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How the Reverse Mortgage Margin & Libor Rate Works

June 10, 2024     8 comments

Understanding Your Reverse Mortgage: Key Factors One of the most common questions about a reverse mortgage is how much money you, as the borrower, can receive.  The amount you can get depends mainly on two factors: your age and the loan's interest rate and margin. Typically, the older you are, the more money you can receive.  Lower interest rates also mean you can borrow more.  A higher loan margin means the interest rate must be lower to increase the amount you can receive from a reverse mortgage. The important... Read Full Article

What to Expect When Your Reverse Mortgage is Assigned to HUD

June 7, 2024     80 comments

We received a notice that our reverse mortgage loan is being assigned to HUD, along with the name of the handling company.  This company has numerous complaints, especially about foreclosing before heirs can settle the home.  I am the beneficiary of my mom's house, which is in a trust and a will to avoid probate.  What recourse do I have if they refuse to work with me and foreclose despite my efforts?  The complaints mention lies, runarounds, no payoff amounts, and unreturned calls.  This is terrifying, as there's enough equity... Read Full Article

Is Tom Selleck Reverse Mortgage Company Selling Snake Oil?

May 20, 2024     82 comments

We just received this comment on our blog: It boils down to the saying, If it's too good to be true, then it is.  I watched this actor named Tom Selleck pitching for a reverse mortgage on a TV commercial.  That sounds very convincing, even when he swears to have done his homework on the matter and told the truth.  An actor worth millions, and before him was another actor, Robert Wagner.  Yet, does he really need to do a reverse mortgage on his estate?  With his king of dough? ... Read Full Article

3 Best Reverse Mortgage Calculators | No Personal Info Needed

May 20, 2024     no comments

Are you exploring reverse mortgage options?  Our guide to the 3 best reverse mortgage calculators, which require no personal information, will help you make an informed decision quickly and easily. Whether you are a homeowner thinking about a reverse mortgage, a family member helping with financial planning, or just curious, this guide is for you.  We explain how these calculators work and give you tips on using them so you have all the information you need to feel confident in your reverse mortgage journey! Understanding Reverse Mortgage Calculators... Read Full Article

Reverse Mortgage Pros and Cons: Understanding Benefits & Risks in 2024

May 19, 2024     10 comments

Welcome to our comprehensive guide on the pros and cons of reverse mortgages!  When used correctly, a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), can add stability to your retirement years. However, as with any financial product, reverse mortgages are not always the best program for everyone.  This guide will help homeowners evaluate financial options, understand potential risks and benefits, and make informed decisions about reverse mortgages. Introduction to the Downsides Before exploring the benefits, it's important to understand the potential drawbacks of reverse... Read Full Article

Free Reverse Mortgage Amortization Calculator

May 16, 2024     4 comments

All Reverse Mortgage, Inc. (ARLO™) has created a new reverse mortgage amortization calculator that helps you understand how your loan will change over time. With the amortization calculator below, you can: Choose how much to borrow or repay. Instantly see how this affects your loan balance and credit line. Adjust for future interest rates, home value changes, and payment plans. Welcome to our Amortization Calculator Benefits of Making Payments on a Reverse Mortgage Have you considered the advantages of a reverse mortgage compared to a traditional loan?... Read Full Article

Understanding Reverse Mortgage Insurance: Key Benefits, Costs, and Protections

May 16, 2024     34 comments

Introduction to Reverse Mortgage Insurance When you get a federally insured HECM reverse mortgage, the biggest initial cost is the Upfront Mortgage Insurance Premium (UFMIP).  This is a one-time fee of 2% of either the maximum lending limit ($1,149,825) or your home’s appraised value, whichever is lower. There’s also an ongoing cost called the Annual Mortgage Insurance Premium (MIP).  This is 0.5% of your remaining loan balance and is added to your loan each month. Mortgage insurance on a reverse mortgage has important benefits.  It ensures you will never owe... Read Full Article

2024 Guide to Reverse Mortgage Purchase (HECM Purchase)

May 15, 2024     12 comments

Introduction to Purchase Reverse Mortgages Welcome to our guide on Purchase Reverse Mortgages!  In this article, we will explain how you can buy a new home with a special kind of reverse mortgage, making it easier for you to transition to a new living situation as you age.  Whether you are considering downsizing, moving to a more accessible home, or relocating closer to family, this guide is for you. We will cover the essentials – from the benefits of a Reverse Mortgage Purchase to how the Home Equity Conversion Mortgage... Read Full Article

New Florida Law Reduces Taxes on Reverse Mortgages Starting July 1, 2024

May 14, 2024     no comments

The Cost of Reverse Mortgages in Florida Florida has long been one of the most expensive states in which to close a reverse mortgage due to the fees charged by the state.  In addition to already having higher title insurance costs and higher hazard insurance costs, Florida seniors have had to endure the state charging documentary stamp taxes on every mortgage recorded, determined by the face amount on the Mortgage. Impact on Seniors The significance of this is that on a reverse mortgage, that face amount is 1.5 times the... Read Full Article

How Reverse Mortgages Can Affect Medicaid and SSI Eligibility: What You Need to Know

May 13, 2024     48 comments

When choosing a payment method for a reverse mortgage, borrowers should be aware that the loan proceeds can impact their eligibility for Medicaid or Supplemental Security Income (SSI). Individuals aged 62 and older who are considering a reverse mortgage to supplement their retirement income should carefully evaluate how this decision may affect their access to needs-based programs. Frequently Asked Questions About Needs-Based Assistance Q. How does a reverse mortgage affect Medicaid? Medicaid is a "needs-based" program.  Verifying your benefits with a financial advisor is... Read Full Article