1-866-840-0279The interest of adjustable-rate mortgages (ARM) are tied to the index and margin. The index is a reference point for the interest rate and will vary based on the market. The margin, on the other hand, is a firm set of percentage points that the lender determines. When...
Nicole Hendrickson
What is a Lender Credit?
Many banks and mortgage lenders often offer borrowers lender credits to help pay for closing costs. Here we’ll discuss lender credits in more detail and how you can use these credits to reduce — or in some cases eliminate — reverse mortgage closing costs. What is a...
What is the Mortgage Interest Rate Index?
The mortgage interest rate index is a benchmark that adjustable-rate mortgages (ARMs) base their fully indexed interest rates on. The fully indexed rate is the interest that borrowers will pay for their loan. To get this, the ARM index is added to the margin. There...
What is Asset Dissipation?
Asset dissipation is a calculation of how much income you would have each month if you sold all your liquid assets for cash, then figured out how much income you would have if you divided it into even monthly withdrawals. What is an asset dissipation loan? Asset...
New for 2022: Significant Increase in Lending Limits Means More Money’s Possible Out of a Reverse Mortgage
You’re not alone if money’s a concern as you think about the future. Reverse mortgages (HECM loans) are a safe and flexible financial tool used by millions of older adult homeowners to solve the common challenges and concerns of retirement. Now with record-high...
What is a Loan Origination Fee for a Home Mortgage?
A loan origination fee for a mortgage is a charge that lenders establish as compensation for setting up or processing your loan. This fee can range anywhere between 0.5% and 1% of the total loan amount. For reverse mortgages, that’s $2,500 or 2% of the first $200,000...
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Who Can Get a Reverse Mortgage?
In 2021, 49,207 borrowers entered into reverse mortgages, an increase from the previous year. Reverse mortgages are becoming more popular for homeowners who want to make use of home equity, but not everyone is eligible. If you're in need of funds, then you may want to...
What Is Home Equity?
The average price of a house in the US is $428,700 in 2022. Owning a home offers a range of benefits, and one of those is establishing equity. While paying off a mortgage, you slowly gain full ownership of the property. This equity can increase your net worth, and you...
How to Get a Reverse Mortgage
Are you nearing retirement and curious about what a reverse mortgage is? Ready to tap into your home equity? A reverse mortgage could be a great way to do it! This type of loan allows you to borrow against the value of your home, and there are a variety of ways to use...