Warning: Reverse Mortgage Downsides & Disadvantages

February 25, 2021     18 comments

A reverse mortgage is a loan, and as with any type of loan there are benefits and there can be downsides. Here, we will address some of the pros and cons associated with reverse mortgages for those qualifying individuals who are age 62 or older. The reverse mortgage is a home loan that allows qualifying borrowers to borrow against their home equity. Most reverse mortgages are of the Home Equity Conversion Mortgage type, which means they are insured by the Federal Housing Administration and come with certain requirements. ... Read Full Article

10 Best Reverse Mortgage Lenders of 2021 – ARLO™

February 18, 2021     22 comments

When used correctly, a reverse mortgage can add stability to your retirement years and selecting the right reverse mortgage lender to originate your loan is an important first step. We created this guide to provide insight into how HECM lenders are rated and how reviews are collected across the web, (both independent and sponsored review sites). Here are 5 helpful tips when selecting the best reverse mortgage provider.  #1. Get the loan from a lender who is looking out for YOUR best interests. Many people are convinced that... Read Full Article

Who is borrower when trust is involved? Trustee, Trustor or Beneficiary?

January 22, 2021     2 comments

We just received a great question from one of our readers: Hey ARLO! Thanks for being around to help so many looking for opinions on Reverse Mortgage questions. I am the Trustee of a revocable trust where my Mother-in-Law is the Trustor & Beneficiary. I thought I was close to signing a reverse mortgage with a Lender. Now the Loan underwriter/lender is having issue with Trustor of Trust as she is unable to take care of her finances. This phrase is included in a letter, requested by lender, from the... Read Full Article

How to Payoff Reverse Mortgage by Selling Home

January 21, 2021     88 comments

Is it true that if an inheritor or owner of a reverse mortgage decides to sell the home, and asks less than the amount of the loan, that the reverse mortgage company holding the note cannot request more than the amount the seller asked? You have asked a question that covers distinctly different scenarios and the answer to each scenario differs based on the circumstances. If a borrower passes and the home goes to heirs, the lender will also order an appraisal and if the property is worth... Read Full Article

Reverse Mortgage Refinance (2021’s Best Rates & Limits)

January 16, 2021     108 comments

HECM Refinance Rates for January 2021. *Rates subject to change without notice. Is a reverse mortgage refinance right for you?  There are many instances when borrowers consider a reverse mortgage refinance with a new reverse mortgage. Refinancing existing loans does make sense at times, and sometimes it does not. Borrower(s) should only consider refinancing their loan when it makes sense for their individual circumstances. Some homeowners will find that they may meet some or all of the conditions... Read Full Article

How a Home Equity Conversion Mortgage Works (HECM)

January 2, 2021     12 comments

In the world of mortgages, one term is a must-remember for senior homeowners: Home Equity Conversion Mortgage, also known as a HECM, or “heck-um.” A breakdown of reverse mortgage loans and how they work reveals just how helpful they can be for qualified senior homeowners who are 62 years of age or older. Here are some common questions and answers for prospective HECM borrowers. What is a HECM? HECM loans are insured through the Federal Housing Administration’s reverse mortgage program. A reverse mortgage enables homeowners to borrow... Read Full Article

Reverse Mortgage Challenges When Going to Nursing Home

December 29, 2020     51 comments

My mother has a reverse mortgage and recently had to go into a nursing home as she is terminally ill. Her reverse mortgage has been sold a few times (that is normal). According to the agreement we had to notify "said reverse mortgage company" that she was no longer living in the property. We were told by phone (we failed to document who, what, where) that we had six months to sell property and possible extensions up to a year. Two weeks later we received a notice that the foreclosure... Read Full Article

Reverse Mortgage for Veterans? (VA Reverse Mortgages)

December 29, 2020     18 comments

Question from our reader: "We have a reverse mortgage, but we were never told that there was a reverse mortgage for veterans. We have quite a bit of equity in our home. Can we refinance our current reverse mortgage to a VA reverse mortgage?" -Debbie Hi Debbie, FHA and VA don’t offer loans directly. HUD through FHA insures loans and the VA guarantees loans (or at least a portion of the loan), but they still do not offer the loans – it is up to lenders to offer... Read Full Article

Reverse Mortgage LESA Set-Aside Offers Peace of Mind

December 29, 2020     34 comments

How a “LESA” Set-Aside is Giving New Peace of Mind to Reverse Mortgage Borrowers Reverse mortgages have changed for the better. These mortgages, which allow people 62 and older to tap into their home equity in the form of a non-recourse loan, have new requirements and options making them safer and more sound for borrowers. In 2015, the Federal Housing Administration, which ensures Home Equity Conversion Mortgages (HECM, or the most common type of reverse mortgage) implemented new financial assessment requirements for all borrowers. In addition to required counseling, all loan... Read Full Article

4 Times a Reverse Mortgage is a Good Idea (or even great!)

December 29, 2020     14 comments

It's funny when you hear someone with a definite opinion, one way or the other about reverse mortgages that is the same no matter who you're talking about or what the circumstances are. The choice of whether or not to get this loan isn’t universally a “good idea” or “bad decision" - there are a lot of different factors that need to be considered. But it just could be the right choice for you! 1. Get Breathing Room for your Budget A reverse mortgage could be good idea if you’re “house... Read Full Article