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As retiree numbers grow, many still grapple with the challenge of finding a way to bridge the gap between the life they want in retirement and the lifestyle their retirement savings can afford.

A SEQUAL-RFI (Senior Australians Equity Release Association of Lenders /Retail Finance Intelligence) reverse mortgage study was recently conducted to better understand retirees’ attitudes towards reverse mortgages. One thousand over-60s were interviewed, including both the baby boomer and “builders” generations.

The research showed that despite a third of retirees planning to sell their family home to fund retirement, many were unsure what options were available to them to release equity from their home.

Many were reluctant to take out a reverse mortgage due to the disadvantages regularly explained in the press.

The research showed most retirees felt independent legal and financial advice should be compulsory before obtaining a reverse mortgage. Yet according to the last SEQUAL/Trowbridge Deloitte reverse mortgage study, only 9 per cent of reverse mortgages were organised by financial planners (although this was up from 2 per cent a year earlier).

(more…)

Post from: Reverse Mortgage Loan Blog

Reversing attitudes about retirement income [Australia]

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If you’re in the process of refinancing your home you can save yourself thousands of dollars by getting a wholesale mortgage rate. The problem for many homeowners is that that they don’t know how get wholesale rates; most mortgage brokers would simply laugh at you if you told them “give me a wholesale mortgage rate.” Here are several tips to help you negotiate with mortgage brokers and find the right person to arrange your home loan.

Not Every Mortgage Broker Will Negotiate

The problem with negotiating with a broker is that not all brokers are in a position where they can negotiate. If you’re speaking to a salesperson from a large brokerage house they will probably not have the authority to negotiate for the terms you’re looking for. The reason for this is that the owner of the brokerage will be splitting the commission with the salesperson meaning you’ll always pay more than you have to with a mortgage broker in this situation.

This is also true of mortgage brokers that employ their own salespeople. Suppose for instance, you’re charged a one percent origination fee for your home loan. Your broker pockets this fee and will most often pay the salesperson from the Yield Spread Premium on your loan. Loan offers that don’t have origination fees are making up the difference often by doubling the amount of Yield Spread Premium on your loan. If you want a wholesale mortgage rate and plan on keeping your home for a long time you’ll need to avoid Yield Spread Premium completely.

If you’re not already familiar with this retail markup of your mortgage rate for a commission here is an article about the basics of Yield Spread Premium.

Self Employed Mortgage Brokers Are Best

It’s always better to work with the owner of the company you are dealing with. A self-employed mortgage broker that has been working for ten years or longer is the perfect candidate for arranging your mortgage. Working out of their home? Even better. One reason why working with a self employed mortgage broker is better is that they simply don’t have the overhead expenses that come with posh offices and support staff. A self employed mortgage broker is more likely to negotiate with you and agree to your terms for the loan.

What To Ask For When Refinancing

If you plan on keeping your home for the duration you’ll want to pay a one percent origination fee without any Yield Spread Premium on the loan. Some mortgage brokers argue that paying the origination fee will only raise your closing costs; however, agreeing to a higher mortgage rate that includes Yield Premium will result in a mortgage payment that could be as much hundreds of dollars higher per month than it has to be.

You can learn more about finding the right mortgage broker to arrange your loan by registering for my free video tutorial. Register today and you’ll learn how to refinance with a wholesale mortgage rate without paying garbage fees to your lender or broker.

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Related Articles at Mortgage Refinance | Free Money Saving Videos:

• How to Negotiate With Mortgage Brokers


• Why Use a Mortgage Broker?


• How to Negotiate With Your Mortgage Broker


• How to Find the Perfect Mortgage When Refinancing


• How to Get a Wholesale Mortgage Rate

Week over week refinance applications are down 30.4% as mortgage interest rates continue to rise on fears of inflation.  They are up slightly at 5% above 2007 levels.  Rates are up almost a full 20 basis points (.18%).  The slowdown in refinance applications makes sense in light of the recent wild swings of the mortgage market.  With rates headed decidedly higher coming off a 4-year low point.  If you were gambling on mortgage interest rates going lower a couple of weeks ago when we were looking at that low and telling you to lock some extremely good rates you have lost.  Sorry.

More on the weekly interest rate changes from Market Watch:

The interest rate charged on 30-year fixed-rate mortgages averaged 6.27% last week, up from 6.09% the previous week, while the average on the 15-year fixed-rate mortgage increased to 5.77% from 5.55%. The one-year ARM averaged 5.84% last week, up from 5.72%.