With the “new” rules in place, more Financial Advisors are beginning to take a more serious look at using reverse loans for their clients. I won’t go into the “rules” here, but suffice to say that one of them is giving less money to the applicant and at some point this year, a Financial assessment will be put into place, to make certain that the borrower will have the ability to continue to pay their property taxes and homeowners insurance.
When it happens, I will share that information here, along with any updates on the newest entry into the reverse loan market. That would be Jumbo loans that I wrote about in a previous post.
Here is the remaining article that discussing an article that was recently published in the journal, Financial Planning.
Financial Planners: New Rules Make Reverse Mortgages Attractive
Posted By Cassandra Dowell On August 28, 2014 @ 6:50 pm In Reverse Mortgage
“Other notable changes that took effect recently include married couples [3] can now get a home equity conversion mortgage (HECM) even if one spouse is younger than 62, however, a married applicant often can borrow less than had been the case.
“For seniors who are short on liquid funds for an emergency,” Kinney says. “HECM line of credit can be a lifesaver.”
Kinney’s father opened a HECM line of credit just a few months before Hurricane Sandy hit. After his father’s home was hit, he was able to use the HECM line to pay contractors when payments from insurance companies and government agencies were delayed.
“Thanks to the reverse mortgage, my father was able to get his house back into living condition much faster than many of his neighbors,” he says.”