Author Archives

Reverse Mortgages can be LESS EXPENSIVE than alternatives.

January 23, 2017     no comments

Overcoming  Objections to Reverse Mortgage High Fees. Compared to alternatives.  Read about home equity conversion mortgages (HECMs), and read about those who object to them—often citing high fees and risks to tapping home equity. Like other financial products, reverse mortgages come with certain borrowing costs. But, by understanding how these costs break down, you may discover that a HECM actually could...
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Can I get a reverse mortgage while in Chapter 13 bankruptcy?

January 20, 2017     10 comments

We are under chapter 13 bankruptcy would we be able to do a reverse mortgage? I am 64 my husband is 78 HUD has different requirements for the purchase program and someone who is doing a loan on their existing property.  If your desire is to utilize the reverse mortgage for purchase program, you cannot have a bankruptcy for the...
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Reverse Mortgage Final Rule Takes Effect September 19, 2017

January 20, 2017     no comments

Reverse Mortgage Final Rule The purpose of this bulletin is to announce upcoming changes to HECM program due to the HUD Final Rule. This bulletin summarizes the key changes affecting the origination of HECM loans. Additional guidance on how to implement and apply the below changes is forthcoming. Implementation The changes will take effect on all loans with...
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Can I get a New Reverse Mortgage?

January 19, 2017     no comments

I received notice from unnamed company indicating my property value has increased and I might be eligible for a new reverse mortgage with additional cash lump sum or increased line of credit. Is this a scam? We don't participate in this type of marketing because we don't agree with it but it is not a scam.  If your property goes...
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Why Does a Reverse Mortgage Have a Balloon Repayment?

January 19, 2017     4 comments

With regard to balances going up and equity going down, this sounds like those nightmare balloon situations one hears of. Is the rate of interest fixed for the life of the loan, and is it possible to make payments against principle? You packed a lot into a very short comment/question! Any time a loan has a single repayment instead of...
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Can I get a Reverse mortgage Purchase with a Line of Credit?

January 19, 2017     no comments

I am close to 62 years old and am looking to purchase a home with a reverse mortgage. After escrow is closed, will I get either a line of credit or payments for this transaction? When using a reverse mortgage to purchase a home, most borrowers use all their eligible funds to complete the purchase, which means there are typically no funds left...
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Can my attorney review sample documents / loan agreement?

January 19, 2017     no comments

If I decide on a reverse mortgage with your company, would you have any objections to my attorney reviewing the sample documents before signing? There is never a problem with your attorney reviewing anything you sign but I would just like to ask to which documents you are referring?  Do you mean the original application package, the final loan documents that actually...
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Reverse Mortgage Interest Rate Cap Explained

January 19, 2017     2 comments

Can the loan balance grow beyond the value of the house? I thought there was a cap of 60% of the value of the house? There is no "cap" on the amount of interest that can accrue. In many cases, especially if the value of the home declines as they have done in recent years, the balance of the...
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Are the rules for all reverse mortgages the same?

January 19, 2017     no comments

Are the rules for all reverse mortgages the same? Not all rules are the same in the same states let alone from state to state.  There are more than one reverse mortgage programs available but the main program being originated today is the HUD Home Equity Conversion Mortgage (HECM or "Heck-um").  The HECM accounts for the vast majority of all the reverse...
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Why is the reverse mortgage amount so low?

January 19, 2017     no comments

Why am I allowed such a small amount (60% of the value of my home) on a Reverse Mortgage? Hi Shirley, The reverse mortgage program is meant to allow you to live in your home, payment free for the rest of your life.  The equity in the property is always yours.  So while you are allowed 60% now, the other...
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