Pros and Cons of Reverse Mortgages

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

May 19, 2024     12 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 Reverse Mortgage Amortization Calculator NOTE: Drop us a comment below if you want a copy of this amortization calculator, which is available as an Excel... 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

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     50 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

Comparing the Top 3 Reverse Mortgage Types in 2024

May 2, 2024     5 comments

If you're considering using your home's equity to boost your finances during retirement, it's important to know that there are several types of reverse mortgages available, each with its own benefits and uses. In this article, we'll cover: The three main types of reverse mortgages: Home Equity Conversion Mortgages (HECM), proprietary (or "jumbo") reverse mortgages, and single-purpose reverse mortgages. Key features of each type: We'll discuss what makes each type unique and how they can fit your financial needs. Where to find more information: Get resources to help you decide... Read Full Article

Is a Reverse Mortgage a Good Fit for You? 4 Ideal Scenarios to Explore

April 29, 2024     25 comments

Thinking about your finances can be overwhelming, but there are times when a reverse mortgage can help.  It's a tool that can give you more freedom and peace of mind, especially as you get older. In this article, we'll explore four situations where getting a reverse mortgage might be just what you need.  Whether you're looking to boost your cash flow, improve your home, or secure your retirement, a reverse mortgage could be a game-changer. 4 Compelling Advantages of Reverse Mortgages: #1.  Enhancing Your Cash Flow Consider a... Read Full Article

Can you get a Reverse Mortgage with a Life Estate?

April 25, 2024     25 comments

Question from an ARLO Reader: I am considering a reverse mortgage and have my debt-free property in a Life Estate; my sister is the Grantee.  I understand she would have to sign the loan/closing docs without having had the counseling, but I am confused about whether that title would still be held in the Life Estate, correct?  Are there any negatives here?  Also, if I quitclaim her off before the reverse mortgage is executed, can I quitclaim her back the same Life Estate, and if so, would that entitle her... Read Full Article

2024 Jumbo Reverse Mortgage Guide: Top Lenders, Rates & Loan Limits

April 10, 2024     14 comments

As we enter 2024, the landscape of reverse mortgages continues to evolve, with jumbo reverse mortgages, also known as proprietary or private reverse mortgages, emerging as a significant component for homeowners with high-value or non-conforming/non-FHA insurable properties. In this article, we will dissect the critical differences between jumbo and FHA-insured reverse mortgages, clarifying why and when a jumbo reverse mortgage could be the right choice for you.  We will also dive into the key benefits alongside a balanced discussion of these loans' potential risks and rewards. Whether you are a... Read Full Article

Reverse Mortgage Refinance Guide: 2024 Limits, Rates & FAQ

April 8, 2024     58 comments

As we enter 2024, the landscape of reverse mortgage refinancing is evolving, bringing new opportunities and considerations for existing reverse mortgage holders. Our guide is tailored to provide you with the most up-to-date information on the new 2024 HECM limits, current rates, and expert tips for refinancing your reverse mortgage. When to Refinance Your Reverse Mortgage Your home value has increased considerably. You originally obtained your loan when the lending limit was less than the 2024 HECM limit of $1,149,825.  Your value is at or higher than the HUD... Read Full Article