Various changes affected the way retirees plan for their post-work life in 2015. Among them, the Financial Assessment and enhanced consumer protection rules for reverse mortgages will bring the biggest changes in 2016, according to Forbes.
Reverse mortgages are a powerful financial tool that can help senior citizens (those 62 or older) boost their retirement income and eliminate monthly mortgage payments. With sufficient equity, money from the home can be paid out in a lump sum, monthly payments or a line of credit.
Prior to the changes borrowers who ignored property taxes and insurance obligations wound up in technical default. This year, income and credit criteria testing have been expanded to protect borrowers, among other changes to Home Equity Conversion Mortgages (HECM).
The Forbes articles states: “All of these changes, combined with increased awareness about the proper use of reverse mortgages, have set the stage for better and more comprehensive retirement income plans.”
Conventional conforming no point 30-year fixed rates are averaging 3.875 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381–8888 and your question may be featured in an upcoming article.
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