Reverse Mortgages for Purchase in Texas Now Approved!

November 16, 2019     no comments

As the last state in the union to approve it, Texas voted in early November to allow the reverse mortgage for purchase product to be offered to its residents and those moving to the state. Texas has lagged other states that have long offered this type of reverse mortgage loan, due to longtime homestead laws that place certain barriers on access to home equity. Through a vote of the state’s electorate on November 5 that approved “Prop 5,” however, the loan will be made available to all Texas residents... Read Full Article

Lowest Cost Reverse Mortgage Surprisingly Affordable!

November 16, 2019     4 comments

It was just a few short years ago that people were reading about how expensive reverse mortgages were but that does not have to be the case currently. Don't get me wrong, HUD still charges an Initial Mortgage Insurance Premium based on the value of the home that can run as high as 2% for this one cost alone for the higher draws exceeding 60% of the available Principal Limit. And depending on the part of country in which you live, some of the necessary costs like title insurance and... Read Full Article

“My wife is Under 62, can I still do a reverse mortgage?”

November 16, 2019     no comments

I am 68 years of age, married my wife about three years age. I had my house before I got married. My wife is 54, can I still do a reverse mortgage? And if so how will it affect her? Her name is not on the deed. Gregory N. Firstly, let me say that as of August 4, 2014, this is completely different than it used to be and so anything you read that is dated prior to this time is no longer applicable. The internet is... Read Full Article

Return of the Non-FHA Reverse Mortgages are Here!

November 16, 2019     13 comments

If you’re in the market for a loan that can convert your home equity into cash flow or a line of credit in retirement, chances are you have explored the option of a reverse mortgage. But the reverse mortgage is not one-size-fits all, and what many people don’t know is there are several products to choose from, both under the Federal Housing Administration’s popular Home Equity Conversion Mortgage HECM program, as well as private loan options. For the last several years, the number of reverse mortgage products on the market... Read Full Article

Reverse Mortgage Expected Rate is Key to the Principle Limit

November 14, 2019     2 comments

Most people are aware that they receive a percentage of their home's value or the Government lending limit (whichever is less) based on their age when qualifying for a Reverse Mortgage loan. However, what many consumers are not aware of is the effect of the "Expected Interest Rate" as it correlates to their available proceeds on a Reverse Mortgage loan. The Expected Interest Rate is not the interest rate at which an individual Reverse Mortgage loan accrues interest, but the rate which is used to determine how much money the... Read Full Article

No Closing Cost Reverse Mortgage Options are BACK!

November 14, 2019     3 comments

You may be asking yourself how that could be a possibility. Most people associate Reverse Mortgages as having high closing costs in order to obtain one because of the 2% Upfront Mortgage Insurance Premium (UFMIP) that is charged by HUD to insure the loan. In fact, that is the number one complaint that you normally hear spoken about Reverse Mortgages is that the costs involved to obtain a Reverse Mortgage are just too high. HUD released the Saver version of the Reverse Mortgage product in an effort to bring a... Read Full Article

Resolute Bank Reverse Mortgage Review 2019

November 5, 2019     no comments

The reverse mortgage industry in the United States has had to wrestle with some issues related with some new regulatory rules handed down by the U.S. government in 2017 and 2018, and for some companies that had formerly offered loans in the space, the issues that stemmed from these changes to the federally-insured Home Equity Conversion Mortgage (HECM) program caused some companies to exit the market and cease offering reverse mortgages altogether. One such company that decided to exit the reverse mortgage space was Maumee, Ohio-based Resolute Bank, which... Read Full Article

How Does a Reverse Mortgage Work? Know the Facts!

October 29, 2019     12 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

What is a Reverse Mortgage? Explained in Simple Terms!

October 29, 2019     70 comments

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 to the bank Relinquishing title... Read Full Article

2019’s Top 10 Reverse Mortgage Counseling Agencies

October 29, 2019     14 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 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... Read Full Article