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2020 Reverse Mortgage Limits Soar to $765,600!

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In early December, the U.S. Department of Housing and Urban Development (HUD) announced that the lending limit for Home Equity Conversion Mortgages (HECMs) – the federally-backed reverse mortgage program – will be increasing for the fourth year in a row. Beginning on January 1, 2020, the lending limit for government-insured reverse mortgages will be $765,600, marking an increase...
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How Reverse Mortgages Work & Who They Work For in 2022

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How Does a Reverse Mortgage Work? Over the past several years there have been several television commercials with spokesmen pitching reverse mortgages. However, it is still not a term that is very well understood by most people for a very good reason. Mortgages come from lenders and are what people use to purchase homes, not earn money. However, the reverse...
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2022 HECM Reverse Mortgage Limits Skyrocket to $970,800

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With HUD loan limits increasing, do you still need a jumbo reverse mortgage in 2022? HUD just announced that for 2022 they will be increasing their loan limits for the reverse mortgage program known as the Home Equity Conversion Mortgage or HECM (“Heck-um”) program. This is nothing new, HUD looks at the average prices of homes nationwide to...
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What Is The Real Cost of a Reverse Mortgage?

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What is the "real cost" of the reverse mortgage loan and how is it computed? There are a few different ways that cost can be expressed.  On a fixed rate loan, cost can be expressed as an annual percentage rate (APR) which is the amount of interest the borrower is charged for obtaining a loan as expressed by a...
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When It’s Wise to Refinance Your Reverse Mortgage

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When a reverse mortgage borrower sees that current mortgage rates are potentially more beneficial than the rate he or she holds on an existing reverse mortgage closed in the past, it might be a good idea to investigate refinancing that mortgage to lock into those potentially more beneficial rates. While reverse mortgages carry many differences from forward mortgages, this...
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HECM vs HELOC Loan Comparison: Which is Best for You?

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Although the costs to establish a HELOC (Home Equity Line of Credit) with a HECM (Home Equity Conversion Mortgage) are higher and you do have mortgage insurance premium (MIP) on the loan as well that does add an additional .50% to the accrual (the MIP is not interest but it accrues the same way), the interest rates for a HECM...
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How to Get a Reverse Mortgage Loan in 4 Easy Steps

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A reverse mortgage is a loan for homeowners age 62 and over, which allows them to convert some of their home equity into cash. This explains its name: instead of a regular mortgage, where a person borrows money to buy a house, a reverse mortgage lets a person borrow money from the house that he or she already...
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Reverse Mortgages a Good Idea? Consider The Costs!

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In this article, you will learn: What Will a Reverse Mortgage Cost Me? What Are the Associated Fees? How to Find More Information If you find yourself looking around the internet for good information on the topic of reverse mortgages, you are likely to find no shortage of opinions and cautions from a whole host of people, ranging from those...
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How Reverse Mortgages Affect Heirs & Inheritance

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A reverse mortgage allows you to live in your home for life requiring no monthly repayments.  Your benefit amount is based on borrowers’ ages, property value, HUD lending limits and interest rates, not the amount you owe so you may receive only enough to pay off your existing loan on the home, but in many instances, borrowers receive a large...
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