverse Mortgage Opportunities and concerns Changes include higher upfront costs, a lowered principal limit factor and an interest-rate deduction. Advisors have recommended clients use reverse mortgages for cash management, delaying Social Security withdrawals and funding long-term care. In August the Consumer Financial Protection Bureau issued a warning against taking out a reverse mortgage to maximize Social Security…
Read MoreRetirement with mortgage debt
More Baby Boomers Will Enter Retirement with Mortgage debt, Fannie Mae Finds More baby boomers who have yet to retire will enter their golden years with outstanding mortgage debt than previous generations, according to a recent study from Fannie Mae. I have compared generalized spreadsheets with colleges from New York and Arizona, and its seems this problem…
Read MoreRetirement and House
Three ways your house could help you in retirement. CBS Moneywatch If you’re nearing retirement age and feeling as though your savings may not be quite as hefty as you had hoped, you aren’t alone: Many Americans don’t have enough money saved to retire comfortably by age 65. Most older Americans have more than 50…
Read MoreCredit Line Strategy
Reverse Mortgage Credit Line Strategy May Benefit More Retirees The reverse mortgage line of credit strategy may have concrete retirement benefits for a wider array of consumers than previously thought. Previous research into the Home Equity Conversion Mortgage line of credit option had focused primarily on people who had twice as much retirement savings as…
Read Morereverse mortgage to delay Social Security
Should you use a reverse mortgage to delay taking Social Security? Robert Powell, Special for USA TODAY. Financial advisers often suggest that you delay taking Social Security until full or normal retirement age (FRA) if not later — to age 70. And the reasons are many: You’ll get 100% of your primary insurance amount (PIA)…
Read MoreWhat HUD’s New Rules Mean
What HUD’s New Rules Mean for the Reverse Mortgage Industry The Department of Housing and Urban Development on Tuesday shook the reverse mortgage world with new rules regarding mortgage insurance premiums and principal limits. While the industry continues to sort out the exact effects — many of which may not be known until after the…
Read MoreOctober reforms
October Reverse mortgage reforms create stampede among would-be borrowers. HUD raising up-front fees for reverse mortgages starting October 2nd. A rules change that will raise fees and reduce loan amounts for reverse mortgages apparently has created a nationwide rush to get new loans completed before the reforms take effect Monday, October, 2. Agencies providing financial…
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