While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in their favorite newspapers and magazines. To replace having less mainstream news, seniors could possibly get the most recent information by carrying out a reverse mortgage blog. For those who have fallen behind on their favorite reverse mortgage blog, this can be a latest news that has 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 days when lenders could take advantage of their borrowers are long since over. Unfortunately, it has brought quite a while for the industry to shake its negative reputation.
What’s promising is that the industry is finally starting to get the recognition it deserves. While these loans are not designed to take the area of traditional retirement planning, many esteemed organizations, such as 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 for retirement. A write-up released by Investment News, an online news source for financial planners, reported that “reverse mortgages is highly recommended as a very valuable retirement tool by financial advisers of most 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 may also be 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 increase, the demand for jumbo propriety loans may also increase. It has reverse mortgage blog owners predicting that a new jumbo product will undoubtedly be released within the year.
However, people enthusiastic about a propriety loan should know about a couple of different things. First, these loans won’t be insured by the federal government. Uganda news today Because these loans are not insured, it is probable that borrowers will undoubtedly be required to really have a great deal of equity in their house to qualify. Still, if and when this product is released, it will undoubtedly be interesting to see how 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 thought of utilizing the HECM Saver as something to be employed by seniors who are not yet entitled to Social Security. While awaiting Social Security benefits, seniors would draw income from a distinct credit made available through the HECM Saver. In theory, this would give seniors a low-cost way to turn their house equity into a way to obtain income; thus allowing seniors to wait to claim benefits until they reach full retirement age, which will increase their benefits in the future. No matter whether this idea becomes a fact, the constant plans for new products prove that the industry is one driven by innovation and continued development.