Reverse Mortgages
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Snap Up a Reverse Mortgage Now
So says the Mortgage Professor, Jack Guttentag, an emeritus finance professor at the Wharton School of the University of Pennsylvania. Guttentag’s main argument is that interest rates are so low that it’s a good idea to snap up the cash now. Low rates let you borrow more than you could borrow at higher rates. Guttentag […]
Coming Changes in Reverse Mortgages
Reverse mortgages help older homeowners stay in their homes by letting them spend home equity without selling the homes or writing monthly repayment checks. The number of reverse mortgages issued increases each year, and most of those mortgages are insured by the FHA. If the banks or other lenders misprice the mortgages and lose money, […]
Attacking Reverse Mortgages
For many years in Retirement Watch I’ve presented a balanced view of reverse mortgages. These are tools for seniors to draw down their home equity without having to move from their homes or make payments during their lifetimes. I’ve maintained they are good tools in some situations and detailed those situations. The new Consumer Financial […]
New Look in and Uses of Reverse Mortgages
Many retirees in coming years will need to use at least part of their home equity to fund retirement expenses. They should consider reverse mortgages, and they’ll find some recent changes make reverse mortgages more attractive. But some other changes also limit their use and impose more work and restrictions on homeowners. In the last […]
Managing Changes in Reverse Mortgages
The reverse mortgage market was roiled over the summer. But there’s no reason for panic. Those who already have reverse mortgages won’t be affected, and those who want them in the future should have adequate options, perhaps more options than before. There are more changes on the way, however, and these will affect those who […]
Benefiting from the New Reverse Mortgages
Reverse mortgages received several changes in the last six months or so. The changes make the mortgages more attractive in general and, unlike in the past, they can make some sense for relatively short-term cash needs. In a reverse mortgage, the homeowner with little or no mortgage on his home receives a loan. The loan […]
Changing World of Reverse Mortgages
There have been big changes in reverse mortgages in the last year. Unlike many areas of real estate and home financing, there is some good news. If you are an older homeowner looking for a steady source of income or a lump sum of cash, consider a reverse mortgage. But beware of the potential pitfalls […]
New Use for Reverse Mortgages
Congress snuck a new use of reverse mortgages into the Housing and Economic Recovery Act of 2008. Reverse mortgages traditionally are for people who already own homes and want to tap their equity. The new provision, known as HECM for Purchase, lets you use an insured reverse mortgage to buy a home. Here is how […]
