Learn How a Reverse Mortgage Works in 2021 | ARLO™

August 1, 2021     44 comments

A reverse mortgage works by allowing homeowners age 62 and older to borrow from their home’s equity without having to make 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 are based on the age of the youngest borrower, home value, and current interest rates. You may choose to take funds in a lump sum, a line of credit, monthly... Read Full Article

Pros and Cons of a Reverse Mortgage in 2021 | ARLO™

August 1, 2021     50 comments

When used correctly, a reverse mortgage, also known as the Home Equity Conversion Mortgage (HECM), can add stability to your retirement years. However, as with any financial product, it is not always the best program for everyone. We published this pros and cons guide to help you in making an informed decision about reverse mortgages and assist you in determining if this program is suitable for your long-term retirement goals. Pros #1. There are no monthly mortgage payments A reverse mortgage allows eligible borrowers to live the rest of... Read Full Article

How a Reverse Mortgage is Smarter than a HELOC.

July 23, 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

Warning: Reverse Mortgage Downsides & Disadvantages

July 23, 2021     19 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

Reverse Mortgage Age Requirements for 2021

July 20, 2021     21 comments

If you meet the reverse mortgage age requirement of 62 years, you could be a candidate for the federally-insured Home Equity Conversion Mortgage (HECM) program. The loan can enable you to remain in your home longer and does not need to be repaid for as long as you maintain principal residency in your home and keep up with property taxes and insurance. Because the length of the loan depends directly on how long you live in the home, the amount you can borrow also depends on that time frame, including... Read Full Article

What to Expect from the Reverse Mortgage Appraisal Process

July 18, 2021     49 comments

Getting a home appraisal is an important part of the reverse mortgage process. Here’s what you need to know so that you can manage your expectations about getting your home appraised as part of this loan to help you age in place. It’s a multi-step process, but you can prepare in advance to make it as smooth as possible. Typically, there will be three steps: The inspection. During the inspection, the appraiser will walk through the home with you and will take any necessary photos as part of the research process.... Read Full Article

Refinancing Your Reverse Mortgage in 2021: Lower Rates, More Money.

July 18, 2021     118 comments

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 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... Read Full Article

Top 10 Reverse Mortgage Counseling Agencies (Free & Online Availability)

July 10, 2021     34 comments

The U. S. Department of Housing and Urban Development (HUD) requires that homeowner(s) interested in pursuing a Home Equity Conversion Mortgage (HECM) receive mandatory reverse mortgage counseling regarding the implications of and alternatives to a reverse mortgage from a HUD-approved HECM counseling agency. We are required by HUD regulations to provide you with a list of reverse mortgage counseling agencies. The list must contain Five (5) nationwide companies as directed by HUD for the Home Equity Conversion Mortgage, several counseling agencies that are the most local to... Read Full Article

What is a Reverse Mortgage? The A-Z Guide by ARLO™

July 8, 2021     72 comments

Reading time: 25 min What is a Reverse Mortgage? A reverse mortgage is a loan.  It is not a government grant.  You are not selling your home to the bank and you are still on title to the property.  Just like any other loan, you are still responsible for the payment of your taxes and insurance but unlike other loans, with a reverse mortgage, borrowers are not required to make regular payments of principal and interest or interest only for as long as you live in the home as... Read Full Article

Selling an “Upside-Down” Reverse Mortgaged Home

July 7, 2021     8 comments

I am still confused about debt after I sell. My wife and I have a current reverse mortgage debt of $300K on a Seattle (98146) house valued by Zillow at $310K. At time of reverse mortgage award it was appraised at $380K. We took out the reverse mortgage about 15 years ago thinking it would be our home until death. Unfortunately, for health reasons, we can no longer live in the Seattle weather; I am 88 yrs. old (VA 100% permanent and totally disabled) and she is 82 years old.... Read Full Article