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How interest rates work If you have wondered why the Federal Reverse cuts the interest rates and the rates for you go up, I hope to explain. People get in touch with me saying it is now a better time. No September was. Lenders will primarily discount rates before the actual Fed cut. Other people will say” well I keep hearing amounts in the 4s. Think of that as what mortgage lenders, credit cards, car loans, etc. borrow the money at this rate and add a small profit to it. Unfortunately, in the Reverse Mortgage industry higher rates mean less proceedings! We also don’t see the rates coming down ..read more

Here Come the HELOCs: Mortgages, the Burden of Housing Debt, Serious Delinquencies, and Foreclosures in Q3 2024 HELOC balances surged, mortgages not so much, and incomes grew a lot faster than housing debt.by Wolf Richter  Mortgage balances rose by just $71 billion, or by 0.57% in Q3 from Q2, the smallest percentage increase since the dip in Q2 2023, and the second smallest since 2018, to $12.6 trillion, as demand for existing homes in Q3 plunged to the lowest since 1995, while more and more people who could buy are renting, thereby profiting from an arbitrage between two simila ..read more

It’s Getting Harder to Qualify for Social Security Benefits in Retirement. Here’s the Reason Why To qualify for Social Security benefits, you need to accumulate 40 work credits in your lifetime. You can accrue a maximum of four credits per year. The value of a single work credit is rising in 2025, so part-time workers will need to be mindful of how much they make. The $22,924 Social Security bonus most retirees completely overlook › A big change to the program will make it more difficult to secure monthly benefits down the line. One of the biggest Social Security benefits myths o ..read more

Is a reverse mortgage or HELOC better for seniors? Experts weigh in The choice between a reverse mortgage or HELOC can be a tough one for seniors.  Though easing inflation and the Federal Reserve’s recent rate cut should help to ease the pressure on many Americans, some are still struggling financially. That might mean turning to credit cards to make ends meet or, for homeowners, tapping their home equity. For seniors, there are multiple ways to do this — and a home equity line of credit HELOC or reverse mortgage are two of the ..read more

Reverse mortgage lenders are ready for lower interest rates Lower rates benefit seniors on a fixed income By Chris Clow Federal Reserve lowering its benchmark interest rate by 50 basis points (bps) to a range of 4.75% to 5% will have wider economic ramifications in the government’s ongoing efforts to fight inflation, there are expected benefits to the reverse mortgage business as well as the demographic it serves: seniors on a fixed income. HousingWire’s Reverse Mortgage Daily (RMD) solicited input from multiple leaders active in the reverse mortgage industry, an ..read more

Reverse Mortgage Process Everyone could use some extra cash, especially in retirement years. And while options for generating additional retirement income once seemed limited, reverse mortgages have provided today’s seniors with access to another source of wealth—their home equity. Designed for homeowners ages 62 and older, a Home Equity Conversion Mortgage (HECM)—also known as a Reverse Mortgage—lets you access a portion of the equity in your home to use as you wish. And with today’s seniors owning over $11 trillion in housing wealth,1 you may have more equity in your home than you ..read more

Forget the 4% Rule? Here’s What You Should Really Be Looking at During Retirement. Everyone’s retirement is different, but we all have a common goal: ensuring our retirement savings last long enough. The 4% rule is arguably the go-to guideline for determining how quickly you can spend your savings. It states that a retiree can withdraw 4% of their nest egg’s initial value annually, adjusted for inflation. In other words, someone who retires with $1 million would withdraw $40,000 annually, increasing it slightly every year to adjust for inflation. It’s a good starting point for developing some ..read more

5 Ways Retirees Can Prepare for a Recession…in Reverse If there’s one thing that can upend retirement plans it’s a recession which an increasing consensus of economists are predicting for the US economy. Indicators like a weakening labor market, stubbornly high inflation, and declining manufacturing activity all point to a potential economic slowdown. So, how can retirees or those nearing retirement brace for impact? Let’s examine the five most common strategies economists and financial columnists suggest for retirees to best prepare for a recession and how a reverse mortgage could play an im ..read more

What Is a Reverse Mortgage and How Does It Work? (2024 Guide)  Living comfortably in retirement has long been financially challenging for seniors in the U.S. To cover increased expenses, many turn to the equity in their homes to increase their financial breathing room. One-way seniors can tap into home equity with a special type of financial product called a reverse mortgage. However, reverse mortgages can have considerable downsides when they are not fully understood. Here’s how reverse mortgages work and what you need to understand before taking advantage of a reverse mortgage.  Ke ..read more