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What Happens When Your Reverse Mortgage Money Runs Out

March 28th, 2014

My parents have a reverse mortgage with LOC maxed out. It was very helpful to them for many years. One parent is in a long-term care facility and on Medi-Caid. My other parent is living in the home and my understand can live there for as long as alive and able to live there. When both parents are gone, I understand that the outstanding loan (including interest etc would be due and payable (first position) and that Medi Caid would come in and claim whatever they have paid on behalf of parent (second position). Therefore, what would be your recommendation […]

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Growing Demand Ahead for Reverse Mortgages

March 21st, 2014

If you’re a homeowner who’s considering retiring, you may already be in possession of your most important source of retirement funding: your home.   Demand for reverse mortgages—a type of loan that allows you to borrow against the equity in your home, if you’re 62 or older—is expected to increase as a retirement planning tool, finance and economics experts say.   “Having alternative sources of retirement income is critical for those who are currently retired, those retiring in the near future, and those planning to retire in the next 30 to 40 years,” write David W. Johnson, Ph.D. and Zamira […]

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Reverse Mortgage Purchase with Bad Credit / Recent Foreclosure?

March 18th, 2014

married borrowers  # 1 has good credit-no blemishes # 2 has a bankruptcy with 2 foreclosurees 2.5 years ago @1 self employed and @ employed full time. Combined income about $160,000 per year. #1 owns two properties which he intends to sell and use the proceeds from sales as a down payment for a new home for #1 and #2 to own jointly using a reverse for purchase. Questions: 1) Can both be on the loan and on title considering # 2′s credit issues? 2) Assuming a cash down payment of $150-160,000 what amount can received toward the purchase of […]

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Why Do Reverse Mortgages Have Mortgage Insurance?

March 17th, 2014

If I take a reverse mortgage do I have to pay PMI insurance even if I pay my own home owners insurance?   Hi Sue, PMI is the acronym that stands for “Private Mortgage Insurance”.  PMI is used on conventional loans and allows borrowers who wish to obtain a loan with less than 20% equity in a property to qualify for the loan.  This insurance insures the lender against any losses that they might incur if the borrower should default on the loan.  Its one real benefit to the borrower is that it allows borrower access to higher loan to […]

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Issues that can arise when a condo owner obtains a reverse mortgage?

March 13th, 2014

What are the issues that can arise when an individual condo unit owner obtains a reverse mortgage? – Ashley   Hi Ashley, If you are asking me if there are any additional issues that may arise after the loan is complete, then I would have to say that there are no special issues that condominium owners need to worry about after their loan is closed that the owner of a single family detached dwelling would not also need to concern themselves with.  Just like other reverse mortgage holders, they need to keep all insurance, taxes and in their case HOA […]

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NEW: Fixed-Rate Reverse Mortgage Credit Line by All Reverse Mortgage

February 23rd, 2014

New Reverse Mortgage Product Offers Certainty of Fixed Rate, Flexibility of Payment Plans   For the first time ever, a new reverse mortgage is available that offers borrowers all the certainty of a fixed-rate loan as well as the flexibility of multiple payment options all in one product.   In years past, borrowers who opted for a fixed rate reverse mortgage were required to draw their loan proceeds in a single, upfront payment.   Today, borrowers have much more flexibility in choosing how they wish to receive the money from their reverse mortgages as a result of recent rule changes […]

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Avoid Payment Shock—Turn your HELOC into a HECM

February 14th, 2014

Billions of dollars worth of home equity lines of credit (HELOCs) are about to amortize this year, and if you’re one of those borrowers who has one and you’re aged 62 or older, don’t panic—you might be able to use a reverse mortgage to pay off your loan.   According to a recent report from Moody’s Investor Services, around $30 billion of HELOCs are going to start amortizing in 2014. What this means is that the loan’s initial 10-year interest-only period is over, and borrowers must start making payments on both interest and the loan principal.   Sometimes this results […]

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New Reverse Mortgage Programs: Choice, Advantage & Fourtune

February 9th, 2014

Each new year brings opportunities, and 2014 is no different: Reverse mortgage borrowers have new loan options available to them starting this year.   If you’re interested in getting a reverse mortgage, here’s some information about the most popular product, the federally insured Home Equity Conversion Mortgage (HECM), and some of its new loan variations that are now on the market.   The HECM   The Federal Housing Administration-guaranteed HECM loan is the most popular reverse mortgage on the market. With a HECM, administered through the Department of Housing and Urban Development, homeowners aged 62 and older can access their […]

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Reverse Mortgage Rule Change will Address Non-Borrowing Spouses

February 4th, 2014

The Department of Housing and Urban Development is getting ready to resolve an age-old reverse mortgage problem: the issue of the non-borrowing spouse.   A reverse mortgage is a financial tool that allows borrowers who are 62 or older to tap into their home equity either in a lump sum, in payments over time, as a line of credit or some combination of those options.   For several decades to date, the Federal Housing Administration has insured these loans as a means for older Americans to age in place.   But one problem has arisen in cases where a reverse […]

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HECM Choice: Fixed Reverse Mortgage Offers Term & Tenure Payouts

December 18th, 2013

Americans 62 years of age and older have a new reverse mortgage option that is being offered first by All Reverse Mortgage Company. It’s called the HECM Choice.   The product allows borrowers to withdraw a lump sum at a fixed rate and receive additional funds one year later using fixed rate term or tenure payments.   The product provides borrowers the best of both worlds, by combining a fixed rate loan with added benefits previously only available through an adjustable rate product.   The need for such a product comes following several changes the Department of Housing and Urban […]

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