The Best Reverse Mortgages

A recent study in GoBankingRates surveyed over 10,000 U.S. adults and asked them, "What is your biggest financial challenge?"  There were a variety of choices to select from including, but not limited to, planning for retirement, sticking to a budget, paying for higher education, and paying off credit cards. Americans stated that they have an equally hard time sticking to a budget and planning for retirement as their two biggest money challenges.  The study also breaks down the different money challenges between genders, life stages, annual incomes, and states.  Read the entire survey  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

A reverse mortgage line of credit can be just what retirees need to provide security and peace of mind.   ReverseMortgageDaily published an article indicating that "as the reverse mortgage industry continues to grapple with the 'loan of last resort' reputation, the line of credit feature may be the product's best bet in becoming a serious retirement planning tool in the eyes of retirees and the financial professionals working with them."  A new strategy has been coined by the industry called a "standby reverse mortgage line of credit" in which a reverse mortgage is taken out in order to utilize its line of credit option. A Home Equity Conversion Mortgage (HECM) line of credit gives borrowers a peace of mind in knowing that they have funds available, which can be used for anything at all and will never be reduced or closed by the lender (as long as the ongoing requirements for primary residence and timely payment of property charges are met).  In

For anyone living in Las Vegas, Nevada or the surrounding area who is interested in learning more about reverse mortgages, there is a reverse mortgage professional who is a longtime resident of Las Vegas and has been specializing in reverse mortgages since 2005.  His name is Rick Rodriguez, and he has consulted thousands of people on the use of a reverse mortgage as a retirement tool.  Rick is extremely passionate about reverse mortgages and has been recognized as an industry leader during his career. "Since 2005 I have specialized in reverse mortgages and throughout my career I have been recognized as a knowledgeable reverse mortgage professional. I am a Certified Reverse Mortgage Professional (CRMP), and one of 117 individuals in the nation to hold that designation at the time I was bestowed the certification.  I am passionate about reverse mortgages and educating the public on its benefits and requirements. I spend time consulting seniors, their families, and various profes

There are now two reverse mortgage servicing companies that offer a jumbo product for the industry.  The latest servicer, American Advisors Group (AAG), recently announced their product which will allow borrowers to obtain a reverse mortgage on properties valued at up to $6 million and the opportunity to borrow up to $3 million in loan proceeds.  Urban Financial of America has their "HomeSafe" product which was introduced in 2014.  The two products can differ in regards to interest rates and loan to value ratios, so they should be compared carefully.  Proficio Mortgage has wholesale agreements with both of these companies which allows us to offer both of these products to our customers. 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 Home Equity Conversion Mortgage (HECM), most commonly referred to as a reverse mortgage , has been in place since 1989.  Since that time, it has gone through various changes to continually strengthen the program to protect both consumers and the product.  However, the concept of what a reverse mortgage provides has remained constant since its inception.  That concept is to provide senior homeowners with a financial option to obtain cash from the equity in their home which can be used for any purpose at all.  Perhaps what has changed over the years is people's perception on what a reverse mortgage is designed to do.   Reverse Mortgage Daily published a recent article regarding the shift in perception from a "loan of last resort" to a "viable retirement tool".  At the controls of that shift is the mainstream media and how it continues to portray reverse mortgages.  Unfortunately, since the reverse mortgage industry is relatively small in the mortgage industr

A recent article in the Wall Street Journal discusses the recent dip in the stock market and the impact on older Americans.  For people in their retirement years, "a fall in the stock market can be catastrophic because stocks can take years to recover from losses and you have fewer years left as you age."  During retirement, many people need to take withdrawals from their stock portfolio to supplement income, which only exasperates the decline in value of the portfolio during a down market.  WSJ interviewed Wade Pfau, a professor at the American College of Financial Services in Bryn Mawr, PA., who studies retirement income, and he believes that one solution is to consider taking out a line of credit with a Home Equity Conversion Mortgage (HECM), aka reverse mortgage. The HECM line of credit is insured by the federal government and it can be used during down times in the market to allow your stock portfolio an opportunity to recover.  This type of line of credit is protecte

Reverse Mortgage Daily reports that the reverse mortgage industry as a whole reported volume level highs for the month of August that has not been seen in two years.  The Pacific/Hawaii region showed the largest increase in HECM endorsements for the month with 11 of the major cities that comprise this region showing a respectable increase from July.  On the low end of the growth was Las Vegas with a 25.5% increase, and on the high end was San Diego with a 144% increase which comprised of 188 loans, up from 77 in July.  Other notable cities in this region were Sacramento, Fresno and San Francisco each of which showed increases of over 100%.  In the Northwest/Alaska region, Boise led the charge with 55 loans for the month and a 155% increase from the prior month, and Seattle was also hot with 191 loans closed making for a 109.9% increase.  Read the entire article here . For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse

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 accomplished by using a

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. Rodri

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 topics con

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 financing so it is n

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 information on reverse mortg

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 NMLS# 473353 Toll Free

WalletHub compared the real estate market in 25 of the largest metropolitan areas across 10 key metrics.  The overall findings place Boston, MA as the healthiest housing market and Las Vegas, NV as the least healthiest of the group.  Some of the metrics analyzed are equity levels, underwater mortgages, mortgage costs, access to financing and remaining time until financial freedom.  Read the entire article  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

ABC action news in Tampa aired a news segment discussing the recent changes to reverse mortgages as well as the pros and cons.  The couple who was interviewed and recently obtained a reverse mortgage stated, "I would highly recommend it."  They went on to say that "it's like a load off your shoulders, and it's good."  View the entire news segment 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

USA Today published a recent article asking if a reverse mortgage is right for homeowners.   The article summarizes some of the highlights of the program and gives advice to the consumer to shop carefully for a good reverse mortgage.  It states that with a Home Equity Conversion Mortgage (HECM) you still own your home and the loans are non-recourse, which means you'll never owe more than the value of your home at its sale regardless of whether the home's value declines.  The writer encourages the reader that when done right a reverse mortgage can increase your chances of a healthy income in your golden years.  Read the entire article 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 National Association of Realtors ( NAR ) just released data showing that June was a very good month for the housing market as existing-home sales rose to their highest pace in over eight years and the national median sales price reached its all-time high at $236,400 for the month.  Lawrence Yun, NAR chief economist, says the solid gains in June are "fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."  Read more 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 Department of Housing and Urban Development (HUD) recently released a memo to clarify how much counseling agencies may charge for Home Equity Conversion Mortgage (HECM) counseling services.  The memo references Mortgagee Letter ML 2011-09 which states that there is no cap or maximum amount that can be charged for HECM counseling.  It goes on to say that a fess of $125.00 is neither a maximum nor a minimum allowable charge.  HUD requires that counseling agencies must be able to demonstrate how the fee charged to clients was calculated and what considerations contributed to the establishment of the fee.  HUD will conduct Performance Reviews in which agencies will be required to have this information available. 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

Many Americans are not planning for what is to come in the form of long-term care expenses when they get older.  A new report issued by the U.S. Office of the Assistant Secretary for Planning and Evaluation ( ASPE ) states that Americans turning 65 this year can expect on average to pay $138,000 in future long-term care services and supports (LTSS).  "Families will pay about half of the costs themselves out-of-pocket, with the rest covered by public programs and private insurance."  LTSS is not medical care, but rather assistance with everyday activities.  Many Americans mistakenly believe that health insurance will cover LTSS, however health insurance does not and Medicare does not cover most LTSS expenses.  Read the entire report 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

Recent data from Gallup-Healthways has ranked the top states for seniors' well-being.  The report titled, " State of American Well-Being:  State Well-Being Rankings for Older Americans ", was released this week in conjunction with the Massachusetts Institute of Technology (MIT) Age Lab, and it examines the well-being of Americans age 55 and older.  The state with the highest well-being is Hawaii, followed by Montana, South Dakota, Alaska, and Iowa.  The state with the lowest well-being is West Virginia, followed by Kentucky, Oklahoma, Ohio and Indiana.  You can read more about the rankings report 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

Reverse Mortgage Daily (RMD) recently interviewed Peter Bell, President of the National Reverse Mortgage Lenders Association (NRMLA), to discuss the direction and health of the reverse mortgage industry.  The questions ranged from recent guideline changes to the perception of the program and how it's being utilized by homeowners and other professionals.  In short, the reverse mortgage program has eliminated some of its problematic issues and has already begun to shed its reputation of being a "Loan of Last Resort".  As it has been stated in past posts, reverse mortgages are viewed more as a sophisticated financial retirement tool. Read the entire article 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

There is no doubt that with America's aging population there will be a huge demand for senior care services.  However, long-term care insurance may not be affordable for many in their later years due to extraordinarily high premiums and the lower likelihood to medically qualify.  A recent article in Financial Advisor Magazine states that, "Clients over age 60 may have missed the window to purchase affordable long-term care insurance."  The article does recommend that a reverse mortgage should be considered as an alternative option, and it highlights the Home Equity Conversion Mortgage (HECM) line of credit feature.  As the article states, "A unique feature of the HECM reverse mortgage many are surprised to learn about is its growing credit line.  As the borrower ages, the reverse mortgage line of credit continues to grow, providing access to significantly more funds.  This makes reverse mortgages a superior funding tool versus a traditional HELOC, which doesn't

The latest report by Harvard University's Joint Center for Housing Studies (JCHS) states that the nation's homeownership rate fell to 64.5% last year.  This erases nearly all of the increase in the previous two decades.  One group that is of concern is seniors because according to the JCHS "they are entering their retirement years with declining incomes."  The study shows that more than a third (38%) of owners ages 65 and over had mortgages in 2013 which is up from a little over a quarter in 2001.  In addition, the median amount of debt they carried doubled over this period and the median equity in 2013 was $125,000, which is lower than any year since 1998.  The JCHS goes on to say that "having less equity and large mortgage payments late in life is a troubling prospect for households on fixed incomes."  The study believes that a large majority of seniors will most likely remain in their homes for the time being, and they will likely spend more money on ho

For the twelfth consecutive quarter, the estimated aggregate value of seniors' home equity has risen.  This is according to the National Reverse Mortgage Lenders Association /Risk Span Reverse Mortgage Market Index (RMMI) as published by ReverseMortgageDaily.com .  The reason behind the increase in equity is attributed to rising home values and declining mortgage debt.  Home equity continues to be a viable resource for seniors to help fund their retirement. 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 Western United States continues to lead the country for the best area to retire.  The top city in the U.S. is Phoenix, and five of the top ten cities are in the West according to Bankrate.  Various factors were considered including cost of living, crime, taxes and weather.  See how your city ranks 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

As previously mentioned, a reverse mortgage can fulfill many needs.  Another use is to convert a room or basement to a living facility for an aging parent, relative or caregiver.  This can help reduce costs for long term care. 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

A recent article in Reverse Mortgage Daily states that "the Department of Housing and Urban Development (HUD) has extended the implementation date deadline for Home Equity Conversion Mortgages (HECMs) in default due to unpaid property charges."  In HUD's Mortgagee Letter 2015-11 , the Federal Housing Administration (FHA) is permitting the mortgagee to take a one time extension to submit a due and payable request through no later than Oct. 20, 2015 for tax and insurance defaults on or after April 23, 2015.  Read the entire article 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

A recent article published in Reverse Mortgage Daily cites 5 ways that a reverse mortgage can be used as a retirement planning tool.  For the past few years now, we in the industry have been bringing awareness and educating people on the many uses of a reverse mortgage and we are starting to see a shift in how people view the product.  Financial planners, accountants and attorneys are beginning to change their opinions on the HECM (home equity conversion mortgage) program, and they are realizing that it can be utilized to help fund and secure one's retirement.  Read the entire article 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

Reverse mortgages continue to gain more recognition and acceptance as a retirement planning strategy.  The reverse mortgage has been shedding its skin over the past several years from a program just for the cash-poor, house-rich client to include those who are looking to utilize the equity in their homes for retirement and investment opportunities.  The Home Equity Conversion Mortgage ( HECM ) program, which is the primary reverse mortgage program representing 95% of the market, recently went through a series of changes to ensure borrowers can afford reverse mortgages and help them avoid defaulting on the loan.  The new financial assessment rules will require a potential borrower to demonstrate their capacity and willingness to pay property taxes, home fees, and homeowners insurance based on their income and credit.   Forbes published a recent article that provides three different strategic uses of a reverse mortgage within a retirement income plan.  The first is to use a reverse mo

A recent article in Marketwatch provides six ways that one can lower their property tax bill.  Find out their tips and read the entire article  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

U.S. News advises that taking out a reverse mortgage is one of the top 10 ways to help fund retirement.  The recent article states that some 44% of retirees have used the equity in their home to help pay for retirement.  Read the entire article  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

Forbes published a recent article stating that the tougher qualifying requirements of a FHA reverse mortgage will help to strengthen the program for the long term.  The Financial Assessment will keep some applicants from qualifying, however this should minimize loan defaults and recent concerns about the reverse mortgage.  Read the entire article  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