Archive for November, 2009
In my line of work, I am often asked the question “How do I know who is the best reverse mortgage lenders?” Now this question may seem like it elicits an obvious response but as with all financial products, there is never an obvious answer. The best reverse mortgage lender will vary widely according to your personal circumstances. What is right for you may not be right for someone else.
It may be that a HUD endorsed HECM Reverse Mortgage may be right for you. Typically, these tend to involve a longer and more complicated process to take one out but when you get there you have the security of knowing it is Government backed. These may seem best to some people but others may prefer the simplicity of a non-HUD endorsed reverse mortgage from a private commercial lender.
These simple examples stress the need for you to get solid, independent advice from a trusted source who can take into account your desires and circumstances.
In an ideal world, the retirement finance that you have been contributing to for years would have gained in size exponentially over the years. The politicians have instilled us with a sense of over-confidence in the economy, which in reality, has gone to plan until recent years. The sad reality today is one where pensioners have little left of their savings, through no fault of their own. The markets have crashed due to the overzealous selling and buying of credit and the responsibility, I’m ashamed to say, falls heavily on the shoulders of the young. It is the more senior members of society who are made to pay. Annuities from pensions are paying very little and interest rates are so low that savings can be difficult to keep in line with inflation.
Reverse mortgages have now been thrust into the limelight and must play an important role in the financing retirement for the masses. House prices have certainly taken a setback in terms of pricing, but nothing like the stock markets and many experts feel that prices are rising and for those who own their homes, typically seniors do, it can make great financial sense to tap into the many years worth of equity stake you have built in your home – especially since there are very few other options.