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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 it off. So, do I pursue a traditional home mortgage and basically buy back the home? Or am I supposed to have the Title transferred and then seek a refinance?... Read Full Article

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 the application process, including what aspects of your financial history are most likely to impact the overall determination of whether you can be approved for a reverse mortgage. For... Read Full Article

15 Reverse Mortgage FAQs for 2021

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What is a reverse mortgage? A reverse mortgage is a loan insured by the federal government that allows you to convert a portion of the equity you have built up in your home into tax free single lump sum disbursement, line of credit or monthly payout. Will the bank own my home? No, you will still be the sole owner of your home. The bank will not own your home when you take out a reverse mortgage. What is the point of taking out a reverse mortgage?... Read Full Article

How Reverse Mortgages Work & Who They Work For

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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 mortgage is a unique arrangement that allows people who own their homes to acquire money while using their property as collateral. In a simple explanation, a reverse mortgage is a... Read Full Article

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 home equity. If the borrower adheres to the loan terms, HECM borrowers do not have to repay the loan balance until they leave the home. HECMs are the most common... Read Full Article

6 Signs a Reverse Mortgage is Right for You.

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You do not want to leave your home—ever. If you are comfortable in your current home and have no plans or desire to move, a reverse mortgage can help you stay. With a federally insured reverse mortgage (HECM), you still retain ownership of your house and may stay there for as long as you live. Your reverse mortgage doesn't need to be repaid until you pass away or move out of the home. One feature of HECMs that is great for borrowers is that they are non-recourse. That means... Read Full Article

How To Find the “Best” Reverse Mortgage Lender

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If you’ve made a decision that a reverse mortgage is right for you, the next step in your journey is to seek out a reverse mortgage lender to complete your loan. We hope this guide helps you in your search and offer some important tips in narrowing down the right reverse mortgage outfit for you. Our first advice is to do your homework and check prospective lenders references.  First, Check to See what Past Customers Say About Them There are a lot of loan officers who were originating a... Read Full Article

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 who claim to be reverse mortgage customers all the way through accredited financial professionals. In the process, you will probably end up asking yourself at some point: Are reverse mortgages... Read Full Article

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 year in a row where HUD has raised the lending limit. But more importantly than the fact that they raised the limit again the year is the amount by which... Read Full Article

What happens with reverse mortgage when the person dies?

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My parents have a reverse mortgage and have exhausted all funds with a negative available line of credit. My mother has been in a nursing home for over 2 years with Alzheimer’s and my dad, who had been living in the house, passed away in December 2019. My brother and I are at a loss of best way to handle this situation. We have not yet paid the property tax bill, which was due on 01/31/20. We are confident that the current total loan balance may exceed the value... Read Full Article