You may think you understand reverse mortgages—and you probably do. They are, simply put, a type of mortgage that allows you to receive payments from your home equity rather than make them. It’s a negatively amortizing loan, meaning the balance grows over time, instead of falling. But there are some benefits that borrowers might not consider initially, that give reverse mortgages some outside-the-box applications that could help you improve your financial situation. One little known fact, for example, is that you can get a reverse mortgage and can actually make payments on it. Or, you can turn it into an [...]
April 26th, 2012
Met Life Bank just announced that they are exiting the reverse mortgage market which is bad news for some reverse mortgage borrowers. Met Life was responsible for delivering the lowest adjustable LIBOR rates to borrowers. Met Life had consistently given borrowers some of the best margins available and now with them leaving the reverse mortgage business, borrowers may be forced to accept higher margins which mean higher rates. Higher rates equate to a faster erosion of equity. Just as troubling would be the fact that Met Life did more Saver loans than any other lender and offered borrowers the lowest [...]
Tags: metlife closes, metlife exit, metlife reverse mortgage
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April 16th, 2012
Variable rate reverse mortgages are more flexible than fixed rate loans due to the fact that fixed rate loans require that you take all your money in a lump sum draw at one time when the loan closes. The adjustable rate loan can give you several different draw options. Borrowers can also choose a lump sum draw, can leave funds in a line of credit to be used whenever they choose that grows over time on the unused portion, can take a payment for a set period of time or for life or can take a combination of all of the [...]
Tags: adjustable, variable
Posted in Interest Rates | No Comments »
April 13th, 2012
Reverse mortgages are a financial product that have gotten a lot of bad press over the years, leaving many people who could potentially benefit from this type of loan with negative associations and a bad taste in their mouths. But what’s so wrong with this federally-insured Home Equity Conversion Mortgage (HECM) program? Is it really as bad as some media outlets would have you believe? The short answer is no, but don’t just take our word for it—we’ll prove it, too. For starters, reverse mortgages are becoming more common among borrowers of all ages, with nearly half of homeowners considering [...]
Tags: myths, problems
Posted in About Reverse Mortgages | No Comments »
April 13th, 2012
You may be asking yourself how that could be a possibility. Most people associate Reverse Mortgages as having high closing costs in order to obtain one because of the 2% Upfront Mortgage Insurance Premium (UFMIP) that is charged by HUD to insure the loan. In fact, that is the number one complaint that you normally hear spoken about Reverse Mortgages is that the costs involved to obtain a Reverse Mortgage are just too high. HUD released the Saver version of the Reverse Mortgage product in an effort to bring a lower cost option to borrowers seeking a Reverse Mortgage. The [...]
Tags: no cost, no fee
Posted in Costs & Fees | No Comments »
April 11th, 2012
Click Here to Download our Amortization Calculator The experts at All Reverse Mortgage® are here to answer your questions! If you have a question about making interest payment or using this calculator please give us a call Toll Free (800) 565-1722 or request an analysis by clicking here » Have you ever wondered about how a Reverse Mortgage loan could be more advantageous than a traditional loan? Are you someone who thinks Reverse Mortgage loans are only for those in dire straits? Think that if you get a Reverse Mortgage loan that you will have no equity in your home for the rest of [...]
Tags: amortization, calculator
Posted in Calculators | No Comments »
April 5th, 2012
Let’s say you just heard about reverse mortgages for the first time. Start with Google, and your search will turn up about 21.3 million results of reverse mortgage information… So where to begin sifting through all this info? There are some very useful and reputable resources out there, depending on exactly what you want to know. Some of these resources are offered by the government, which insures Home Equity Conversion Mortgages (HECMs) under the Federal Housing Administration. Others are trusted organizations that work with reverse mortgage borrowers such as the National Council on Aging, which provides the counseling that [...]
Tags: reverse mortgage information
Posted in About Reverse Mortgages | No Comments »
March 30th, 2012
A Reverse Mortgage is a safe and viable financial tool for borrowers aged 62 and older to consider along with their other retirement planning. Borrowers who can no longer qualify for Home Equity Lines of Credit under conventional underwriting guidelines or no longer want or can afford a regular monthly payment have an opportunity to utilize the equity in their homes with the Reverse Mortgage Programs, in addition to having the comfort of knowing that the bank cannot arbitrarily freeze or close the line at any time due to changes in guidelines or property values. Reverse Mortgages have become [...]
Tags: definition, tell me
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