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Reverse Mortgage for Second Home or Investment Property?

March 1, 2019     29 comments

One question we often get from potential clients is: Can I take a reverse mortgage out on my second home? The short answer is no, not anymore.  Prior to the financial crisis, some lenders did offer a private product that allowed borrowers to obtain a reverse mortgage on their second home. But today, most reverse mortgages are through the Federal Housing Administration's home equity conversion mortgage (HECM) program, which only allows for a reverse mortgage on a primary residence. The good news is that you can use a... Read Full Article

Here’s How Much You Get from a Reverse Mortgage in 2021?

February 27, 2019     8 comments

If you’re looking for a new way to finance your retirement, the range of options available to you through a reverse mortgage is worth exploring. Most people start with the question: "How much can I get?" It's a good place to start, and it’s important to know that there are several factors that will determine the maximum amount you can borrow. Here are the things that affect the maximum amount of value you can take out of your home’s equity through a Federal Housing Administration (FHA)-insured Home Equity Conversion Mortgage... Read Full Article

What is the Government’s Role in Reverse Mortgages?

February 13, 2019     6 comments

An estimated 99% of of reverse mortgages offered today are insured by the Federal Housing Administration (FHA), according to the agency. While the government does insure these reverse mortgage products, it does not offer the loans directly to consumers. Since they are insured by the federal government, the vast majority of reverse mortgages come with additional benefits that you won’t find from any private reverse mortgage product. FHA Protections FHA provides borrowers with the comfort of knowing that they will never owe more than the home is worth.... Read Full Article

Make Repayments for an Increased Line of Credit or Tenure!

February 12, 2019     2 comments

My interest and Mortgage insurance are adding $1,100.00 to my principal each month because my rate has gone up 2% in the last year---my Line of credit has $60,000 and grows by $245.00 a month. I would like to start putting my prepayments on the unpaid principal. My loan states that I can specify if I want to have the prepayments put on the principle as a payment. This would lower the amount of fees charged and place the $400.00 a month that I request to have to be put... Read Full Article

Comparison of Reverse Mortgages & Home Equity Loans

February 6, 2019     2 comments

Borrowers are still asking, "Which is better, a Home Equity Line of Credit from our Bank or a Line of Credit on a Reverse Mortgage?". And there is not just one answer the works for everything when comparing the Home Equity Line of Credit or HELOC to the Home Equity Conversion Mortgage (HECM or "Heck-um") when accessed as a line of credit. The two loans are different in many ways and which is "better" is often determined by which is better for you. A HELOC (Home Equity Line of Credit)... Read Full Article

Are Reverse Mortgages Harmful to Condominium Associations?

January 30, 2019     no comments

ALERT: HUD Announces Condo Changes Effective October 15, 2019! We have just read with interest the benefits of reverse mortgage to an applicant on your website. You also mention benefits to the Condo Associations. However, our experience as an Association in Florida has been negative.  We have recently had a problem in our condominium unit in Boca Raton, Florida, and thought with your experience you might have some insight.  We can certainly see the benefits to the person obtaining the reverse mortgage but have certainly seen the negative... Read Full Article

What are the Reverse Mortgage Maintenance Requirements?

January 28, 2019     12 comments

How would you characterize the average reverse mortgage lender's maintenance requirements?  Do they tend to be stringent, moderate, or relatively lax?  I have read one account of a reverse mortgage lender requiring very burdensome maintenance requirements that the average retiree wouldn't be much concerned with...such as those necessary for maximum resale value, but largely cosmetic (repaint the entire house inside and out) and not structural. Lender Involvement After Closing I don’t know what account you read, but I have never heard of stringent requirements for maintenance.  The only times I have... Read Full Article

15 Questions You Should Ask Before Accepting a Reverse Mortgage

January 14, 2019     8 comments

Looking into a Reverse Mortgage? Here are the questions you should ask: What exactly is a reverse mortgage? A reverse mortgage is a loan insured by the federal government that allows you to convert a portion of the equity you’ve built up in your home into tax free single lump sum disbursement, line of credit or monthly payout.  Read our Plain English Version Here to learn what a reverse mortgage is. Will the bank own my home? No, you will still be the sole owner of your home. The bank... Read Full Article

2018 Reverse Mortgage Interest Rates On The Rise!

December 20, 2018     no comments

What Rising Interest Rates in 2018 Mean for Reverse Mortgage Borrowers Interest rate increases impact reverse mortgage borrowers differently from how they impact forward mortgage borrowers. While gains in short-term rates have a minimal effect on the amount of loan proceeds reverse mortgage borrowers may be eligible to receive, hikes in longer-term rates can significantly reduce their borrowing power over time. Much of the difference has to do with how rates are calculated on reverse mortgages. The vast majority of reverse mortgages are Home Equity Conversion Mortgages (HECMs), which... Read Full Article

One Reverse Mortgage Problem No One is Talking About

November 1, 2018     2 comments

..one originator’s observations about the undiscussed reasons for problems with the MMI fund. We heard from Brian Montgomery at the annual NRMLA meeting that he envisions further changes coming down the road for the HUD HECM program.  Jessica Guerin at The Housing Wire (Housing Wire on Brian Montgomery) tells us that Montgomery outlined the “fixes” attempted by HUD and that they amounted to, in his words, short term fixes that have not worked to stop the losses the reverse mortgage program is suffering. FHA Commissioner Montgomery Hints That... Read Full Article