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     52 comments

Tax Benefits of Reverse Mortgages: What’s Deductible? Similar to a conventional mortgage, some costs associated with a reverse mortgage are tax-deductible, as are interest payments a borrower chooses to make.  Joe Diaz, owner of American Essential Services, a tax preparation company in Kissimmee, Florida, explains that borrowers can claim origination fees, broker fees, and even “discount points” if a broker offers a lower interest rate in exchange for an upfront fee. “The discount point is tax-deductible because it’s a prepaid interest cost,” Diaz notes. Here’s how it works: 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

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

Reverse Mortgage Age Limits & Title Cautions

June 29, 2021     48 comments

The HUD HECM program limits the youngest borrower to the age of 62 or older to be eligible for the reverse mortgage program. If there is a spouse of a borrower who is not yet 62, the older spouse can still get a reverse mortgage and the younger spouse can remain on title and would be known as an “eligible non-borrowing spouse.” Eligible Non-Borrowing Spouses An eligible non-borrowing spouse can also live in the home for life, even if the older spouse passes or should have to leave the... Read Full Article

Reverse Mortgage Payment Options: Lump Sum vs Line of Credit

June 29, 2021     14 comments

If I do a reverse mortgage, can I pull all the money upfront as a lump sum, or do I have to have a line of credit? Is there a cost to pulling out all the money upfront? HUD changed the program a little while back so that borrowers are capped at what they can pull from home based on the amount of what HUD calls the property charges that must be paid at the time of the loan. The bottom line is that borrowers who need all their... Read Full Article