Compare Today’s Best Reverse Mortgage Lenders (2020)

October 27, 2020     20 comments

Today's Top Reverse Mortgage Lender Reviews Lender Rate Comparison (Reported by HUD.GOV) How to select the right reverse mortgage provider? A reverse mortgage, when used correctly can add stability to your retirement years and selecting the right lender to originate your loan is an important first step. I created this guide to provide insight into how lenders are rated and how reviews are collected across the web, (both independent and sponsored review sites). With a federally insured HECM... Read Full Article

What is a Reverse Mortgage? Explained by ARLO™ (2020 Update)

October 24, 2020     65 comments

What is a Reverse Mortgage? A reverse mortgage is a loan for homeowners age 62 and older that requires no monthly mortgage payments. The loan is repaid when the borrower passes away, leaves the home permanently or sells. Available funds can be distributed as a single lump sum, line of credit or structured monthly payments. The most common type of reverse mortgage is the Home Equity Conversion Mortgage, or HECM, a program the Federal Housing Administration created in 1988. While a traditional loan requires scheduled monthly payments, reverse mortgages are not... Read Full Article

How Does a Reverse Mortgage Work – Explained by ARLO™

October 23, 2020     40 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. As the borrower, you may choose to take funds in a lump sum, line of credit or via structured monthly payments. The repayment of the loan is required when the last surviving borrower vacates the home permanently. Here's How a Reverse Mortgage Works:  The amount you receive is based on your age, home value and current interest rates Mortgage payments of any amount are... Read Full Article

Reverse Mortgage Pros and Cons by ARLO™ (2020 Update)

October 22, 2020     48 comments

When used correctly, a reverse mortgage can add stability to your retirement years. But as with any financial product, it is not always the best program for everyone. We have created this "Pros & Cons" guide to help you make an informed decision about reverse mortgages and if the program is suitable for your long-term retirement goals. What are the Pros of Reverse Mortgages?  No Monthly Mortgage Payments A reverse mortgage allows eligible borrowers to live the rest of their life in their home with no monthly mortgage... Read Full Article

5 Ways to Lose Your Home with a Reverse Mortgage

October 20, 2020     no comments

A reverse mortgage can be a powerful tool for an American senior aged 62 or older to create a new source of cash flow from his or her home equity. With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower still retains ownership of the property while continuing to live there over the course of the loan. He or she is not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in a... Read Full Article

HECM Industry to Use CMT Index before Transition to SOFR

October 12, 2020     2 comments

Overview With GNMA’s recent announcement, HECM ARMs using LIBOR as their Index will soon not be viable to originate. While LIBOR has been destined to be phased out for some time, this unexpected announcement will require a faster transition than was expected. The framework around SOFR, the anticipated replacement to LIBOR, has not been fully developed yet, and as such adjustable-rate HECM loans will need to use CMT (Constant Maturity Treasury)– at least in the short term. This will be a back-to-the-future for the reverse mortgage industry, as CMT based... Read Full Article

How the SOFR Index Affects Reverse Mortgage Rates

September 15, 2020     no comments

For several years, adjustable rate reverse mortgages used a variety of indexes which determine a benchmark interest rate that when added to a margin set by the lender, would determine the final interest that borrowers would accrue on their loan. The rules for the choice of an index is that it had to be out of the lender’s control and had to be a readily published rate. LIBOR history and adaption  Some of the more common indexes over the years include the U.S. Prime Rate, the various treasury-based... Read Full Article

NOVAD Reverse Mortgage Problems – Please Help!

April 21, 2020     14 comments

My mother passed in Oct. of 2018 in a nursing home. Prior to her death as POA I surrendered the home by registered letter to Novad, a HUD management company, requesting a Deed in Lieu of Foreclosure. As of March 2020 they have not taken over the title to the home and the tax collector is trying to get "The Estate of..."to pay the taxes and the estate has no funds nor do I believe they owe anything based on a non-recourse loan. Novad has taken over maintenance of... Read Full Article

What Coronavirus Means For Reverse Mortgages (COVID)

April 1, 2020     20 comments

The outbreak of the COVID-19 coronavirus in the United States has universally disrupted the regular, daily lives of Americans as well as the nation’s economy. As the risk of infection and the possibility of hospitalization, particularly for older Americans, has led to orders from federal, state and local governments that encourage “social distancing” in an effort to slow the spread of the virus, people are changing the way they operate. The reverse mortgage market, too, has experienced some changes as a result. This article will cover some of... Read Full Article

HECM-to-HECM Refinance ‘5-Times’ Benefit Rule Explained

January 16, 2020     6 comments

For some existing reverse mortgage borrowers – particularly borrowers who have a Home Equity Conversion Mortgage (HECM) sponsored by the Federal Housing Administration (FHA) – a number of factors may lead them to ask if it is both possible and/or beneficial to potentially refinance their existing loan into an offering with more advantageous terms. The short answer to this is yes, it is possible to refinance a HECM reverse mortgage. Refinancing can come with several possible benefits, including increasing the amount of money that you’re able to borrow from the... Read Full Article