Reverse mortgages are costlier compared to other types of loans, as per the Consumer Financial Protection Bureau. Compared to traditional mortgages, the loan you own will grow the longer you draw from the mortgage.
In a move that has the potential to reinforce or accentuate the viability of reverse mortgages for some, JPMorgan Chase has temporarily halted acceptance of applications for home equity lines of credit (HELOCs) due to the ongoing economic effects of the COVID-19 coronavirus pandemic, specifically the combined impacts of rising rates of unemployment and initial projections that home prices could fall.… Read MoreRead More
Just like with most recessions, the coronavirus outbreak has businesses and investors looking for opportunities to leverage. To put it simply, this is the idea of using borrowed capital or different financial instruments to multiply the possible return. There has been an increase in the interest from CEOs and business executives in jumbo reverse mortgages.… Read MoreRead More
A reverse mortgage is a special kind of home loan that is designed to let homeowners who are at least 62 years old to access a part of their home’s equity. It’s referred to as a reverse mortgage because the lender pays the borrower, instead of the other way around.… Read MoreRead More
Seniors are given a way to make full use of their home equity through a reverse mortgage so they can finance their retirement. With many people living a lot longer, a reverse mortgage loan can serve as an income in case their retirement savings can not cover all of their living expenses.… Read MoreRead More
(While this article was written to explain current interest rate increases in the “traditional or forward” mortgage-backed securities market, the same principal holds true with interest rate increases with the “reverse” mortgage-backed securities market.)
With the economy in near shambles, layoffs becoming widespread, and more of the country under orders to shelter in place to stem the spread of the coronavirus pandemic, historically low mortgage interest rates were one financial bright spot.… Read MoreRead More