Is a Reverse Mortgage Your Fit?

Is a Reverse Mortgage Right for You? 3 Key Considerations

January 22, 2024     8 comments

Like many of our readers who are navigating retirement, you might wonder if a reverse mortgage is right for you.  You've likely seen your equity grow substantially, possibly even owning your home outright - a common scenario for many baby boomers. Your home, often your largest asset, may lead you to consider the option of a reverse mortgage.  At All Reverse Mortgage, we understand the importance of this decision.  This article integrates our insights with 3 important questions, helping you evaluate whether a reverse mortgage fits your financial future. We'll... Read Full Article

5 Ways To Lose Your Home With a Reverse Mortgage

January 22, 2024     31 comments

With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower retains ownership of the property while continuing to live there throughout the loan.  They are not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in a reverse mortgage, "the bank takes the home." On the contrary, if the borrower meets the loan terms, that borrower maintains ownership of the home throughout the entire course of the loan. The loan balance grows over time, and... Read Full Article

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

Return of Non-FHA Reverse Mortgages are Here!

November 2, 2023     32 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 2025

October 26, 2023     8 comments

What is 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, which can run as high as 2% for this cost 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 insurance and state and local fees... Read Full Article

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

October 25, 2023     22 comments

UPDATE: The devastating fires in Los Angeles County prompted the Federal Housing Administration to publish FHA Info #2025-07 as a reminder to lenders about its guidance for servicing and originating FHA-insured mortgages in Presidentially Declared Major Disaster Areas (PDMDA). FHA provides HECM lenders an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action. HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day... 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

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. Latest Reverse Mortgage Spokesman, Tom... Read Full Article