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7 Little-Known Ways to Save on Reverse Mortgage Closing Costs

March 9, 2012     2 comments

So, you’re thinking about a reverse mortgage. You’ve done your research, you know it’s the right loan for you but you’ve talked to a few family members and friends who may have already gotten one or knows someone who has and you’re concerned about the high costs you’ve been hearing about. Being the smart consumer that you are though, has brought you here. And now you will see that there are definitely ways to save money on your reverse mortgage. The 1st thing that can save you money on closing... Read Full Article

Holistic Approach to Reverse Mortgages & Retirement Planning

March 2, 2012     4 comments

A reverse mortgage can have a very positive impact on a borrower’s financial situation, but it’s important to consider the big picture when thinking about whether a reverse mortgage is the right decision for you. If you are looking into getting a reverse mortgage, there are long term implications worth exploring in planning for your financial future. The good news is, there are several things you can do when getting your reverse mortgage that will benefit your situation, and that of your heirs, in the long run. Your Beneficiaries There... Read Full Article

Is it safe to invest the proceeds of my reverse mortgage?

February 24, 2012     1 comment

If you’re seriously considering taking out a reverse mortgage, you probably know by now that you can use the proceeds of your loan for just about anything. However, even though you as a borrower are free to do as you wish with your money, using it to make investments is not recommended. In order to protect borrowers, the government has enacted “cross-selling” prohibitions that prevent reverse mortgage lenders from requiring or having any involvement in a borrower’s decision to purchase an annuity or make any other sort of financial investment.... Read Full Article

How Will a Reverse Mortgage Impact my Kids and Family?

February 10, 2012     6 comments

How Will a Reverse Mortgage Impact my Kids and Family? In researching and weighing the pros and cons of a reverse mortgage, a common question probably comes to mind: How will a reverse mortgage impact my children and family? The most important thing to remember is that your children and family will never be on the hook for repaying a loan that exceeds the value of your home once the time comes to repay the loan. When you get a federally-insured Home Equity Conversion Mortgage (HECM), there’s a government... Read Full Article

Reverse Mortgage Power of Attorney & Trusts Matters

January 13, 2012     7 comments

A borrower’s home title is an essential component of a reverse mortgage transaction, and if not handled correctly, can cause for delays in the process and headaches for the borrower and the lender or title agent. The lender will gather all the essential information, but it’s good to be prepared with documentation and to be able to respond to questions about the home’s ownership, should they come up. It’s important to bear in mind that the borrower continues to own the home and hold title to the home throughout the... Read Full Article

Banks Offering Reverse Mortgages Retreat

January 13, 2012     2 comments

Last year, three well-known banks left the reverse mortgage industry, leaving many borrowers with concerns and one big question: Why did they go? Bank of America exited in February, followed by OneWest Bank’s Financial Freedom in March, and then industry giant Wells Fargo in June, effectively shaking up the reverse mortgage world. At the time of its exit, Wells Fargo accounted for more than a quarter of the total number of home equity conversion mortgage (HECM) endorsements, while Bank of America had been the second-largest reverse mortgage lender at the... Read Full Article

Reverse Mortgage Fees: They’re Not All The Same!

January 11, 2012     12 comments

It is true that just about all reverse mortgages being originated at this time are the HUD Home Equity Conversion Mortgages (HECM or "Heck-um"). So many people think that the reverse mortgage fees and the rates are all going to be about the same. However, this is not always true and those borrowers who take the time to compare have found that sometimes a little extra research can save some big money, both now and over time. Let's start with the reverse mortgage fees charged by HUD for the Up-Front... Read Full Article

One Reverse Mortgage You Can Afford

December 21, 2011     no comments

NEW 4.00% Fixed Rate Saver Plans! - Request a Free Quote Today! It seems that there are many borrowers who have not looked at reverse mortgages lately and still believe that all reverse mortgages are the same as the reverse mortgage they first looked into many years ago. One borrower referred another potential borrower to us recently because she said that her friend could not believe that she got a reverse mortgage with less than $2500 in total fees. When I spoke with her friend, I told her that there... Read Full Article

Making Payments on a Reverse Mortgage: Interest & Tax Deductions

December 19, 2011     2 comments

One of the most important benefits that reverse mortgage borrowers receive at closing is the freedom of no longer having to make required monthly mortgage payments to their lender. It is this feature of the reverse mortgage product that makes it so unique - and as such - so difficult for those outside of our industry to comprehend and understand! The reverse mortgage program acknowledges and rewards long-term borrower responsibility and for the many who have obtained a reverse mortgage, it may well be the difference between financial autonomy and... Read Full Article

Exploring Reverse Mortgage Disadvantages

December 19, 2011     no comments

I had a long conversation with a potential borrower yesterday. He said that he had spoken with a couple of loan originators and had a few concerns. One of the originators told him that there were no reverse mortgage disadvantages and the other worked for the largest reverse mortgage company in the United States and told him that she did not know the down sides yet, that she was brand new and could he give her a few days to look into it and call him back. As any rate,... Read Full Article