Reverse Mortgages Not as Costly as They Were, Says
NY Times Article
Things are changing in the reverse mortgage
business for seniors and the Times article by Tara Siegel Bernard wraps
it all up
May 4, 2010 – The article about these loans that
allow homeowners age 62 and older to pull the equity out of their homes
in cash without making payments on the loan, points out they “have a
reputation for being expensive, and they are.” And adds, “but, if you’ve
been thinking about one, it’s worth taking a closer look now because
several lenders have cut prices in recent weeks.”
Writer Bernard says, “Bank of America, Wells Fargo,
MetLife Bank and Financial Freedom have all waived their origination
fees and other charges on certain reverse mortgages they sell as part of
the
Federal Housing Administration’s Home Equity Conversion program.”
Prices are lower, reports the Times, because
“lenders are making profits by packaging the loans as securities and
selling them to Wall Street investors. Demand for the securities is
high, experts said, because not only are the underlying mortgages backed
by the
government, but they also tend to be more predictable, with slightly
longer lives than traditional mortgages.”
There is much more in this article that was posted
online April 16 and appeared in the print edition on April 17 with the
title, “Reverse Mortgages Still Costly, bu Less So.”
The article also tells exactly how these loans work
and has tips on what seniors should know before taking out a reverse
mortgage.
May 4, 2010 – The article about these loans that
allow homeowners age 62 and older to pull the equity out of their homes
in cash without making payments on the loan, points out they “have a
reputation for being expensive, and they are.” And adds, “but, if you’ve
been thinking about one, it’s worth taking a closer look now because
several lenders have cut prices in recent weeks.”
The article also tells exactly how these loans work
and has tips on what seniors should know before taking out a reverse
mortgage.