Using a Reverse Mortgage to Combat Inflation

July 30, 2022     no comments

Have you been thinking about a reverse mortgage but worried about inflation and rising interest rates?  I recently had a borrower tell me that he was considering one but felt that he may have missed his opportunity before rates started to increase due to recent Fed rate hikes and inflation. He stated that he probably would not benefit now, with all the uncertainty of the future and based on everything that was going on in the economy, (inflation, interest rates, etc.) he just did not think a reverse mortgage made... Read Full Article

Reverse Mortgage Pros & Cons: Starting with the Negatives

July 30, 2022     54 comments

Pros And Cons of Reverse Mortgages: Exploring the Benefits and Downsides 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. Reverse Mortgage Downsides:  #1. Reverse mortgages... Read Full Article

Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

July 26, 2022     11 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 Equity... Read Full Article

2022 Jumbo Reverse Mortgage (Lenders, Rates & Loan Limits)

July 26, 2022     34 comments

While most reverse mortgages are insured by the Federal Housing Administration (FHA) through its Home Equity Conversion Mortgage (HECM) program, there are also a rising number of non-FHA reverse mortgages known as proprietary or jumbo reverse mortgages. Among those non-FHA reverse mortgages, the programs offering loan amounts higher than the FHA’s lending limit typically are referred to as “jumbos.” Like jumbo programs in the forward mortgage market, reverse mortgage jumbos typically extend more borrowing potential to homeowners in that their lending limits exceed the current $970,800 lending limit... Read Full Article

Reverse Mortgage Purchase: Down Payment, Rates & Eligibility

July 25, 2022     72 comments

Reading time: 8.5 min What is a reverse mortgage purchase? Reverse mortgage loans are often used by people who want to remain in their existing homes. But there is another type of reverse mortgage that comes with all the same benefits, except it allows the borrower to buy a new home during the transaction using a reverse mortgage for home purchase loan.  Through a Reverse mortgage for Purchase, or through the Home Equity Conversion Mortgage (HECM) for Purchase program, borrowers take out a reverse mortgage and purchase a new... Read Full Article

Have a Reverse Mortgage & Going to Nursing Home? Read First!

July 25, 2022     65 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

Can You Leave Home With a Reverse Mortgage? Expert Q&A’s

July 25, 2022     76 comments

Carol wrote: Regarding the rule that the homeowner has to reside in the home: how long could that homeowner be absent (e.g. on an extended vacation) before they would be considered not residing in the house. Would they be allowed to have someone else living in the house to care take? Carol, Hi and thank you for your questions. I am going to start with the second question as it is the simpler question to answer without reservations. The reverse mortgage does not prohibit a borrower from having anyone... Read Full Article

Reverse Mortgage Seasoning Requirements Explained

July 25, 2022     12 comments

HUD has a new requirement that for borrowers to use reverse mortgage proceeds to pay off an existing lien on which the borrower received $500 or more, the loan must have been in effect for at least 12 months. This includes any liens on which the borrower took out additional draws of $500 of more in the past 12 months such as Home Equity Lines of Credit (HELOC).  This includes a single draw or cumulative draws that total $500 or more over a 12 month period. This is something that... Read Full Article

Shocking Truth About Condominiums and Reverse Mortgages

July 22, 2022     66 comments

Many senior borrowers who are eligible for reverse mortgages or are about to become eligible and who live in condominium projects have no idea of the surprises that may be waiting for them. You may know neighbors who live in your project who currently have reverse mortgage financing and hear about how easy it was. Unfortunately, changes have taken place about condominiums and HUD programs in the past few years that have changed much of this. If you live in a condominium, before you start making plans that include a... Read Full Article

How a Reverse Mortgage Works Explained by ARLO™ (2022 Update)

July 19, 2022     56 comments

How does a reverse mortgage work? 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... Read Full Article