AMORTIZATION CALCULATOR

Free Reverse Mortgage Amortization Calculator

May 16, 2024     7 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     36 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

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

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     88 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     49 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 2025

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 Reverse Mortgage Options for Veterans in 2025 When exploring reverse mortgage options, it’s crucial to understand the roles of key government agencies like the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).  While both agencies are important in supporting homeowners, neither... 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