| Reverse Mortgages are a very good tool for many | | | | amount is over $275,000, then there aren't any third |
| senior borrowers to enable them to access the equity | | | | party fees either because the lender will give a credit |
| in their home while never having to make another | | | | to off-set these fees as well. |
| payment as long as they live in those homes. | | | | Sound too good to be true? You start thinking that the |
| However, a Reverse Mortgage has always been a | | | | interest rate has to be at or above 10% to offer this |
| fairly expensive proposition, usually carrying a price tag | | | | good of a deal, right? Well, it's not too good to be true |
| of a 2% origination fee as well as a 2% government | | | | and the rate is excellent in fact much lower than many |
| mortgage insurance fee, plus third party costs such as | | | | of the other programs available in the marketplace. So |
| appraisal, title, escrow or closing, etc. In all, in some of | | | | is there a catch? Well, the amount of money you get |
| the higher HUD areas, the total of all fees could total | | | | may not be quite as high as with some other |
| as much as $17,000. Even though these fees are not | | | | programs, but considering that you only pay back what |
| paid out of pocket and are rolled into the loan, the fees | | | | you receive plus interest and ultimately the amount you |
| can still scare some borrowers away from obtaining a | | | | or your heirs pay back depends largely upon the |
| loan which could otherwise improve the quality of their | | | | interest rate at which the interest accrues, this plan |
| lives until now! | | | | might well be one of the best plans available in the |
| The numbers don't work with all reverse mortgages, | | | | market today. You don't pay any costs or interest on |
| but for those borrowers who planned to take a | | | | any costs to start the loan, we've seen borrowers |
| minimum of $200,000 or more on their reverse | | | | qualify for payments to them up to $3,5000,000 and |
| mortgage at the very beginning (not hard to do if you | | | | the interest rate for a proprietary or jumbo product is |
| have to pay off an existing mortgage or if you already | | | | among the lowest in the marketplace. |
| have plans for the funds and need them right away), | | | | So if you have always thought that a reverse |
| borrowers can now obtain a reverse mortgage called | | | | mortgage might be a good thing for you but always |
| the Independence Plan which will contain no origination | | | | shied away from the high initial costs and your initial |
| fee! The lender has priced the loan so that the | | | | draw or loan amount would be $200,000 or $275,000 |
| originator does not have to charge any fee to the | | | | or more, now might be a good time to look into a |
| homeowner for the loan. What more, if the initial drawn | | | | reverse mortgage with no closing costs. |