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3 Options After Death of a Reverse Mortgage

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There are a few things you need to do and although you do have some time, time is limited so you need to act without unnecessary delays.  The first thing you need to do is decide what you really want to do with the house. You can keep the home, sell it, or walk away and owe nothing regardless of the amount owed on the loan.  Obviously if there is equity still in the property it is to your or the estate’s benefit to keep or sell the property, but... Read Full Article

What Are the Costs Associated with Reverse Mortgages?

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Like all loans, reverse mortgages come with some one-time costs and fees that all borrowers will face during the loan closing process, as well as some ongoing costs they will incur throughout the course of the loan. Many of the closing costs are the same as the costs that forward borrowers incur, such as recording fees. There are a few reverse mortgage-specific costs to be aware of, as well, in order to get a full picture of the costs associated with getting a reverse mortgage. In this article you... Read Full Article

Is a Reverse Mortgage Line of Credit a Good Option for You?

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Hi, I own my home in ABQ, NM. It is in a popular older neighborhood. I purchased the home about 3 years ago and paid cash. It was in total disrepair at the time and sold at a substantial discount as a result. The remodel was extensive, with most of the house stripped down to the frame, and completely rebuilt, including some of the framing, new roof structure, new electrical, plumbing, and everything. I modernized the floor plan, used the attic to make the ceilings vaulted, added a spacious... Read Full Article

How Does a Reverse Mortgage Work in 2021?

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If you’re at or near the age of 62 and are looking for ways you can adequately fund your retirement, it’s understandable that a reverse mortgage has become a potential option for you to consider. Maybe you’ve seen an ad on TV, or maybe you’ve just had to think about the future a little more intently and are open to some new options. But, if you don’t quite know how a reverse mortgage loan works, then you’ve come to the right place. Please note that the details and provisions... Read Full Article

What is the Minimum Age for a Reverse Mortgage?

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What are the age requirements for a reverse mortgage? The reverse mortgage product was specifically designed to meet the needs of an older borrower. As it was envisioned, this type of loan is available to help people access their home equity later in life when they may have a need to supplement a fixed income in retirement. And while historically reverse mortgages were available only to people who are at least 62 years old, recent product developments and private reverse mortgage loans available on the market today offer reverse mortgage... Read Full Article

Can You Outlive a Reverse Mortgage LESA Account?

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If you have a reverse mortgage (HECM) in place with a LESA, and you outlive the LESA, what happens? Alternatively, say the LESA was calculated estimating that you would live to a certain age and pay the taxes and insurance, and you outlived the funds available in the LESA, what would happen in that case? These are great questions and ones to which all borrowers with LESA accounts should know the answers.  Firstly, if you pass and there are still funds that were set aside in the account... Read Full Article

The Basic Rules for a Reverse Mortgage in 2022

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The reverse mortgage product is like other loans in many ways. A lender extends a loan to a qualified borrower, and in the case of a reverse mortgage, the borrower is then able to draw on loan proceeds based on a set of loan terms. Yet there are some specific rules that are particular to reverse mortgages. It’s important to explore these rules and to understand both the rules to qualify as well as the rules that all borrowers need to follow post-closing. In this article, you will learn:... Read Full Article

What is a Jumbo Reverse Mortgage?

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A reverse mortgage is an increasingly well-known loan type that allows age-qualified senior borrowers to access their home equity while still living in the home. But what many prospective borrowers may not be as familiar with is the different loan programs available, and specifically, the differences between a Home Equity Conversion Mortgage (HECM) and a jumbo reverse mortgage. In this article you will learn: The differences between a jumbo reverse mortgage and a HECM Scenarios when it may make sense to consider a jumbo reverse mortgage Where to... Read Full Article

How Does a Reverse Mortgage Amortization Schedule Work?

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If you have ever had a traditional “forward” mortgage, chances are, you’ve seen an amortization schedule that provides the details of your loan over time. This schedule is a detailed summary of all the payments that are owed toward principal and interest over the course of the loan, monthly. Because most mortgages are structured such that the borrower’s loan balance falls over time as interest and principal payments are made, an amortization schedule typically shows the balance ball each month until the end of the loan term. For a reverse... Read Full Article

Are Reverse Mortgages Predatory Lending?

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I am a young 69-year-old who has no debt and owns her own home in Florida. I found a need for a loan to address some financial growing pains. I received an advertisement for a reverse mortgage so I thought I would research your program as you were recommended by HUD. What I found horrified me. As an example, if a senior citizen borrows $66,000.00, the repayment would be around $35,000.00 in one year. That is approximately 50% fees. I think that is called "usury" which is against the... Read Full Article