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Understanding Reverse Mortgage Rules: Your 2025 Guide

June 17, 2024     19 comments

Reverse mortgages can provide older homeowners with financial flexibility, but navigating the rules doesn’t have to be daunting.  As of 2025, important updates to reverse mortgage guidelines have been introduced, making it crucial for those 62 and older to stay informed. If you're considering tapping into your home equity, this guide simplifies the five essential rules for reverse mortgages.  From eligibility requirements to key protections, we’ll cover everything in clear, straightforward language to help you make a confident decision about your future. Let’s explore these rules step by step so... Read Full Article

Using a Reverse Mortgage Purchase for New Construction

June 14, 2024     22 comments

Can a contractor build a new home for you and finance it with a reverse mortgage upon completion?  Thank you -Bob The short answer to your question is, yes, you can.  As a matter of fact, HUD has just made changes to the program effective in 2024 and made financing reverse mortgage purchases and new construction easier than ever with a reverse mortgage. HUD Policies on Reverse Mortgages for New Construction In response to evolving needs in the housing market, HUD has continued to refine its approach... Read Full Article

How the Reverse Mortgage Margin & Libor Rate Works

June 10, 2024     8 comments

Understanding Your Reverse Mortgage: Key Factors One of the most common questions about a reverse mortgage is how much money you, as the borrower, can receive.  The amount you can get depends mainly on two factors: your age and the loan's interest rate and margin. Typically, the older you are, the more money you can receive.  Lower interest rates also mean you can borrow more.  A higher loan margin means the interest rate must be lower to increase the amount you can receive from a reverse mortgage. The important... Read Full Article

What to Expect When Your Reverse Mortgage is Assigned to HUD

June 7, 2024     103 comments

We received a notice that our reverse mortgage loan is being assigned to HUD, along with the name of the handling company.  This company has numerous complaints, especially about foreclosing before heirs can settle the home.  I am the beneficiary of my mom's house, which is in a trust and a will to avoid probate.  What recourse do I have if they refuse to work with me and foreclose despite my efforts?  The complaints mention lies, runarounds, no payoff amounts, and unreturned calls.  This is terrifying, as there's enough equity... Read Full Article

Is Tom Selleck Reverse Mortgage Company Selling Snake Oil?

May 20, 2024     84 comments

We just received this comment on our blog: It boils down to the saying, If it's too good to be true, then it is.  I watched this actor named Tom Selleck pitching for a reverse mortgage on a TV commercial.  That sounds very convincing, even when he swears to have done his homework on the matter and told the truth.  An actor worth millions, and before him was another actor, Robert Wagner.  Yet, does he really need to do a reverse mortgage on his estate?  With his king of dough? ... Read Full Article

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 Need an Excel version?  Download the full amortization calculator as an Excel file here. Benefits of Making Payments on a... 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