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Should You Take a Reverse Mortgage if Your Home is Paid Off?

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If your mortgage is paid off, you are in a great position from the standpoint that you have no mortgage payments. But what if you still need more money every month to live on or just to be able to do the things you want to do? And taking out a Home Equity Line of Credit (HELOC) or other conventional type loan is not a viable option with the payments required? Benefits of a Reverse Mortgage Line of Credit  The reverse mortgage will give you access... Read Full Article

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 several reasons to access a reverse mortgage, among the best known is the opportunity the product presents to fixed-income seniors seeking funds for their basic needs. For this population, being... Read Full Article

Can a reverse mortgage appraisal be used by another lender?

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Can a reverse mortgage appraisal be used by another lender? The answer to this used to be “Not only can it be used by another lender as well, but it must be used by all lenders on FHA loans until the appraisal has expired”. However, HUD has issued some strange guidance and rules in recent times in conjunction with the real estate appraisal industry. So, here is the new answer:  HUD assigns a Case Number at the lender’s request and the lender must order an appraisal... 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 is a Reverse Mortgage? Explained in Layman’s Terms

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In 1961, banker Nelson Haynes of Deering Savings & Loan in Maine wanted to ensure that the widow of his high school football coach could remain in her lifelong house despite the loss of her husband’s income. So, Haynes wrote what is believed to be the first reverse mortgage, which lent her money against the equity of her house. The reverse mortgage has evolved heavily since its inception nearly six decades ago and evolved greatly since Congress approved it as a federally-insured product in the late 1980s. ... Read Full Article

2021 Banks That Currently Offer Reverse Mortgages

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If you are deciding on whether a reverse mortgage loan is right for you, you’ll naturally want to determine which lending institution to go with, especially when it comes to the most beneficial terms and the associated costs. Obviously, one of the easiest things you can do is to simply go to the bank you already transact with for daily financial tasks to see if they offer reverse mortgages, but chances are that your own bank may not offer such reverse mortgage loans to its senior customers. A... Read Full Article

The Reverse Mortgage Pros and Cons in 2021

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There’s no doubt that the decision to get a reverse mortgage can be a big one, especially depending on the borrower’s particular financial situation. Maybe you’ve decided that additional cash flow will help to stabilize your retirement finances, or maybe you’re looking to fund something like in-home care or a renovation to make your house more accessible. Whatever your potential reason is for getting a reverse mortgage, you likely won’t find an industry that is more upfront about what the potential benefits can be in tandem with possible downsides... Read Full Article

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... Read Full Article