Reverse Mortgage Pros and Cons by ARLO™ (2021)

December 28, 2020     48 comments

When used correctly, a reverse mortgage, also known as the Home Equity Conversion Mortgage (HECM), can add stability to your retirement years. But as with any financial product, it is not always the best program for everyone. We have published our "reverse mortgage pros and cons" guide to help you make an informed decision about reverse mortgages and help you raise a few questions to determine if the program is suitable for your long-term retirement goals. Reverse Mortgage Pros  1. No monthly mortgage payments A reverse... Read Full Article

Purchase Reverse Mortgages: Rates, Down Payment & Limits

December 27, 2020     54 comments

Did you know that a reverse mortgage can be used to purchase a new home? It sure can, in a process called a Home Equity Conversion Mortgage Purchase. (HECM Purchase) Basically, a new home is bought at the same time a reverse mortgage is taken, and the transaction is rolled into one. The reverse mortgage for home purchase is an option for seniors who want to relocate, either to be closer to family, to downsize, or move to a home that better meets their needs—without having to make monthly mortgage... Read Full Article

2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.

December 27, 2020     16 comments

Expansion of Jumbo & Proprietary Reverse Mortgages  The Mortgage Insurance Fund, which affects all borrowers who rely on federally-insured reverse mortgage loans, has been at risk and HUD responded with a series of changes that limit exposure to future losses.  One of the silver linings from the changes HUD made is the re-emergence of Jumbo Reverse Mortgage products. For most borrowers in the past, jumbo programs simply did not make sense. Most often, borrowers with homes worth less than $822,375 would typically receive as much or more money on HUD... Read Full Article

Reverse Mortgage Fixed Rate & Unusable Funds Explained

December 27, 2020     4 comments

If you have decided that you’d like to use a reverse mortgage to tap into your home equity while remaining in your home, there are several considerations that will help you determine how to make the most out of your loan. A reverse mortgage can be an excellent way for some households to boost their cash flow in retirement, establish a “rainy day” fund for health care expenses or other unexpected costs, or to provide a lump sum for a pressing expense such as home renovations or maintenance. If you... Read Full Article

Advantages and Disadvantages of Fixed Rate Reverse Mortgages

December 27, 2020     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

Here’s the Real Truth About Reverse Mortgages (No BS)

December 20, 2020     15 comments

A recent comment from our reader: To whom it may concern: I have read so many reverse mortgage info. It sounds like it is not really to help you but for the bank to help themselves. It is designed to make you think they are helping you, but the truth is you are really giving away your home. You are selling it to them for a very low price. If you get the reverse loan in Dec. 2012 and die in Jan. 2013 you have lost your home, you just... Read Full Article

Reverse Mortgage Attorney Asks: Rules of Spouse & Survivorship

December 18, 2020     20 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

Here’s How Long You Have to a Repay Reverse Mortgage

December 16, 2020     no comments

Carole has sent the following question in ask ARLO! blog. Hello ARLO, Hello. My stepmother is in her 80's, has dementia, and is the sole Trustee of a Family Trust set up by my father years ago. My brother and I are the beneficiaries. A few years back her neighbors advised and assisted her in placing the house (which had been assigned to the Trust and is in the name of the Trust) into a Reverse Mortgage without consulting or notifying either myself or my brother beforehand. As sole... Read Full Article

Timeframe to Vacate Home After Reverse Mortgage

December 15, 2020     12 comments

Hello ARLO - My father passed away in October 2018. He had a live-in caretaker for several years. I decided to sell the house in California, while the caretaker is occupying the home to keep the property safe and away from squatters and facilitate the viewing. One offer from a buyer fell through and the caretaker approached my agent wanting to put in an offer and Celink has been working on the short sale approval on his offer for 2 months, with very little communication and feedback. The appraisal... Read Full Article

6 Steps To Repaying Reverse Mortgage After Death

December 15, 2020     42 comments

If you are the heir to a borrower who has a reverse mortgage who has passed, here are the steps we recommend you follow: Time to Payoff Reverse Mortgage Generally you will have up to 6 months to refinance the reverse mortgage into a loan of your own, or up to 12 months to sell. (Each 3 months requires an extension by the loan servicer.) Step 1. Locate the last reverse mortgage statement.  We have guidance here for how you can read the statement, so you know what you... Read Full Article