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Reverse Mortgage Amortization Schedule Explained

January 20, 2024     4 comments

Once you have decided that a reverse mortgage is right for you, looking at the amortization schedule is essential.  A reverse mortgage amortization schedule is a document that will provide the best estimate of how the loan will hypothetically perform over time. The amortization schedule must use the rates and draw amounts available when you run the schedule to look forward to illustrating how the loan balance and the line of credit will fluctuate.  Therefore, a fixed-rate loan with a one-time draw would have an accurate amortization schedule because the rate... Read Full Article

Reverse Mortgage Principal Limit Explained

January 15, 2024     16 comments

I am 87 and received a HECM Loan.  The maximum claim is $250,000.  Due to age and other factors, the credit limit was due to reach the maximum claim.  Withdrawals were denied when the balance was around $225,000, and no withdrawals have been allowed since the servicer has been getting compound interest each month.  HUD has been accessing fees and premiums.  Maybe I'm delusional, but something doesn't add up here.  Am I wrong? Understanding the Maximum Claim Amount The Maximum Claim is used to determine your reverse mortgage benefits... Read Full Article

Here’s the Truth About Reverse Mortgages (No BS)

November 3, 2023     25 comments

I’ve read a lot about reverse mortgages, and it seems they’re more for the bank’s benefit than yours. They make it sound like they’re helping, but in reality, you’re giving away your home for a low price. If you get a reverse mortgage and pass away soon after, your home could be lost, and your family won’t be able to keep it, even with a will. My social worker told me about a friend who lost his home this way because he had to sign over the deeds. Once that... Read Full Article

Return of Non-FHA Reverse Mortgages are Here!

November 2, 2023     29 comments

If you're in the market for a loan that can convert your home equity into cash flow or a line of credit in retirement, chances are you have explored the option of a reverse mortgage. But the reverse mortgage is not one-size-fits-all.  Many people don't know that there are several products to choose from, both under the Federal Housing Administration's popular Home Equity Conversion Mortgage (HECM) and private loan options. For the last several years, the number of reverse mortgage products on the market has been limited to the government-insured HECM and... Read Full Article

Lowest Cost Reverse Mortgage Options in 2024

October 26, 2023     8 comments

Are you searching for the lowest-cost reverse mortgage? A few short years ago, people were reading about how expensive reverse mortgages were, but that does not have to be the case currently.  Don't get me wrong; HUD still charges an Initial Mortgage Insurance Premium based on the home's value that can run as high as 2% for this one cost alone for the higher draws exceeding 60% of the available Principal Limit. Depending on the part of the country in which you live, some of the necessary costs like title... Read Full Article

What to Do If Your Home Suffers Fire Damage with a Reverse Mortgage

October 25, 2023     22 comments

UPDATE: FHA Extends Foreclosure Protections to Maui Borrowers The Federal Housing Administration extended its existing disaster-related foreclosure moratorium in Maui County, HI, through May 6, 2024, for borrowers with FHA-insured single-family mortgages, including HECMs.  This extension provides additional time for borrowers recovering from the catastrophic Maui wildfires to consult with mortgage servicers and housing counselors and access federal, state, and local housing resources without having to contend with the burden of an impending foreclosure action.  I live in California, have a reverse mortgage, and would like to know what would happen... Read Full Article

How Long Can You Leave Home with a Reverse Mortgage?

October 25, 2023     90 comments

How long could that homeowner be absent (e.g., on an extended vacation) before they would be considered not residing in the house?  Would they be allowed someone else living in the house to care for them? I will start with the second question as it is more straightforward to answer without reservations. The reverse mortgage does not prohibit a borrower from having anyone else live on the property, such as a family member or a live-in caregiver.  The borrower may undoubtedly bring in help to assist them in their living... Read Full Article

6 Reasons to Downsize (or Rightsize) with a Reverse Mortgage

October 19, 2023     no comments

As we grow older, our housing needs and preferences often change/evolve.  The family home that once fulfilled all our needs and still holds a lifetime of memories may begin to feel impractical or burdensome as our family sizes and physical needs change.  This is where downsizing, “rightsizing,” or even a move to a more advantageous location is often the best alternative for many homeowners. Downsizing refers to the process of moving from a larger residence to a smaller, more manageable one.  Rightsizing might not be less square footage but might... Read Full Article

5 Memorable Reverse Mortgage Spokesmen

October 16, 2023     8 comments

5 Memorable Reverse Mortgage Spokesmen Reverse mortgages have had many famous faces over the years.  From iconic television and film actors to one-time US presidential candidates, celebrities from all walks of life have espoused the many advantages a reverse mortgage can provide for older homeowners in their retirement years. While spokesmen have come and gone over the years, let’s take a look at some of the most memorable TV personalities to publicly endorse reverse mortgages for a national audience (starting with the newest spokesman to take the airwaves) 1.... Read Full Article

How to Get Out of a Reverse Mortgage: Your Options Explained

October 10, 2023     37 comments

I have a reverse mortgage, and I’m having problems with it. Was it legal to get a reverse mortgage without my lawyer explaining the situation? I never knew the pros and cons of a reverse mortgage. I think it’s a legal way to swindle homeowners out of their homes. How can I get out of the reverse mortgage? I’m sorry to hear you’re experiencing regrets.  Rest assured, reverse mortgages are highly regulated, and getting one without a lawyer’s involvement is legal as long as you receive the required counseling from... Read Full Article