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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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Reverse Mortgages Come with Upsides & Downsides

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So, you’re thinking about getting a reverse mortgage, but you’re not sure how the product will work best for you. Maybe you’re hearing the downsides of the loan along with the upsides. Here is a look at the pros and cons of a reverse mortgage. Reverse Mortgage PROS/Upsides  Pro: It helps seniors stay in their homes. While there are...
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HUD Raises 2021 Reverse Mortgage Limits by $56,775!

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2021 brings good news for HECM borrowers wither higher value properties. HUD has announced that the new reverse mortgage loan limit for the HUD Home Equity Conversion Mortgage (HECM) will be raised from $765,600 to $822,375 effective January 1, 2021. The HUD Mortgagee Letter announcing the increase, can be found on the HUD website here: https://www.hud.gov/sites/dfiles/OCHCO/documents/2020-42hsgml.pdf This is the 5th...
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How to Payoff Your Parents Reverse Mortgage

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I am confused with how to pay off my parent's Reverse Mortgage. I see references to refinancing the loan, how do I do that? The home is in a Trust and was given to me; I have the Cert of Trust & Authority, etc... The mortgage company made no mention of transferring title, only asked if I intended to pay...
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Reverse Mortgage LESA Account & How it Works

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Qualifying for a reverse mortgage today is a different process than it was in the past. As underwriting standards have tightened considerably in recent years, becoming eligible for a reverse mortgage now requires a more complex analysis of the loan applicant’s financial circumstances. As a prospective borrower, it helps to know just what you are going up against during...
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Why Insurance is Required on a Reverse Mortgage

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Reverse Mortgages allow homeowners age 62 and older to convert a portion of their home equity into tax-free loan proceeds, which can be used to meet a variety of spending needs. Unlike a forward mortgage, HECM borrowers are not required to make monthly payments toward the loan balance. Instead, the loan balance grows over time as borrowers tap into their...
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New York Governor Signs 2020 Reverse Mortgage Regulations

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Update: New York Governor Vetoes Co-Op Legislation New York Governor Andrew Cuomo vetoed legislation (Senate Bill 3686-B) last week that would have permitted reverse mortgages on cooperative housing. While FHA does not permit Home Equity Conversion Mortgages on co-ops, NRMLA worked with state lawmakers and other stakeholders earlier this year to craft a bill that could have offered...
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