Reverse mortgages have come a long way since 1988 when President Reagan signed the bill into law which allowed The U.S. Department of Housing and Urban Development (HUD) to insure these loans through the Federal Housing Agency (FHA). The most popular reverse mortgage program is the Home Equity Conversion Mortgage (HECM) which has been an important source of retirement income for seniors. Growing...

Many affluent seniors are looking to proprietary reverse mortgage loans as a tool to incorporate into their overall financial plan in retirement. Historically, these loan types were considered as a last resort.  With borrowers having saved for retirement through investments, savings, and pensions, they are now including their high-valued home as part of the equation. Proprietary reverse mortgage...

On 05/27/20 the Intercontinental Exchange (ICE) Benchmark Administration published a new 10-year London Interbank Offered Rate (LIBOR) SWAP rate1 which means reverse mortgage applicants are eligible to receive more money than they were before. The previously published rate in February already sat at a record low of 1.22%.1 These lower reverse mortgage interest rates mean that homeowners 62 and...

What is a reverse mortgage? A reverse mortgage is a loan that allows senior homeowners to access the equity in their homes in the form of cash proceeds.  Borrowers must continue to live in and own the home if they have a reverse mortgage.  In 2019, over 30,000 seniors took advantage of the benefits of a reverse mortgage.1 How does a reverse mortgage work? A Home Equity Conversion Mortgage (HECM)...

The reverse mortgage loan process is generally the same regardless of which lender you choose. However, the following are some reverse mortgage tips that can help you prepare and may even streamline the process.  Two of the steps that involve homeowner engagement are: 1) the Housing and Urban Development (HUD) counseling session1 and 2) the appraisal of the property. Preparation for these tasks...