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6 Best Banks Offering Reverse Mortgages in 2023

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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

Reverse Mortgages in 2023: How Much Can You Get?

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We owe approximately $280,000 on our mortgage (up to date and never missed any payments) and my estimated appraisal is $480,000 which means I have approximately $200,000 in equity?  If I took out $70,000, I now have approximately $130,000 remaining equity? If I take out the $70,000 will the company/bank doing the cash out include my $280,000 + the $70,000 in the cash transaction? What will my payments be to the company/Bank be and at what APR be? Thanks, Roy Hello Roy, I think I need to... 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

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. But the story... Read Full Article

2023’s Top Reverse Mortgage FAQs – ReverseMortgageReviews.org

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FAQ Q. What is a reverse mortgage? A. 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. Q. Will the bank own my home? A. 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. Q.... 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 growth exhibited... Read Full Article

2022 HECM Reverse Mortgage Limits Skyrocket to $970,800

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With HUD loan limits increasing, do you still need a jumbo reverse mortgage in 2022? HUD just announced that for 2022 they will be increasing their loan limits for the reverse mortgage program known as the Home Equity Conversion Mortgage or HECM (“Heck-um”) program. This is nothing new, HUD looks at the average prices of homes nationwide to determine the loan limits every year but what is so different about this year is that with the large house price increase that most areas of the country saw over the past... Read Full Article

What Is The Real Cost of a Reverse Mortgage?

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What is the "real cost" of the reverse mortgage loan and how is it computed? There are a few different ways that cost can be expressed.  On a fixed rate loan, cost can be expressed as an annual percentage rate (APR) which is the amount of interest the borrower is charged for obtaining a loan as expressed by a single rate that represents the actual cost of funds after all costs the borrower paid to receive the loan have been factored in over the life of the loan. A very... Read Full Article

When It’s Wise to Refinance Your Reverse Mortgage

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Refinancing a Reverse Mortgage When a reverse mortgage borrower sees that current mortgage rates are potentially more beneficial than the rate he or she holds on an existing reverse mortgage closed in the past, it might be a good idea to investigate refinancing that mortgage to lock into those potentially more beneficial rates. While reverse mortgages carry many differences from forward mortgages, this ability to refinance into a lower rate exists for both types of products. This may be a surprise to some borrowers. Existing reverse mortgage customers across the... Read Full Article

HECM vs HELOC Loan Comparison: Which is Best for You?

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Although the costs to establish a HELOC (Home Equity Line of Credit) with a HECM (Home Equity Conversion Mortgage) are higher and you do have mortgage insurance premium (MIP) on the loan as well that does add an additional .50% to the accrual (the MIP is not interest but it accrues the same way), the interest rates for a HECM line of credit are very comparable to a Home Equity Line of Credit you would receive from a bank. Let’s talk about the differences because they are immense We talked... Read Full Article