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

Compare Today’s Best Reverse Mortgage Lenders (2020)

July 20, 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

NOVAD Reverse Mortgage Problems – Please Help!

April 21, 2020     10 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

Reverse Mortgage After Death: What Heirs & Family Must Know.

December 17, 2019     155 comments

It seems that one of the most popular questions we get is: What happens with my reverse mortgage and my home after death? The reverse mortgage is intended to be the last loan that borrowers will ever need, so this is a question many homeowners and their heirs have on their minds as many of them intend to keep the loan and the home for life. If they do get a reverse mortgage and it does enable them to live in their homes without paying a mortgage payment for the... Read Full Article

Warning: Reverse Mortgage Downsides & Disadvantages

December 16, 2019     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 or 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

Here are 3 Reverse Mortgage Examples in 2020

December 16, 2019     14 comments

Is there an example of how a reverse mortgage works? We get this question all the time, from borrowers, family members and even others in the lending industry and other professional industries who just don’t understand the product. It seems that almost everyone has an opinion on reverse mortgages and often they are based on almost no factual knowledge. Often people base their opinions on something they heard, some report they read from a reporter who may not have had all the information themselves or were looking to make a... Read Full Article

2020 Reverse Mortgage Changes: New Limits, New Programs!

December 13, 2019     10 comments

What’s New and Exciting for 2020 Reverse Mortgages? It seems that reverse mortgage borrowers have been getting nothing but bad news for the past 7 years. HUD has implemented more restrictions, lowered amounts available to borrowers, increased eligibility requirements that borrowers had to meet and overall, reverse mortgage borrowers have had little to be happy about for a while. Don’t get us wrong, it hasn’t been all bad news.  Over that same period, properties began to rise in value again after 2012 giving borrowers more equity, jumbo & proprietary... Read Full Article

Today’s Reverse Mortgage Refinance Rates & Limits

December 12, 2019     102 comments

HECM Refinance Rates for September 2020. *Rates subject to change without notice. Is a Reverse Mortgage Refinance Right for You?  There are many instances when borrowers consider a reverse mortgage refinance. Refinancing existing loans does make sense at times, and sometimes it does not. Borrower(s) should only consider refinancing their loan if the borrower(s) when it makes sense for their circumstances. Some homeowners will find that they meet some of the conditions listed below but don’t need additional... Read Full Article