Review Of All Reverse Mortgage, Inc.
The Best Reverse Mortgage Company
Involved in the mortgage banking industry for more than 40 years, All Reverse Mortgage, Inc. has focused exclusively on reverse mortgages for the last 16 years. Located in Orange, California, the company’s proprietary All Reverse Loan Optimizer provides clients with personalized real-time product and rate comparisons.
Pros:
- Better Business Bureau Torch Ethics Awards finalist, presented to “exceptional organizations for their dedication to integrity and ethical business practices”
- Offers one of the lowest interest rates of HECM lenders, according to HUD data
- Veteran-led and women-led organization
- Operates ARLO calculator, a unique upfront consumer pricing engine
Cons:
- Currently only licensed in 15 states
Overview of All Reverse Mortgage, Inc.
Approved by the Department of Housing and Urban Development, All Reverse Mortgage, Inc. offers individuals who are 62 or older and have at least 50% equity invested in their homes reverse mortgage options. The company provides several product selections, allowing seniors to make the best use of their investments.
- Seniors can use All Reverse Mortgage, Inc.’s standard home equity conversion mortgage for a lump sum cash loan or monthly payment.
- Individuals whose lifestyles have changed can tap into the equity they’ve accrued in their current home and convert it to a down payment on a property that better meets their needs through an HECM for Purchase product.
- Seniors with high-value properties might opt to borrow against the equity they’ve amassed through an All Reverse Mortgage, Inc. Jumbo Loan.
What Fees Does All Reverse Mortgage, Inc. Charge?
All Reverse Mortgage, Inc. provides a self-guided calculation tool to compare different reverse mortgage products and their associated fees. For the sake of brevity, you can generally expect to pay within the following ranges for associated costs and fees.
- Upfront Costs
- Compulsory pre-loan counseling: $125-$175
- Appraisal: $400-$500
- Closing: $1,000-$2,000
- Loan origination: $0-$6,000
- Initial mortgage insurance payment: 2% of the home’s appraised value
- Ongoing Costs
- Interest: calculated on the outstanding balance and compounded annually
- Mortgage insurance: 0.5% of the outstanding balance up to the contract’s 5-year point or 78% of the property value is reached, whichever occurs first
- Service fees: $25-$35/month
Full Review of All Reverse Mortgage, Inc.’s Features
Each of All Reverse Mortgage, Inc.’s products has specific features; however, all of the company’s reverse mortgage programs must adhere to the following standards outlined by HUD.
Eligibility
Borrowers must be at least 62 years of age and have invested a minimum of 50% equity in their homes. They’re also required to show proof that the home is their primary residence.
In addition, HUD clearly defines acceptable property types for the reverse mortgage programs, including single-family residences, two- to four-unit properties, manufactured homes, condos or townhouses. Eligible homes need to have been built on or before June 15, 1976.
In addition to property type, HUD requires that homes are in good livable condition. However, homeowners may qualify for a reverse mortgage loan with the intent of using it for necessary updates and repairs.
Loan Duration
To avoid default, borrowers are required to stay current with the home’s insurance, taxes, ongoing maintenance and any HOA fees. Reverse mortgage loans also have residency requirements. Generally, the mortgage company can foreclose if the residence has been unoccupied for more than a year.
Repayment Requirements
Each of All Reverse Mortgage, Inc.’s products offers borrowers a financial solution without requiring a monthly loan repayment. Adhering to HUD regulations, reverse mortgage balances are due when the last borrower dies or moves.
In certain situations, accommodations are made for the non-borrowing surviving spouse to remain in the home. Heirs have the option of deeding the property to the lender or repaying the loan.
All Reverse Mortgage, Inc. HECM
Seniors who want to remain in their homes but need to free up some of their equity investment might consider an All Reverse Mortgage, Inc. home equity conversion mortgage.
Payout Options
Reverse mortgage payout options include depositing the cash into an interest-bearing line-of-credit account or receiving fixed monthly payments or a lump sum payout.
Interest Rates
Borrowers choosing a lump sum disbursement receive a fixed-rate loan. Seniors who opt for monthly payments or a line of credit pay variable interest rates. The fees include a base interest rate plus an added 1% to 3% lender’s margin.
Federally Insured Mortgage Loan
The FHA insures and regulates HECM loans.
Maximum Loans
Although the FHA allows a maximum of $970,800 reverse mortgage loan, your loan amount will depend on the home’s appraised value, current interest rates, your equity and the age of the youngest borrower. Typically, reverse mortgages average between 40% and 60% of the appraised value.
All Reverse Mortgage, Inc. HECM for Purchase
Seniors who need to move closer to family or downsize from their current home may opt for a Home Equity Conversion Mortgage for Purchase to use as the downpayment for the new home.
Eligibility
The current home must have enough equity to subsidize the downpayment on the new home.
Payout Options
The sale of the borrower’s previous home provides the one-time payout for the new home’s downpayment of between 45% and 62% of the purchase price.
Federally Insured Mortgage Loan
The FHA regulates and insures all HECM for Purchase loans.
Maximum Loan
The lending limits for an FHA-insured HECM for Purchase is $970,800.
All Reverse Mortgage, Inc. Jumbo Reverse Mortgage
Seniors living in high-value properties could find All Reverse Mortgage, Inc.’s Jumbo Reverse Mortgage beneficial.
Eligibility
The Jumbo Reverse Mortgage is an option for individuals living in single-family homes valued above $850,000 or condos with an appraised value over $500,000.
Payout Options
Payout options include monthly payments for up to 60 months or a lump sum payment.
Federally Insured Mortgage Loan
Seniors need to find a private insurer, as the FHA doesn’t insure jumbo reverse mortgage loans.
Interest Rates
Borrowers receive a fixed rate for lump-sum payouts, but the line-of-credit loans are subject to variable interest rates.
Maximum Loan
All Reverse Mortgage, Inc.’s maximum Jumbo loan is $4 million.
Who Should Consider All Reverse Mortgage, Inc.’s Products?
Seniors Who Want To Downsize or Move Closer to Family
Seniors who want to downsize or live closer to the family could find a reverse mortgage product, such as the HECM for Purchase, that meets their needs. The money earned from the previous home’s sale is converted into a sizable down payment on the new property, saving cash reserves.
Seniors Who Need Cash for Retirement Expenses
Unexpected medical or home repair expenses can challenge fixed retirement funds. Converting equity into cash helps seniors remain in their current homes while providing necessary supplemental income.
What Are People Saying About All Reverse Mortgage, Inc.?
One reviewer on Trustpilot expressed frustration with the paperwork process; however, many respondents have been impressed with the online self-guided tools that help them determine approximate values and costs before proceeding with the reverse mortgage process.
All Reverse Mortgage, Inc. holds a Better Business Bureau A+ rating based on more than 230 customer reviews. The company’s customer service stands out as exemplary for most people. They’ve appreciated the representatives’ thoroughness and patience when explaining the process and answering questions.
FAQs
What Happens With a Reverse Mortgage if the Owner of the Home Dies?
When the homeowner dies, there could be several considerations involving the reverse mortgage:
• Heirs might deed the property back to the lender, or they could decide to pay off the reverse mortgage balance and either keep or sell the property.
• A non-borrowing spouse who meets the loan guidelines may stay in the home.
• A co-borrowing spouse who continues to adhere to the loan’s condition can remain in the home.
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Will a Reverse Mortgage Affect My Pension?
A reverse mortgage won’t affect either the Social Security payments you’ve earned throughout your career or a privately funded pension from employment. It could, however, impact need-based programs, such as Supplemental Security Income or Medicaid, depending on how the loan is received. Click here for our full answer to this question.
How Much Money Do You Get From a Reverse Mortgage?
The amount of money you’ll receive from a reverse mortgage depends on several factors. Some considerations include the current interest rates, the property’s appraised value and the age of the youngest borrower. Typically, if you have at least 50% equity in your home, you may receive between 40% and 60% of the home’s value. Click here for our full answer to this question.
Do You Still Own Your Home With a Reverse Mortgage?
Homeowners retain ownership of their property with a reverse mortgage. If there are co-borrowers, you keep the home until the last borrower dies, fails to meet tax, insurance or maintenance responsibilities or resides elsewhere for one year. Click here for our full answer to this question.
What Is the Difference Between a Home Equity Loan and a Reverse Mortgage?
A home equity line of credit and a home equity conversion mortgage differ on several points. Some of the most notable differences include:
• Credit score: The ability to obtain a HELOC hinges on your creditworthiness. An HECM, on the other hand, is based on the borrower’s age and property equity.
• Closing costs: HELOC closing costs average between 2% and 5% of the loan, whereas HECM closing costs can be as much as $6,000.
• Monthly payment: The HELOC payment depends on the amount you withdraw, while the HECM doesn’t require ongoing monthly payments.
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