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Reverse Mortgage in the news

Good News for Reverse Mortgages:

The National Reverse Mortgage Lenders Association predicts that Borrowers are expected to take out 120,000 of the most popular kind of reverse mortgage this year, a 57 increase from last year.

According to Bob Moos of The Dallas Morning News; AARP, the National Council on Aging, federal agencies and other groups have launched campaigns to help seniors understand how they can tap their home equity to pay for long-term care and other retirement expenses.

The response to the reverse mortgage program has grown dramatically with lenders and brokers as rising interest rates have dampened conventional home loan originations and refinance activity.

Reverse Mortgage in the news:

Posted by Lacey D. Horton, Texas Certified Signing Agent on 09/09/2007 05:12 PM

Comments (6)

reverse mortgage

6 Comments on Reverse Mortgage in the news

SEP

2007

A reverse mortgage is a helpful fix for some people but the more important long term problem that needs to be solved is the taxation system. Older folks should never be forced into a corner because of the governments endless thirst for cash. Politicians need to start downsizing and becoming accountable for all the spending.

SEP

2007

Do you market for reverse mortgages? I am looking for someone to share a power point presentation with me so I can hold an informational seminar on reverse mortgages, trying not to reinvent the wheel if anybody has already done it.

John Thomas - Citizens Lending Group - http://www.DelawareMortgageLoans.net

SEP

2007

Dan - Thanks for the comment. I appreciate your insight.

Michael - That's wonderful! I am glad your speech went well.

John - I will contact you directly to respond to this. Thanks for the comment.

SEP

2007

Dan, I read on the FTC website that seniors can seek property tax credit or abatement based on their senior status. Personally, I don't know anyone who has done that.

FEB

2008

A reverse mortgage can be a good thing in the right situation. In the hands of the wrong homeowner and it can destroy a lifetime of dreams.

#1) They are really expensive by their nature.

#2) There are some originators that misrepresent this product and never discuss the negatives.

#3) Legacy planning can be sabotaged if long-term ill health that requires convalescing befalls a senior and require them to be out of their home.

Every loan has a purpose and if used for the wrong purpose, a reverse mortgage can become a nightmare like and other ill-fitting loan to the wrong borrower.

Remember the loan and all the interest much be paid by the inheritors of the property upon the demise of the homeowner and if they can’t qualify for favorable financing, they might have to sell the property or be forced into accepting a very bad loan terms or rates. If it is a down market like some are experiencing today, the financial impact could be tremendous.

Before you launch head first into a reverse make sure you investigate and ensure it will fulfills your long-term goals and not a short-term condition. If a parent is in failing health and might require convalescing it might be better if the sibling to inherit the property collective come together to make up the property tax shortfall or possible challenge the assessed values to reduce the tax bill.

I’m a little skeptical of a one size fit all solution, especially when it comes to a home or personal residence. If you make a mistake, you could position yourself to loose your home due to illness and as we age, we increase the likelihood of long-termed health issues.

I trust that people who sell these products give a full disclosure of the pros and cons and not just concern themselves with earning a commission. I’ve predicted that reverse mortgagees will become the subprime fiasco of 5 years into the future. There are lenders lined up now ready to exploit this market as it matures.

If you’re young, this is more reason to invest heavily in you IRAs, annuities and other sound investment so you can live in the home of your dream without the fear of having to take a reverse mortgage against your property. Look into all your options and don't just jumping for a reverse mortgage.

FEB

2008

To comment on the last post. I believe all loans have positive and negative features. Even with a conventional loan at 5% you will pay the lender almost double what you borrow over 30 years. RM are so expensive due to the risk the lender takes on and the fact that they will not generate any income form the loan until.. well you know. But it is my understanding that as these types of loans gain in popularity, the costs should go down.

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