Best Reverse Mortgages Of 2022
Our comprehensive guide to reverse mortgages. Learn about reverse mortgages, top companies, pros & cons and see if a reverse mortgage is right for you.
#1 Reverse Mortgage Lender in the Nation
- #1 Reverse Mortgage Lender in the Nation
- As Seen on TV with Tom Selleck – The Reverse Mortgage Loan for Tax-Free Cash, and Stay in Your Home
- 96% Customer Satisfaction Rating
- Available in 49 states, 24/7 to answer your questions
- Free quote, easy application process and experts who focus on you
- Electronic signatures, no in home visits required, quick turn times, close in the comfort of your own home
- A+ rating with the BBB
- Unique customer service guarantee
- Great pricing and low rate programs
- All HECM programs available, including proprietary Platinum jumbo
- HUD approved direct lender and servicer
- A Mutual of Omaha Insurance Company
- Stability and Trust of a 110-year old insurance and financial services company
- One of the Largest Retail Reverse Mortgage Lender in America
- A+ Rating from Better Business Bureau
- Free Reverse Mortgage Guide Provided
- Available in 48 states
- Member of National Aging in Place Council
- Borrow up to $4 Million with HomeSafe Reverse Mortgage
- HomeSafe offers no initial disbursement limitation or mortgage insurance premium if qualified
- Competitive fixed interest rate and lump-sum draw
#1 Reverse Mortgage Lender in the Nation
Can I Get A Reverse Mortgage If My Spouse Is Under The Age Of 62
The borrower on title must be 62. A non-borrowing spouse can be 18-61 years old. If the borrowing spouse passes away the non-borrowing spouse may live in the house payment free for the rest of their life. If they live in the house for the rest of their lives, the loan becomes due when both pass away.
Understanding Home Equity: How Do I Get A Home Equity Loan
Typically speaking, home equity loans require good to excellent credit, as well as a reasonable loan-to-value and combined loan-to-value ratios, i.e. it needs to be a safe bet for the lender. If you meet those standards, youll want to approach a lender, such as your bank, and choose from the terms they provide. Specifics will vary greatly depending on the size of the loan, your repayment goals, and of course the values inherent in your home.
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Can My Heirs Or I Owe More Than The Value Of The Home
No. FHA insured reverse mortgages, or HECM loans, are non-recourse loans. That means borrowers cannot owe more than the value of the home. If, in the unlikely case that the reverse mortgage balance exceeds the property value, FHA mortgage insurance covers the lender. The maximum a borrower can owe if they sold the house is 95% of the value of the home.
How To Avoid Reverse Mortgage Scams
As you shop for a reverse mortgage and consider your options, be on the lookout for two of the most common reverse mortgage scams:
- Contractor loans Some contractors will try to convince you to get a reverse mortgage when touting home improvement services.
- Veteran loans The U.S. Department of Veterans Affairs doesnt provide reverse mortgages, but you may see ads promising special deals for veterans, such as a fee-free reverse mortgage to attract borrowers.
The best way to avoid a reverse mortgage scam is to be aware and vigilant. If an individual or company is pressuring you to sign a contract, for example, its likely a red flag.
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When The Loan Has To Be Repaid
With a HECM, the loan typically has to be repaid when one of the following events occurs:
- the borrower dies
- the home is no longer the borrower’s principal residence
- the borrower sells the home or transfers title, or
- the borrower defaults on the loan terms, like by failing to keep up with insurance premiums or property taxes.
Why You Might Consider A Reverse Mortgage
Aside from the obviousaccessing the equity in your home while you still own and live in ita reverse mortgage can help you pay for health care, car payments, and daily expenses. And theres more:
- Transferable. If you die, your spouse can continue living in the home .
- Typically non-recourse. According to the Federal Trade Commission , when its time to sell your home and repay the loan, you cant owe more than the home is worth.
- Potential tax advantage. Reverse mortgage payments usually arent taxed and, according to the FTC, generally wont affect your Social Security or Medicare payments.
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Ways To Get Out Of A Reverse Mortgage
Before getting into a reverse mortgage, make sure you understand how the loan works, the pros and cons of getting a reverse mortgage and what your financial responsibilities will be including paying for closing costs, paying insurance and property taxes and paying back the loan. Youll also want to make sure that you know what alternatives you have. Reverse mortgage counseling will cover all of these things, which is why its required for the HECM.
If, after all of this careful consideration, you get a reverse mortgage and find that you no longer want the loan, here are five common ways to get out.
How Much Will I Get With A Reverse Mortgage
Reverse mortgages can be paid to you:
- All at once in cash
- As a monthly income
- As a credit line that lets you decide how much you want and when
- In any combination of the above
The amount you get usually depends on your age, your home’s value and location, and the cost of the loan. The greatest amounts typically go to the oldest owners living in the most expensive homes getting loans with the lowest costs.
Most people get the most money from the Home Equity Conversion Mortgage , a federally insured program.
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What A Borrower’s Death Means For Heirs
When a person with a reverse mortgage dies, the heirs can inherit the house. But they won’t receive title to the property free and clear because the property is subject to the reverse mortgage. So, say the homeowner dies after receiving $150,000 of reverse mortgage funds. The heirs inherit the home subject to the $150,000 debt, plus any fees and interest that have accrued and will continue to accrue until the debt is paid off.
Can I Lose My Home If I Get A Reverse Mortgage
Yes, however the lender may only foreclose if you do not pay your home insurance, property taxes, and any association dues or make required repairs. In addition, the IRS could take action if there is unpaid tax liens, but that is the same as with a regular forward mortgage, too. Remember, because you are not required to make monthly mortgage payments with a reverse mortgage, there is a much lower risk of default.
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Hire A Real Estate Attorney
In almost half of all states, you are required to hire a real estate attorney. Even if its not required in your state, it can be a good idea to have legal representation when dealing with a reverse mortgage, because most people are less familiar with the process. And if youre handling a reverse mortgage sale on an inherited home, it can be helpful to have an attorney walk you through the process.
The 22 states where you are required to use a real estate attorney to sell your home are Alabama, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia.
Is Trinity Reverse Mortgage A Mortgage Lender
No. We are a reverse mortgage broker, and we have a large number of HUD-approved lenders with whom we work. As a broker of mortgages, there are a number of products we can offer that can help you close gaps and find financial solutions where individual reverse mortgage lenders couldnt. Lenders are limited to the products they offer we have access to all the Lenders products. For example, some Lenders do not offer Jumbos, or an annually adjustable HECM.
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Homeowners Frequently Ask Can I Sell My Home With A Reverse Mortgage
Borrowers can opens in a new windowrepay a reverse mortgage at any time without penalty. So the answer is: Yes, you can sell a house with a reverse mortgage at any time, just like on a traditional mortgage.
When you sell your reverse mortgaged home, you must pay back the mortgage balance and the lender will close your loan account. You hold the remaining home equity.
Is It True I May Actually Buy A New Or Different Home Using A Reverse Mortgage
Yes. There is a reverse mortgage for purchase option that allows qualified borrowers the ability to purchase a qualifying home by putting approximately 45%-62% of the purchase price as a down payment, then using the reverse mortgage for the balance. This means NO monthly payments in your new home for as long as the loan conditions are met. This is a great way to “Right-Size” into a better situation or the home of your dreams.
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Reverse Mortgage Problems And Responsibilities For Heirs
According to a USA Today article from December 2019, heirs who want to pay off a reverse mortgage and keep the home often face months of red tape and frustration when dealing with the loan servicer. Shoddy loan servicing practices often hinder what should be routine paperwork, debt calculations, and communications with borrowers or heirs.
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Just left us a 5 star review
I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process.I interviewed several other people and he was hands down…..The only choice.
Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.
Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.
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Reverse Mortgage In Canada Dos
Since this product was created by HomEquity Bank specifically to help Canadian seniors, the process to secure a reverse mortgage is streamlined to quickly and easily provide access to the funds. A reverse mortgage loan can best serve its purpose if you consider certain guidelines before securing a loan and while utilizing the proceeds:
Reverse Mortgage Heir Options
As an heir of a reverse mortgage, you will have 30 days to decide your actions upon the receipt of a Due and Payable notice and 3 to 12 months to pay off the loan balance. Some lenders offer up to six months to determine financing, but terms and conditions vary.
Remember: A reverse mortgage heirs responsibility includes contacting the HECM lender as soon as possible to figure out the next steps. In addition, its a good idea to talk to any family members who have reverse mortgages to discuss options ahead of time.
Retain the home: In order to keep the home, heirs of a reverse mortgage are required to pay the full loan amount, but never more than 95% of the propertys appraised value. You will also owe payment for any associated fees and interest accrued.
- Refinance: Reverse mortgage heirs typically cannot refinance a HECM loan. You may have to find a special lender or financial institution to refinance because many conventional lenders will not provide a loan to someone whose name is not the name on the title of the home. Refinancing a reverse mortgage typically can only occur by the homeowner who originally applied for the reverse mortgage.
Sell the home: If the home is worth more than the loan amount, heirs can sell the home, pay off the loan balance, and take whatever is left from the sale as an inheritance.
Foreclosure on a mortgagors home doesnt negatively impact heirs credit reports or have other financial repercussions because its considered voluntary.
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What Is A Reverse Mortgage
In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. Unlike a forward mortgagethe type used to buy a homea reverse mortgage doesnt require the homeowner to make any loan payments.
Instead, the entire loan balance, up to a limit, becomes due and payable when the borrower dies, moves out permanently, or sells the home. Federal regulations require lenders to structure the transaction so that the loan amount won’t exceed the homes value. Even if it does, through a drop in the homes market value or if borrower lives longer than expected, the borrower or borrowers estate wont be held responsible for paying the lender the difference thanks to the program’s mortgage insurance.
Options For Your Heirs
Under a HECM, those who inherit a home that’s subject to a reverse mortgage get four options.
- Pay back the loan. Generally, with a HECM, the heirs may pay the lesser of the mortgage balance or 95% of the current appraised value of the home. FHA insurance will cover the remaining loan balance.
- Sell the home and use the proceeds to repay the reverse mortgage. With a HECM, the heirs can sell the property for the full amount of debt owed on the loan or an amount that is at least 95% of the current appraised value of the property.
- Deed the home to the lender.
- Do nothing and let the lender foreclose.
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If It Is Not A Scam Why Do I Pay So Much In Interest
People sometimes believe that reverse mortgages are a way for banks to scam home owners out of their homes.
The reality is that no one is scamming anyone out of anything. But it is important to remember, that reverse mortgages are loans a unique type of loan, but definitely a loan on which you will owe interest.
The business of banks is to give out loans and make money by charging interest on the borrowed amounts. Banks do make money on mortgages and reverse mortgages as well.
Interest on a Your Original Mortgage: Unless you paid cash, you probably purchased your home using a mortgage money borrowed from the bank. And, you paid interest on that loan. In fact, you might not want to know this, but most of us have paid almost twice the original value of our homes in interest payments! For a $100,000 home with a 30 year mortgage, you will have paid $98,000 in interest payments at 5.25 percent interest almost doubling the true cost of your home!
Interest on a Reverse Mortgage: When you get a Reverse Mortgage, you are again borrowing money. And you will be accumulating interest on the borrowed amount. However, instead of making mortgage payments every month, the interest on the loan and the loan amount comes due when you die or permanently move out of your home.
A reverse mortgage is not a low income charitable benefit. A reverse mortgage is a highly regulated loan program not unlike traditional mortgages.
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Can You Sell A House With A Reverse Mortgage
Yes, its perfectly legal for a homeowner to sell a home with a reverse mortgage its your home, and you have the right to sell when you see fit. Just like with a traditional mortgage, you still hold the title, but the lender has a lien. When you sell, you pay the balance due to the lender at closing, then you walk away with any remaining equity.
If youre selling a home with a reverse mortgage, make sure you have enough equity in the home to cover both your loan payoff balance and closing costs.
