Reverse Mortgages: Another Tool for Seniors
April 21, 2023
In April’s chalk talk, my friend and reverse mortgage specialist, Homa Lassoli from Mutual in OmahaShe has over 38 years of experience in the financial services and mortgage industry, the last 16 of which were solely in the reverse mortgage business.
Responsible use of home equity can be an option that mitigates certain market risks and helps seniors stay financially secure during future market turmoil. Not that there is, but that reverse mortgages could be another financial tool for seniors who understand the terms of the loan and can make informed decisions about whether a reverse mortgage is right for them. It is important to note that
The number of reverse mortgages has increased as property prices have risen. After the pandemic, many people lost their jobs or wanted to retire easier and faster, so they turned to home equity. Additionally, in January 2023, his FHA cap was raised, allowing homeowners to borrow up to nearly $1.1 million.
If you’ve heard about reverse mortgages before, there are still many misconceptions about reverse mortgages. In the past, people started losing their homes when their assets ran out, but many people still think that if they do a reverse mortgage, they will lose their homes when their assets run out. In 1987, the Housing and Community Development Act established reverse mortgages through the FHA-insured home lien conversion mortgage program. Since 1988, these Home Equity Conversion Mortgages (HECM) and Jumbo Reverse Mortgages have been insured by the government.
Borrower requirements by hud.gov The website indicates what you have to do:
- be over 62 years old
- own the property outright or pay a significant sum up front
- occupy the property as your primary residence
- Do not default on federal debt
- Secure financial resources to continue paying ongoing property taxes in a timely manner, including property taxes, insurance, and homeowners association fees.
- Attend a consumer information session with a HUD-approved HECM counselor
A reverse mortgage helps seniors stay home while they need care, borrow money for travel or renovations, or use it to fund a down payment on another home.Reverse Mortgage Specialties The home can always run an analysis to see how well it helps.when you ask when Regardless of the housing market, current interest rates, or how long you plan to live in the house, getting a reverse mortgage makes sense. Whenever you need help avoiding foreclosure, paying bills, moving closer to family, and covering medical bills, it’s the perfect time.
This is a very brief overview of the topic that will be a tool for seniors to use if they wish. If you are considering a reverse mortgage you can always continue the discussion before diving in. What Getting knowledgeable on the topic as well is a great way to keep making smart financial decisions for yourself and your family.
If you missed the chalk talk and would like to see it, please email us.
Free for clients, $10 for guests