Refinancing a reverse mortgage can be desirable for those whom already have a reverse mortgage and may want to lower their rate and / or receive more cash proceeds.
When considering a refinancing an existing reverse mortgage, the borrower must take into consideration a few things. First, will the borrower benefit from a reverse mortgage  refinance. Benefits can be broken down into several components:
- Will refinancing a current reverse mortgage lower my interest rate?
- Will the borrower receive more funds with a refi?
Often times when these benefits are answered with a yes, the borrower is capable of refinancing. However, in order to refinance, the borrower must receive, in funds, five times the costs of the reverse mortgage fee’s. In many cases this can be met simply due to the borrower being slightly older in combination with a significantly reduced upfront mortgage insurance premium. Also, if the property value happened to increase the refinance would be much easier.
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
NEW YORK (MainStreet) —In the last four to five years, the number of people applying for a reverse mortgage has increased 30%, according to Dennis Gatto, a senior loan advisor at Long Island-based direct mortgage lender Senior Home Loans.
 “There’s only one way to get money without a monthly payment, and that’s a reverse mortgage,” Gatto said. “I’ve received cookies in the mail from clients who were destitute and broke and now they have money because of a reverse mortgage.”
One reason behind the surge is the increased difficulty in securing a traditional loan or equity line of credit.
“The credit market has shrunk, and those on a fixed income are affected by that, because it’s more difficult for a bank to write a loan today,” said Brad O’Brien, group manager with Green Path, a non-profit financial education agency in Milwaukee.
Although the reverse mortgage is a government backed loan, in order to qualify for it, applicants must be 62 years and older.
Read the rest of the article here: http://www.mainstreet.com/article/real-estate/reverse-mortgage-applicants-increasing-third
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
Washington, DC – The National Council on Aging (NCOA) today announces the availability of the 2013 version of Use Your Home to Stay at Home™, the official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development (HUD).
Use Your Home to Stay at Home™ is a user-friendly guide to help older homeowners understand the pros and cons of a reverse mortgage. Federal law requires that all individuals who are considering a reverse mortgage receive unbiased counseling by a HUD-approved counseling agency and receive a copy of the NCOA guide.
 Also known as Home Equity Conversion Mortgages (HECMs), reverse mortgages allow homeowners aged 62+ to convert a portion of their home equity into cash while they continue to live at home for as long as they’re able. Over the past 20 years, a growing number of older homeowners have used this financial tool. Today, most borrowers use the loans for immediate needs, such as paying off their existing mortgage or other debts. About 33% want to supplement their monthly income, so they can afford to continue living independently in their own home longer.
“Use Your Home to Stay at Home™ is an older homeowner’s best resource when it comes to examining whether a reverse mortgage is right for them,” said Amy Ford, director of NCOA’s Reverse Mortgage Counseling Services Network. “Along with reverse mortgage counseling from a HUD-approved counselor, the guide is a trusted source of information for older adults to understand their options before they commit to a loan.”
The 2013 version of Use Your Home to Stay at Home™ reflects the latest statistics and rules related to reverse mortgages. The guide can be downloaded for free at www.ncoa.org/RMBooklet. Housing and reverse mortgage counselors can order multiple copies atwww.ncoa.org/RMCounselors.
“Reverse mortgages can be a useful piece of the puzzle when it comes to helping older adults make ends meet and stay independent as long as possible,” Ford said. “However, they’re not for everyone. It’s critical that older homeowners and their families get unbiased counseling and information when considering whether to tap into their biggest asset.”
As the only national aging organization that provides reverse mortgage counseling, NCOA brings a unique approach to helping older homeowners examine all of their options when it comes to staying independent. HUD requires that all counselors use NCOA’s free, confidential BenefitsCheckUp® (www.BenefitsCheckUp.org) service to determine if reverse mortgage clients are eligible for an array of benefits that could help them pay for everyday expenses like food, medicine, and utilities.
In addition, NCOA offers other tools to help older homeowners make the most of their home equity, so they can stay economically secure while maintaining their independence for as long as possible. These include:
- Home Equity Advisor (www.HomeEquityAdvisor.org): Developed with a grant from the FINRA Investor Education Foundation, this website offers a free Quick Check for older homeowners who want to explore how they can use their home equity to meet their retirement goals and avoid scams.
- Reverse Mortgage Counseling Services Network(www.ncoa.org/RMCounseling): NCOA’s trained counselors help older adults understand the costs and features of different types of reverse mortgage and evaluate the pros and cons for their individual situation. They also discuss other options, including public and private benefits, which can help seniors stay independent longer. HUD has approved NCOA as one of nine reverse mortgage counseling intermediaries.
For more information about reverse mortgages and home equity options and resources, please visit www.ncoa.org/HomeEquity.
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About NCOA The National Council on Aging is a nonprofit service and advocacy organization headquartered in Washington, DC. NCOA’s mission is to improve the lives of millions of older adults, especially those who are vulnerable and disadvantaged. NCOA is a national voice for older Americans and the community organizations that serve them. It brings together nonprofit organizations, businesses, and government to develop creative solutions that improve the lives of all older adults. NCOA works with thousands of organizations across the country to help seniors find jobs and benefits, improve their health, live independently, and remain active in their communities.
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
 Watch this video from CBS This Morning !(you will have to switch to text mode to paste this in)
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
AARP recently published an article in their Money section on Reverse Mortgages called “Are Reverse Mortgages Helpful or Hazardous?”
Here’s an excerpt from that article:
“For many retirees, such as 73-year-old Robert Lee White of Fort Lauderdale, Fla., a reverse mortgage can be nothing short of a lifeline. He couldn’t afford his refinanced mortgage and was about to lose his home of 45 years. Then he sought help from Gerson’s legal aid team.Gerson says her staff persuaded White’s lender to do a new mortgage for about $47,000, to pay off his existing mortgage — although it resulted in a loss to the lender. “It’s a matter of negotiating and negotiating, and hoping you can convince them they’re not going to do better,” she says.
White says he was grateful. “Believe me, this has really turned my life around.”
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For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
San Diego mortgage broker Shanne Sleder reveals and explains several changes that the Federal Housing Administration recently made to home mortgages.
According to a recent article on reversemortgagedaily.com titled FHA to Halt Fixed Rate Standard Reverse Mortgage Starting April 1, the Federal Housing Administration recently announced that they will eliminate the standard fixed rate option for reverse mortgages. This prompts a response from mortgage broker Shanne Sleder of The Mortgage Planners.
“According to the announcement, the FHA made changes to its Home Equity Conversion Mortgage (HECM) reverse mortgage program to reduce risks to the agency’s finances. Among the changes is the elimination of the standard fixed rate option for reverse mortgages. The changes will apply to case numbers assigned on or after April 1, 2013 for loans closed on or before July 1, 2013,” explained Mr. Sleder.
“It’s a shame because the standard fixed rate HECM has been the most popular option over the last several years for seniors who were getting reverse mortgages. Now, they can only choose the saver fixed rate HECM option if they want a fixed rate reverse mortgage,” he continued.
Read the Rest of the Story HERE: http://www.prweb.com/releases/prweb2013/4/prweb10587887.htm
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
Author Travis Pelto shares an informative and sometimes humorous look at mortgages. This week he concentrates on Reverse Mortgages in particular.
 “So you’ve been reading these “Know Your Mortgage” posts for a while now (humor me, internet) and you feel pretty confident with your discoveries so far. The mortgage process once was a labyrinth of information, but with the help of these blogs you’ve made the right turns to get out alive (bear with me). However, just when you think you’ve got a firm grasp on a situation the proverbial Minotaur in the labyrinth appears to turn everything on its head. What turned my head askew was the concept of a reverse mortgage. After I’ve learned so much about different types of home loans, you’re telling me they can go backwards now? Just unfair if you ask me, but reverse mortgages are very helpful for those who qualify. So let us venture onward into the world of reverse mortgages.
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For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
Americans have long held onto home equity, for many seeing the payoff of the 30-year mortgage as an important life milestone, and in turn, being unwilling to let go. Until  now.
Whether the economic downturn has rebalanced Americans’ perspectives on homeownership or home equity is simply the last thing left for people coming of retirement age today, preferences toward the use of home equity are changing, according to an annual survey conducted by Ameriprise Financial.
Today, 47% of those approaching retirement age said they expect to use home equity to help fund retirement. The figure is up from 39% who said the same thing five years ago, pre-recession.
Read more at the reverse review.
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
ReverseMortgageDaily Reports: http://reversemortgagedaily.com/2013/02/25/housing-commission-reverse-mortgages-and-alternatives-must-remain-available/
“The report, titled “Housing America’s Future: New Directions for National Policy,” focuses on four major points; housing the growing senior population one among them. The recommendations are intended to help Congress in policy measures designed to support and sustain the housing market recovery.
The much-anticipated report released Monday from a commission of housing experts projects more interest in reverse mortgages in the coming years. Due to the need for more aging-in-place solutions, housing policy must be directed at the aging group with steps to ensure consumers understand reverse mortgages, the Bipartisan Policy Center Housing Commission writes.
“…steps should be taken to provide effective guidance to ensure consumers understand the mechanics of reverse mortgages, including the risks and benefits of these products,” the report states under its aging in place recommendations. “A white House conference could bring together top federal officials and key players in the private and public sectors to draw national attention to the issue of senior housing and to catalyze development of a coordinated approach to aging in place.””
Read More At: http://reversemortgagedaily.com/2013/02/25/housing-commission-reverse-mortgages-and-alternatives-must-remain-available/
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
Accessing Funds from Your Reverse Mortgage
One of the greatest concerns that seniors have when deciding to apply for a reverse mortgage relates to how they can access the funds after closing. Currently there are 5  approved payouts available:
- Taking an initial draw or lump sum
- A line of credit that can be accessed at any time
- Monthly payments for life called a tenure
- Monthly payments for a set term
- Modified tenure payments for a certain amount for life
A reverse mortgage that offers the maximum lump sum and accumulates interest at a fixed rate is available with the HECM (Home Equity Conversion Mortgage) Fixed Standard program. No other payout option is available with this HECM Standard program.
The HECM standard LIBOR is a variable rate program that makes available all of the other payout options. Therefore if the client desires a monthly payment for 10 years (term option) after taking an initial lump sum their interest will accumulate on an adjustable basis. The same is true for a client who desires a lifetime monthly payment or a line of credit.
Taking a line of credit is an attractive option because no interest accumulates until the line is accessed. The modified tenure plan allows the client the possibility of a fixed monthly payment for life in conjunction with a line of credit. It is important to remember that interest accumulation is never paid by the client as long as she remains in the home.
For more information about a reverse mortgage, call our Specialists at 866-224-2677, X427 or fill out our web form today!
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