How Lower Interest Rates Drive Larger Reverse Mortgage Amounts

December 1, 2021     no comments

If You’ve Looked at a Reverse Mortgage in the Past, You May Want to Look Again! If you have ever investigated a reverse mortgage or have thought about it, especially in the past 24 months and didn’t think the numbers worked for your needs, it may be time to check again.  The reason we say this is because one of the main factors that determines how much money you will receive in your reverse mortgage is the interest rate. Since HUD changed the Floor Rate on the program,... Read Full Article

BREAKING: 2022 Reverse Mortgage Limits Raise to Record $970,800!

November 30, 2021     2 comments

2022 Reverse Mortgage Limits Officially Announced at $970,800 HUD just announced their high-cost limits for Alaska and Hawaii. Based on the fact that the Home Equity Conversion Mortgage (HECM) limits normally follow these States, we can safely guess that the HUD HECM limit for 2022 will also jump to $970,800 for all new applicants as of January 1, 2022 when HUD announces those changes in just a few weeks.   This is a very large increase for a single year, especially given the increases the program has seen over... Read Full Article

The Wait is Over, ARLO’s Reverse Mortgages Now Start at Age 55!

October 27, 2021     no comments

Proprietary or Private reverse mortgage programs were commonly referred to as “jumbo” reverse mortgages because that was just about the only time they were used by borrowers.  The only time they seemed to make sense for a borrower was when the property was valued over the HUD maximum lending limit. Even then, when they first reemerged after the mortgage meltdown, since the loan amount available as a percentage of the value of the home was so much lower than the HUD Home Equity Conversion Mortgage (HECM) program, it often... Read Full Article

HELOC Resets Create ‘Perfect Storm’ For Reverse Mortgages

October 20, 2021     2 comments

Senior homeowners may be looking at a combination of events that could equate to the perfect storm brewing that doesn't even appear on most of their horizons. There is a combination of events, those that have already happened; those that are going to happen; and those likely to happen, that could leave many senior homeowners in a real bind. So much so that if they don't plan for it now, they could find that they are not prepared for the consequences that could come later. I'm talking about the combination... Read Full Article

Refinancing Your Reverse Mortgage in 2022: Lower Rates, More Money.

October 12, 2021     122 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

AIG Reverse Mortgage Problems – Please Help!

October 6, 2021     21 comments

I'm going through a company AIG reverse mortgage, however I was told to replace 2 wall furnaces first but I don't have the $2500.00 to get it done the company told me I'm responsible before we start the reverse mortgage, is this true? Please Help! Hi Lori, AIG would be correct in that HUD requires a permanent heat source in the home to be functioning in all but just a few zip codes in the United States in order to close a reverse mortgage. HOWEVER, no, it... Read Full Article

Bank of America Reverse Mortgage Review (2021 Update)

October 6, 2021     10 comments

Back in the early 2000s, much of the volume of reverse mortgages in the U.S. was attributed to big banks, including Bank of America. Today, that landscape has changed. Bank of America began in the reverse mortgage space with a small retail channel, before ramping up its operations through the acquisition of Seattle Mortgage reverse mortgage business in 2007. The company then grew as both a retail and wholesale lender, meaning it offered HECM loans through its retail branches, and closed loans that were originated by mortgage brokers... Read Full Article

Wells Fargo Reverse Mortgage Review (2021 Update)

October 6, 2021     18 comments

Many years ago, some of the biggest banks in the nation offered reverse mortgages. Among them, Wells Fargo was one of the largest lenders in the U.S. Home Equity Conversion Mortgage (HECM) market. Today that is no longer the case. Wells Fargo was at one time the largest reverse mortgage lender in the country. It was only a short time later that the company decided to close its reverse mortgage business, leading to an unexpected timeline of events: 2010: Wells Fargo reaches a staggering 25% market share 2011: Wells Fargo decides... Read Full Article

Financial Freedom Reverse Mortgage Review (2021 Update)

October 6, 2021     26 comments

At one time, there were quite a few major bank lenders offering reverse mortgages. In fact, in the early 2000s, the majority of reverse mortgage loans were closed by national banks. One of the large bank lenders was Financial Freedom, which most recently operated under the parent company CIT Group, and previously was owned by OneWest Bank and IndyMac. At its peak, the company originated more than 11,000 reverse mortgages annually and held the title of top wholesale lender. Summary: • Financial Freedom at one time was the largest... Read Full Article

Here’s the Real Truth About Reverse Mortgages (No BS)

October 1, 2021     15 comments

A recent comment from our reader: To whom it may concern: I have read so much reverse mortgage info. It sounds like it is not really to help you but for the bank to help themselves. It is designed to make you think they are helping you, but the truth is you are really giving away your home. You are selling it to them for a very low price. If you get the reverse loan in Dec. 2019 and die in Jan. 2020 you have lost your home, you... Read Full Article