Here Are the Banks That Offer Reverse Mortgages (2020 List)

December 11, 2019     7 comments

When it comes to getting a reverse mortgage, you may start by wondering what type of lender to work with, and specifically: which banks offer reverse mortgages. Perhaps you used a national or regional bank for a mortgage loan in the past as many of the big banks offer mortgage lending services. It’s also possible you worked with a non-bank mortgage lender, as these companies are also active in the mortgage lending space. There are many banks that offer reverse mortgages, although most of the major national banks, such... Read Full Article

Reverse Mortgage Insurance Explained (2020 Update)

December 11, 2019     32 comments

A federally-insured reverse mortgage comes with the benefit that you, the borrower, will receive loan payments as agreed upon by the terms of your loan, and will never owe more than your home is worth. Those benefits are guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which includes the vast majority of reverse mortgages out there. In order to receive that guarantee, borrowers pay for it through the reverse mortgage insurance premiums. The first is a one-time insurance payment that is made upfront, and the other... Read Full Article

FREE Reverse Mortgage Amortization Calculator (Excel File)

December 11, 2019     5 comments

All Reverse Mortgage has developed the first ever reverse mortgage amortization calculator that lets you change future interest rate, appreciation rates and payment assumptions. Download your copy here! Purpose of the Reverse Mortgage Amortization Calculator Have you ever wondered about how a reverse mortgage loan could be more advantageous than a traditional loan? Are you someone who thinks Reverse Mortgage loans are only for those in dire straits? Think that if you get a Reverse Mortgage loan that you will have no equity in your home for the rest... Read Full Article

What is a Reverse Mortgage? Explained in Simple Terms!

December 11, 2019     63 comments

What is a Reverse Mortgage? A reverse mortgage is a loan for homeowners age 62 and older that requires no monthly mortgage payments. The loan is repaid when the borrower passes away, leaves the home permanently or sells. Available funds are distributed as a lump sum, line of credit or structured monthly payments. What it is  A loan against your home’s equity No monthly mortgage payments required Designed to meet the needs of retirees on fixed incomes Tax-free cash for virtually anything What it's NOT Selling your home... Read Full Article

How Does a Reverse Mortgage Work? Know the Facts!

December 11, 2019     34 comments

A reverse mortgage works by allowing homeowners age 62 and older to borrow from their home’s equity without having to make monthly mortgage payments. As the borrower, you may choose to take funds in a lump sum, line of credit or via structured monthly payments. The repayment of the loan is required when the last surviving borrower vacates the home permanently. How It Works:  Access a portion of your home’s equity Percentage is based on age of youngest borrower Make no monthly mortgage repayments Funds are tax-free, and may... Read Full Article

Reverse Mortgages: Know the Pros and Cons! (2020 Update)

December 11, 2019     42 comments

When used correctly, a reverse mortgage can add stability to your retirement years. But as with any financial product, it is not always the best program for everyone. We have created our "Reverse Mortgage Pros and Cons" guide to help you make an informed decision about reverse mortgages and if the program is suitable for your long-term retirement goals. If you have a questions about whether a reverse mortgage is right for you, Ask ARLO, or discuss your situation with an independent housing counselor. The Pros  No Monthly Mortgage Payments... Read Full Article

Reverse Mortgage Line of Credit & Growth Rate Explained

December 11, 2019     82 comments

In 2020, the reverse mortgage line of credit continues to be the most popular option for homeowners when choosing how to access their funds.  According to an article by AARP, borrowers recognized this choice at about 66% of the time when obtaining a reverse mortgage as being the right choice for them. The credit line option allows borrowers a great deal of freedom when planning their finances. Homeowners like the fact that they can take as much as they want when the loan originally closes up to the maximum allowed... Read Full Article

Reverse Mortgage Counseling (Free, Online, In-Person)

December 7, 2019     28 comments

The U. S. Department of Housing and Urban Development (HUD) requires that homeowner(s) interested in pursuing a Home Equity Conversion Mortgage (HECM) receive mandatory reverse mortgage counseling regarding the implications of and alternatives to a reverse mortgage from a HUD-approved HECM counseling agency. We are required by HUD regulations to provide you with a list of reverse mortgage counseling agencies. The list must include all HUD-approved counseling intermediaries that can provide telephonic counseling, as well as five (5) counseling agencies within your local area, state or both, with at least... Read Full Article

Proprietary Reverse Mortgage: Rates, Limits & Loan-to-Values

December 7, 2019     14 comments

Are you thinking about taking out a reverse mortgage? Have you heard the word ‘proprietary’ thrown around, and wonder what the differences are between a ‘regular’ and ‘proprietary’ reverse mortgage? Read on to learn about what those differences are, and what you should know when thinking about whether any reverse mortgage is right for you. In this overview, you’ll learn about the following topics: What does ‘proprietary’ mean? What is a ‘regular’ reverse mortgage? What is a ‘proprietary’ reverse mortgage? Maximum reverse mortgage proceeds Why would I bother with a... Read Full Article

2020 Reverse Mortgage Limits Officially $765,600

December 4, 2019     2 comments

HUD just announced that the current reverse mortgage loan limit for the HUD Home Equity Conversion Mortgage (HECM) will be raised from $726,525 to $765,600 effective January 1, 2020. The HUD Mortgagee Letter announcing the increase, can be found on the HUD website here: https://www.hud.gov/sites/dfiles/OCHCO/documents/19-20hsgml.pdf . After the limits remained unchanged for many years, this is the 4th year in a row where HUD has raised the lending limit. It had remained stagnant at $625,500 since 2009 when the limits were originally raised from $417,000 as part of the American... Read Full Article