Posts Tagged ‘Hecm Reverse Mortgage’
Saturday, May 8th, 2010
Senior Homeowners are real winners when doing a HECM reverse mortgage?
post by Sam Collins
One of the very first questions I am asked when meeting with my senior homeowner clients is, “Why are the closing costs to do a reverse mortgage are so expensive?” Thanks to recent changes within the reverse mortgage lending community, senior homeowners can now enjoy a much lower than ever expected costs to do a reverse mortgage.
Specifically most of the recent changes have affected the fixed rate HECM product. Most lenders have eliminated the service fee aside and some have eliminated or reduced origination fees. The bottom line is this; some of the highest cost associated with doing a HECM fixed mortgage have been significantly reduced.
The winner with all these changes are senior homeowners. Why? Because these reduced cost measures mean more money in the pockets for senior homeowners, making a good deal ever better.
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For a free informational package on reverse mortgage programs,
call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
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For more information or to ask a question, you can email
Sam by using the contact form at the top of this page.
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If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html
Tags: Closing Costs, Delaware, Fixed Rate, Free Calculator, Hecm Reverse Mortgage, Origination Fees, reverse mortgage calculator, Reverse Mortgages, senior homeowners, Seniors
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Tuesday, December 1st, 2009
December 1st, 2009
post by Sam Collins
As reported by National Reverse Mortgage Newswire the reverse industry seems to be poised for yet another reduction in the principal loan limit calculation that you can receive if you opt to do a HECM, reverse mortgage.
Lenders use a calculation to determine how much senior homeowners, 62 or older, might receive when they do a HECM, Home Equity Conversion Mortgage, commonly known as a Reverse Mortgage, this is known as the principal loan limit. The principal loan limit is determined by the appraised value of the home, senior’s age, the current interest rate, and the maximum loan limits as determined by HUD/FHA. The maximum loan limits for the remainder of 2009-2010 remains at $625,500 for single family residences.
It is still unknown what the exact reduction in the principal loan limits will be, but any further reduction will prevent thousands of senior homeowners from being able to qualify for a reverse mortgage. Many senior homeowners have no mortgage on their homes, yet many still have an existing 1st mortgage and a home equity loan or line of credit. When the latter exists and the principal loan limit calculation is less than the amount owed, then the senior homeowner is faced with what is termed a “shortfall.” In other words, the homeowner will have to bring additional money to the loan closing to satisfy their existing mortgage or they simply will not qualify. Therefore, additional reductions in the formula used to determine principal loan limits will have far and wide negative consequences for many senior homeowners. Yes, many may not be able to qualify and may have to continue scrimping by with little or no reserves for financial security.
This will be the second round of principal loan limit reductions. The first reduction took effect October 1, 2009. The affects of this first reduction is being felt by many senior homeowners, who just over 2 months ago would have qualified for a reverse mortgage, but today are no longer eligible. We estimate that about 20% or more of our senior clients, who would have qualified prior to October 1, will no longer qualify.
If you are considering whether or not to move forward with your reverse mortgage, now may be the time to take action.
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For more information on reverse mortgages you can email a question by using the form at the top of the page or contact me at the email below.
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If you want to see how much you qualify to receive, you are welcome to use our Free reverse mortgage calculator: http://www.seniorsrighttoknow.org/calculator.html
Sam Collins, President, Senior Advisor
Delaware Financial Capital Corp.
Licensed Mortgage Banker, DE, MD
Licensed by the PA Dept. of Banking
info@delawarefinancial.com
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Tags: Equity Conversion Mortgage, Financial Security, Hecm Reverse Mortgage, Home Equity Conversion, Home Equity Conversion Mortgage, Home Equity Loan, Hud Fha, Loan Limits, Maximum Loan, Newswire, Prinicpal Loan Limits, Reverse Mortgage Lenders, Reverse Mortgage Loan, Reverse Mortgages, senior homeowners, Seniors, Single Family
Posted in Uncategorized | No Comments »
Monday, August 10th, 2009
post by Sam Collins
I often find when I visit folks in their homes they are concerned about how much money they will receive from their reverse mortgage?
This is a question you should ask, since one of the many reasons for considering a reverse mortgage is exactly that; “show me the money!”
Here are the 4 basic ingredients that determine how much money you will receive with your reverse mortgage:
- Your age. The older you are the more money you will receive from your reverse mortgage. Don’t forget you must be at least 62 or better.
- Current interest rates. Interest rates are like a yo yo and can vary up and down, however, it stands to reason the lower the interest rates, the more money you will recieve.
- Home value. The value of your home is determined by an FHA appraisal. The amount of money you receive is based on either the appraised value or the maximum FHA loan limit in your county, whichever is lower. Currently FHA loan limit for a HECM reverse mortgage is $625,500 nationallly and is subject to change.
- Amount you owe. If you have a current mortgage, the amount you receive in your pocket will be lessened by that amount. For example, if it is determined you will receive $200,000 and you owe $50,000, then you will net the difference or $150,000. This is a good thing for you, since you will no longer have the payment you were incurring on the $50,000 mortgage, plus you the $150,000 to use however you wish.
If you want to know how much money you can receive, just contact me below or use the form at the top of the page to submit a question,
For more information on reverse mortgages you can email a question by using the form at the top of the page or contact me at the email below.
Sam Collins
Delaware Financial Capital Corp.
Licensed Mortgage Banker, DE, MD
Licensed by the PA Dept. of Banking
scollins@delawarefinancial.com
877-266-9500
Tags: Amount Of Money, Current Interest Rates, Current Mortgage, Delaware, Fha Appraisal, FHA Loan Limits, Hecm, Hecm Reverse Mortgage, Home Value, How Much Money, Information On Reverse Mortgages, Maryland, Mortgage Banker, Mortgage Md, Pennsylvania, reverse mortgage, Show Me The Money
Posted in Uncategorized | No Comments »
Wednesday, February 25th, 2009
post by Sam Collins
This true story is great. I had a scheduled reverse mortgage closing today for 2:00 PM. My client, who last name is Bellee was anxious to have her reverse mortgage closing. I have been working with my client for 3 years and finally she was moving forward with her reverse mortgage.
My client had a shortfall of $22,000, which meant she had to bring that amount to the loan closing to satisfy and pay off her current loan. Our loan computation was based on the old HECM loan limit of $417,000. The client’s home value was $790,000.
This morning I read about the new HECM 2009-07 mortgagee letter was raising HECM loan limits to $625,500. This new HECM (reverse mortgage) loan limit was part of the American Recovery and Revitalization Act (ARRA), just enacted into law.
Immediately I made a call to see if the new HECM loan limits would benefit my client. My common sense told me this new loan limit would surely benefit my client and dramatically improve my client’s financial situation.
I had to find an answer. I called my client, the title agent and stopped the closing. After scrambling we ascertained the client was now going to get approximately $145,000 rather than coming to closing with the $22,000. You can imagine the joy from the client when she found out how the increased loan limits were going to help improve and benefit her life.
Wow! Another victory for our senior client and another great story how a reverse mortgage can improve the lives of our seniors.
Sam Collins
Licensed Mortgage banker in DE
scollins@delawarefinancial.com
Tags: Financial Situation, Hecm Reverse Mortgage, Licensed Mortgage, Loan Limits, Mortgage Banker, Reverse Mortgage Loan, Revitalization Act, Seniors
Posted in Uncategorized | No Comments »
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