Oregon Reverse Mortgage Information » reverse mortgage

Oregon Reverse Mortgage Lending….What is in store for the future?

Laurie Willis — Mon, 18 Jul 2011 20:07:15 +0000

Availability and terms of Lane County Reverse Mortgages could be changing rapidly. As Reverse Mortgage lenders adapt to changes brought about by the two biggest Reverse Mortgage players in the market a real gap has emerged.

For homeowners who are “house-rich, but cash-poor,” Reverse Mortgages can be a lifeline that enables senior citizens to remain independent while meeting basic needs. However, declining home values and a collapse of mortgage markets have had a major impact on all aspects of Reverse Mortgages.

The release of additional products like the HECM Saver may bring additional choices to seniors, but it has also made Reverse Mortgages more complicated, and therefore led to more scrutiny from Congress and regulatory agencies charged with protecting consumers. In recent years, Congress has passed two sweeping consumer protection laws aimed at unsuitable financial products but also hitting Reverse Mortgages.

In a recent report by the AARP Public Policy Institute, it was noted that Reverse Mortgage borrowers are getting younger in years, not older. “The trend toward borrowing at earlier ages raises concerns about the long-term impact of reverse mortgages on financial security. This, coupled with more borrowers taking out a lump sum at closing, the report says that “more research is needed on the consequences of Reverse Mortgages for long-term financial stability.

As new, less experienced agencies enter the market, it’s important to work with a professional who will provide safe and affordable Reverse Mortgage options.

Laurie has been working with Reverse Mortgage clients for well over 6 years and has a strong grasp on guiding you through the process-from start to finish.

Feel free to give us a call. We’re always available to offer sound advice and information on whether a Reverse Mortgage is the right option for you.

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Remember, we offer information and sound advice with no pressure.

Reverse Mortgage Closings to Rise Above 80,000 Units in 2011

Laurie Willis — Fri, 29 Apr 2011 18:05:29 +0000

As the senior citizens in Eugene/Springfield gets older each year, the opportunity of using an FHA Insured Reverse Mortgage might be the answer to many monetary problems.

The New York Daily news is reporting that while the number of Reverse Mortgages originated nationwide fell 35% to 72,683 in 2010, demand is expected to rise with the release of the HECM Saver. However, as with all Reverse Mortgage products, consult with us for advice on which one is best for you.

Reverse Mortgages require no monthly payments from borrowers. Loans are made for up to just over half of the value of borrowers’ homes, less any outstanding liens against the property. The maximum property value to lend on is currently $625,500.00; the loan is due and payable when the borrowers die, move out or are gone for 12 consecutive months.

Insured by FHA since 1989, reverse mortgages gained popularity in the past decade. But their use dropped sharply last year.

The decline occurred, in part because in late 2009, the FHA reduced the amount of money borrowers could receive from reverse mortgages by 10%. At the same time, home values remained depressed. Both factors make it more difficult for would-be borrowers to qualify for loans.

Demand may likely get help from a new, lower fee version of the loan called the Home Equity Conversion Mortgage Saver. Industry experts are expecting a rise in reverse mortgage closing to climb to between 80,000 and 85,000 units nationwide, up from 72,683 units closed in 2010.

The Saver loan has about 1/3 lower fees than the traditional reverse mortgage product. The tradeoff, however, is that the Saver loan payout is smaller than the standard loan’s.

For cash-strapped seniors looking for a short term solution, the HECM saver may be a benefit.

Remember, we offer information and sound advice with no pressure.

RECENT ARTICLE IN WALL STREET JOURNAL SAYS “REVERSE MORTGAGES NOW LOOK CHEAPER”

Laurie Willis — Mon, 06 Dec 2010 23:23:58 +0000

Reverse mortgages have long been considered one of the most expensive ways to extract cash from your house. But that is changing as some of the country’s biggest reverse mortgage lenders are slicing closing costs-helping some affluent homeowners who want to generate additional income.

One of the biggest criticisms of reverse mortgages has been the fees, which can total 4-5% of a home’s value. But the new cuts in fees (and rates, too) mean that some homeowners can save $10,000 or more on closing costs.

Why are lenders cutting costs now? TO DRUM UP BUSINESS! From October 1, 2009 to March 31, 2010, Home –equity-conversion (or HECM) mortgage volume fell 22% from the same period a year earlier. One reason: In response to falling home values, the Department of Housing and Urban Development cut the amount of equity that reverse mortgage borrowers could extract by 10% last October. Lower principal values, coupled with the fact that seniors have been dismayed by falling home values have kept many homeowners from taking action. Click on the banner below for an excellent webinar on the ins and outs of reverse mortgages.

Another factor: In the past two years, lenders have started securitizing reverse-mortgage loans by converting them into Ginnie Mae-backed bonds. Popular with investors because of their government guarantees and high yields compared to Treasurys, these bonds also have been more profitable for issuers than selling them to Fannie Mae, the main alternative, says Peter Bell, president of the National Reverse Mortgage Lenders Association in Washington. In a nutshell, higher profits mean lenders can cut closing costs.

Seniors should consider more than closing costs in deciding whether a reverse mortgage works for them, and if so, which type. It is also a good idea to get your family involved. One drawback of a fixed-rate reverse mortgage is that you have to draw down the entire loan amount up front and pay interest on the entire amount across the life of the loan. However, the fixed-rate option usually gives the borrower access to the most cash available.

If you are concerned about how you will navigate the coming economy into retirement, contact us. We are reverse mortgage specialists and will help analyze your financial situation so that you can secure your financial independence and gain the cash that you need. We are here to help. Please use us as a resource to help you learn more about the reverse mortgage process.