Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

April 12, 2021     7 comments

If you have made the decision to stay in your home, but you are not sure if your savings will last, a reverse mortgage may be the solution to help you achieve that goal. Different reverse mortgage types serve different purposes and as with any mortgage you must consider which program and rate option are best suited for you. Just like any other mortgage, reverse mortgages offer two types of interest rates: fixed rates and adjustable rates. Insured by the Federal Housing Administration (FHA), the most common reverse mortgages on the market today are Home... Read Full Article

2021 Reverse Mortgage Requirements for Manufactured Homes

March 27, 2021     46 comments

If you’re the owner of a manufactured home and you’re wondering about your eligibility for a reverse mortgage, here’s the short answer: you may be eligible. Now for the longer answer. As with any prospective borrower, you must be aged 62 or older, you must legally own the home, it must be your primary residence, and you must be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15th,... Read Full Article

Reverse Mortgage Explained in Simple Terms! | ARLO™

March 27, 2021     70 comments

Simply put, a reverse mortgage is a loan for homeowners age 62 and older that requires no monthly mortgage payments.  Interest accrues like any other loan but is added to the balance owed instead of requiring a monthly payment.  You may make a payment of any amount at any time to prevent the balance from increasing (or increasing as quickly), but it is not required. The loan is repaid when the borrower sells the property, permanently leaves the home or passes away. Available funds can be distributed as... Read Full Article

How Bankruptcy Can Affect Reverse Mortgage Eligibility

March 27, 2021     42 comments

We have recently had several borrowers who had previously obtained a reverse mortgage call and ask us what the effect would be on those reverse mortgages if they had to now begin a bankruptcy proceeding. While we are not attorneys and would always advise you to seek competent legal advice from an attorney in your state, we did want to contact an expert in the field of loan servicing for reverse mortgages and get some additional information that we could pass on. We contacted Ryan LaRose, Chief... Read Full Article

How a Reverse Mortgage is Smarter than a HELOC.

March 27, 2021     7 comments

A Look into the "Reverse Mortgage" VS "HELOC" (Home Equity Line of Credit)  You may have heard of reverse mortgages, and the retirement option they can offer to individuals or couples who are “house rich, cash poor.” For those looking to tap into their home equity in retirement, a reverse mortgage can be a useful tool to allow this. A home equity line of credit (HELOC) may be another option. What you may not know about Reverse Mortgages There’s a lot more to be gained by getting a... Read Full Article

When is the Best Time to Take a Reverse Mortgage?

March 14, 2021     4 comments

Ultimately the right time to get a reverse mortgage depends on what works out best for the borrower. The timing must be right for you and your needs. But we hear borrowers who are convinced that they want the loan but are thinking that they should wait a year or two until one of the borrowers is older so they can get more money from the loan. We believe this is the wrong strategy and we will explain why in this article. This can lead to borrowers paying higher... Read Full Article

2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.

March 12, 2021     20 comments

Expansion of Jumbo & Proprietary Reverse Mortgages  The Mortgage Insurance Fund, which affects all borrowers who rely on federally-insured reverse mortgage loans, has been at risk.  HUD responded with a series of changes that limit exposure to future losses.  One of the silver linings from the changes HUD made is the re-emergence of Jumbo Reverse Mortgage products. For most borrowers, in the past, jumbo programs simply did not make sense. Most often borrowers with homes worth less than $822,375 would typically receive as much or more money on HUD programs... Read Full Article

Warning: Reverse Mortgage Downsides & Disadvantages

March 12, 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 and 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

2021 Proprietary Reverse Mortgages: Lenders Rates & Limits

March 12, 2021     18 comments

Are you thinking about taking out a reverse mortgage? Have you heard the word ‘proprietary’ thrown around, and wonder what the differences are between a ‘regular’ and ‘proprietary’ reverse mortgage? Read on to learn about what those differences are, what you should know about each, and if either type of reverse mortgage is right for you. In this overview, you’ll learn about the following: What does ‘proprietary’ mean? What is a ‘regular’ reverse mortgage? What is a ‘proprietary’ reverse mortgage? Maximum reverse mortgage proceeds Why would I bother with a... Read Full Article

10 Best Reverse Mortgage Lenders of 2021 – ARLO™

March 11, 2021     22 comments

When used correctly, a reverse mortgage can add stability to your retirement years. 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