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I've been told to wait on taking a reverse mortgage as a last resort. Why? Let me start by saying that we are a reverse mortgage lender who will be the first to tell you that reverse mortgages are not for everyone. But that's true of any financial product, and no loan is perfect for everyone. A reverse mortgage can be a great financial tool when used by the right borrower and for the right purposes. You need to assess your circumstances to see if this is right based on... Read Full Article
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The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people aged 50 and above achieve financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some significant ways. Here's where AARP comes into play for retirees who may be considering a reverse mortgage as a means to age in place. What does AARP think of reverse mortgages? AARP has supported reverse mortgage products to help older... Read Full Article
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Why would someone use a reverse mortgage while rates are up?! Due to inflation, interest rates have been climbing since early this year and borrowers receive less money on the loan at today’s rates than they did even a year ago. However, it may still make sense for seniors to consider a reverse mortgage over moving, and here’s why. Senior equity has risen to over 11 trillion dollars in the US. In many areas the market is getting much softer with the higher rates. Houses are beginning to take longer to sell and... Read Full Article
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Understanding Reverse Mortgage Servicing Reverse mortgage servicing is a vital yet often misunderstood part of the loan process. While borrowers focus on securing their loan, many don’t realize that servicing plays a long-term role in managing their reverse mortgage. A reverse mortgage moves through several stages: it starts with origination, proceeds to closing, and then enters the servicing phase—where it remains for the life of the loan. However, that doesn’t mean your loan will stay with the same servicer indefinitely. Servicing rights can be transferred, and understanding how this... Read Full Article
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My mom procured a reverse mortgage when property values were high. She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred to 3 different loan companies since mom vacated the property 5 months ago, and they have ignored the attorney's letters and continue to send mailings telling my mom that they... Read Full Article
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Many homeowners understand that when they qualify for a reverse mortgage, they're eligible for a loan amount that's a percentage of their home's value or the HUD Lending limit, whichever is lower. This amount, commonly known as the 'Principal Limit,' is a key factor in reverse mortgages. Yet, the 'Expected Rate' is a lesser-known aspect that significantly impacts the available funds from a reverse mortgage. Understanding how this rate influences the loan proceeds is crucial for consumers considering a reverse mortgage. Reverse Mortgage Expected Rate: Impact and... Read Full Article
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BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! 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
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If you're the owner of a manufactured home and you're wondering about your eligibility for a reverse mortgage, here's the short answer: you may be eligible. Now for the longer answer. As with any prospective borrower, you must be 62 or older, legally own the home, be your primary residence, and be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15, 1976. Why is this particular date so important? ... Read Full Article
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I have the home in a family trust. I am unmarried but have lived with my "wife" for years. She inherits the home by last will. Do we qualify for a reverse mortgage? The short answer is yes. You can have your home in a family trust with a reverse mortgage. Firstly, as a lender, we only get so much information. Then, we rely on the title and affidavits we receive when originating the loan. For example, we would do a title search and see that the current title is... Read Full Article
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Who pays property taxes and insurance on a reverse mortgage? Reverse mortgages offer financial relief for homeowners aged 62 and up, but they don’t erase all responsibilities. A common question is: Who pays property taxes and insurance? The short answer: You, the homeowner—unless a Life Expectancy Set-Aside (LESA) steps in. Here’s what you need to know to stay on track. The Basics: Homeowner Responsibility With a reverse mortgage, you still own your home and must pay property taxes and homeowner’s insurance. The loan doesn’t cover these unless you qualify... Read Full Article