Currently viewing the tag: "Reverse Mortgage"

Reverse Mortgage Purchase Popularity Gains

By On March 8, 2011

It has been quite some time since the FHA (HUD) started insuring reverse mortgage purchase loans, however the program never really took off. Much to my surprise, even some of the more sophisticated buyers were not using reverse mortgages to buy homes. I have always promoted reverse mortgage home purchase scenarios to borrowers but to no avail. Few of them could see the absolute sense this type of transaction makes.

This is a preview of Reverse Mortgage Purchase Popularity Gains. Read the full post (238 words, estimated 57 secs reading time)
Continue Reading →

Reverse Mortgages for Free and Clear Homes

By On October 26, 2010

Reverse Mortgage with Credit Line Feature

With all of the changes in reverse mortgages these days, it pays to review your options again, if you are in the process of applying for one. The most popular program today is the fixed interest rate, lump sum pay-out program due to the amount of funds available to the borrower usually being greater with this option. It’s no secret that most home owners will want to get the most money available these days and probably because they need to pay off an existing mortgage but what if your home is free and clear of any mortgages? The other option is an adjustable interest rate reverse mortgage or the lower paying HECM Saver. Again, most borrowers might want to gravitate to the peace of mind that comes with a fixed interest rate but what if the rate on your loan was tied to the amount of funds available for future payments to you? In this case, you might get an unexpected bonus if and when interest rates rise. That is exactly what happens when you choose the adjustable interest rate option on your reverse mortgage.

This is a preview of Reverse Mortgages for Free and Clear Homes. Read the full post (655 words, estimated 2:37 mins reading time)
Continue Reading →

4.99% with 1.25% MIP or 5.56% with .50 MIP?

By On September 30, 2010

It’s really a personal decision as to whether or not to chose the newer MIP of 1.25% vs. .50%. If you have the choice, the newer loan with the higher MIP will yield more money, as stated in another post but what will be the difference in the ongoing costs? They will be higher but how much? Simple math will fix this and make your decision much easier.

Current loan note rate 5.56%

Plus current MIP .50%

Total Annual Rate 6.06%

New loan note rate 4.99%

Plus new MIP 1.25%

Total Annual Loan Rate 6.24%

This is a preview of 4.99% with 1.25% MIP or 5.56% with .50 MIP?. Read the full post (135 words, estimated 32 secs reading time)
Continue Reading →

4.99% Fixed Rate Reverse Mortgage Prevails

By On September 29, 2010

As predicted by some, the lowest, fixed rate, reverse mortgage is quickly becoming the “go to” product for the industry. Boasting the highest pay out to the borrower and the lowest fixed rate available, the product has the added benefit of a note rate lower than the new HECM expected interest rate. By lowering the expected rate on the new HECM, HUD provided an unexpected benefit to the borrower along with the unfortunate higher MIP tacked-on to the ongoing fees in the program.

This is a preview of 4.99% Fixed Rate Reverse Mortgage Prevails. Read the full post (143 words, estimated 34 secs reading time)
Continue Reading →

Reverse Mortgages Expected Interest Rates Lower

By On September 22, 2010

Mortgagee Letter 2010-34

Some borrowers can now expect to receive more money from their reverse mortgages. The Department of Housing and Urban Development (HUD) announced Mortgagee Letter 2010-34 that makes some substantial changes to the reverse mortgage (HECM) program, including lower expected interest rates. While the mortgagee letter was widely anticipated as a formal announcement of further reductions in reverse mortgages loan amounts (PLF), an unexpected addition to the rule resulted in lower expected interest rates. For some younger borrowers, the lower rates will yield higher loan amounts and therefore, more loan proceeds to pay off existing mortgages which could result in more applicants qualifying for the HECM. While the dust settles, existing reverse mortgage applicants should stand by to see what outcome the effects of this new mortgagee letter will have on current applications in process.

This is a preview of Reverse Mortgages Expected Interest Rates Lower. Read the full post (211 words, estimated 51 secs reading time)
Continue Reading →
WikiPages