Once Controversial Reverse Mortgages Gaining Acceptance in Gresham
Though some people remain skeptical of reverse mortgages, many are beginning to see reverse mortgages as a useful tool for those who lack enough savings to augment their retirement income. The bad reputation that Reverse Mortgages gained over the years was mostly due to overly aggressive brokers, some of whom reaped outsized commissions on loans to financially unsophisticated seniors.
The Federal Housing Administration, which insures the mortgages, has recently taken steps to impose stricter lending standards. These stricter standards make reverse mortgages safer and more predictable than they once were. Gresham locals who need assistance with augmenting their income may find that a reverse mortgage is the way to go.
New Reverse Mortgage Reforms
How are reverse mortgage loans different for Gresham homeowners now?
To remove the temptation of taking out too much at once, the reforms limited the amount of equity a homeowner can take out in the first year to 60%. Additionally, credit standards have been tightened. Gresham homeowners whose finances were not quite up to par can be required to put money aside in an escrow account to cover future expenses. Other basic requirements to take out a reverse mortgage include the homeowner being at least 62 years of age and having substantial equity in our home, as well the ability to keep up with taxes, insurance, and home repairs.
How Can A Reverse Mortgage Benefit Gresham Homeowners?
When utilized correctly, reverse mortgages can be an extremely useful financial planning tool for Gresham homeowners. As mentioned above, reverse mortgages can provide Gresham homeowners with additional retirement income. They can also act as a more cost-effective replacement for Long Term Care insurance, or to help Gresham locals put off taking Social Security and reap a higher monthly payment by delaying retirement.
Gresham Homeowners Can Learn More About Reverse Mortgages With Stonebridge Mortgage Group
For professional assistance with mortgages, look no further than Stonebridge Mortgage Group. If you’re ready to apply for a loan and want to go through the process online, Stonebridge Mortgage Group offers online applications. We also help get you pre-approved for a mortgage and help with your real estate loans and other Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!
Important Information to Understand
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
- The loan balance grows over time and interest is charged on the outstanding balance.
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home.
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full repayment.