by Richard F. O'Boyle, Jr., LUTCF, MBA
"The Insider's Guide to Retirement and Insurance Planning"
http://www.retirementandinsurance.com
Tammy and Tyler Kraemer make professionals and consumers a valuable service advisors to demystify reverse mortgages. The sale of reverse mortgages has skyrocketed in the last 20 years and retired poor house-rich / cash try to leverage their capital to finance their golden years. "The Complete Guide to Reverse Mortgages" details and explains the many advantages and disadvantages of these complex and poorly understood financial products. Each professional adviser should read this book, along with all consumers seriously considering.
In the last three or four years I have seen an increase in published articles (good and bad) in reverse mortgages. This is mainly due to our retirement investments have failed to produce the expected pile of money to live off of. Until 2008 (one year after this book was published) values of the houses they had increased beyond expected levels rationally. The perfect storm crashing investment accounts, crimped budgets and falling capital values of the house makes it even more relevant considering a reverse mortgage.
"The Complete Guide to Reverse Mortgages" is a consumer-friendly worksheets with examples and useful volume. If you are considering a top of a reverse mortgage (one child or adult), take 30 minutes to pencil through the worksheets. Better yet, sit down with a financial advisor or mortgage specialist and they do together. Feel free to float the idea of past intelligent friends, family lawyer or an insurance agent neighborhood. It is well advised consumers to the network carefully to find a reverse mortgage specialist confidence. You can bring any financial advisor with you for a consultation. When talking to a variety of advisors, you'll be sure to explore the maximum range of options. This is a financial purchase that should be extremely cautious about because it is a long-term commitment.
Many things have changed in the reverse mortgage market since the financial crisis of 2008 so the February 25, 2011, I spoke with Jim Calimopulos, Reverse Mortgage Sales Manager Worldwide Capital Mortgage Corp. in Bay Shore, NY.
Mortgage rates and costs of reverse mortgages in general have increased, and property values have decreased, which means that less money was ultimately put in the pocket of a consumer when they take out a reverse mortgage. The highly publicized failure of IndyMac Bank (one of the largest providers of reverse mortgages), fortunately, has not made a major impact on the availability of these products to consumers, as other companies like financial freedom and MetLife are still players powerful.
Since 2010, the Department of Housing and program Home Equity Conversion Mortgage Urban Development has tried to reduce some costs and offer more options to consumers. As explained by Mr. Calimopulos, if a couple is reducing your home and move to a new home, can benefit greatly from the HECM program. For example, if you sell your home for $ 300,000 and then buy a house for $ 250,000 in a community of 55, they can still get a reverse mortgage to a maximum of $ 190,000 on the new property. Ultimately, the couple will have about $ 110,000 in cash to put aside for use in the coming years.
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