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Reverse Mortgage Attorney Asks: Rules of Spouse & Survivorship

August 23, 2021     28 comments

Hello ARLO, Husband & Wife, both over 70-years-old, occupied principal residence in California for many, many years and have no other home. Husband had a fall in late 2016 and was discharged from the hospital to a board & care facility to recover. Husband had been at board & care facility for 4 months when husband & wife applied for a reverse mortgage in early 2017 seeking to both be borrowers on the loan. The home was Husband's permanent place of abode, and he had no other permanent residence.... Read Full Article

Advantages and Disadvantages of Fixed Rate Reverse Mortgages

August 23, 2021     4 comments

Fixed Rate Reverse Mortgages – which is right for you? Many senior borrowers have been raised on the idea that a fixed rate loan is the “only way to go”. Still others remember back to the early 80’s when interest rates climbed as high as 18%. Some borrowers experienced rising interest rates from adjustable rate loans (or knew others who did) and some remember family and friends whose payments rose to a point where they could no longer afford their homes. A fixed rate locks the rate in for the... Read Full Article

How to Deduct Reverse Mortgage Interest & Other Costs

August 18, 2021     48 comments

Similar to a conventional mortgage, some of the costs associated with getting a reverse mortgage are tax-deductible, as are any interest payments a borrower might make. For example, Joe Diaz, owner of American Essential Services, a tax preparation company located in Kissimmee, Fl, can claim reverse mortgage origination fees and any broker fees. And, he continues, if a broker gives a borrower a “discount” on the loan’s interest rate in exchange for a “discount point,” that’s also tax deductible. Here’s how it works: A mortgage broker gives a borrower a... Read Full Article

2021 Reverse Mortgage Limits Soar to $822,375

August 5, 2021     8 comments

BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! 2021 Reverse Mortgage Limits Officially $822,375! The U.S. Department of Housing and Urban Development (HUD) just announced that the reverse mortgage lending limit for the Home Equity Conversion Mortgage (HECM) program will be raised from $765,600 to $822,325 effective January 1, 2021. The HUD Mortgagee Letter announcing the increase, can be found on the HUD website. After the limits remained unchanged for many years, this is the 5th year in a row where HUD has raised the lending limit. It... Read Full Article

Non-Recourse Reverse Mortgage Protections Explained

August 5, 2021     29 comments

What is a Non-Recourse reverse mortgage? The general public often misunderstands the Non-Recourse feature of the reverse mortgage.  It has been the topic of a recent lawsuit between AARP and HUD over the interpretation and implementation of it. A Non-Recourse reverse mortgage means that a borrower can never owe more than their home is worth at the maturity of their reverse mortgage loan.  What does this mean, and how does this benefit the consumer?  I will give you an example of how advantageous this product feature can be. ... Read Full Article

Reverse Mortgage Occupancy Requirements Explained

August 2, 2021     72 comments

We live with my mother-in-law and were present throughout the process of her getting a reverse mortgage.  The broker is fully aware that we live there with her, help keep up the property, and pay living expenses.  He told us if she ever needed to go to a nursing home, if she was in the home at least once a month, they would not recall the loan.  What I am reading here seems contradictory to what we were told.  We were also told about having 12 months to sell or... Read Full Article

Selling an “Upside-Down” Reverse Mortgaged Home

July 7, 2021     14 comments

I am still confused about debt after I sell. My wife and I have a current reverse mortgage debt of $300K on a Seattle (98146) house valued by Zillow at $310K. At time of reverse mortgage award it was appraised at $380K. We took out the reverse mortgage about 15 years ago thinking it would be our home until death. Unfortunately, for health reasons, we can no longer live in the Seattle weather; I am 88 yrs. old (VA 100% permanent and totally disabled) and she is 82 years old.... Read Full Article

Should You Sell Your Home or Take a Reverse Mortgage?

July 2, 2021     2 comments

The decision to take out a reverse mortgage may stem from a variety of reasons, whether it’s a desire to stay in your home or the need for extra cash flow. When facing the decision to take out a reverse mortgage or sell your home, there are a few factors to weigh. Each option has its own pros and cons and can vary depending on your particular situation. Pros & Cons of Selling Staying with a Reverse Mortgage Perhaps the most important thing to consider is your ultimate goal for... Read Full Article

What Happens When You Inherit a Reverse Mortgaged Home?

July 1, 2021     4 comments

Hi ARLO, my mom passed away, I have inherited her home with a reverse mortgage on it. Can I still try and refinance the loan or home, or do I have to get a home loan myself? The reverse mortgage becomes due and payable when the last borrower on the loan is no longer living in the property.  If mom was the last borrower, when she passed the loan became due and payable which gives you several options. I assume from your question that you would like to stay in... Read Full Article

How a Reverse Mortgage Can Protect Your Assets from Inflation

July 1, 2021     no comments

The troubled economy, pandemics and social unrest have made the idea of retirement very uncertain for many seniors who are now struggling to come up with ways to securely finance their futures. What most senior homeowners don’t realize is that getting a line of credit through a reverse mortgage can help them preserve their equity from inflation, as it will allow them to lock in on historically low interest rates and current home values which have grown tremendously in recent years, and increase the amount of loan funds available to... Read Full Article