Mortgage

Writing for The Chicago Tribune, Terry Savage has written the best reverse mortgage article I have come across. The article is professional, objective and comprehensively covers all of the basics: What are the benefits of a reverse mortgage? How does a reverse mortgage work? Some concrete examples. The downsides of a reverse mortgage. Where to go and who to talk to about reverse mortgages. It is a great article and starting point for anyone considering a reverse mortgage. Source: Chicago...

New guidelines allowing older borrowers to use a reverse mortgage to purchase a principal residence went into effect earlier this year. Previous guidelines had restricted the use of reverse mortgages to real estate transactions that involved refinancing. Until recently, lenders had been waiting on the sidelines in anticipation of further clarification from the federal government. However, lending activity does appear to be picking-up. A recent New York Times article provides specific examples...

A recent Wall Street Journal article indicates that the number of government-backed reverse mortgages has increased 20% from the same period last year. This stands in contrast to the number of new home equity loans which decreased 70% from the same period last year. The increased interest in reverse mortgages is directly related to the fall-out from the financial crisis. Seniors who have suffered as a result of decreasing asset values in the capital markets see home equity as a potentially...

Do reverse mortgages deserve a second look in light of the financial crisis? Similar in some ways to annuities, reverse mortgages have received little attention from conventional financial planners and investment advisors. Part of this reluctance involves lack of familiarity with the products, part of it involves lack of financial incentives to discuss the products, and part involves genuine, well-founded skepticism regarding product value. The reality, though, is that home equity is a major...