Here are the Downsides of a Reverse Mortgage in 2019

October 10, 2019     8 comments

A reverse mortgage is a loan, and as with any type of loan there are benefits and there can be downsides. What is the downside to reverse mortgages?  A reverse mortgage is a loan, and as with any type of loan there are benefits and there can be downsides. Here, we will address some of the pros and cons associated with reverse mortgages for those qualifying individuals who are age 62 or older. The reverse mortgage: a non-recourse loan designed for senior borrowers The reverse mortgage is a home loan... Read Full Article

Purchase Reverse Mortgage Purchase FAQs (Updated 2019)

October 10, 2019     no comments

What is a Purchase Reverse Mortgage? A Reverse Mortgage for Purchase allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the HECM (Home Equity Conversion Mortgage) What is the purpose of the program? The Purchase Reverse Mortgage program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction by eliminating the need for a second closing.  The program was also designed to enable senior homeowners to relocate to other geographical areas to... Read Full Article

Reverse Mortgage Servicing, Setting the Record Straight.

October 9, 2019     10 comments

Loan servicing is a critical component to the reverse mortgage process. It’s also one of the most misunderstood functions by borrowers. A reverse mortgage goes through several different cycles throughout the life of the loan. The loan begins in the origination stage, moves to closing and then enters the servicing phase, where the reverse mortgage will remain throughout the life of the loan - but that doesn't necessary mean that it will stay with the same servicer throughout the life of the loan!. Reverse mortgage servicing is important because this is the... Read Full Article

Livewell Reverse Mortgage Review 2019

October 7, 2019     8 comments

Across the reverse mortgage lender landscape, there are a variety of company types: banks and non-banks; large national lenders; and small regional ones. Over time, many large banks have exited the reverse mortgage business, while independent non-bank lenders today comprise most of the reverse mortgage volume. Still, there are changes that take place within the lender landscape from time to time, and 2019 was a year of major change for Live Well Financial, which today is no longer in business. Summary:  Live Well Financial was among the... Read Full Article

How to use a Reverse Mortgage in a Divorce Settlement

October 6, 2019     56 comments

You may have heard about the ways in which a reverse mortgage can help improve your financial situation by allowing you to withdraw the equity in your home over time. For those people meeting the 62-year-old age requirement who have substantial equity in their homes, this can be a means to expand monthly cash flow or eliminate mortgage payments by paying off an existing mortgage through a federally-insured loan. However, there is another important time when a reverse mortgage can be a helpful tool: in a divorce. While taking... Read Full Article

10 Tips for Using a Reverse Mortgage for Home Purchase

October 1, 2019     no comments

Are you planning to use a Reverse Mortgage to Purchase a Home?  Then the following tips will be very handy... The sale must be an “Arm’s Length Transaction” which means that you must be buying from a totally unrelated third party.  Purchases involving family members are not eligible. Has the property recently sold?  The property cannot have been sold less than 6 months prior to this sale as that would be “property flipping”.  HUD does allow for some exceptions for HUD repos.  Check with us BEFORE you make an... Read Full Article

How Reverse Mortgage Financial Assessment Works

October 1, 2019     4 comments

Lenders must conduct a mandatory financial assessment of all borrowers as part of the loan application process. Historically, borrowers qualified for a reverse mortgage based on their: Age: a minimum of 62 Home equity: a level deemed substantial enough by the lender based on guidelines provided by the Department of Housing and Urban Development (“HUD”) Those factors along with interest rates were used to determine a loan amount for each borrower. The new financial assessment will take a look at additional criteria to determine whether... Read Full Article

2019’s Best Reverse Mortgage Lenders, Tips & Reviews

September 29, 2019     16 comments

A reverse mortgage, when used correctly can add stability to your retirement years and selecting the right reverse mortgage lender to originate your loan is an important first step. We created this Lenders Review Guide to provide insight into how lenders are rated and how reviews are collected across the web, (including independent and sponsored review sites). With a federally insured HECM loan, the lender is NOT the entity who is guaranteeing access to your funds or the terms of the loan. HUD guarantees that if a lender servicing your... Read Full Article

Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

September 28, 2019     5 comments

If you’ve made the decision to stay in your home, but you’re not sure if your savings will last, a reverse mortgage could be a potential solution to help you achieve that goal. But different reverse mortgage types can serve different purposes and as with any mortgage, you must consider which program and rate option are best suited for you. Just like any other mortgage, reverse mortgages offer two types of interest rates: fixed rates and adjustable rates. Insured by the Federal Housing Administration (FHA), the most common reverse mortgages in the market today... Read Full Article

Advantages and Disadvantages of Fixed Rate Reverse Mortgages

September 28, 2019     2 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