Oregon Reverse Mortgage Info

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.

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?

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.

Oregon Reverse Mortgage Competitive Pricing

Fred Chamberlin — Tue, 27 Apr 2010 18:40:33 +0000

Lower Costs = More Money in Your Pocket

One of the biggest complaints I have heard about Reverse Mortgages is that the closing costs are too high. We, at Oregon Reverse Mortgage Info, have decided to do something about that. We have taken the bull by the horns, so to speak, and decided that we are not going to charge an origination fee for our Oregon Reverse Mortgages and instead rely on the rebate paid by the lender as our source of income on the loans.

What does this mean to the Senior Citizen when looking at their reverse loan costs? Well, previously most lenders charged the normal 2% fee on a reverse mortgage. However, the 2% fee was calculated on the value of the property, not the amount of the loan. So, if the property value was $400,000, the fee would calculate at $8,000 but would be $6,000 (maximum amount). That meant that the senior would receive $6,000 less than they could in the payout of the loan.

Now, the rebate is paid by the lender and even though there will be a loan fee charged, the rebate will offset that loan fee and the senior will receive the total amount in their pay out. This is our way of getting the maximum amount of cash to the senior that we can in an Oregon Reverse Mortgage transaction.

We are also working with lenders that do not charge for the “servicing set asides” and that can mean an additional $3,500 to $5,000 in the client’s pocket on a average loan. Everything we can do to make the process more streamlined and painless will be done for our senior loan applicants.

How Oregon Financial Planners View Reverse Mortgages

Laurie Willis — Thu, 25 Mar 2010 21:58:48 +0000

When researching what our Oregon Seniors can expect with retirement, I found out that a record low of only 13% of responding seniors (in an Employee Benefit Research Institute survey) said they are very confident that they have enough money to live comfortably in retirement. Because retirement assets may continue to dissipate and entitlement programs may dwindle, many financial analysts view reverse mortgages as one tool to buoy finances.

When baby boomers are in their 70’s they may have to look to their houses for needed income support. Statistically speaking, at that time pensions may be gone and people will have to create their own income stream. It’s important to make sure you don’t outlive your assets; it’s not about stock market returns, but about how you are going to get a paycheck for the rest of your life.

For those better off baby boomers, reverse mortgages can be viewed more as a financial safety net, but, with time, experts believe the product’s popularity will continue to rise. For many of our senior citizens in financial difficulty, an Oregon Reverse Mortgage may be the only way out.

In the next 10 or 15 years Oregon Reverse Mortgages will be as common as the standard forward mortgages. Two of the biggest assets for retirees are homes and retirement accounts and once the retirement account is spent, an Oregon senior is only left with the home. Many seniors will have to access this equity to continue their income stream and possibly could not qualify if trying for a forward mortgage due to income or credit. Neither of these are a problem with an Oregon Reverse Mortgage.

In deciding whether to advise an Oregon Senior on a reverse mortgage, it’s critical to know their desire to stay in their home, whether they are in danger of depleting his/her assets, or might be facing a catastrophic event. That is why all of our Oregon Reverse Mortgage applications are one-on-one with our clients so that we can determine how best to help them.

Oregon FHA Reverse Mortgages are not immune to FRAUD

Fred Chamberlin — Tue, 23 Mar 2010 20:08:54 +0000

Oregon Senior Citizens are often a target of unscrupulous people trying to take advantage of them and the Oregon Reverse Mortgage program offers another way to do that. If you check out this previous post, you will see some of the ways Senior Citizens are attacked to take their equity away from them with a Reverse Mortgage.

However, there is help on their side. FHA has establish a HECM (Home Equity Conversion Mortgage – official name of reverse mortgage) Fraud Unit and they are always looking for ways to combat fraud that is targeting our Senior Citizens. In a recent issue of “The REVERSE Review“.” Michael Banner interviewed Inspector General Kenneth Donohue of the HECM Fraud Unit.

From his questions and the answers from Donohue, it appears that Senior Citizens are participating in some of the Fraud schemes, either knowingly or unknowingly. His article also pointed out that this is a serious problem and will meet with serious efforts on the different government agencies working together. Take a look at the article for more information.

If you have questions about an Oregon Reverse Mortgage and would like to discuss your questions or concerns, please contact Fred or Laurie at 541-342-7576 or make an appointment to come to our office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. We are here to help you and would be happy to ease your mind if you think you are being taken advantage of in the process.

Oregon FHA Reverse Mortgages Could Change Shortly

Laurie Willis — Mon, 15 Mar 2010 22:53:11 +0000

FHA Says:

BIG PRINCIPAL LIMIT REDUCTION NEEDED

WITHOUT $250 MILLION HECM SUBSIDY

David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration (FHA) recently testified to the House Financial Services Subcommittee on Housing and Community Opportunity. He voiced his strong support of the administration’s reverse mortgage program. What happens there can have some major consequences to those Seniors contemplating an Oregon Reverse Mortgage in the future.

The need for this type of program is greater now than it’s ever been, due to increasing medical costs, declining employment/incomes, and less ‘savings’ in various types of pension funds/retirements accounts.

This comes as the Office of Management and Budget (OMB) requested an appropriation of $250 million to support the Home Equity Conversion Mortgage (HECM) in its FY2011 budget.

Stevens, referencing a survey conducted by AARP in 2006 told the committee the product has provided seniors with much-needed financial relief and was primarily used to pay for long term health care, enable home repairs and provide peace of mind that housing expenses now and in the future could be met.

In addition, Stevens said the program plays an important role in allowing seniors to age in place. “Keeping seniors in their homes and communities, close to familiar support networks, puts less pressure on our nation’s overextended nursing home infrastructure and the public resources that support it,” says Stevens.

According to his testimony, FHA’s analysis showed that to maintain the viability of the program for FY2011, an increase if the annual mortgage insurance premium from 0.05% to 1.25% and further reducing the principal limit factors (PLF’s) of approximately one to five percent, depending on the age of the borrower is necessary.

“Without the budget request, we would be forced to reduce the PLFs by an additional 21% in FY2011. This would significantly reduce the amount of funds that would be available to seniors (more than 30%), which, on average is a $23,000 to $27,000 impact,” said Stevens.

He closed by saying, “Any additional steep cut to the PLFs will result in serious decline in program level as HECMs would no longer be viable to many seniors who need to access their home equity while staying in their homes.”

What does this mean for you, if you are an Oregon Senior that has been contemplating a reverse mortgage?

NOW, rather than later might be the best opportunity to take advantage of all the benefits of a Reverse Mortgage. HUD has already cut the PLFs by 10% in September of 2009. A recent informal survey conducted by NRMLA showed that the 10% cut resulted in 20% fewer seniors qualifying for a Reverse Mortgage.

Top Five Uses for Oregon Reverse Mortgage

Fred Chamberlin — Thu, 04 Mar 2010 20:21:55 +0000

Why does a Senior Citizen take out an FHA HECM Reverse Mortgage in Oregon? According to a 4 year old survey by AARP, the top five reasons are:

Cover expenses for health or disability
Improve quality of life
Pay off debt
Home repairs and improvements
Everyday and emergency expenses

I believe in today’s economy, we can also take note of the fact that an Oregon Reverse Mortgage has no income or credit requirements like a conventional or standard loan and therefore is often easier to qualify for. Foreclosure prevention is also high on the list of uses for an Oregon Reverse Mortgage.

If you have questions about a Reverse Mortgage and you are looking at these top five reasons, 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?