What’s with all of the ‘reverse mortgage’ commercials on TV?

I’ll take a stab in the dark at this and say that we boomers are being targeted.

I have little proof but, what do know is that when I have cable news channels on (something not unusual for boomers) there are a lot of commercials on TV for reverse mortgages.

Grandfather with his granddaughter.
Description:
Photo Credit: U.S. Census Bureau, Public Information Office (PIO)

Now I know why.

It’s because researches say that boomer/senior home equity reaches highest level in eight years.

We are paying off our homes and staying in them rather than doing what our parents did, moving to warmer climates.
Optimistic, I know, for the mortgage people at MPA saying this.

They also say that we will account for nearly one in every four dollars spent on housing in the next five years.
MPA has the research that says few Baby Boomers have intentions of downsizing or moving to warmer climates far from their families.

It makes sense from the mortgage people’s point of view to push the ‘reverse mortgage’ on us.

After-all, we have made every effort to pay off our mortgage before retirement and our homes most likely have equity built up in them. The result is money that we can borrow from them. Paying off these loans is another story when you are retired.

What you need to know about Reverse Mortgages

So, you have probably seen those has-been heroes of the sports field or celebrities trying to sell us reverse mortgages.

Grandfather with his granddaughter.
Description:
Photo Credit: U.S. Census Bureau, Public Information Office (PIO)

What exactly is a reverse mortgage- you know- the fine print, stuff we need to figure out on our own……

The state of Washington says this:

A reverse mortgage is a home loan that you do not have to pay back for as long as you live in your home. It can be paid to you in one lump sum, as a regular monthly income, or at the times and in the amounts you want. The loan and interest are repaid only when you sell your home, permanently move away, or die.

This could mean that when you die, your heirs could be responsible for paying off that loan.

The experts say that our children need  to pay off the loan unless they do not want to keep the house.
Our children  have a year to pay off the loan or it could fall into foreclosure.

Longtermcare.com says this:

Because a reverse mortgage is a special type of home equity loan that allows you to receive cash against the value of your home without selling it.

For most reverse mortgages:

  • You can choose to receive a lump-sum payment, amonthly payment, or a line of credit
  • There are no restrictions on how you use the remainder of the money
  • You continue to live in the home and you retain title and ownership of it
  • You are also still responsible for taxes, hazard insurance, and home repairs
  • However, you do not have to repay the loan as long as you continue to live in the home.
    • Instead, the amount you owe, based on loan payouts and interest on the loan, becomes due when you or the last borrower, usually the last remaining spouse, dies, sells, or permanently moves out of the home

To qualify for a reverse mortgage:

  • You must be age 62 and older
  • Unlike a traditional mortgage, you do not have to provide an income or credit history to get the loan
  • The home must be your primary residence

How to apply:

  • You must meet with an approved reverse mortgagecounselor before you can start the loan process. These counselors can help you decide whether a reverse mortgage is right for you.

 

  • The costs for loans from banks and mortgage companies usually include the following:
    – Application fee
    – Insurance
    – Origination fee
    – Monthly service fee
    – Closing costs
    – Interest
  • These costs are usually added to the loan balance (what you owe).
  • HECM loans are almost always the least expensive reverse mortgage you can get from a bank or mortgage company, and in many cases are significantly less costly than other reverse mortgages.
  • Reverse mortgages are most expensive in the early years of the loan and generally become less costly over time.
  • Before getting a reverse mortgage other than a government or HECM loan, carefully consider how much more it will cost you.

 

additional link

Aging, obese crash test dummies in development to replicate US population

Is this good for us or bad for us?

They are using ‘crash dummies’ that look more like what ‘they think we look like’.

older couple crossing the street

Aging, obese crash test dummies in development to replicate US population

What the testers are saying is that boomers are:

  • Obese
  • Getting into accidents
  • and Representative of the American population.

The truth is, according to the CDC Data from the National Health and Nutrition Examination Survey, 2007–2010

  • More than one-third of older adults aged 65 and over were obese in 2007–2010.
  • Obesity prevalence was higher among those aged 65‒74 compared with those aged 75 and over in both men and women.
  • The prevalence of obesity in women aged 65–74 was higher than in women aged 75 and over in all racial and ethnic groups except non-Hispanic black women, where approximately one in two were obese among both age groups.
  • Between 1999‒2002 and 2007‒2010, the prevalence of obesity among older men increased.
  • By 2050, the number of U.S. older adults, defined as persons aged 65 and over, is expected to more than double, rising from 40.2 million to 88.5 million

America’s well-publicized weight problem and aging population of baby boomers is collaborating to bring about a change in the humble crash test … …read more

Read more here:  News