The percentage of the oldest boomers (born in 1946) who feel that they are on track to reach their retirement savings goals or have already achieved them.
The percentage of workers age 55 and older who feel that their financial situation is worse than it was two years ago.
Definition A reverse mortgage is a type of home equity loan for seniors age 62 and older used to turn a portion of their home equity into cash as needed. They were also designed with unique features to make the loan manageable for older Americans on a fixed income. A federally-insured reverse mortgage is called a Home Equity Conversion Mortgage (HECM).
Fact 90% of all reverse mortgages in the U.S. are federally-insured HECM loans.
Nelson Haynes, of Deering Savings and Loan in Portland Maine designs this unique loan to help the recently widowed wife of his high school football coach stay in her home.
The 1st congressional hearing regarding reverse mortgages is held. The Senate approves a proposal to insure these loans by the Federal Housing Administration (FHA).
President Ronald Reagan signs the Reverse Mortgage Bill into law, giving the U.S. Department of Housing and Urban Development (HUD) the authority to insure reverse mortgages through the FHA.
With added consumer safeguards and widespread recognition from the mortgage industry, there are more than one million reverse mortgage borrowers in the U.S. today.
Borrower pays a minimum required payment every month to pay down the loan.
Repayment of the loan is deferred until all the borrowers and non-borrowing spouses move out of or sell the home, pass away, or do not comply with the loan terms. At that time, the loan, including all the interest and fees, is repaid in full, usually from the sale of the house.
*Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.
You can repay your loan at any time without incurring any additional costs.
You will never owe more than what the house is worth.
Required third party counseling with an FHA-approved agency.
Lenders thoroughly evaluate every applicant's ability to keep up with the loan's financial obligations to minimize default in the future.
HECM origination fees are regulated by the government.
You can use your reverse mortgage funds for almost anything. According to a survey by the National Council on Aging, most potential borrowers would like to use their reverse mortgage funds in the following ways:
You want to access your home's equity in cash
You want to age in the comfort of your home
You do not plan to sell your home or move away in the near future
You are able to continue paying your property taxes, homeowners insurance, and maintain basic home repairs
You plan to leave your home for more than 12 consecutive months
You plan to move out of your home
You may not want to age in your home.
You are not sure you can fulfill all loan obligations including paying homeowners insurance and property taxes.
"I am on a fixed income and the balances on my cards kept creeping up. I now have paid off my credit cards, I have money in the bank, and I still have my home. This has been the best financial decision I have ever made."
"After my reverse mortgage I don’t have a house payment anymore, I paid my van off and paid my bills. I would recommend it…"
"I just wanted to have a line of credit in case we had an emergency. It makes me feel pretty good knowing there’s a cushion there and I don’t have to fret or worry if something happens."
We want you to be educated and informed about your financial options in retirement. Call us and speak with an expert that can help you decide if a reverse mortgage loan may be a good fit for you.Get More Information