With more older homeowners struggling to pay their bills the question arises- how should seniors consider tapping their home equity?
Continue readingHELOCs only add to the problem
Are HECMs the Ultimate HELOC Alternative?
Future access to a HELOC is NOT guaranteed. What about a HECM?
Continue readingHELOC loan volume surges- can they compete with a HECM?
HELOC loans surged 41% from Q2 2021- Q2 2022. Can a home equity line of credit compete with a reverse mortgage?
Continue readingRMI HECM Market Update
Reverse Market Insight’s Jon McCue brings us the latest HECM origination trends for…
Continue readingWhere Others Fail, The HECM Delivers
As other lending options fail, the HECM delivers solutions
A banker lends you his umbrella when it is sunny and wants it back when it rains. So says the well known joke about the sad state of consumer lending.
“After the recession, our clients called, telling us that their banks had canceled their lines of credit, even for people who had good credit. That’s the time when you need it most.” These are the words of John Salter, notable financial expert and principal at Evensky & Katz as quoted in a recent CNBC article “Putting it in reverse, advisors warm to reverse mortgage”.
As unprepared American retirees face dwindling options to access credit or home equity, the reverse mortgage continues to deliver. Hard learned lessons are usually embraced as a cautionary tale. Unfortunately, the American consumer has an exceedingly short memory when it comes to the lessons taught by the 2008 financial crises. Few understand or remember the significance of artificially low interest rates, the false security of rising home values, HELOC payment resets and the fallout of rising interest rates. Fortunately, older homeowners have some remaining viable options to access cash in their non-working years. One option remains while many march on, unaware of the potential financial time-bombs that lie ahead. The Home Equity Conversion Mortgage.
Every senior homeowner should take a hard look at their financial state…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary, and technology? Visit ReverseFocus.com today
The HELOC to HECM Dilemma
With the recent release of HUD’s Financial Assessment guidelines our focus was primarily centered on the new requirements future borrowers will have to walk through to qualify for a federally-insured reverse mortgage or Home Equity Conversion Mortgage…
Continue readingReducing HELOC Risks
HELOCs have begun to resurge in the mortgage market as home values have nearly recovered from their pre-crash values and today’s artificially low interest rates. While banks make these loans attractive to the average consumer what is often overlooked or not expressly pointed out are the risks and limitations.
Continue readingThe Coming HELOC Crisis & Opportunity
The next mortgage bubble with pending HELOCs written in the mid 2000’s could spell opportunity for reverse mortgage lenders and originators alike. A recent study by TransUnion echoes what some mortgage experts have been warning us of in the last year: there is a coming HELOC bomb that could explode in the coming years.
Continue readingHaven’t We Learned?
The Wall Street Journal recently reported that more homeowners are once again tapping into their home equity. As home values recover and interest rates remain artificially low many are beginning to take out HELOCs or Home Equity Lines of Credit to fund home renovations, pay off higher interest rate debts or cover other expenses.
Continue reading