Industry Pushes Lower-Cost Reverse Mortgages

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I rarely participate in these comments, but I really have to share my story with 1 company which has tremendously helped me. I just turned 74, many obstacles have come in the way of my retirement including a divorce a few years ago which really hurt me financially, to be honest I had this feeling that my savings and SS income were not going to be enough. Months and months of research and dealing with big banks - nothing but a big headache and they wanted to charge an arm and leg - I was considering a standard home equity loan but then I started reading about reverse mortgages. Long story short, i found this company while searching online - reverse mortgage lenders direct - they were able to automatically compare lenders for me and quote me a fantastic quote. I am not saying you need to do a reverse mortgage (for me this has been excellent and recommendable) but if you do here is their number 877 700 0534 - you can find the site online search for reverse mortgage lenders direct.

richardbrown633 of CA 7:16AM May 29, 2012

The HECM Saver program, which offers much lower upfront costs to reverse mortgage borrowers, is growing in appeal among consumers who might not need immediate access to the cash they borrow against their homes. A good site that told me all the truths about reverse mortgages and the information about HECM reverse mortgage program was http://www.reversemortgagelendersdirect.com

Robert Dale of LA 11:40PM December 14, 2011

I'm so glad that you said "reverse mortgages aren't a silver bullet" and that they should be part of a carefully designed retirement plan. It is very easy for a borrower to become trapped in their home with a reverse mortgage. This is especially true if they are steered into a fixed-rate reverse mortgage which requires a lump sum. In your example where the borrower would receive $150,000, they would have to pay 6.40% interest on this entire amount that is compounding in a negative amoritization (growing the balance quickly). This will eat up their home equity very fast and the borrower can find themselves unable to sell or move. For more on the Reverse Mortgage Trap, visit: http://www.reversemortgagecritic.com/trap_U1.html

Lyn R. Link, Reverse Mortgage Critic of MO 7:03PM December 07, 2011

There are other creative ways to use a reverse mortgage. I particularly like the LOC to stop the bleeding on home values!
Client Problem: Widow cannot sell home and the value keeps dropping. She concerned about the nest egg she was counting on as she aged.
Solution: 72-year old with a home worth $600,000 secures a line of credit using a reverse mortgage. A Growing Line of Credit. Perfect for the savvy senior homeowner!
Initial Credit Line: $428,000
Available Credit at end of year 10: $717,921
Credit Line Growth Factor: 3.71% !!!!!
If her home is worth MORE than the available credit, she has other options. If it's worth less, she still has access to the entire line. nice.

Laurie Duke of MD 5:08PM December 07, 2011

Good article. One of the few I have read that doesn't totally misrepresent the HECM products or try to be overly negative without having all the facts. As an HECM Counselor, I can attest to the fact that the access to part of the equity in one's home can be a significant benefit to some seniors.

Richard Hunter of AZ 2:51PM December 07, 2011

If you currently have a mortgage, would you think about refinancing your home? Well, some might argue that there can be no need. However, there are a few others who would totally go for such an option. Check it out for your self at 123 Refinance

eldonacton of TX 2:48AM December 07, 2011

excellent introduction of hecm saver reverse mortgage - we usually receive applications from wealthier seniors who want to use a credit line to free up some equity
there are some many pros to this program including the reduced fees - there is no other way for seniors to access equity with such flexibility
something to keep in mind home price appreciation - as home prices rebound you will be breaking even since rate of growth will beat your interest rate on loan ( saver rates low as 2.5%)
for those interested in learning more about this program can visit
http://www.reversemortgagelendersdirect.com/hecm-saver-reverse-mortgage/
http://www.reversemortgagelendersdirect.com/hecm-saver-how-does-it-work/
http://www.reversemortgagelendersdirect.com/how-does-a-reverse-mortgage-work/

Chris of NJ 11:57AM December 06, 2011