At a time when consensus is hard to find in Washington, members of Congress, advocates for senior citizens, and representatives of financial services companies all agreed that reverse mortgages are an important tool in providing a better life for seniors, during a hearing conducted by the House Financial Services Committee’s Subcommittee on Insurance, Housing and Community Opportunity titled, ““Oversight of the Federal Housing Administration’s Reverse Mortgage Program for Seniors.”

“HECM [The Home Equity Conversion Mortgage program] has been a useful tool, helping hundreds of thousands of seniors maintain their homes and lead more financially stable lives,” said Peter Bell, president of the National Reverse Mortgage Lenders Association (NRMLA) in his testimony. “The program has been administered thoughtfully, carefully and responsibly by a partnership of stakeholders. This has allowed the reverse mortgage concept to gain a foothold and prove the value of this important personal financial management tool as a component of retirement finance and funding longevity.”

Joining Bell is testifying before the hearing was:

►Charles Coulter, Deputy Assistant Secretary for Single Family Programs, Office of Housing, Federal Housing Administration (FHA)
►Daniel Fenton, Housing Director, Money Management International
►Jeffrey M. Lewis, Chief Executive Officer and Chairman, Generation Mortgage Company
►Dr. Anthony Sanders, Distinguished Professor of Real Estate Finance, Senior Scholar, Mercatus Center at George Mason University
►Houman Shadab, Associate Professor of Law, New York Law School
►Dr. Barbara R. Stucki, Vice President, Home Equity Initiatives, National Council on Aging
►Dr. Lori A. Trawinski, Senior Strategic Policy Advisor, Consumer and State Affairs Team, AARP Public Policy Institute

“The HECM is an example of the best kind of government program,” said Lewis. “A program that utilizes the reach and financial heft of the government to leverage private sector involvement, pays for itself, is run largely by the private sector and provides a life-transforming financial product to consumers.”

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For honest answers and all the information you need, contact the professionals at Bay Area Reverse Mortgage. We have helped many seniors with reverse mortgages in the Bay area. Call (510) 214-8309 today!

A Fox News Atlanta TV report this week features a positive question and answer session between a news anchor and a real estate expert who says his mind has been changed on reverse mortgages.

“It’s a wonderful concept for American seniors who have substantial equity in their home. They don’t have to qualify there are never any payments, but they can tap into home equity,” says John Adams, a real estate expert in the southeast United States.

Adams explains the way in which a reverse mortgage can work for seniors who have home equity and want to remain at home.

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For information about reverse mortgages in the Oakland area, contact the Specialists at Bay Area Reverse Mortgage. We are dedicated to providing honest answers to all of your questions and getting you the financial solutions to fit your needs. Call (510) 214-8309!

(PRWEB) May 01, 2012

Thousands of geriatrics are turning 62 every single day. Over the next decade there will be over 18.9 million geriatrics looking to sell their homes. With this cash in hand the elderly will be able to live rent free and they will be able to enjoy their retirement without financial worry.

The fastest growing trend in the housing market is not short sales, foreclosures, or anything else that you may traditionally hear about in the news. Rather it’s the HECM market which is a reverse mortgage that is fully insured by the government and the federal housing administration.

Each and every property that is taken over by the administration goes through an in depth counseling where the homeowner is explained all of the minimal risks associated with reverse mortgages as well as the maximum property value of $625,000 that is paid out to interested parties.

Right now all 50 States in the USA are offering full service reverse mortgage solutions to the elderly. The process is said to quick, easy, and is filled with a much more honest field of suppliers as opposed.

Even Costco is now offering a full service mortgage lending facility according to a recent CNN news piece. At least on a trial basis to see if there is enough demand while the elderly are grocery shopping to pick up information about how a home equity conversion mortgage can benefit an AARP member when it comes time to retire.

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For complete information about a reverse mortgage in the Berkeley CA area, contact Bay Area Reverse Mortgage. Call (510) 214-8309 today!

Reverse Mortgages are the Rodney Dangerfield of financial planning tools. Long thought of as things retirees used in last-ditch efforts to stay in their house, they were seen more as leaky lifeboats than as financial planning tools. They were badges for people soon to be broke.

I should confess that I shared that view. Based on reader mail, reverse mortgages were great examples of too-little-too-late. The vast majority of the people who wrote in asking about reverse mortgages really needed to rethink where they lived, not draw down what was usually their last asset.

But all that may be changing.

If a recent Journal of Financial Planning paper gets traction, the use of reverse mortgages will move from people who are desperate to practical people who have both home equity and some financial assets. This will happen for a totally unexpected reason. Retirees can use a reverse mortgage as a tool for increasing the probability they won’t outlive their assets while increasing their retirement spending. In other words, if reverse mortgages are used early, rather than late, they can be as important in the retirement planning toolbox as life annuities.

Barry H. Sacks, a San Francisco tax attorney and Stephen R. Sacks, a professor emeritus of economics at the University of Connecticut (and the brother of Barry Sacks) made this discovery by thinking differently about financing retirement. Rather than wait until all financial assets were exhausted and then taking out a reverse mortgage, they asked how things would turn out if retirees took out a reverse mortgage first or early. This would allow them to use withdrawals from the reverse mortgage to delay or reduce withdrawals from financial assets.

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Providing honest answers and the most reputable service for Reverse Mortgages in the Greater Bay Area, contact Bay Area Reverse Mortgage today! CALL (510) 214-8309.

Reverse mortgage market potential is on the rise, says a study released Thursday. Senior home equity increased by $30 billion in the fourth quarter of 2011, reaching a total level of $3.22 trillion. The near-1% increase was due to increases in home values and a a decline in housing debt overall, according to Risk Span and the National Reverse Mortgage Lenders Association, which track senior home equity on a quarterly basis.

“Our nation’s demographic and economic trends suggest that the reverse mortgage market will continue to grow,” said Peter Bell, NRMLA president and CEO. “This data further validates that reverse mortgages are a fundamental tool to help fund longevity at a time when many Americans might face limited options.”

The index showed a stabilization in the fourth quarter, as total home equity rose 0.9% due to a 0.6% increase in home values and a 0.3% decline in mortgage debt, Risk Span and NRMLA report.

While aggregate senior home values are still 15% below their peak, the 0.6% uptick may be a sign that markets appear to be stabilizing, RiskSpan Chief Operating Officer Allen Jones told RMD.

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Contact the Specialists at Bay Area Reverse Mortgage for information about how a reverse mortgage can help you. Call (510) 214-8309 today!

A reverse mortgage is a financial option that you can consider to help supplement your income as you grow older. In order for you to understand this process it is important to know what the process is, how you can qualify, how the amount is determined and the benefits.

What Is A Reverse Mortgage?

A reverse mortgage is a loan that is leveraged against the equity in your home. Additionally, you do not need to pay back the money received until one of two things happens.

One of those events is that you move out of your home. The other event is upon your death.

Following either one of these two events, you or your estate have six months to financially settle the loan or sell the asset and pay back the reverse mortgage. If you have any equity remaining above the amount received it will belong to you or your estate.

How to Qualify

The primary prerequisite for obtaining this funding is you need to be at least 62 years of age. You also need to own the home. Therefore, if you have a lien or are still paying the mortgage, you cannot qualify for this program.

If you have a home mortgage, the only qualifying factor would be the ability to pay the mortgage in full with the awarded reverse mortgage. Unlike other mortgages, you generally do not have to go through the process of credit scores or show proof of income.

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Helpful, personalized and supportive assistance – Speak to our Reverse Mortgage Professional and get all of your questions answered. Call Bay Area Reverse Mortgage Today, (510) 214-8309.

Finding themselves financially strapped, more seniors at an earlier age are trying to get reverse mortgages on their homes in order to survive, according to a new report.

The study says the percentage of people aged 62 to 64 applying for reverse mortgages has increased 15 percent since 1999.

The reason for the dramatic upswing among “younger” seniors is simple, the report concludes: They need the money.

“The average age for taking out reverse mortgages has been around 71,” explains Sandy Timmerman, director of the MetLife Market Institute who conducted the survey with the National Council on Aging.

“But with job losses, higher debt and living costs, more and more of the ‘younger’ seniors are looking at reverse mortgages as a way to pay their bills and keep their homes,” Timmerman adds. “It shows the devastation some seniors have gone through since the financial downturn.”

Reverse mortgages — which allow homeowners to borrow against the value of their homes — have been around since the early 1960s, but have grown in popularity. TV commercials with celebrities such as Henry Winkler, Robert Wagner and Fred Thompson promoting reverse mortgages, are rampant during weekends and late night viewing hours.

But whether it’s the ads, the financial necessity, or both — reverse mortgages have become attractive to more seniors. In 2010 alone, more than 80,000 Americans over 62 years old finalized a reverse mortgage. That’s up from 25,000 in 1995.

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Reverse mortgages from Bay Area Reverse Mortgage have helped many seniors live stress free in their golden years by using the equity in their homes! We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs.  If you would like information about reverse mortgages in Berkeley or the surrounding area, contact our team of specialists at (510) 214-8309.

As the country’s home-owning population ages and baby boomers hit their mid 60s, it is time to take another look at the once-popular mortgage product known as the reverse mortgage.

In a reverse mortgage, the bank loans you cash in a lump sum, in monthly installments, a line of credit or some combination of all three. Unlike a typical mortgage, the bank pays you and so long as you are alive and continue to live in your home, you do not have to repay the bank. The bank gets repaid solely from the sale or refinancing of your home when you sell your home, move out or die.

In years past, reverse mortgages got a bad reputation, primarily for their relatively high upfront fees, the negative amortization and the many misconceptions about how they work. Nearly all reverse mortgages these days are insured by the Department of Housing and Urban Development’s Federal Housing Administration — meaning that if the reverse lender does not get repaid in full, FHA insurance will cover their losses.

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To learn more about getting a reverse mortgage in Oakland or the surrounding area, contact the specialists at Bay Area Reverse Mortgage. Call (510) 214-8309 today!

• daily living expenses
• home repairs and improvements
• medical bills and prescription drugs
• pay-off of existing debts
• education, travel
• long-term care and/or long-term care insurance
• financial and estate tax plans
• gifts and trusts
• to purchase life insurance
• or any other needs you may have.

The amount of reverse mortgage benefit for which you may qualify, will depend on

• your age at the time you apply for the loan,
• the reverse mortgage program you choose,
• the value of your home, current interest rates,
• and for some products, where you live.

As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.

Have you considered how to pay for care if you should need it? What if you need home care?  Reverse Mortgages from Bay Area Reverse Mortgage have helped many seniors live stress free in their golden years by using the equity in their homes! We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs.  If you would like information about a reverse mortgage in the Berkeley area, contact our team at (510) 214-8309.

For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home equity loan. But a conventional loan really doesn’t free up the equity because the money has to be paid back with interest.

Reverse mortgages are a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person’s lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title “reverse mortgage”.

Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, pay off debt or help pay for home repairs, remodeling or long term care needs.

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Call Bay Area Reverse Mortgage about reverse mortgages and how we can help you stay comfortably in your home, (510) 214-8309.