The Best Reverse Mortgages

A common question is why do I have to pay mortgage insurance on a reverse mortgage? The answer is protection.  For the borrower, a federally-insured reverse mortgage comes with the benefit that you will receive loan payments as outlined by the terms of the loan, and you will never owe more than your home is worth. This benefit is guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which is the primary reverse mortgage program available on the market today. In order to be protected and receive that guarantee, borrowers pay for it through reverse mortgage premiums.  There is a one-time upfront mortgage insurance premium at the time of closing the loan, as well as an annual insurance premium which are both paid to FHA. Currently, as of the date of this article, the upfront mortgage insurance premium is a flat 2% of the appraised value of the home or the FHA maximum lending limit of $679,650, whichever is less.  The ongoing annual prem

Do I own my home with a reverse mortgage? It's perhaps still the biggest misconception surrounding a reverse mortgage to this day. Many believe the bank or lender will become the owner of the property and the homeowner simply becomes a tenant of their own home.  Unfortunately, this misconception has discouraged many people from looking any further into a reverse mortgage for fear of losing their property rights.  Let's make it clear right here, right now:  A Reverse Mortgage Does NOT Take Away The Title Rights Of A Homeowner. A reverse mortgage is just a lien against the property and shows up on the title records as such.  The borrower(s) who obtains the reverse mortgage is the same individual(s) who will hold the title of the property either in their individual names or a living trust.  Also, the homeowner has the absolute right to pay off their reverse mortgage or sell their home at any point in time without any restrictions, penalties or without requiring to get permissi

It's always good to go back to the beginning and make sure we got the basics down.  As reverse mortgages continue to evolve in how they are advertised by various companies as well as how they are used by consumers, one can get muddled and lose sight on the basics of the program. So, let's not forget that a reverse mortgage is simply a mortgage.  In other words, a lien against the home. The difference with this mortgage is that it offers flexible payment options.  There is no requirement to make a monthly mortgage payment, so a borrower can choose each month whether he or she wants to make no payment or a payment for any amount they wish.  Most borrowers elect not to make a payment each month.  However, some may want to make an interest only or a principal & interest payment to keep the loan balance from increasing over time.  The point here is that a reverse mortgage gives you more choices and greater control over your cash flow each month. With a reverse mortgage ther

The number of reverse mortgages done in the month of January 2018 was 6,313, which was an increase of 32.5 percent month over month from December 2017, according to the latest data from Reverse Mortgage Insight .    This also marks the best month for the reverse mortgage industry since March 2011.  The increase can be attributed to changes made by the Department of Housing and Urban Development (HUD) in October 2017, which caused a rush of applications by homeowners who wanted to secure larger principal limits and equity proceeds.  For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional (CRMP) NMLS# 473353 Toll Free  (877) 500-0454 Local (702) 460-6222 www.reversemortgagecertifiedprofessional.com