Oregon Reverse Mortgage Info » 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.

Identity Theft Huge Problems for Seniors

Fred Chamberlin — Mon, 11 Oct 2010 19:59:51 +0000

Identity theft is the fastest growing theft throughout the United States with over 11.5 million identity theft victims so far according to www.identitytheft.info. In many ways, senior citizens are perfect targets for those involved in identity theft.

Because a senior has a different lifestyle than younger generations in that they don’t have children around, and can plan their time around their wants and needs, it means they are free to take the day and go to the coast or take a trip to the casino if they want to. However, this lifestyle is not all fun. In some respects it also opens them, more than other age groups, to identity theft.

Seniors have more wealth and higher credit limits on credit cards than younger consumers. They are also less likely to guard their identity. Often they are also less likely to report a case of identity theft than their younger counterparts for fear that their families or caregivers may deem them incapable of handling their own affairs and try to take control. Identity thieves know this and plan to take advantage of it as much as is possible.

Identity thieves will take advantage of anyone they can, it isn’t limited to just senior citizens, but it is also a case of going where the money is. When the famous (or is it infamous) bank robber Willie Sutton was asked why he robbed banks, he said: “I rob banks because that is where the money is.” Since senior citizens have the money and the credit, identity theft is a prime way to get it.

So, the FTC is working to educate through their Deter, Detect and Defend program giving a lot of information in a very short video. Identity theft is real and it can have a very negative effect on you ability to get a mortgage. Follow the instructions on this video, getting your credit report is free.

We are available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. We can also assist you with the people that can help if you are a victim of identity fraud. We can’t fix your credit, but can put you in touch with those that can help you. Contact us at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 Fred’s cell or by e-mail.

Reverse Mortgage Training Webinar Scheduled

Fred Chamberlin — Wed, 15 Sep 2010 20:46:25 +0000

Not everyone likes to read all of the material out there on a subject, and often times it is easier to listen and watch. Because of that, we have scheduled a webinar about the Insiders Guide to Reverse Mortgages.

The Webinar is scheduled for Wednesday at 4 p.m. PDT. Please just click on the button below and you will be taken to the registration page. The information provided should prove beneficial to anyone looking to find out about Reverse Mortgages.

Navigating the mortgage approval process can be daunting. You need someone on your side. we are available right now to help you with the loan process and know the ins and outs of Reverse Mortgages and FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA reverse loan or refinance using VA, we are here to help. Contact Laurie or Fred at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 (Fred) cell or by e-mail. Only you can make the choice it is time to get the process started.

Reverse Mortgages are down for year nationally

Fred Chamberlin — Tue, 10 Aug 2010 00:50:32 +0000

Given the amount of advertising being done for reverse mortgages in Oregon and nationwide, it is surprising but the number of reverse mortgage is actually down. “This article explains a lot of the reasons behind reverse mortgages actually being off nearly 40 percent so far this year. Not only that, but the annual pace translates to only 70,000 transactions nationally for the entire year.

Wholesale and retail lenders active in the reverse mortgage market are less than half of past year’s lenders, according to Reverse Mortgage Insight, watching industry trends.”

In my opinion, reverse mortgages should be on the rise as interest rates are at all time lows, fees are lower than they have been on reverse mortgage, stock portfolios are oftentimes cut in half or worse and baby boomers reach retirement age. So, the question is, Why?

The first answer has to do with property values. A lot of seniors that still owe money against their home no longer have enough equity to qualify for a reverse mortgage due to falling property values, but that doesn’t explain the large number of seniors that own their homes outright. It may be for them that they believe they can’t get enough from their home now, with the reduced values, but in reality, with the changes in the program to mostly fixed rates from the primarily adjustable reverses in the past, more money is often available.

Some may think waiting for the recovery of the housing market may be their best bet, however, there are possibilities that FHA will change maximum mortgages for reverse mortgages in the future (down) and make this the wrong choice. There are others that are taking advantage of historic low rates on forward mortgages, but this still leaves them with monthly payments.

So, what does that leave? I think it is a lot of an public relations problem. A number of critical reports in 2010, from the National Consumer Law Center, Consumer Reports, US News & World Report, and the Comptroller of the Currency, put a lot of people off of reverse mortgages. The report from the Comptroller of the Currency even compared reverse mortgages to subprime mortgages which I believe is a injustice to the program. I believe sentiment on reverse mortgages has swung too far in the opposite direction – from complacent acceptance to paranoid rejection – and will at some point swing back.

One bright spot for reverse mortgages was reported in Reverse Mortgage Daily in that for the first time since December 2009, reverse mortgage were on the rise in July. This could mean that the market has hit bottom. Continued erosion of retirement accounts and low rates and fees on reverse mortgages could be just the ticket for many seniors in the days to come.

It has always been Laurie and my belief that an informed consumer can make a better decision than one that is making their decision based on feelings. These articles and reports are worth reading and should be considered before taking out a reverse mortgage. Reverse mortgages are not for everyone, but they are for more people than are taking advantage of them currently.

Oregon Senior Reverse Loan for retirement planning

Fred Chamberlin — Fri, 18 Jun 2010 22:44:00 +0000

Has your 401k turned into a 201k

or worse yet, a 101k?

If you are 62 or older and have a substantial equity in your home, an FHA Reverse Mortgage may be just the right ticket for your retirement plans. Oregon Reverse Mortgages are not as expensive as they were and may be the ideal solution to your challenges.

As a senior myself, I know that retirement is not a jitterbug, but maybe we can help you waltz into your golden years. Check out our program for Reverse Mortgages. Contact me today at loanguys@gmail.com for a link to a reverse mortgage calculator. Call me at 541-743-2966 and let’s discuss if it is right for you. NO BULL, just the facts!

Baby Boomers, stock market and retirement

Fred Chamberlin — Sat, 29 May 2010 16:09:50 +0000

Baby Boomers + Stock Market = Worries

Are you about retirement?
Are you exhausted and emotionally frustrated with Wall Street?
Have you changed retirement plans?

Without an unexpected economic turnaround Baby Boomers may be in for a rude awakening. These retirees will need some other source to retire comfortably.

Good News for Baby Boomers

Reverse mortgages traditionally were very expensive. Why, many asked. It was due to a 2% loan origination (up to $6,000 maximum) a 2% upfront mortgage insurance premium (UFMIP), and service set-aside fees, PLUS the typical fees associated with forward mortgage refinances. On a home valued at $400,000 the origination, service set-aside and UFMIP add up to a whopping $19,000, or more.

No loan origination or service set aside with us

AND, at closing the borrower receives a 1% credit towards additional closing costs. This means that with a house appraised at $400k, the $17,000 savings goes directly into your pocket!

Fixed Rate not Adjustable

You may have been reluctant to inquire about a reverse mortgage in the past, for very good reasons. Now, for those that need the extra assistance and stability that a reverse mortgage will bring, we recommend you check out the benefits with no obligation.

Mortgage Advisors

We will meet with you and explain how a reverse mortgage works and help you decide if it is right for YOU. We never use high pressure, just good common sense and responsibility. We think a reverse mortgage is the right choice for a lot of seniors, but if it is not for you, we will tell you so.

If you or anyone you know might benefit from a reverse mortgage, give us a call today; 541-342-7576. No obligation, just really good, straightforward information from people who live and work in your community. If you would like to learn more about reverse mortgages, read more of this website.

Baby Boomers and the effect on US economy

Guest — Sat, 08 May 2010 16:06:47 +0000

(Editor’s Note: The following article is by Samantha Taylor, a Community Mentor with experience writing about the mortgage industry. Today, she explains the effect baby boomers will have on the US economy. As one, I can tell you we are going to be a major financial force to be reckoned with.)

How baby boomers will affect US economy in the forthcoming years

Baby boomers, who’re US citizens born between1946 and 1964 are expected to have a great impact on the economy. Here’s how the baby boomers will affect the US economy as a whole.

How inequality among boomers may affect the economy

Most of the baby boomers are affluent and educated thus controlling about $7 trillion of the overall household wealth of the nation. However, there is significant inequality in the group; most of them don’t have the required education. Moreover, the boomers in general are less educated than the present generation. So, a considerable portion of the boomers have been hard hit by the economic recession with most of them not being educated enough to sustain their job. Among the relatively old boomers, only one in four has the graduated degree. So, those without the required college degree have already experienced involuntary unemployment. The division between the educated and uneducated is quite imminent and more so with the immigration during 20th Century.

The women and disadvantaged minorities in the Boomer generation are however at higher risk of not receiving pensions at retirement. This, in turn, is likely to increase the demand for public assistance programs, such as, subsidized housing and Medicaid, in order to help the boomers sustain themselves in the forthcoming years. The experts believe that it’ll affect the state budgets, Social Security benefits and social safety net for the younger generation as well.

How consumer spending may affect the economy

As per the US Blue Chip Consensus forecast, the real consumer spending will grow by only 2% in the decade ending in 2015 as compared to 3.7% growth annually in the10-year period that ended in 2010. According to experts, it is the slowest long-term growth rate since 1940. Real after-tax personal income is also expected to get reduced from 3.3% (in the period that ended in 2000) to 2.4% in the decade ending in 2015.

However, experts are of the view that the baby boomers will try to increase savings, which in turn, is expected to benefit financial services. Due to the recession and the collapse of asset values, the boomers have tried to cut back expenses and increased savings as much as they can. Most of them have been able to save for retirement though many of them have experienced a big dent in their 401(k) and other retirement plans.

This boomer psychology is expected to affect different sectors of the economy in the forthcoming years. Read on to know how it’ll affect the health care and housing sector.

· Home renovation – Home improvements and renovations may also be the key focus of spending among the baby boomers. Hence, we may find an increasing number of baby boomers applying for reverse mortgage loans.

· Health care – Boomers are likely to spend more on health care. The spending on health care is expected to jump from 4.6% in 2010 to about 7.2% in 2018.

The industry experts are of the view that the baby boomers are likely to spend on daily necessities rather than using their saved amount to purchase luxury items, such as, jewelry, clothing, watches, fashion accessories, etc. According to the Bureau of Labor Statistics Consumer Expenditures Survey, there will be about 27% overall drop in the spending on luxury and decorative items for the house.

How migration of boomers can affect the economy

As per industry reports, boomers more than 55 years of age are migrating to different places within US. Due to immigration, the senior population of Georgia is expected to increase by 40% by the year 2020. Whereas, out-migration have reduced dramatically in several northern cities like Chicago, Boston, Philadelphia and New York.

The growing number of boomers in a specific geographical location may increase the demand for transportation, health and senior oriented services that in turn will affect the economy as a whole. Federal aid is distributed on the basis of population. So, if the migration trends continue, then certain regions and states are likely to experience serious economic consequences in the forthcoming years.

Samantha Taylor is the Community Mentor of MortgageFit and has been contributing her suggestions to the Community since 2005. Not just that, she has also made notable contributions through the various articles written on different subjects related to the mortgage industry. This article takes an economic view of reverse mortgages. Few of her popular articles would include names like ‘Mortgage that you can afford’, ‘Mobile Home Loan with Bad Credit’, and ‘How much mortgage can I borrow?’

Can an Oregon Reverse Mortgage make a difference?

Laurie Willis — Fri, 07 May 2010 20:44:57 +0000

(Note: This is an actual story from a former client that gave us permission to pass it on to others that may be thinking about getting an Oregon Reverse Mortgage.)

by Laurie Willis

I got a call recently from Carol M, a client who moved to Eugene from Florida in 2005 to be nearer her family. She found a great condo perfect for her needs, and purchased it using a conforming loan with a 25% down payment. She moved in and made fast friends with her neighbors; many in the neighborhood were retired like she was.

Condo Assessments

Two years later, she found herself struggling with the house payments and increased tax and insurance obligations. In December of 2007, we explored her options and found a Reverse Mortgage to be the perfect mortgage vehicle for her to live on her own and continue her independent lifestyle. Being close to family was very important, living with them under the same roof was another story all-together. Carol did not want to become a burden to family.

Carol was able to obtain a reverse mortgage that paid off her existing mortgage and left her responsible for only the taxes, insurance and HOA dues.

Now, let’s fast-forward to 2009/2010. Carol’s condo project found it necessary to levy special assessments against her home the next 2 years. She received a bill from the HOA for $5,000 in 2009 and another bill for $2,500 in 2010 to help pay the difference between the monthly HOA dues she had been paying, and a special 2 year additional assessment to cover major repairs on the entire project.

Carol said she would have been forced to sell her condo and move if it had not been for the Reverse Mortgage because she did not have the extra money to pay a mortgage AND pay special assessments on top of a mortgage payment.