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Reverse Mortgage

St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

Buck Wargo | Posted 06.28.2015 | Fifty
Buck Wargo

Andy and Beatrice Hollimon had endured Midwest winters for decades, and it was time to fulfill their dream of moving south.

Judge Grants Injunction Against Mark Diamond

Jeff Kelly Lowenstein | Posted 06.22.2015 | Chicago
Jeff Kelly Lowenstein

Life for Chicago businessman Mark Diamond got harder last week, even as questions remain for some about why he has not yet faced criminal prosecution.

Payment Shock: What Unnoticed Fallout From The Mortgage Lending Crisis Could Mean for You

Buck Wargo | Posted 06.18.2015 | Fifty
Buck Wargo

For those considering a reverse mortgage, there's a lot going on in the industry right now that could affect whether many older Americans consider one or even be able to take one out.

Reverse Mortgages: An Understanding Of The Risks

Andrew Lieb | Posted 06.18.2015 | Business
Andrew Lieb

This month, the Consumer Financial Protection Bureau (CFPB) published the article A closer look at reverse mortgage advertisements and consumer risks, which examines its study of advertisements for this product to older homeowners.

Reflections on Mandatory Counseling

Jack M. Guttentag | Posted 06.13.2015 | Business
Jack M. Guttentag

I have written many articles on regulatory prohibitions and mandatory disclosures in the mortgage market, most of it critical, but this is my first look at mandatory counseling. Except for reverse mortgages, it has not been much used until recently.

6 Undeniable Benefits Of A Reverse Mortgage

Michael Lazar | Posted 06.11.2015 | Fifty
Michael Lazar

A reverse mortgage is a feasible financial vehicle that is used by plenty of older Americans to access cash from their home's equity. We'll outline six undeniable benefits these home loans offer.

Reverse Mortgage Bill Passes in House

Jeff Kelly Lowenstein | Posted 06.04.2015 | Chicago
Jeff Kelly Lowenstein

After appearing stalled in the House of Representative following a unanimous passage in the Senate, a bill that would provide some protections to potential reverse mortgage recipients passed in the House under the aegis of a different bill by a 116 to 0 vote last Thursday.

Differences Between A Reverse Mortgage And Home Equity Loan

Michael Lazar | Posted 06.03.2015 | Fifty
Michael Lazar

If you have owned your home for a long enough time to be able to pay down the balance and free up some equity, both loan options can be viable ones to consider, should you find yourself short on funds. But there are differences between a reverse mortgage and a home equity loan.

Reverse Mortgage Bill Stalling in House

Jeff Kelly Lowenstein | Posted 05.27.2015 | Chicago
Jeff Kelly Lowenstein

After racing through the Senate, a bill that would provide protections to senior citizens considering taking a reverse mortgage appears to have stalled in the House and could die in committee.

Should We Take Money Out of Retirement to Pay Off Mortgage?

Steve Rhode | Posted 05.26.2015 | Parents
Steve Rhode

Question: Dear Steve, I am 63 years old. Retired. 401 $300,000 + plus pension & SS. Wife 62 retired drawing SS small 401 $45,000. We are retired an...

What Is a Reverse Mortgage?

Simple. Thrifty. Living. | Posted 05.04.2015 | Money
Simple. Thrifty. Living.

While reverse mortgages can provide significant cash during retirement, they may not be the best choice for everyone. If you are thinking about a reverse mortgage, discuss your options with a neutral financial adviser. Always know all the details before making any financial decision.

Reverse Mortgage Prices and Closing Costs: A Look at the Options

Jack M. Guttentag | Posted 06.25.2015 | Business
Jack M. Guttentag

Senior homeowners looking to shop the HECM reverse mortgage market for the best price, meaning the lowest interest rate and origination fee, have a major problem. Unlike the standard mortgage market where price data are available from many sources (including third party multi-lender sites), in the reverse mortgage market prices are hard to find.

Should You Take Advantage Of A Reverse Mortgage With Current Low Interest Rates?

Buck Wargo | Posted 06.08.2015 | Fifty
Buck Wargo

Salter says people get credit for their age by waiting, but with lower interest rates and compounding growth, it makes more sense to take it today than wait for an uncertain future.

After March 2, Reverse Mortgage Borrowers Will Have to Prove They Are Not Deadbeats

Jack M. Guttentag | Posted 03.27.2015 | Business
Jack M. Guttentag

Applicants with plenty of equity in their homes might find that the fully-funded Set-Aside imposes no burden on them at all, in which case the underwriting costs could be avoided. There is no reason why lenders and borrowers should not have that option.

The 5 Best Reasons to Get a Reverse Mortgage Right Now

Buck Wargo | Posted 06.11.2015 | Fifty
Buck Wargo

Leverage is why we bought the house, especially if some of us didn't plan for retirement, as we should have done. If you're not leveraging it, that equity has no value.

The Fixed-Rate/Adjustable-Rate Decision: Standard vs. HECM Reverse Mortgages

Jack M. Guttentag | Posted 03.14.2015 | Money
Jack M. Guttentag

The other day a reader caught me off guard by saying she had counted 28 articles on adjustable-rate mortgages on my website, but all of them pertained to standard mortgages. Not one applied to reverse mortgages, and she wondered whether that was because the issues were exactly the same. I winced at that, because the issues are not the same -- not even close.

Transitioning From a Standard Mortgage to a Reverse Mortgage

Jack M. Guttentag | Posted 03.01.2015 | Business
Jack M. Guttentag

In my father's generation, very few people still had a mortgage to pay when they reached retirement age. Now it is common. But retired homeowners may now have an option my father did not have.

To Avoid Outliving Your Money, Take a HECM Reverse Mortgage Before Interest Rates Rise

Jack M. Guttentag | Posted 02.11.2015 | Business
Jack M. Guttentag

This use of the HECM reverse mortgage program as a type of insurance policy employs the credit line feature of the program. The senior uses her borrowing power to draw the largest line available, and lets the line sit unused until she needs it.

Don't Expect Much From Unregulated Regulators

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

The seeds of this article were planted in my brain some 30-odd years ago, when I did a consulting project for HUD, for which they contracted to pay me...

Shoud Seniors Buying a House Do It With a Reverse Mortgage?

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

Many home purchasers are seniors. Some become homeowners for the first time, but most have been and want to remain homeowners. They just don't want to remain in their current house.

A New Challenge to the HECM Reverse Mortgage Program

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

The United States today faces a retirement funds crisis: a rapidly growing number of persons who are retiring without the financial capacity to support themselves during ever-increasing life spans.

When to Reject a HECM Reverse Mortgage, and When to Consider One

Jack M. Guttentag | Posted 11.11.2014 | Money
Jack M. Guttentag

Some seniors don't qualify for a reverse mortgage, either because they are not old enough (you must be at least 62), or because the difference between...

Gay Couples Redefine 'Golden Years'

Wm. Scott Page | Posted 05.26.2014 | Gay Voices
Wm. Scott Page

Paying for retirement isn't typically on the gay couple's radar. Gays approaching their "Golden Years" represent a unique segment of the financial marketplace.

Rule Changes Tighten Reverse Mortgage Eligibility

Jason Alderman | Posted 03.31.2014 | Business
Jason Alderman

Reverse mortgages have become increasingly popular in recent years, as cash-strapped seniors seek ways to keep pace with rising expenses -- not to mention cope with the pummeling their retirement savings took during the Great Recession.

Breaking the Logjam on HECM Reverse Mortgages (Part II)

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

There is another log contributing to the HECM logjam that is more formidable. It is a poorly functioning market, with little price competition and no protection against "lock abuse" -- an inflated price after the senior is committed to the transaction.