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

    71 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

Reverse Mortgage Insurance Explained (2024 Update)

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A federally insured reverse mortgage assures that, as the borrower, you will receive certain loan payments as agreed upon by the terms of your loan. You or your heirs will never be forced to repay more than your home is worth to pay off the loan, regardless of the loan’s balance.  The Federal Housing Administration guarantees those benefits through its reverse mortgage program, the Home Equity Conversion Mortgage. Borrowers pay for government insurance on their loan programs and reverse mortgages through insurance premiums known as Up-Front Mortgage Insurance Premiums (UFMIP)... Read Full Article

What to Expect from the Reverse Mortgage Appraisal Process

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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

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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

Proprietary Reverse Mortgage: 2024 Lenders, Rates & Limits

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Are you considering a reverse mortgage, and perhaps you're curious about the distinctions between a "HECM" and a proprietary reverse mortgage? In this overview, you'll learn about the following: What is a proprietary reverse mortgage? When is it better than a Home Equity Conversion Mortgage (HECM) What are the qualifications? How do the costs compare to a HECM? Types of Reverse Mortgage Products 'Regular' reverse mortgage (HECM) Proprietary reverse mortgages (Non-FHA) Jumbo reverse mortgages - explicitly designed for high-value homes What is a proprietary reverse... Read Full Article

Why Reverse Mortgages Have 2 Notes & 2 Trust Deeds

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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

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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

2024’s Best Reverse Mortgage Companies: Top 20 Lenders Reviewed

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A reverse mortgage can add stability to your retirement years when used correctly, and selecting the right reverse mortgage company to originate your loan is essential.  We created this guide to provide insight into how HECM lenders are rated and how reviews are collected across the web (independent and sponsored review sites). We want to make things easier for you.  That's why we have compiled a list of the top 20 reverse mortgage companies nationwide.  What's more, we have included 5 essential tips for choosing the right reverse mortgage lender... Read Full Article

How Reverse Mortgages Work? Explained in Simple Terms!

    16 comments
Welcome to our expert guide on reverse mortgages!  In this article, I will explain the concept of reverse mortgages by breaking down how they work in easy-to-understand terms.  Whether you are a senior homeowner considering your financial future, a family member helping a loved one navigate their options, or simply curious about how these unique mortgage solutions operate, you're in the right place. We explore the essentials – from eligibility to repayment – and provide the clarity you need to determine if a reverse mortgage is suitable for you.   ... Read Full Article

3 Advantages of Making Payments on a Reverse Mortgage

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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 can make payments on it when that meets your goals and if you want to.  Or, you can turn it into an interest-only mortgage, meaning you don't pay toward the principal of the loan, just the interest that's accruing. Why make repayments on a reverse mortgage loan? 1.  Easier to qualify compared to... Read Full Article
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