Hundreds of questions over nearly 20 existing topic areas are accessible to anyone Topics that some potential borrowers already need information about. Question revolves around a deeply specific financial scenario or the ways in which certain product features could interact with other parts of a potentialĪpplicant’s finances, ARLO™ will have it answered as quickly as possible.Īnd, for those questions that have already been asked, the searchable database of more than 1,600 previously answered questions may already cover That’s one of the things that helps to make the tool so unique: if your One of the things that separates ARLO™ from other places you may be able to find reverse mortgage information is that it has a dedicated, real-timeĪnswering process for any possible reverse mortgage question that’s submitted to it. Than 1,600 questions and answers aimed toward helping prospective borrowers learn more about reverse mortgages, and how they can expect the loans to ARLO™ also covers a searchable database of more With ARLO™, borrower prospects can gain real-time amortization, interest rate and closing-cost projections, allowing them to get a sense of theĪctual costs associated with getting a reverse mortgage - both upfront and on an ongoing basis. “I believe this is a win for the consumer, while also supporting the needed solvency of the reverse mortgage program,” All Reverse president Cliff Auerswald says. Navigate the landscape of product offerings, mortgage insurance premiums and principal limit factors to find the right option for them and their situation. The goal that ARLO sets out to achieve is to help borrowers ARLO™, launched in 2017 by Orange, Calif.-based reverse mortgage lenderĪll Reverse Mortgage, aims to simplify the process of finding the right reverse mortgage by allowing prospective applicants to preview an array ofĭifferent loans with several variables, including annual rates, origination fees, and credits. This is where ARLO™ – the All Reverse Loan Optimizer – comes into play. Plethora of options that are available, and cutting through the noise to find out which kinds of options will be best for an individual borrower can be a Is that there is no shortage of different options in terms of product offerings and features.įor a senior preparing to get a reverse mortgage loan, it can be daunting and intimidating to simply get more information about the whole In most cases, term payments are significantly higher than tenure payments, because the lender does not know how long you'll be in the house, and must therefore be conservative with your loan amount.One thing that can be said with certainty about reverse mortgages – otherwise known as Home Equity Conversion Mortgages (HECMs) – Matt and Cindy have two monthly payment options - "tenure" payments for life or "term" payments for a specific time period - in their case, the ten years in which they expect to occupy the home. They're 73 and 70 and expect to live in their home 10 more years. Their Social Security income is only about $3,000 a month, and some extra income would really improve their lifestyle. Their home, which they own free and clear, is worth $400,000. Matt and Cindy are house-rich and cash-poor. Now let's look at a situation where the homeowners are house-rich and cash-poor.ĮXAMPLE WHERE THE REVERSE MORTGAGE DECISION IS BASED ON REMAINING TIME IN HOME ** If unused, HECM credit lines grow at the loan's variable interest rate. *Elimore's property may be worth $300,000, but it's subject to a $80,000 loan. Unused, the line of credit will grow over time. She can get a line of credit and use the initial disbursement for her mortgage, repairs and trip, and tap the remaining unused line after 12 months.After 12 months, she can tap the remaining funds if other expenses or travel opportunities come up. She can borrow a lump sum at a variable rate, which pays off her mortgage and covers repairs and her vacation.She can take a lump sum payout at a fixed rate, which zeros her mortgage and leaves her funds for home repairs and travel.Several payment options can accomplish her goals: She lives very simply but would love to take a trip to visit some grandchildren she's never seen.Ī HECM frees Eleanor from mortgage payments, which should stretch her limited income further and improve her quality of life. The property also needs $10,000 of repairs, which she can't afford. Now let's look at an example where the reverse mortgage choice is not so clear.ĮXAMPLE WHERE THE REVERSE MORTGAGE DECISION IS COMPLEXĮleanor, a 75-year-old widow, is under financial pressure, because she still has an $80,000 mortgage on her $300,000 home. **If unused, HECM credit lines grow at the loan's variable interest rate. *Any property value greater than $625,500 is calculated at the HECM maximum value.
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