Articles Tagged with ''Home equity''

Most homeowners think a reverse mortgage is a last-resort option. Here's why they're wrong

Savvy homeowners can use the loan to maximize their resources in retirement
Reverse mortgages are traditionally thought of as a last-resort option for seniors who want to stay in their homes but have little resources and few options left. But research has proven otherwise. For those over 62 who want to age in place, reverse mortgage can be a beneficial financial planning tool for more well-off borrowers in a number of ways.
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Why aren't more people tapping into their home equity?

Homeowners have record amounts of housing wealth, so why are they so reluctant to use it?
Homeowners have a nice stockpile of pent-up wealth in their homes and home prices continue to appreciate. And, it seems that every quarter a new startup emerges promising to disrupt the home equity space by giving homeowners a better, faster, cheaper or even debt-free way to tap into the wealth in their homes. And yet, so many Americans appear to be reluctant to take this route. What gives? We talked to a number of experts for their take.
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WTF is a reverse mortgage?

So many consumers think they're a scam. Here's the truth.
Reverse mortgages may be the most misunderstood – and the most maligned – financial product out there. But for those who are certain they are simply a scam, shrug off your perceptions for a moment and consider this: Would the U.S. government really endorse a scam for the last 30 years? Not likely. While unforeseen problems with the loan have largely been resolved, the sour scent of foul play lingers. To clear the air, here is a list of facts curated specifically to address the questions of what, exactly, is a reverse mortgage.
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More countries promote reverse mortgage-like programs

Hong Kong and Malta work on their own equity-release products
Reverse mortgages are finding some traction abroad as more countries adopt and tweak equity-release programs designed to allow seniors to access their home's equity. Recently, the tiny Mediterranean island of Malta announced the pending launch of an equity-release program for retirees, while Hong Kong announced changes to its program to allow borrowers to relocate without defaulting. These developments highlight the fact that policymakers across cultures recognize the potential solution equity access presents as the global population continues to age.
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This homeownership investment startup wants to help teachers buy homes

Landed helps teachers afford down payments so they can live near their work
The homeownership investment category has been picking up steam lately thanks to solid home price appreciation nationwide. Now, one startup is taking the concept further – creating an investment program designed specifically to help educators afford homes in the communities in which they work. It's called Landed, and it has some major backers.
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More borrowers are raising their mortgage rate to cash out equity

Cash-outs comprise greatest share of refinances since 2006 peak
For several months now, cash-out refinances have been eating up a greater share of overall refi volume, and it appears the trend isn't about to slow down anytime soon. The latest report from Black Knight reveals that 82% of refinances originated in Q4 2018 were cash-outs, and that in two-thirds of these transactions, the borrower raised their mortgage rate in order to access their equity in cash.
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Will sale-leasebacks change how homeowners tap into their equity?

Figure Technologies says it has a better solution than reverse mortgages and HELOCs
In just its second year of operating, Figure Technologies has already raised more than $120 million in capital. While at the LendIt Fintech conference in San Francisco this week, I sat down with TJ Milani, Figure's VP of finance and strategy, and Patrick Silberstein, senior director of capital markets, to discuss the company's strategy behind its sale-leaseback product and its plans to disrupt the home equity market.
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Amount of tappable equity falls again

Q4 sees equity amounts backslide as home price growth slows
The collective amount of equity available for homeowners to tap reached a record high last year, climbing above $6 trillion as home prices continued to appreciate at a steady clip. But now, tappable equity totals are retreating, with Black Knight data revealing a second consecutive quarter of declines as home price growth slows in many of the most expensive markets.
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Study reveals generational divide in HELOC use

Millennials more likely to use proceeds on things other than home renovation
Most of the time, when a homeowner takes out a HELOC, the plan is to use the proceeds to fund home renovations. But a recent survey of 1,003 HELOC or future HELOC borrowers by Citizens Bank revealed that younger borrowers are much more open to using the loan for things other than home renovation, shedding light on a generational divide in the way homeowners utilize their home equity.
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Spring isn't only for homebuyers, it's for remodelers, too

Trulia says 90% of homeowners plan to remodel their homes
Spring is just around the corner, and the housing market is gearing up for a hot home buying season. And while data suggest many Americans are likely to purchase homes, a recent survey from Trulia indicates a significant number of current homeowners will choose to remodel their homes instead.
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