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Reverse mortgages have been through many changes in their short, 57-year (depending on who you ask) lifespan. As the story goes, a small, local bank wrote the first reverse mortgage in 1961 to a woman in Portland, Maine. The bank owner wanted to help the wife of his high school football coach stay in her home after her husband passed away. From there, the product took off and continues to help more older Americans remain in their homes as they age. Bringing it to the Senate 1969 It... Read Full Article
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A federally insured reverse mortgage assures that, as the borrower, you will receive certain loan payments as agreed upon by the terms of your loan. Moreover, you or your heirs will never be forced to repay more than your home is worth to pay off the loan, regardless of the loan’s balance. The Federal Housing Administration guarantees those benefits through its reverse mortgage program, the Home Equity Conversion Mortgage. Borrowers pay for government insurance on their loan programs and reverse mortgages through insurance premiums known as Up-Front Mortgage Insurance Premiums... Read Full Article
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I'm going through a company called AIG Reverse Mortgage. However, I was told to replace 2 wall furnaces first, but I don't have the $2,500.00 to get it done. The company told me I was responsible before we started the reverse mortgage. Is this true? Please Help! Hi Lori, AIG would be correct in that HUD requires a permanent heat source in the home to function in all but just a few zip codes in the United States to close a reverse mortgage. HOWEVER, no, it does not... Read Full Article
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Who is an eligible non-borrowing spouse on a reverse mortgage? Great Question! There are two classes of non-borrowing spouses. One is an eligible non-borrowing spouse and an ineligible non-borrowing spouse. To become an eligible non-borrowing spouse, the spouse must be married to the borrower when the borrower applies for and closes the loan. They must also meet all the reverse mortgage requirements that the borrower must meet in that they must live in the home as their primary residence, and if the borrower passes. They are still living in the... Read Full Article
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A reverse mortgage is a loan, and as with any loan, there are benefits, and there can be downsides. Here, we will address some of the pros and cons of reverse mortgages for qualifying individuals aged 62 and older. The reverse mortgage is a home loan that allows qualifying borrowers to borrow against their home equity. Most reverse mortgages are Home Equity Conversion Mortgages, meaning the Federal Housing Administration (FHA) insures the loan, providing some guarantees to both the lender and homeowner. First, the Upsides: A reverse... Read Full Article
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When I obtained a HECM through ARLO two years ago, the company never said anything about activating a Home Warranty Policy. The letters claim YOUR company took out a home warranty policy. Nothing in the stacks of documents provided by your company indicates this fact. I am now getting letters saying it will expire and that my home is subject to foreclosure if I do not sign up for a Home Warranty Policy. The letters claim that the policy is required to keep one's home in proper repair. Such a... Read Full Article
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A reverse mortgage is a loan that allows seniors to borrow against the equity in their home without making monthly mortgage payments. The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), a program insured by the Federal Housing Administration since 1988. The amount of funds available from a reverse mortgage is based on the age of the youngest borrower or spouse, home value, and current interest rates. Funds received are tax-free and may be used for virtually anything. You may take funds in a... Read Full Article
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When getting a reverse mortgage, you may wonder which type of lender you should work with. Then, more specifically, which banks offer reverse mortgages. You may have used a national or regional bank for a mortgage loan in the past, as many big banks provide mortgage lending services. You may have worked with a non-bank mortgage lender, as these companies are also active in mortgage lending. Many banks offer reverse mortgages, although most major national banks, such as Wells Fargo, Chase, and Bank of America, do not offer them. A... Read Full Article
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A reverse mortgage can add stability to your retirement years when used correctly. Selecting the right reverse mortgage lender to originate your loan is essential. We created this guide to provide insight into how HECM lenders are rated and how reviews are collected across the web (independent and sponsored review sites). 5 helpful tips when selecting a reverse mortgage lender: #1. Get your reverse mortgage from a lender looking out for YOUR best interests. Many people are convinced that they need one or two specific things,... Read Full Article
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Is a reverse mortgage refinance right for you? There are many instances when borrowers consider refinancing into a new reverse mortgage. Borrowers should only consider refinancing their loan when it suits their circumstances. Some homeowners will find that they may meet some or all of the conditions listed below but don’t need additional funds. In those cases, a refinance is not warranted. For them, even though they qualify for additional funds, it might only mean that the borrowers would incur additional unnecessary costs. When to consider a refinance... Read Full Article
