The Best Reverse Mortgages

The Home Equity Conversion Mortgage (HECM) continues to demonstrate that it is a financial tool and not a loan of "last resort".   Equities.com published a recent article which begins with the real-life story of a retired actress from Los Angeles, California, who is living a happy life doing the things she wants to do now thanks to a reverse mortgage .  She was quoted as saying, "I did it for the freedom.  I was not struggling before, but I was tired of having to budget.  So I invested some of the money and now I can get up and do the things I want to do."  The article goes on to offer three tactical methods that can be strategized with a reverse mortgage to help enhance retirement.  These are to delay payouts from your social security or pension benefits to maximize future payouts, avoid withdrawing from your investment portfolio in a down market, and eliminate your monthly mortgage payments to increase monthly cash flow.  This can all be accomplish...

The Federal Deposit Insurance Corporation ( FDIC ) noted in its most recent newsletter that the Home Equity Conversion Mortgage (HECM) program has gone through a lot of changes since the FDIC last commented on the program back in 2013.  As pointed out in the article, the reverse mortgage program has become even more attractive with the new provision to protect non-borrowing spouses who have not yet reached the age of 62.  "The U.S. Department of Housing and Urban Development (HUD) now provides a mechanism for an eligible non-borrowing spouse to stay in the home," said Andrea Riche, and FDIC program manager.  Previously, HUD or the private lender was entitled to take possession of the house and in most cases evict the surviving spouse if he or she did not have the means to pay the reverse mortgage balance that was left behind by the borrowing spouse. Read the entire article here . For more information on reverse mortgages and other related topics contact: Rick R. R...

The USA Today article titled, "How Boomers Loaded With Debt Can Dig Out", starts out with sharing stats from a new Pew Charitable Trusts report that eight in ten Baby Boomers - those born from 1946 to 1964 - hold some form of debt, and nearly half (47%) still have a mortgage, which, on average, totaled $90,000.  This amount is very concerning because "most older Americans are not eliminating debt before retirement, and they may be at greater risk of financial insecurity in their golden years", according to the Pew report.  The report states that besides mortgages, seniors have outstanding credit card debt, car loans and education loans.  The article offers the following solutions to minimize debt:  track your income and expenses, consider counseling, and increase your income.  One of those specific solutions is a reverse mortgage to help pay off your mortgage.  Read the entire article here . For more information on reverse mortgages and other related t...

A recent analysis by the Urban Institute finds that seniors are spending most of their income on their home.  These housing costs consist of mortgage payments, property taxes, homeowners insurance, utilities, maintenance and repairs.  For low-income seniors, the amount spent on housing costs is greater than what is spent on health care and food.  Read the entire report here . A reverse mortgage has long been used to help seniors age in place and obtain financial relief free of mortgage payments. For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222

The Financial Assessment has now been in place since April 27, 2015.  Since that time, we have been adapting to the new credit rules to determine a borrower's "willingness and capacity" to qualify for a reverse mortgage.  At first, many of us feared that the new guidelines would adversely impact the industry and our ability to offer reverse mortgages.  Though it has only been approximately four months since implementation, I have personally experienced that the change has not been earth shattering.  Preparation and setting client expectations has been the key to a smooth transition.  We have been able to gain the cooperation of our clients in obtaining necessary documentation to support income and credit by preparing them of what is to come during the processing of their reverse mortgage loan.  This may be new to the reverse mortgage industry, however many of these clients have had to provide similar documentation in the past for traditional mortgage finan...

Illinois Governor Bruce Rauner signed a bill into law which offers a variety of reverse mortgage protections for borrowers.  The bill takes effect on January 1, 2016, and it will be known as the Reverse Mortgage Act with provisions requiring the disclosure of certain documents to borrowers and a three-day "cooling-off" period in which a borrower cannot be required to close or proceed with the loan.  The purpose of Senate Bill 1440, as it is also known as, will be "to provide potential borrowers with 3 business days to consider their decision whether to secure a reverse mortgage or not."  In all, the Reverse Mortgage Act wants to make sure that seniors are understand all there is to know about reverse mortgages and its requirements.  Read the entire bill here . For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222 ...

The New York Times published an article titled, "6 Strategies to Extend Savings Without Working Longer."  The article discusses the position most older Americans are facing today which is not having enough retirement savings to last the rest of their lives.  Many have no choice to continue working past their sixties.  However, working longer is not always an option so the article gives way to six other strategies to consider.  One of the strategies suggested is to take out a reverse mortgage .  As the writer points out, a reverse mortgage will help people to unlock the money that is locked inside their homes.  A reverse mortgage line of credit can be used as a standby strategy to have money available for when a need arises without running the risk of having the credit line reduced or closed.  In fact, this line of credit has a growth rate attached which will increase the availability of funds over time.  Read the entire article here . For more...

According to a recent survey from remodeling site Houzz , in the last year 60% of senior homeowners made upgrades to their homes with aging in mind.  This was noted in the CNBC article which highlights six key home modification projects popular to senior homeowners.  Not surprisingly, the bathroom and kitchen are the main areas being remodeled to enhance functionality and accessibility. Another popular project is to reduce trip and slip hazards by installing slip-resistant flooring and grab bars.  Read the entire article here . Reverse mortgages have been helping seniors age in place for quite some time now.  There are many reasons to use a reverse mortgage, and one of those is to help fund home improvement projects.  The cash obtained from a reverse mortgage is non-taxable and can be used for any purpose at all. For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP ...