Mortgage: For Those Twilight Years

Home
>
Mortgage Refinance
>
Mortgage: For Those Twilight Years

Mortgage: For Those Twilight Years

Tracing back, the concept of reverse mortgages began when one good soul, Nelson Haynes of Deering Savings and Loans wanted to help out the widow of his high school football coach. Today that small act has developed into a popular financing option for the senior citizens. With about 6,000 people turning 62 every day, the market is on an upswing.

2004 witnessed a growing number of applications for reverse mortgage. Compared to 2003 which witnessed a rise of 112% in applicants, 2004 had only 109%, yet Home Equity Conversion Mortgage (HECM) grabbed the lion's share with 90% of the pie. This is attributed to the growing awareness especially from the government initiative to educate the senior citizens about the benefits of reverse mortgage. In its early years, Americans were apprehensive about this backward process. They felt that this income getting mortgage has something fishy associated. Some lenders too helped spread rumors because the products did not involve much security to them, especially with the FHA insured HECM.

The concern for seniors has taken the driver's seat on the federal agenda. There have been large scale awareness campaigns, including seminars and workshops .This year the much talked about high loan limits for Fannie Mae's Home Keeper Loan has been raised from $333,700 to $359,650 with a 50% high for Alaska, Hawaii and US Virgin Islands. While HECM have increased its high loan limit to $312,896 from $290,319, subject to geographical area specifications. The lower limit has also been raised amidst much criticism to $172,632 .The purpose of roping in the lower equity home owners into this benefit stands defeated. The prime reason being, the risk involved.

The reverse mortgage is primarily for the retired citizens above 62. Who have no source of income and who more often than not spend the rest of their lives amidst mounting medical bills. This is one loan which does not check your credit and your salary stubs. You only need to own a house which has no lien attached and you can borrow against its current equity. The best part of the scheme is you don't have to make those monthly payments, rather you get an income. This frees up money for all kinds of uses and is tax free.

Reverse mortgages will become more popular as more and more products are peering in and the rates are making only gradual improvements. This has found a place on every American's long term plans. Last year saw reverse mortgages occupying 3% of the mortgage market that is set to triple in 2005 according to the National Reverse Mortgage Lenders' Association. Our last years will also be a no-compromise deal. Thanks to Reverse Mortgage.

For an in-depth knowledge of mortgage and related issues you can log onto: http://www.mortgagefit.com For reverse mortgage: http://www.mortgagefit.com/reverse.html eligibility: http://www.mortgagefit.com/reverse-eligible.html safety in reverse mortgage: http://www.mortgagefit.com/reverse-safe.html payback methods: http://www.mortgagefit.com/reverse-payback.html ways to use: http://www.mortgagefit.com/reverse-use.html HECM:http://www.mortgagefit.com/hecm.html

In The News:

Wolters Kluwer Financial Services Begins Development of Hope for ...
MarketWatch - 8 minutes ago
For borrowers who refinance under H4H, lenders are required to "write down" the mortgage to the Department of Housing and Urban Development (HUD)-provided ...

See if lender will let you pay insurance, taxes
San Francisco Chronicle, USA - 51 minutes ago
I almost feel like the mortgage companies are just trying to get extra money from us by having us refinance soon. Even in this economy, this house would ...

Washington Post
Mortgage rates fall, but many borrowers will have trouble qualifying
Los Angeles Times, CA - Nov 27, 2008
Jeff Lazerson, a Laguna Niguel mortgage broker, said all the customer calls he received Tuesday were from people seeking to refinance, not buy homes. ...
Mortgage-market revival: Try, try again CNNMoney.com
US move cuts mortgages to lowest rate since February Baltimore Sun
Mortgage Rates Tumble on Fed Debt Purchasing Plan (Update1) Bloomberg
AHN - MarketWatchall 2,157 news articles

The Star-Ledger - NJ.com
General Growth Properties gets loan reprieve
The Associated Press - 4 hours ago
General Growth Properties said last month it faced solvency trouble and might seek bankruptcy if it couldn't refinance or extend the nearly $1 billion in ...
UPDATE 1-General Growth gets two-week loan extension Reuters
General Growth gets 2-week extension on $900 million in loans Chicago Daily Herald
General Growth wins 2-week loan extension RTT News
Zacks.comall 99 news articles

Bellingham man's adjustable mortgage became money trap
Bellingham Herald, WA - 2 hours ago
Caceres said he got his first adjustable mortgage seven years ago and managed to refinance it twice since then, to get out from under the higher interest ...

Avoiding your own mortgage collapse
The News Journal, DE - 7 hours ago
By ANDREW EDER • The News Journal • December 1, 2008 It used to be that homeowners struggling to meet their mortgage payments had two options -- refinance ...

US Consumer Loan Aid Will Trickle Only So Far
New York Times, United States - Nov 26, 2008
By RON LIEBER and TARA SIEGEL BERNARD If you’re buying a home, refinancing a mortgage or seeking an auto or student loan, the new government plans to make ...
US MBA’s Mortgage Applications Index Rose 1.5% Last Week Bloomberg
Mortgage rate drop sparks surge in consumer interest San Jose Mercury News
Paying for home just got cheaper Arizona Republic
all 28 news articles

Fighting foreclosure: How one couple got caught in mortgage crisis
HeraldNet, WA - 8 hours ago
In 2006, the Bergers decided to refinance their mortgage with Countrywide to reduce their total monthly debt payments from about $2700 to about $2000. ...

Washington Post
Mortgage rate drop spurs rush to lenders for refinancing
Detroit Free Press, United States - Nov 27, 2008
BY MARY FRANCIS MASSON • FREE PRESS BUSINESS WRITER • November 27, 2008 A sharp plunge in US mortgage rates prompted a rush to refinance, resulting in ...
As Loan Rates Fall, Borrowers Seek 'Taste of the Bailout Pie' Washington Post
all 4 news articles

When refinancing mortgage makes sense
Chicago Tribune, United States - Nov 14, 2008
But you don't have to be in financial trouble to benefit from mortgage refinance, real estate experts say. "At this point, there are thousands of good ...

mortgage refinance - Google News

Mortgage: For Those Twilight Years

Mortgage Refinance Mortgage Refinance