Low Fee Reverse Mortgages

The alarm has sounded and something that hasn't been seen for decades seems to be on its way. It's called stagflation and it's the worst of both economic worlds.
https://youtu.be/KMjwHc8WSyI

Stagflation The Enemy of Retirees: The Industry Leader Update The genie is out of the bottle. Inflation has returned and wreaking havoc on the American economy, the middle class, and working poor. Last week the World Ba...

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How to Turn Inflation on its Head
by Shannon Hicks

When it comes to inflation the American public is getting a harsh street-level lesson served up like a one-two punch. There’s a dirty little secret about inflation. It doesn’t harm everyone equally and some actually benefit from it.

Monetary inflation and low-interest rates have helped boost asset prices, more specifically home values. As it’s said, those with the gold make the rules. It can also be said, those with the gold stand to make more. These would be large corporations, hedge funds, and investment banks who know how to tap into cheap money and then purchase assets that will inflate in value.

One group of Americans who stand to benefit are older homeowners.

The National Reverse Mortgage Lenders Association’s Risk Span Index reports homeowners 62 and older are holding over $10.6 in home equity. That’s 35% higher than the estimated $7.05 trillion dollars in held equity announced in March 2019.

Certainly, trillions of dollars have been pumped into the pockets of Americans since the beginning of the Covid-19 pandemic. However, while home values surged and mortgage rates plunged to historic lows the infusion of cash into the economy has led to too many dollars chasing too few goods- or what economists call demand-pull inflation.

Yet, there’s another driver of higher consumer prices, supply-chain shortages. Aside from your living room entertainment center that’s been floating off the coast of Long Beach California for weeks, there’s one supply chain issue that may moderate any substantial reductions in home values as buyer demand collapses due to rapidly rising mortgage rates.

Chief among those supply shortages are single-family homes. Late last year a Realtor-com study found the U.S. housing inventory is short 5.24 million homes. This problem is not novel to us. For decades single-family home construction has languished, a problem which most recently has been magnified by labor and supply shortages.

Younger workers may count on wage increases to offset inflation but history has proven even wage increases never keep pace with the cost of goods and services. Older homeowners in their non-working years have inflation shelters. Even most Social Security benefit-cost of living increases are completely erased by increased Medicare insurance premiums and price inflation.

Despite this, many older middle-class American homeowners could turn inflation on its head converting it from a disadvantage to a bonafide financial benefit. And that feat can be accomplished with a reverse mortgage that secures one’s current high home value and converts a monthly payment into a cash flow booster either by eliminating required monthly mortgage payments or taking periodic or monthly cash withdrawals.

Inflation is undeniably nasty but it holds a silver lining for those holding onto hard assets that have inflated in value.

This is one of the biggest concerns (and myths) for the Reverse Mortgage borrower.

The short answer: NO!

Just like any other mortgage, with a reverse mortgage, the borrower's name remains on the title and they will still own their home.

It's important to for borrowers know that they are required to continue to pay for:
• Property Taxes
• Homeowners Insurance
• Property Maintenance
Failure to stay current with insurance payments or failure to pay property taxes can result in foreclosure.

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