REVERSE MORTGAGE INSURANCE

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 () 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... 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

3 Types of Reverse Mortgages Explained: Which One Is Right for You?

May 2, 2024     5 comments

If you're exploring ways to use your home's equity to improve your financial security in retirement, it's helpful to know that there are three main types of reverse mortgages—each designed for different needs. In this article, we'll explain: Home Equity Conversion Mortgages (HECM): The most popular, federally insured option. Proprietary Reverse Mortgages: Also called "jumbo" reverse mortgages, ideal for higher-value homes. Single-Purpose Reverse Mortgages: A cost-effective choice for specific financial goals. We'll break down the key features of each, highlight how they can support your financial needs, and guide you... 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

2025 Jumbo Reverse Mortgage Guide: Top Lenders, Rates & Loan Limits

April 10, 2024     14 comments

As we enter 2025, 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: 2025 Limits, Rates & FAQ

April 8, 2024     60 comments

As we enter 2025, 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 2025 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 2025 HECM limit of .  Your value is at or higher than the... Read Full Article

Reverse Mortgage Purchase FAQs (2025 Update)

March 24, 2024     3 comments

Q. What is a Purchase Reverse Mortgage? A Purchase Reverse Mortgage allows seniors aged 62 or older to buy a new primary residence using the loan proceeds from a Home Equity Conversion Mortgage (HECM). Q. What is the purpose of the program? The purpose of the Purchase Reverse Mortgage program is to allow seniors to buy a new primary residence and secure a reverse mortgage in a single transaction, thus removing the need for a second closing.  Additionally, the program aims to assist senior homeowners in relocating to different areas... Read Full Article

Fact vs. Fiction: Debunking 6 Myths About Reverse Mortgages

March 22, 2024     no comments

Unmasking Reverse Mortgage Myths: Separating Fact from Fiction Reverse mortgages are often misunderstood, clouded by myths discouraging homeowners from exploring their benefits.  These misconceptions create unnecessary doubts for those who might find this financial tool a valuable asset in retirement. In this guide, we’ll address six of the most common myths about reverse mortgages, providing clear, factual insights to help you make informed decisions.  You’ll learn how reverse mortgages work, who can benefit most, and why they’re not the financial pitfalls some claim them to be. Whether you’re considering a... Read Full Article

6-Step Guide to Handling Reverse Mortgage Heirs & Estate Affairs

March 11, 2024     86 comments

Inheriting a property is a significant responsibility, especially when it comes with a reverse mortgage attached.  If you find yourself as the heir to a borrower who has passed away, you may feel overwhelmed by the financial and legal complexities that follow. This article will guide you through the steps we recommend following to navigate this situation.  Whether you're considering paying off the loan, selling the property, or taking on other options, our aim is to provide you with a comprehensive understanding of your options and the next steps involved.... Read Full Article

What to Expect from the Reverse Mortgage Appraisal Process

February 27, 2024     45 comments

Getting a home appraisal is an integral part of the reverse mortgage process.  Here's what you need to know to manage your expectations about getting your home appraised as part of this loan to help you age in place. It's a multi-step process, but you can prepare in advance to make it as smooth as possible. Typically, there will be three steps: The inspection.  During the inspection, the appraiser will walk through the home with you and take any necessary photos as part of the research process.  They will focus... Read Full Article