Articles by Michael Branson on ArticleSnatch.com

Reverse Mortgage... A Lifeline for Seniors During Recession

Thu, 16 Apr 2009 00:00:00 -0400

Regardless of which economist you listen to, no one disagrees with the fact that we are in a recession. It seems that the only argument now is how long it will last and what is the best way to get out of it. Millions of American families faced with the uncertainty of the economy and the steps being taken to stimulate it, coupled with the falling stock market, are left drowning in a sea of doubt. Even those who saved their whole lives and thought they were in a good position for retirement are watching their 401K's and their stock portfolios disappear before their very eyes. This is troubling enough to young families, but is especially difficult for seniors who do not have time to go back out and earn another retirement or may not be able to re-enter the job market. **End Summary** Topics: Recession]]> seniors]]> reverse mortgage]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgages Reverse Mortgage Calculator Reverse Mortgage Rates

Reverse Mortgage Rates... Margins Rise Again

Wed, 15 Apr 2009 00:00:00 -0400

I always have people asking me which option is better, a fixed rate or an adjustable rate for their reverse mortgage. Both have benefits and both have drawbacks. And what about now while the margins keep moving and since lenders just announced another round of margin increases. The answer I give the person asking the question is invariably the one that is right for YOU. And then we start to discuss their personal goals and what they intend to do with their reverse mortgage. But everyone needs to understand that margins just went up again and that affects all senior borrowers looking to get reverse mortgages. I explain to the borrower that a fixed rate reverse mortgage is a closed end instrument, which means that they get their initial draw and then there are no additional draws. For borrowers who wish to take all their funds in the beginning to pay off a current mortgage, for other purposes, or for the HECM for purchase, this might not be an issue as they need to make a full disbursement at the very beginning anyway. **End Summary** Topics: mortgage rates]]> reverse mortgage rates]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgage Rates Reverse Mortgage Calculator

Is The Reverse Mortgage Right For You?

Sat, 21 Feb 2009 00:00:00 -0500

"I don't think a reverse mortgage is for me, I planned for my retirement!" Does this sound like something you are thinking or have thought? Then you are not alone. We have had so many borrowers tell us that they thought they had planned adequately for their retirement and never thought they would need a reverse mortgage. Some even felt embarrassment or shame that the retirement plans they had so carefully made were coming unraveled. It's not your fault that borrowers are living longer, healthier lives and are therefore more active today than at any time in the past. It's not your fault that the costs of living have risen above most pensions and that many pensions and savings have been adversely affected over the years by financial maladies in the stock markets and other investment vehicles. It's not your fault that the cost of living has risen much more quickly than the return on the funds that you set aside. John Lennon said Life is what happens to you while you're busy making other plans. Well that is true with your retirement as well. **End Summary** Topics: reverse mortgage]]> reverse mortgage information]]> reverse mortgage pros and cons]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgage Reverse Mortgage Calculator Reverse Mortgage Rates

A Reverse Mortgage is.. Definitely not for everyone!

Thu, 19 Feb 2009 00:00:00 -0500

It may surprise you to hear a reverse mortgage lender saying this but it is true. The loan is intended to be the last loan you will ever need and not a short term financial instrument. Borrowers looking for a short term loan may be better suited for a different type of financing as reverse mortgages require mortgage insurance, origination fees and third-party fees that all must be paid up-front making the loan impractical for a short term solution. However, for those borrowers who want to remain in their homes and need extra income or cash to do so, a reverse mortgage may be exactly what you need. There are a few questions to ask yourself: * Do you find yourself short of funds before the end of every month? * Have your retirement plans been put on hold or delayed due to the economy? * Are medical expenses/needs demanding too much of your disposable cash? * Would you like to be able to help family members with college or other expenses? * Do you need additional cash or income to be able to enjoy your retirement for travel, leisure activities, or to just be more comfortable? **End Summary** Topics: reverse mortgage pitfalls]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgage Reverse Mortgage Calculator Reverse Mortgage Rates

Economic Stimulus Help Seniors with Reverse Mortgages

Thu, 19 Feb 2009 00:00:00 -0500

Depending on your political persuasion, you may be expecting this Bill to be one of the best things to come along since sliced bread or one of the worst possible disasters since the dropping of the atomic bomb. Americans are split deeply about this legislation and as one might expect, much of the split does run along party lines, but also along the lines of those who support big government spending and those who believe that unchecked government spending is exactly what got us to the deficit and mess in which we find ourselves today. There is no doubt about the severity of the stake riding on the outcome of this Bill which passed the House of Representatives and now has a version in the Senate. With one of the worst economic recessions since the Great Depression upon us, with unemployment rising weekly along with record home foreclosures, Congress has set about to make a plan which has been billed a "stimulus package", designed to stimulate the economy and create jobs. Proponents of the package claim that it is needed and needed now to start projects to put Americans to work. **End Summary** Topics: economic stimulus]]> reverse mortgage]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgage Reverse Mortgage Calculator Reverse Mortgage Rates

Credit Crisis Accelerates Job Losses, Consumers Need Help

Mon, 12 Jan 2009 00:00:00 -0500

The US Labor Department Jobs Report came our for December showing a sobering loss of yet another 524,000 jobs, which totals 1.9 Million in the year's final four months since the credit crisis began in September. 2008 will truly be remembered for a number of things, but as it relates to jobs, the news is all bad. The annual jobs-lost is the highest yearly jobs-lost rate since 1945. The back to back months of November and December represent the first time the 70 year history that the numbers have been tracked that there have been back to back months of over 500,000 jobs lost. The unemployment rate stands at 7.2% but many feel this number is understated due to what they refer to as those who may not be unemployed, but rather are "under-employed". According to a recent interview with steel billionaire Wilbur Ross with CNNMoney.com, They count as employed someone who used to have a high-paid manufacturing job, and now is working at a Wal-Mart or a Wendy's." According to Mr. Ross, these people now do not make the unemployment rolls but their incomes are remarkably less than they once were. **End Summary** Topics: credit crisis]]> unemployment]]> mortgage]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (866) 705-8567 Government Mortgage FHA Mortgage FHA Refinance

How does a Reverse Mortgage Work?

Mon, 22 Dec 2008 00:00:00 -0500

Many people get very confused when they try to grasp how a reverse mortgage really works. They look at the different interest rates, the mortgage insurance, the servicing fees, principal limits, net principal limits and before long, they just want to know the bottom line as they're so confused they don't want to try to understand anymore. This will be possibly an over-simplified explanation for those who possess a great deal of reverse mortgage savvy, but for those who just want to get a basic idea of what this program is all about, this just might help. Firstly, a typical loan that everyone is familiar with is now being called a forward mortgage. A forward mortgage is a rising equity, falling debt loan. In other words, as you pay the monthly payments, your equity in the property rises as your debt (the mortgage balance) decreases. A reverse mortgage operates as you might guess in the reverse of this. **End Summary** Topics: reverse mortgages how they work]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgages how they work Reverse Mortgage Calculator Reverse Mortgage Rates

Pro's & Con's of the Reverse Mortgage

Mon, 22 Dec 2008 00:00:00 -0500

I can almost hear it now, This is an article written by a guy who does reverse mortgages? There probably won't be any con's! As passionate as we are about the reverse mortgage product, there are some drawbacks in some instances and we make certain that we point out the pro's and con's to all reverse mortgage applicants. As great as this product is, it is not right for everyone and it is always the best idea to know your goals and to have the help and support of your family and a trusted financial advisor. In this case, let's start with the con's. Reverse mortgages are expensive loans. Because you have to pay not only an origination fee but also the HUD Up-Front Mortgage Insurance, the initial costs can be staggering to some. Also, there are many ways to take your funds with a reverse mortgage and since the loan balance grows over time, the fees are based on the principal lending limit or the property appraised value, whichever is less. **End Summary** Topics: reverse mortgage pros and cons]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgages pros and cons Reverse Mortgage Calculator Reverse Mortgage Rates

Purchase Reverse Mortgages to Boost Real Estate

Mon, 17 Nov 2008 00:00:00 -0500

Many senior buyers and real estate agents have been waiting for HUD to issue the Mortgagee Letter which outlines the guidelines for the Home Equity Conversion Mortgage (HECM or Heck-um) reverse mortgage program for purchase transactions. The Bill that Congress passed and was signed by President Bush on July 30, 2008, H. R. 3221, among other things now allows this program to include purchase transactions for the first time (but could not be implemented until HUD announced the parameters of the program). This is exciting news to Senior Americans who have wanted to purchase a new residence but could not pay for the home in full and did not qualify under conventional underwriting standards. This includes those who wish to downsize, move closer to family and friends, move into senior communities for the activities or amenities they offer, or those who find that their current home simply does not meet their needs any longer such as those needing wider halls for wheel chair access and those needing single story homes that currently reside in multiple story properties. HUD just issued their Mortgagee Letter (#2008-33) which outlines many features and explains how they intend to implement this feature. **End Summary** Topics: purchase reverse mortgages]]> reverse mortgage for home purchase]]> real estate]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Purchase Reverse Mortgages Purchase Reverse Mortgage Calculator Purchase Reverse Mortgage Programs

Secondary Market Halts Jumbo Reverse Mortgages

Mon, 17 Nov 2008 00:00:00 -0500

The last jumbo or proprietary reverse mortgage lender in the market just announced today that they are suspending their jumbo reverse mortgage program. Their official announcement came out at 5:00 tonight stating that any loans in their pipeline must close by November 26, 2008 or the loans would have to be changed to the government Home Equity Conversion Mortgage (HECM or Heck-um) reverse mortgage program. This comes as no surprise at a time when credit is so tight and the jumbo product is not readily marketable in the secondary mortgage market. There are rumblings that other lenders may come out with other programs in the not too distant future, and in fact, this last remaining lender stated in their announcement that this is not an elimination of their program but rather a suspension. However, the last few announcements from other lenders also cited temporary suspensions and none have yet to re-emerge. What does this mean to senior homeowners with larger, more expensive homes, it means that for the time being if they are interested in a reverse mortgage, the HUD HECM is about the only game in town. When H. R. **End Summary** Topics: jumbo reverse mortgage]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Reverse Mortgage Lenders Reverse Mortgage Calculator Reverse Mortgage Programs

5.68% Fixed Rate Announced for Reverse Mortgages

Mon, 17 Nov 2008 00:00:00 -0500

Many senior borrowers who start looking into reverse mortgages are not aware of it, but there is a fixed rate Home Equity Conversion Mortgage (HECM) available. The HECM or Heck-um as you may hear it called, is the government insured reverse mortgage program offered by lenders and insured by the Federal Housing Administration. Most Reverse Mortgage borrowers have chosen the adjustable rate option for the simple fact that the fixed rates have historically been quite a bit higher than the adjustable rates, the borrowers qualified for less money with fixed rates and since the borrowers have to take a full draw on the fixed rate loans, it just did not make sense for many senior borrowers. It is finally time for senior borrowers to look at the fixed rates as a viable option. The fixed rate option for the HUD HECM Reverse Mortgage for the week of October 28, 2008 is down to 5.68% (this is the Initial Interest Rate and the Effective Rate on the fixed program since there are no indices or margins to consider). This means that when you compare this to an adjustable HECM on the Constant Maturity Treasury with a 1. **End Summary** Topics: Fixed Rate Reverse Mortgages]]>]]> About the Author: ]]> Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762 Fixed Rate Reverse Mortgages Fixed Rate Reverse Mortgage Calculator Fixed Rate Reverse Mortgage Programs