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How Does a Reverse Mortgage 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 you... Read Full Article

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 a way for co-op owners to use proprietary reverse mortgages for their retirement needs. In a statement announcing the veto, Governor Cuomo said, “While the goal of the legislation is... Read Full Article

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 of $39,075 from the lending limit HUD set for 2019. HUD announced the revised lending limit for 2020 in an officially released Mortgagee Letter (ML). The amount of... Read Full Article

Why the Lowest Reverse Mortgage Rates Offer Most Money

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If You’ve Looked at a Reverse Mortgage in the Past, You May Want to Look Again! If you have ever investigated a reverse mortgage or have thought about it, especially in the past 24 months and didn’t think the numbers worked for your needs, it may be time to check again. The reason we say this is because one of the main factors that determines how much money you will receive in your reverse mortgage is the interest rate. Since HUD changed the Floor Rate on the program, borrowers had... Read Full Article