Posts Tagged ‘Reverse Mortgage Loan’
Monday, May 31st, 2010
How long will HECM changes last?
by Sam Collins
Recently there have been significant changes by lenders to the FHA insured HECM (Home Equity Conversion Mortgage) fixed rate, reverse mortgage program. In essence these changes mean:
More Cash for Senior Homeowners!
Here are the most noteworthy changes to the HECM Fixed program:
1. The service fee set asides is now zero. Yes, in most cases eliminated.
2. The monthly service fee is now zero. Most lenders have eliminated this fee.
What does this mean for you and other 62 or older homeowners?
Previously, lendrers calculation included a monthly service fee for the life of your reverse mortgage loan. These charges amounted up to $35.00 per month servicing fee. Now this monthly serving fee charge has been reduced to zero by most lenders. The previous calculations included thousands of dollars in the calculation that was set aside to pay this monthly fee, which resulted in less net money or funds available for you when you complete a reverse mortgage.
For many senior homeowners eliminating the service fee set aside can increase the amount of cash you receive significantly. This is a huge savings for you and means now you can receive $2,000 to $ 5,000+ more money at closing because of the FHA monthly service fee set aside now being reduced to zero.
More changes:
Many lenders have reduced their reverse mortgage origination fees on the fixed rate reverse loan significantly. This can mean as much as $2500 or more at closing in reduced origination fee. Net result of these changes mean more cash for you.
These changes combined can effectively provide $5,000 - up to $ 10,000 extra cash back in your pocket at the time of closing. These changes are a huge additional benefit for senior homeowners who are 62 or older. Also, these changes can mean some homeowners who did not qualify previously, may qualify now.
If you thought that the FHA reverse mortgage closing costs were too expensive, these changes can be a major savings opportunity for you.
How long will these changes last?
We are not sure how long this offer will remain and suggest that you still weigh your financial options. But considering that nothing lasts forever, these changes do present clear and present reasons for consideration. Please note these changes may vary by lender.
If you are serious about a reverse mortgage loan, this may be the time for you to get a new estimate of what these great savings will mean for you!
If you have any questions about these changes, do not hesitate to contact us with your questions or concerns.
Tags: Banks, Benefit, Conversion Program, Conversion Rate, Equity Conversion Mortgage, Extra Cash, FHA, Fha Mortgage, Fixed Mortgage, Home Equity Conversion, Home Equity Conversion Mortgage, Lenders, Money, Mortgage Closing Cost, Mortgage Closing Costs, Mortgage Fixed Rate, Mortgage Origination, Mortgage Program, Mortgage Rate, Noteworthy Changes, Origination Fee, Origination Fees, Reverse Mortgage Loan, Sam Collins, Savings Opportunity, Thousands Of Dollars
Posted in Uncategorized, reverse mortgage information | No Comments »
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
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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
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Wednesday, January 28th, 2009
post by Sam Collins
A friend of mine, who is reverse mortgage loan officer, forwarded me this sad story and I thought it would be beneficial for many seniors to understand just how a reverse mortgage could possibly make a huge difference in their lives.
“This sad tale is that of a senior in Bay City, MI who died when his electicity was cut off. I’ve done some online research and determined he was a homeowner and most likely had no mortgage. His home was worth about $89,000 and could have generated $1,000 of monthly income with a reverse mortgage. The word needs to get out that seniors have alternatives to preserve more than just lifestyles.”
To see the rest of the story CLICK HERE ->
Sam Collins
Reverse Mortgage Senior Advisor
http://www.reversemortgagesforyou.com
Tags: Electicity, Mortgage Advisor, Mortgage Loan Officer, Rest Of The Story, reverse mortgage, Reverse Mortgage Loan, Sad Story, Seniors
Posted in Uncategorized | No Comments »
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