Home Equity Conversion Mortgage Tips: A New Short Video From Loan Love

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LoanLove.com provides a new video guide explaining the benefits of reverse mortgages.

LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. In their latest video, Loan Love reveals to loan borrowers and home owners the benefits of using reverse mortgages. Titled “How Do Reverse Mortgages Work? (Nuts And Bolts)”, the Loan Love video offers tips and tricks to working with a home equity conversion mortgage.

With the recent change in reverse mortgages from a new act called the Reverse Mortgage Stabilization Act signed into law recently, home equity conversion mortgages (HECM), or reverse mortgages should now be more appealing to senior home owners. An article attached to video briefly describes the changes: “Recently, President Obama signed a new, bipartisan bill into law that offers more protections for both lenders and borrowers. For instance, instead of just being required to participate in an informational session about the loans, today’s borrowers must have – again, free of cost – financial counseling to make sure the loan they get is the best one for their needs.”

However, loan borrowers may still be hesitant to tap into reverse mortgages because despite all their advantages, some still criticize its system with suspicion; Before the recent reform, the potential for unscrupulous lenders to take advantage of senior homeowners (of at least 62 years of age) was still fresh in the minds of loan borrowers. The hostess in the Loan Love video points out that senior homeowners of all income levels can enjoy the pleasant side of HECM products. As the hostess explains, there are two main advantages home owners can make out of a reverse mortgage loan:

“First, if you take your reverse mortgage as a line of credit rather than a lump sum, you can draw on it as you need it, which can help you weather the ups and downs of the stock market. See, traditionally, retirees who depend on stock market returns to maintain their standards of living have really been at the mercy of the stock market.” The video maintains that risks can be involved for a senior homeowner’s portfolio, like the when the market crashed a few years back. With stock prices decreasing during that time, some retirees were forced to liquidate their entire portfolios to keep up with payments. Homeowners on reverse mortgage credit can benefit allowing senior homeowners to pay closing costs without having to give up on their stocks.

A second pro tip offers to homeowners is that by leveraging a reverse mortgage for cashflow, homeowners can experience lower tax bills. This is in contrast to withdrawing from a 401K for example, where distributions from a 401K is taxable. But with a home equity conversion mortgage, senior homeowners can pay off an existing mortgage loan just by drawing out from their home’s equity.

The LoanLove.com video offers a friendly warning to senior homeowners: “Depending solely on the stock market during your retirement years can be a risky move.” Following these pro tips, loan borrowers can now consider taking a reverse mortgages without being uneasy

To learn more about the benefits of using a home equity conversion mortgage loan, please visit LoanLove.com

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Kevin Blue
Loan Love
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