I have found one tool that provides the most immediate and profound effect on the quality of life for a portion of our society that is being severely challenged by the rapidly changing world we find ourselves in.
Many people ask me today if now is a good time to do a Reverse Mortgage… and so many have been putting their decision off, for years. My question back to them is “why wait?” We have to realize that the use of the FHA HECM is not a long term financial strategy (we’re not spring chickens!). We don’t have the luxury of youth, time is no more precious than it is for us (I’m a senior too!) than anyone. This solution cannot be looked at the way we may have when we were all in our 20′s and 30′s and thirty year mortgages were easy to plan around.
In fact most people are surprised to learn that the average length of term for the FHA Home Equity Conversion Mortgage is just 7 years. This may seem rather short, but again, remember that thie program is restricted to those homeowners who aren’t just starting out, for many, this may be the last major financial decision they make.
So, back to the question… ask yourself, are you as comfortable in retirement as you had envisioned? Or maybe you’ve had to put off retirement plans because of financial reasons? Are you putting of important dreams or responsibilities because of financial concern?
If the answer is yes to any of these then again, my question…”Why Wait???” If it is because of the drop in your homes value and you’re thinking of waiting until values come back to where they were a few years ago, I’m sorry to tell you but we might not live long enough to see values that we saw in the early to mid 2000′s! But not to worry, if values should take a miracules jump in the next few years… any gain in equity will be yours or your heirs! In the meanwhile interest rates are at record lows… And HUD has introduced two FHA HECM Saver programs, both with either a Fixed Rate option or a Variable Rate with dramatically lowered costs. The Saver is designed for those who don’t need to have access to the maximum amount of value in their homes and can be a great fit for many who were put off by seeing the FHA Insurance costs of traditional HUD Reverse Mortgages.
In fact, you may never have a better time to consider taking advantage of the FHA Reverse Mortgage than right now!
If you’d like to see what you qualify for I would be happy to send you a confidential summary of what this might look like for you. Simply complete the form below and you’ll receive your free Reverse Mortgage evaluation… and don’t worry, your information will remain confidential, we don’t sell or share your email or info with anyone… period
The The Expanding American Homeownership Act FHA Reform bill passed was Friday by the full US Senate.
The bill passed 93-1 and cuts in half the required down payment for FHA first time homeowner programs.
This bill Expands the FHA Home Equity Conversion Mortgage (HECM) Program maximum loan limit to a national level of $417,000 the current Fannie Mae loan limit, and lowers origination fees from 2% to 1.5%
While the bill has some process to go through before it becomes law, it may become law shortly before or after the new year.
A reverse mortgage pays off current liens on a seniors home, and other equity that is left over is available to the senior in the form of a credit line.
The equity that is available in a credit line grows each year. The growth for the FHA reverse mortgages is half a percent higher than the current rate for the loan. So if the rate of the loan is 4.75%, the growth-rate of the credit line is 5.25%.
Because of this, a higher rate loan might be more appealing to a senior with a large initial credit-line. The difference in growth over the life of the loan is something to seriously consider.
Credit lines can be used for anything, and the money is tax free.
Back in March 2007, Bank of New York Co. had relinquished its 49 percent stake in reverse mortgage lender BNY Mortgage Co. to majority partner EverBank Financial Corp. As Everbank is a privately held company, this transaction took place for an undisclosed price.
In Early November 2007, Bank of New York officially started doing business as Everbank. EverBank is based in Jacksonville, Florida
Occasionally a real estate appraiser will notice that some repairs or further inspections are necessary, such as a foundation, electrical, or roof inspection. When further inspection requires repairs, the loan will fund, and one and a half times the amount of the repair estimate(s) will be withheld until those repairs are made.
After the repairs are made, and certified as complete by the repair inspector, the bank will issue a check directly to the repair company.
The US senate made a decision to end the limit of FHA reverse mortgages. The limit was 250,000 per year, and earlier this year that limit had been extended.
Many seniors are eagerly awaiting loan limit increases. Presently the highest FHA loan limits in Washington State range from $200,160 to $362,790 in higher priced counties. The senate plans on meeting about increasing the fha loan limits soon.
Some lenders have recently pulled the HECM 100 program until further notice. Most recently Financial Freedom has phased out thier HECM 100 and HECM advantage programs. Financial Freedom will continue to offer the HECM 150 program.
What this means to most borrowers is that for the time being, some lenders have access to a better rate, and an overall better deal in reverse mortgage.
For example, with the HECM 100 program, an 82 year old borrower with a $200,000 loan value would currently qualify for $145,000 to pay off thier current mortgage and toward available cash. However with the HECM 150, that same borrower would qualify for only $139,000.
The difference is mostly due to the higher interest rate calculation for the HECM 150.
Since my company, Stay in Home, is a power-broker in the reverse mortgage industry, count on us to continue to offer the best deal in reverse mortgage.
It’s TRUE, that is, depending on the type of trust. If you house is in the more common type, the revocable trust, it is possible to get a reverse mortgage. A reverse mortgage is fairly simple to qualify for. The borrowers on title must be 62 or better, and if it is a manufactured home it must be newer than June of 1976.
The FHA has a great reverse mortgage program. Until the senate raises the maximum county lending limits, which at present peak at $362,790.00 in high value areas, those with higher value homes might find a better fit in what is known in the reverse mortgage industry as a “proprietary reverse mortgage”.
With a proprietary reverse mortgage, each lender has a different reverse mortgage program that is a unique invention to their financial institution. Since my company, Stay In Home Mortgage, works for several lenders that offer the most popular proprietary loans, I’ll share some examples:
-One proprietary reverse mortgage offers no origination fee or closing costs, as long as you take so much money out in a lump sum.
-Another proprietary reverse mortgage might offer you access to more of your home’s equity than the next.
-Yet one proprietary reverse mortgages offer a lower interest rate than others.
Since everyone has a unique situation with unique needs. Consult with a senior home equity advisor who can help you understand what programs would benefit you the most.
Stay In Home Mortgage was recently ranked #10 in the nation for reverse mortgage origination. These rankings included the major lenders that we work with. Stay In Home is a power-broker in the reverse mortgage industry helping over 100 seniors keep Stay in their homes each month. Stay In Home is YOUR King County reverse mortgage leader
If you want to compare and find the best program for you or a loved one, find out why so many seniors are choosing Stay In Home Mortgage. Don’t hesitate to contact Ted Butler today at 1-(866) 665-5497. You’ll be glad you did!
