Mortgage Magic

08/09/2026

What Does the Reverse Mortgage Proposal Show?

The proposal is designed to answer the questions most homeowners have before deciding whether to move forward.

It typically includes:

Estimated Loan Amount : An estimate of how much you may qualify to receive based on your age, your home's estimated value, current interest rates, and FHA lending limits.

Ways to Receive the Money: You'll see the different payout options available, including:

A lump sum

Monthly payments

A growing line of credit

Or a combination of these options

Estimated Closing Costs : The proposal includes estimated fees such as the appraisal, title and escrow charges, mortgage insurance, and other closing costs so there are no surprises.

Interest Rate Information : It will explain whether the loan uses a fixed or adjustable interest rate and how that affects your loan.

Existing Mortgage Payoff : If you have an existing mortgage, the proposal will show how much of the reverse mortgage proceeds would be used to pay it off.

What the Proposal Doesn't Do: A proposal is an estimate; not a loan approval.
The final numbers depend on the appraisal, verification of the information provided, and the interest rates in effect when you decide to move forward.

Your Responsibilities Don't Change : The reverse mortgage eliminates the required monthly mortgage payment, but you still remain the homeowner.

You are responsible for:
Paying your property taxes
Maintaining homeowners insurance
and keeping the home in reasonable condition

The loan generally becomes due when the last borrower (or eligible non-borrowing spouse under program rules) permanently leaves the home, sells the property, or passes away.

The Bottom Line : My goal is to make the first step as easy as possible.

Instead of asking for stacks of paperwork, I begin with just four pieces of information. If the numbers make sense, we can discuss your options and decide whether a reverse mortgage is the right solution for your situation.

There is no obligation, and many homeowners appreciate being able to see the possibilities before deciding whether to proceed.

Doug Jones nmls 286668
Certified Reverse Mortgage Specialist
Mortgage Magi

08/04/2026

Mortgage Rates Improved Today

Mortgage rates moved a little lower today as investors reacted to encouraging news from the Middle East. Comments suggesting that shipping through the Strait of Hormuz could return to normal helped push oil prices lower. When oil prices fall, mortgage rates often improve as well.

Several lenders improved their mortgage pricing during the day, which was good news for homebuyers and homeowners thinking about refinancing.

There are still important economic reports coming later this week, including a major report on the U.S. services sector on Wednesday and the monthly jobs report on Friday. Both have the potential to influence mortgage rates.

As always, mortgage rates can change quickly.

08/04/2026

What Is a Reverse Mortgage Proposal?

One of the things that surprises many homeowners is how little information I need to prepare an initial reverse mortgage proposal.
Before anyone spends time completing an application or gathering paperwork, I first want to determine whether a reverse mortgage is even a possibility.

To do that, I only need four pieces of information:

The birthdate of the youngest borrower (or eligible non-borrowing spouse if applicable)

The property address

The estimated value of the home

The current mortgage balance(s), if any

That's it.

With those four items, I can prepare a personalized reverse mortgage proposal that gives you a good picture of what may be available.

What Does the Proposal Show?
Your proposal is designed to answer the questions most homeowners have before deciding whether to move forward.

It typically includes:

Estimated Loan Amount
An estimate of how much you may qualify to receive based on your age, your home's estimated value, current interest rates, and FHA lending limits.

Ways to Receive the Money
You'll see the different payout options available, including:

A lump sum

Monthly payments

A growing line of credit

Or a combination of these options

Estimated Closing Costs
The proposal includes estimated fees such as the appraisal, title and escrow charges, mortgage insurance, and other closing costs so there are no surprises.

Interest Rate Information
It will explain whether the loan uses a fixed or adjustable interest rate and how that affects your loan.

Existing Mortgage Payoff
If you have an existing mortgage, the proposal will show how much of the reverse mortgage proceeds would be used to pay it off.

What the Proposal Doesn't Do
A proposal is an estimate; not a loan approval.

The final numbers depend on the appraisal, verification of the information provided, and the interest rates in effect when you decide to move forward.

Your Responsibilities Don't Change
A reverse mortgage eliminates the required monthly mortgage payment, but you still remain the homeowner.

You are responsible for:

Paying your property taxes

Maintaining homeowners insurance

Keeping the home in reasonable condition

The loan generally becomes due when the last borrower (or eligible non-borrowing spouse under program rules) permanently leaves the home, sells the property, or passes away.

The Bottom Line
My goal is to make the first step as easy as possible.

Instead of asking for stacks of paperwork, I begin with just four pieces of information. If the numbers make sense, we can discuss your options and decide whether a reverse mortgage is the right solution for your situation.

There is no obligation, and many homeowners appreciate being able to see the possibilities before deciding whether to proceed.

Doug Jones nmls 286668
Certified Reverse Mortgage Specialist
Mortgage Magic

08/03/2026

Who Needs to Attend Reverse Mortgage Counseling?

One of the best consumer protections built into a Reverse Mortgage is required counseling. Before a Reverse Mortgage application can move forward, borrowers must complete an independent counseling session with a counselor approved by the U.S. Department of Housing and Urban Development (HUD).

The purpose isn't to sell you a loan. It's to make sure you understand exactly how a Reverse Mortgage works, what it costs, and what your responsibilities will be.

Who Must Attend?
All Borrowers
Everyone who will be listed on the Reverse Mortgage loan must participate in the counseling session.

Non-Borrowing Spouse
If you are married and your spouse will not be listed as a borrower, your spouse is still required to attend. This helps ensure both of you understand your rights, the protections available to a non-borrowing spouse, and what could happen if the borrowing spouse passes away or permanently leaves the home.

Family Members, Trusted Advisors, and Power of Attorney

Although not required, I strongly encourage adult children or other trusted family members to attend the counseling session. A Reverse Mortgage is an important financial decision, and having another set of ears can be very helpful.

If someone will be signing the loan documents under a Power of Attorney (POA), that individual is also required to attend the counseling session. The counselor will want to make sure everyone involved understands how the Reverse Mortgage works, the borrower's responsibilities, and the protections provided by the program.

The goal of counseling is simple: to make sure everyone involved - including borrowers, spouses, and anyone acting under a Power of Attorney - fully understands the loan before moving forward.

What Happens During the Counseling Session?
The session typically lasts 60 to 90 minutes. The counselor will explain:

How a Reverse Mortgage works

The costs and fees involved

Your options and possible alternatives

Your ongoing responsibilities, including paying property taxes, homeowners insurance, and maintaining the home

When the loan becomes due and payable

At the end of the session, you'll receive a Certificate of Counseling. Your lender must receive this certificate before the Reverse Mortgage application can move forward.

Why This Matters
I've always appreciated this requirement because it gives homeowners an opportunity to ask questions of someone who has no financial interest in whether they get the loan. It helps ensure that borrowers are making an informed decision and understand both the benefits and the responsibilities of a Reverse Mortgage.

If you have questions about Reverse Mortgages or would like to know whether one might be appropriate for your situation, I'd be happy to explain your options—without any obligation.

Douglas Michael Jones nmls 286668
Certified Reverse Mortgage Specialist
Mortgage Magic

08/03/2026

Why Do Different Websites Show Different Mortgage Rates?
August 3, 2026

One of the questions I hear from homeowners is:

"Why does Mortgage News Daily show one mortgage rate, Freddie Mac shows another, and the Mortgage Bankers Association (MBA) shows something different?"

The short answer is...they're all correct. They are simply measuring mortgage rates in different ways.

Think of it this way. If three people checked the temperature - one at 8:00 AM, another at noon, and another averaged the entire week - they would all have different numbers, even though they were talking about the same weather.

Mortgage rates work much the same way.

Mortgage News Daily is the source I watch most closely because it reflects what is happening in the mortgage market today. If the bond market changes during the day, lenders may adjust their rates, and Mortgage News Daily tracks those changes. It gives a good picture of current market conditions.

Freddie Mac, on the other hand, publishes a national average once each week. Their numbers are based on actual loan applications from the previous week. It's an excellent way to follow long-term trends, but by the time the report is released, the market may have already changed.

The Mortgage Bankers Association (MBA) also reports weekly averages. Their data comes from lenders across the country and is valuable for tracking overall mortgage activity and market direction, but it isn't intended to tell you what rates are at this very moment.

So, which one should you believe?

If you're simply curious about where mortgage rates are heading over time, Freddie Mac and the MBA provide excellent information.

But if you're wondering, "What are mortgage rates doing today?" then Mortgage News Daily is usually the better source.

There is one more important point to remember.

The rate you qualify for depends on much more than the national averages. Your credit score, down payment, loan amount, property type, occupancy, and even the lender you choose can all affect the interest rate you receive.

That's why two borrowers can apply on the same day and receive different rates.

If you've seen different mortgage rates online and wondered which one applies to you, I'd be happy to explain the differences and provide a personalized quote based on your specific situation.

07/28/2026

A Reverse Mortgage Is Still Your Home

A reverse mortgage does not mean you give up ownership of your home.

You still own your home and can sell it anytime if you choose to move or make a change.

A reverse mortgage can be a helpful option for eligible homeowners who want to use some of the equity they have built while staying in the home they love.

Have questions about how a reverse mortgage works? I’m happy to help explain.

07/28/2026

Mortgage rates are showing a small improvement today because the bond market is doing better and oil prices have moved lower.

There is not much important economic news today, so investors are mostly watching world events and waiting for the Federal Reserve’s announcement on Wednesday.

The Fed’s comments could give us clues about what may happen with interest rates in the future.

The good news: After a tough week for rates, even a small improvement is a positive sign.

Content

07/25/2026

A long time ago, I had a borrower who needed to provide a written explanation for a few credit blemishes. The request irritated me a little. The loan-to-value ratio was only about 20%, the borrower had excellent income, and the few late payments were hardly a major risk.

So, instead of writing the usual "I was late because..." explanation, I sent the following letter to the bank exactly as it appears below.

The bank manager called me after reading it and said, "Doug, you are one sick puppy."

Here is the letter:

I first met my husband during the war. I was just a child, and he was already a young adult. We shared a taxi in Berlin, and he looked at me and said, "Want some candy, little girl?"

Later we were married and shared a wonderful life together. He became ill in 1996, and the doctors said it was terminal. We were devastated, but we decided to spend what time we had left traveling to places we had always wanted to see Pittsburgh, Alviso, and Flagstaff.

Those were wonderful times, but I really didn't focus on the "important" things, like making sure my credit remained perfect.

Then he died.

To make matters worse, the coroner lost his body for more than a week. You can imagine my distress.

Once the body was finally found, it was decided to cremate my husband and scatter his ashes over the Pacific Ocean, which he loved. We took the ashes on an airplane, and when we opened the urn and cracked open the window, the ashes blew all over the cabin.

When we landed, we vacuumed up the ashes, and I decided to mix them with peat moss for my garden.

I really miss my husband, and I am sorry my credit went bad, but I really do enjoy the roses each spring.

Of course, every word of the letter was fiction.

Sometimes a little humor reminds us that lending isn't just about credit reports and underwriting guidelines. It's also about people.

In this case, the underwriter apparently appreciated the joke. The explanation requirement disappeared, and the loan was approved.

No borrowers were harmed in the making of this explanation letter.

07/24/2026

Reverse Mortgage: Can a Surviving Spouse Stay in the Home?

Can a Surviving Spouse Stay in the Home After a Reverse Mortgage Borrower Passes Away?

One of the most important consumer protections built into today's FHA-insured reverse mortgages is the protection for an eligible non-borrowing spouse.

If one spouse obtained the reverse mortgage but the other spouse was not a borrower on the loan, the surviving spouse may still be able to remain in the home after the borrowing spouse passes away or moves permanently into a healthcare facility. They do not have to immediately repay the loan or sell the home.
HUD refers to this protection as a deferral period, but a simpler way to think of it is the surviving spouse's right to remain in the home as long as certain requirements are met.

To Keep This Protection in Place

The surviving spouse must:

1. Have legal ownership or the legal right to remain in the home
within 90 days after the borrowing spouse passes away.
2. Continue paying property taxes, homeowner's insurance, and
any HOA dues when applicable.
3. Continue living in the home as their primary residence. If they
move into a healthcare facility, the absence generally cannot
exceed 12 consecutive months.
4. Understand that no additional reverse mortgage funds are
available. During this time, the loan is frozen. No new monthly
payments, line of credit advances, or other loan proceeds can
be received.

When Does This Protection End?

The loan becomes due and payable when the surviving non-borrowing spouse:

1. Permanently moves out of the home,
2. Passes away, or
3. No longer meets the occupancy or financial requirements
described above.

This protection has helped many surviving spouses remain in their homes without the immediate stress of selling the property after losing a loved one. Like many reverse mortgage rules, however, eligibility requirements are very specific, so it is important to understand them before deciding whether a reverse mortgage is right for you.

Douglas Jones nmls 286668
Certified Reverse Mortgage Specialist

07/23/2026

Can a Power of Attorney Be Used to Sign a Reverse Mortgage?

Many families ask this question when a homeowner wants a reverse mortgage but is unable to handle all the paperwork personally. The answer is yes, a Power of Attorney (POA) may be used in certain circumstances, but there are strict requirements that must be met.

A Power of Attorney allows one person (the attorney-in-fact or agent) to act on behalf of another person (the borrower). However, a reverse mortgage lender cannot simply accept any POA. The document must be carefully reviewed to make sure it gives the agent the proper authority.

Generally, the Power of Attorney must:

1. Be durable, meaning it remains effective if the borrower
becomes incapacitated

2. Give the agent authority to encumber real property and handle
mortgage-related transactions

3. Have been executed while the borrower was still legally
competent

4. Have been signed before reverse mortgage counseling and loan
application

5. Meet all state legal requirements

6. Be approved by both the lender and the title company

A temporary Power of Attorney is generally not acceptable for processing a reverse mortgage, except in limited situations, such as being used solely for the closing process.

One of the most important considerations is timing. If a homeowner is already incapacitated and does not already have a valid Power of Attorney in place, a family member usually cannot simply create one. In those situations, legal advice may be necessary, and a court-appointed conservatorship may be required depending on state law.

The borrower must still complete the required HUD-approved reverse mortgage counseling process. The lender will determine who must participate and sign required counseling documents based on the borrower's circumstances and the specific Power of Attorney being used.

At closing, the attorney-in-fact will typically be required to sign a POA affidavit and execute the loan documents according to the wording of the Power of Attorney. The signing is usually completed in a format such as:

Jane Smith, by John Doe, her attorney-in-fact

where Jane Smith is the borrower and John Doe is acting under the Power of Attorney.

Because reverse mortgages involve a borrower's home, lenders, title companies, and attorneys take these requirements seriously. If you believe a Power of Attorney may be needed, it is best to discuss it with your reverse mortgage professional early in the process to avoid delays.

Planning ahead can make the reverse mortgage process much smoother for everyone involved.

Douglas Jones nmls 286668
Certified Reverse Mortgage Specialist