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!
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
Click the Learn More Button below to email me a question.
iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.