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 following a reverse mortgage blog. For people who have fallen behind on a common reverse mortgage blog, here is the latest news that has 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 for sale 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 make the most of their borrowers are long since over. Unfortunately, it has taken quite a while for the industry to shake its negative reputation.
The good thing is that the industry is finally starting to get the recognition it deserves. While these loans are not meant to take the spot of traditional retirement planning, many esteemed organizations, like 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 made it harder to save lots of for retirement. A write-up released by Investment News, an online news source for financial planners, reported that “reverse mortgages should be considered as an extremely 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 might 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 may also increase. Uganda news today It’s reverse mortgage blog owners predicting a new jumbo product will be released within the year.
However, people interested in a propriety loan should be familiar with a couple of different things. First, these loans won’t be insured by the federal government. Since these loans are not insured, it is likely that borrowers will be required to really have a lot of equity in their house to qualify. Still, if and when this product is released, it will be interesting to observe how these loans change from HECMs.
Another interesting piece of information predicted in a number of reverse mortgage blogs is that certain major lender has proposed the notion of utilizing the HECM Saver as an instrument to be used by seniors that are not even entitled to Social Security. While looking forward to Social Security benefits, seniors would draw income from a type of credit made available through the HECM Saver. Theoretically, this may give seniors a low-cost way to turn their house equity into a source of income; thus allowing seniors to attend to claim benefits until they reach full retirement age, which may 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.