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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
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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
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Is there a minimum income requirement for a reverse mortgage? Yes, HUD and other reverse mortgage programs do use an income qualification component when determining whether borrowers qualify for a reverse mortgage. You may ask why when there is no payment required but there really is a good reason. HUD does not want borrowers to get the loan if the loan will not allow them to live in the home comfortably, even after they receive it. HUD has had the benefit of analyzing hundreds of thousands of reverse... Read Full Article
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A Reverse Mortgage Calculator is a tool for consumers to use when shopping for a reverse mortgage. Many calculators exist on various sites, but borrowers should take care in which reverse mortgage calculator they ultimately choose to utilize. For example, there are calculators on various lender sites, and other sites with calculators that exist only to sell consumer information to lenders. These calculators require borrowers to complete a substantial amount of their personal information before the calculator will even give them the information the interested party is seeking (whether that... Read Full Article
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My mother died two weeks ago with a reverse mortgage and the mortgage insurance (MIP) was being charged to her. The reverse mortgage insurance pays off the mortgage at the time of her death. I called the bank a year ago and asked if the MIP would pay off the mortgage and they said yes, but it would be paid to them. So, if they are being paid off then why don't I get the house? I have papers showing that they were charging my mother the MIP every... Read Full Article
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If you've decided that a reverse mortgage is right for you, the next step in your journey is to seek a reverse mortgage lender to complete your loan. We hope this guide helps you in your search and offers some essential tips for narrowing down the right reverse mortgage outfit for you. First, check what past customers are saying. Our first piece of advice is to do your homework and check prospective lenders' references. There are a lot of loan officers who were originating a different product just a... Read Full Article
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The real answer is "it depends" and that is a terrible answer but it is the most honest. When referring to the death of the borrower(s), the loan documents including the Deed of Trust and Note state that lender may require an immediate payment in full, due upon death once the property is not the principal residence of at least one surviving borrower. There is no 6-month period or 12-month period described in the documents given to heirs to pay the loan back but people routinely use these timeframes as... Read Full Article
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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, and what will the APR be? Thanks, Roy Hello Roy, I need to answer this in... Read Full Article
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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
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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 increase for the fourth year. 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 in the lending limits... Read Full Article
