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Purchase Reverse Mortgage Purchase FAQs (Updated 2024)

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

Debunking 6 Myths About Reverse Mortgages in 2024

March 22, 2024     no comments

Reverse mortgages have often been portrayed in a negative light, creating misconceptions and doubts among those who might otherwise find them beneficial.  But what lies beneath these critiques? In this article, we'll dive deep into the heart of the matter, dispelling the myths that have long surrounded reverse mortgages.  With an objective lens, we aim to clarify how these mortgages work, who they're best suited for, and why they might not be the financial burden they're often made out to be. Join us as we explore six common myths about... Read Full Article

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

March 11, 2024     84 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     43 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

Reverse Mortgage Options for Veterans in 2024

February 25, 2024     17 comments

Question from our reader: "We have a reverse mortgage, but we were never told there was a reverse mortgage for veterans.  We have quite a bit of equity in our home.  Can we refinance our current reverse mortgage to a VA reverse mortgage?"  Understanding FHA and VA Loan Mechanisms FHA and VA's Indirect Role in Loans:  It's important to clarify that neither the Federal Housing Administration (FHA) nor the Department of Veterans Affairs (VA) directly provides loans to consumers.  While the FHA, operating under the Department of Housing... Read Full Article

Why Reverse Mortgages Have 2 Notes & 2 Trust Deeds

February 19, 2024     59 comments

Borrowers often encounter confusion as they approach the crucial moment of signing their final documents for a reverse mortgage.  They are introduced to a First and Second Trust Deed Note and Two Deeds of Trust (or mortgage, depending on the state laws applicable to the property). Compounding the complexity, the amounts specified on the Note and Deed of Trust can be substantially higher than the sum the borrowers agreed to borrow.  This discrepancy has led some borrowers to hesitate or even refuse to sign the documents at closing, primarily because... Read Full Article

Reverse Mortgage Closing Costs & Fees Explained

February 18, 2024     6 comments

When considering a reverse mortgage, it's important to understand the various costs involved.  These expenses can differ significantly, not just between different lenders but also based on your home's location. To ensure you're getting the best possible deal, it's smart to shop around and compare lenders.  Among the costs, the origination fees (which cover the setup of your loan) and the lender's margin (determining your loan's interest rate) are particularly important to pay attention to. Interest rates are another important factor.  They represent the cost of borrowing money and will... Read Full Article

3 Advantages of Making Payments on a Reverse Mortgage

February 15, 2024     38 comments

A reverse mortgage allows you to receive payments from your home equity rather than make a monthly payment to repay the obligation. One little-known fact, for example, is that you can get a reverse mortgage and make payments on it when that meets your goals.  You can also turn it into an interest-only mortgage, meaning you don't pay toward the principal of the loan, just the accruing interest. Why make repayments on a reverse mortgage loan? 1.  Easier to qualify compared to conventional loans. You may still be eligible... Read Full Article

Appraisers Use the Sales Comparison Approach (Not Zillow etc.)

February 5, 2024     2 comments

Here is where Appraisals are not updated and correct. Zillow and others use sales per sq ft for cookie-cutter homes. They omit custom built homes in comparable homes because of lack of construction knowledge and insurance coverage? Costs of replacement coverage and appraisals would place a 5000 sq ft total home cost at $800,000-min w/o lot? Go Figure how you could be insulted at $600k on a no-nothing Appraisal. You just hit the nail squarely on the head, but from an angle you didn't mean to go.  Appraisers don't... Read Full Article

6 Questions to Ask Your Reverse Mortgage Loan Officer

February 5, 2024     4 comments

You've made the decision to pursue a reverse mortgage, and now you're meeting with a loan officer for the first time.  Though you may understand the basics of a reverse mortgage, there are certain questions you may want to bring with you for your first meeting to clarify some of the details that could potentially catch you off guard down the road. Here are 6 questions to address in your first meeting with your reverse mortgage loan officer: 1.  How do I get counseling? Scheduling your counseling... Read Full Article