“Ding dong, the witch is dead . . .” oh wait a minute, we need the jumbo reverse mortgage! It WAS a good program. It filled a niche for homeowners who are very equity rich and cash poor. But for now, it is true, the last jumbo reverse mortgage, called the Equity Plus Advantage (EPA) [...]
The FHA Reverse Mortgage (Home Equity Conversion Mortgage or ‘HECM’) is now, just about, the only viable reverse mortgage program out there.
First, in April, it was Bank of America’s jumbo reverse mortgage to be suspended; then in June, Financial Freedom stopped funding their Cash Account program; in September Gold Reverse pulled their fixed rate jumbo [...]
In response to the Housing and Economic Recovery Act of 2008 (HR 3221), Bank of America has announced that it will no longer accept reverse mortgage applications containing a broker advisor agreement. I suspect that other reverse mortgage lenders are likely to interpret the new law in the same way and follow suit. This means [...]
Now I’m not one to preach, but this is a topic that can get my blood boiling. I get at least 5 calls a week from seniors who did a cash out loan, often a option ARM, and can no longer afford the payments. Now they are calling me practically begging for a reverse mortgage [...]
If you have ever seen a reverse mortgage quote, you know that it looks quite different than traditional loan quotes. In case you haven’t, you can see a sample reverse mortgage quote as you read the explanation.
As an aside, don’t confuse the results produced by an online reverse mortgage calculator with an actual quote for a reverse [...]
Reverse mortgages are available in two main flavors: FHA conforming and non-conforming, the latter is also known as a Jumbo Reverse Mortgage. An FHA conforming loan limit is the maximum amount of home value that is recognized in calculating the amount of money that will be lent on the home. Jumbos are considered by senior [...]
You might think that reverse mortgage lenders and banks, with their gobs of protective equity, would be immune to the Wall Street mortgage lending crisis. After all, how bad could the default rate on a home loan with no payments and at 40% to 50% LTV be? Tell that to the Wall Street bears.
Since investors [...]
A recent Associated Press article by Adrian Sainz issued some cautionary (dare I say fear-mongering?) statements about reverse mortgages, that beg a rebuttal. Most of his negative statements are apparently derived from an interview with David Certner, legislative policy director for the AARP. Ironically, AARP’s reverse mortgage web site presents a far more balanced perspective [...]
Thanks Todd, for the warm welcome. I look forward to offering up some informative posts about the world of reverse mortgages.
Luke
Reverse Mortgage Pro
Reverse Mortgages California
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