Reverse Mortgage Information

Even today with all the commercials on television about reverse mortgages featuring famous actors, politicians and entertainers, I am amazed that there are older Americans who do not know about reverse mortgages!

When I contacted the couple’s daughter to review the loan program with her, she began to cry with relief, seeing that her parents would no longer have to worry about making a house payment.  She had been feeling so helpless as she was unable to assist them financially herself due to her own economic worries caused by this recession.

 

The homeowners and their children had no idea that there was such a program as reverse mortgages.  Finding out that it was an FHA Insured loan program helped them to feel even more secure about it.

It is my mission to inform every American over the age of 62 about the facts of reverse mortgages.  Though you may never need to use one, like CPR, life vests & spare tires ....everyone should know about them and how the work.

Spread the word.

Today was such a great day!

Pricing on HECM reverse mortgages has come down and with it the funds available to senior homeowners has gone up.   

I called one of my clients who has been unsure of whether or not she should complete her reverse mortgage loan, (She should) but with the old pricing she would have had to bring in $600 to get the reverse or take the more expensive "HECM Standard" loan which she did not want. So, she's been putting off the decision to move ahead.

At the new pricing she can use the HECM Saver, and get a few thousand dollars in cash to put away for a rainy day.  Her old mortgage will be paid off and she will no longer have to make a mortgage payment.  Not only that, but the interest rate on this new fixed HECM Saver will be about 1% less than her current 30 year mortgage that she is struggling to make the payments on.

Woo hoo!  She went from scared and sitting on the fence to peace, happiness and confidence that this new HECM Saver Fixed Rate reverse mortgage is exactly the right thing for her to do.

I told her that her "angel" must have been suggesting she hold off for a week or two cause he had a special coming up!

This post has nothing to do with Reverse Mortgages.  I'm just a proud aunt showing off my awesome family!

My nephew, John Butler, a Realtor here in Southwest Riverside County has the most engaging personality you could imagine!  

My Sister, Beth, another Realtor who specializes in Horse Property.

My sister in law, Gina, a Realtor on John's team in Temecula.

My sister Mitzi's mother in law Beverly, a Realtor and loan officer in Wildomar for the last 30 years.

and of course myself, Reverse Mortgage originator, past escrow officer and Realtor....  (I probably forgot someone!)

It just runs in the family!  

Here's John's latest Video!

Thank you Active Rain for helping me to help others.

I'm so excited to be helping a client this weekend close on their reverse mortgage refinance.  Mr. F is 85 years old and still making $1500 house payments.  (He refinanced during the boom to help his kids get into their own homes.)

His beautiful wife of over 60 years recently passed away he lost her social security income leaving him with just about $1,500 in income.  The kids have been helping out until recently, job losses and the economy prevent them from doing enough. Mr. F's savings is just about gone.

The economy hasn't been good to Mr. A, but he always has a smile and loves his home of 32 years. He doesn't want to leave.

The reverse mortgage is going to payoff his existing mortgage, just barely.  But that will leave him with no mortgage payment and a way to afford his living expenses.  Using the Easter analogy, he will have a new financial life. What a great weekend to attend this closing!

His grown kids found me through my ActiveRain blog and studied it to get as educated as possible about the product.  They are so happy that there is a way for Dad to stay in his home as they were just devastated to think he might lose it because he had helped them.

How to Buy A Home with A Reverse Mortgage in Southern California

Homebuyers over the age of 62 may wish to consider financing their new primary residence with a reverse mortgage.   Prior to 2009, reverse mortgages were only available as an option for refinancing a senior’s current home, now they can be used to buy a new home.   Perhaps the best way to explain the process is with a common scenario.

Mr. & Mrs.G, recently decided to move closer to their children and grandchildren   They had lived in their previous home for 40 years where they had raised their children.  As the kids grew up, finished college and started their careers, they all seemed to relocate to newer areas of development  east of Los Angeles where homes were less expensive and newer.  Now,  in their early 70’s Mr. & Mrs. G were still living in the old family home.  They had taken out a new $200,000.00 mortgage on their home in 2001 in order to update it, and to help the kids with down payments on their own homes.  Their mortgage payments were a tad over $1,400 per month.  Mrs. G was still working but looking forward to retiring when they moved.  They listed their home in LA and it sold quickly for $399,000.00 of which they netted $200,060 after closing fees, commissions and mortgage payoff.    

Now, what to do with that $200,060.00?  They could pay all cash for their new home, if they could find one they liked in that price range or they could put part of it into savings, use the rest as a downpayment and obtain regular financing and commit to a new mortgage payment.  They did neither, instead they purchased their new home with a Reverse Mortgage for financing.  Their home’s purchase price was $320,000.00  here’s how it worked out for them.

They put a total of $102,100 of the proceeds from the sale of the prior residence as a down payment on the new home and another $11,000 as closing costs for a total cash investment of $113,000.00.  The rest of their money was safely invested per the advice of their financial planner.  The closing costs on a reverse for purchase are comparable to most FHA loans which also include upfront Mortgage Insurance Premium (MIP).

The new reverse mortgage amount was $217,900.00 at 5.06% (this may not necessarily reflect current rates).

A friend of mine posted this comment on Facebook last night.  I trust him on this information and thought it would be good to pass on. 

"Had a scam attempted on me last evening. got a Robo call stating that my debit/credit cards have been revoked and to press 1 to contunue. so I pressed 1 The same robot asked for my card number... I hung up and called my Bank directly and as I knew no such thing had happened... just a heads up.."

Never give your personal information, account numbers or social security number over the phone unless you are 100% CERTAIN of the person on the other end.