For the past quarter century older Americans have easily managed to retire on three things: company pensions, Social Security, and personal savings. But with a rocky economy not long behind us – and still unsteady in many areas - baby boomers are being forced to take a second look at their retirement portfolios. Previously, tapping into home equity for retirement has been considered a last resort. But should it be?
For individuals and married couples 62 and older, reverse mortgage is something that should be considered when seeking retirement funding solutions. Homeowners can access the equity in their home and no repayment is due until the last borrower passes or permanently leaves the home. For retirees, it could mean the difference between just living, living comfortably, and living out retirement dreams.
When planning for retirement, there will no doubt be a discussion about when a retiree should start taking their Social Security benefits. There are perks to delaying, for example Social Security benefits stand to increase as much as 7-8% per year if you don’t apply until age 70. But many seniors need this income as soon […]
The HECM Reverse Mortgage Line of Credit is still relatively new, and to this day many within the financial and retirement industries haven’t fully grasped how it works. Well, they need to get on board because consumers are interested – and they should be. Here’s why.. First, what is a line of credit? Simply put, […]
A recently released university report by the Michigan Retirement Research Center and funded by the Social Security Administration showed that 55% of those utilizing a HECM reverse mortgage are using some of the proceeds to pay off a traditional mortgage. So, when is this a good strategy? 1.) They’re living in a house they can’t afford […]
Numbers are being released showing that the impending retirement crisis may be worse than originally thought. Half of Americans have less than $10,000 in savings. Nearly half of the oldest Baby Boomer generation have insufficient resources to pay for basic retirement living expenses and healthcare costs. The Center for Retirement Research at Boston College estimates […]
When financial planners counsel retirees on how to best leverage their retirement portfolio, social security, and other assets, considering a HECM reverse mortgage was rarely part of that conversation – but this is beginning to change. As the myths of the industry are laid to rest, many professionals are beginning to better understand how reverse mortgages […]
A recent report by the Harvard Joint Center for Housing Studies, Projections and Implications for Housing a Growing Population: Older Adults 2015-2035, it is predicted that by 2035 one in five people will be aged 65 and older while one in three households will be headed by someone of that age and older. The report included the use […]
At the peak of the housing boom in 2005/2006/2007, many people took out HELOC (Home Equity Line of Credit) loans that allowed interest only payments for 10 years. But after that 10 year term is up, everything changes as principal is now added to the interest payments. Then to add insult to injury, many people […]
One of the biggest perks of a HECM reverse mortgage is it’s up to the borrower to decide how to use the funds, as well as how to receive those funds. And with the rapidly improving reputation of today’s reverse mortgage, those uses are being suggested more often and are becoming more creative. This wonderful financial […]
Reverse mortgages aren’t new, but the shifting perspective on them certainly is. After undergoing various regulation changes the past couple years, everyone is taking a second look. Real estate agents are seeking more information on the Reverse Mortgage for Purchase so they can offer this option to their senior buyers. Adult children are realizing the […]
It’s becoming more and more common for seniors to divorce after retirement. This is happening for various reasons, but a big one is that retirement now last for decades versus only years, and many people are looking to make those golden years the best yet. But senior divorces can get messy, as there are often […]
For many who remember the reverse mortgage scares of the yester-years, the terms ‘comfort’ and ‘reverse mortgage’ seem like an unlikely duo. But they shouldn’t be. Since the FHA and HUD changed a few regulations stabilizing HECM reverse mortgages in 2015, they have quickly been garnering new attention. Whether looking to boost monthly income, protect […]