Reverse Mortgage Rates
All Reverse Mortgages is dedicated to helping retirees and seniors live in financial comfort. The goal is to educate about reverse mortgages and assist in the next step of speaking to a reverse mortgage approval. Please feel free to browse our site to look into the reverse mortgage process to see if it might be right for you.
If youre 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses you may be considering a reverse mortgage. Its a product that allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.
The Federal Trade Commission (FTC), the nations consumer protection agency, wants you to understand how reverse mortgages work, the types of reverse mortgages available, and how to get the best deal.
In a regular mortgage, you make monthly payments to the lender. In a reverse mortgage, you receive money from the lender, and generally dont have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. The proceeds of a reverse mortgage generally are tax-free, and reverse mortgages have no income or credit restrictions.
The cost of getting a reverse mortgage have, in the past exceeded the costs of other types of mortgages or equity conversion loans. Recently these closing costs have been going down. Exact costs depend on the particular reverse mortgage program the borrower acquires. For the most popular type of reverse mortgage in the U.S., the FHA-insured Home Equity Conversion Mortgage (HECM), there will be the following types of costs:
1.FHA mortgage Insurance: 2% (of the appraised value)
2.Origination Fee: The cap is 2% of the first $200,000 and 1% thereafter, with an overall cap of $6000.
3.Title Insurance
4.Title, Attorney, and County Recording Fees
5.Real Estate Appraisal $300$500
6.Survey (may be required) $300$500
In addition, some programs have a monthly service charge (between $25 and $35) is usually added monthly to the balance of the loan. In all of these cases, the costs of a reverse mortgage can be financed with the proceeds of the loan itself.
Interest rates on reverse mortgages are determined on a program-by-program basis, because the loans are secured by the home itself, and backed by HUD, the interest rate should always be below any other available interest rate in the standard mortgage marketplace for an FHA reverse mortgage. Prior to 2007, all major reverse mortgage programs had adjustable interest rates. Such adjustable rate reverse mortgages are still being offered which are adjusted on a monthly, semi-annual, or annual rate up to a maximum rate. Now many reverse mortgages have rates that are fixed for the entire time you have the reverse.
Several FHA HECM reverse mortgages offer fixed interest rates. Some of these mortgages have interest rates that are similar to the current FHA/VA rate plus the mandatory mortgage insurance premium. Some fixed rate reverse mortgages offer different cash proceeds than that offered by adjustable rate reverse mortgages. The borrower(s) may be required to take out the entire amount offered at closing.
Some state and local governments have offered low-cost reverse mortgages to seniors. These "public sector" loans generally must be used for specific purposes, such as paying for home repairs or property taxes, but most of them often have more favorable interest rates and fewer or no fees associated with them. These programs are typically very restrictive in terms of qualification and location, and many regions, states, and areas do not have such programs at all.
Reverse mortgage loan advances are not taxable, and generally dont affect your Social Security or Medicare benefits. You retain the title to your home, and you dont have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence.
A reverse mortgage can provide money when you need it. Make the most of your retirement with a reverse mortgage, Feel free to call us at 800-630-0650 and we have the experienced and the expert Senior Advisor to help you spend a secure and comfortable retirement in the home youve grown to love. We've helped thousand of senior homeowners solve their financial limitations, it's time we help you.
Tim Jacobs
Golden Years Mortgage Solutions
Your MoneyWhen You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
[email protected]
Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 [email protected] Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. Weve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.
If youre 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses you may be considering a reverse mortgage. Its a product that allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.
The Federal Trade Commission (FTC), the nations consumer protection agency, wants you to understand how reverse mortgages work, the types of reverse mortgages available, and how to get the best deal.
In a regular mortgage, you make monthly payments to the lender. In a reverse mortgage, you receive money from the lender, and generally dont have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. The proceeds of a reverse mortgage generally are tax-free, and reverse mortgages have no income or credit restrictions.
The cost of getting a reverse mortgage have, in the past exceeded the costs of other types of mortgages or equity conversion loans. Recently these closing costs have been going down. Exact costs depend on the particular reverse mortgage program the borrower acquires. For the most popular type of reverse mortgage in the U.S., the FHA-insured Home Equity Conversion Mortgage (HECM), there will be the following types of costs:
1.FHA mortgage Insurance: 2% (of the appraised value)
2.Origination Fee: The cap is 2% of the first $200,000 and 1% thereafter, with an overall cap of $6000.
3.Title Insurance
4.Title, Attorney, and County Recording Fees
5.Real Estate Appraisal $300$500
6.Survey (may be required) $300$500
In addition, some programs have a monthly service charge (between $25 and $35) is usually added monthly to the balance of the loan. In all of these cases, the costs of a reverse mortgage can be financed with the proceeds of the loan itself.
Interest rates on reverse mortgages are determined on a program-by-program basis, because the loans are secured by the home itself, and backed by HUD, the interest rate should always be below any other available interest rate in the standard mortgage marketplace for an FHA reverse mortgage. Prior to 2007, all major reverse mortgage programs had adjustable interest rates. Such adjustable rate reverse mortgages are still being offered which are adjusted on a monthly, semi-annual, or annual rate up to a maximum rate. Now many reverse mortgages have rates that are fixed for the entire time you have the reverse.
Several FHA HECM reverse mortgages offer fixed interest rates. Some of these mortgages have interest rates that are similar to the current FHA/VA rate plus the mandatory mortgage insurance premium. Some fixed rate reverse mortgages offer different cash proceeds than that offered by adjustable rate reverse mortgages. The borrower(s) may be required to take out the entire amount offered at closing.
Some state and local governments have offered low-cost reverse mortgages to seniors. These "public sector" loans generally must be used for specific purposes, such as paying for home repairs or property taxes, but most of them often have more favorable interest rates and fewer or no fees associated with them. These programs are typically very restrictive in terms of qualification and location, and many regions, states, and areas do not have such programs at all.
Reverse mortgage loan advances are not taxable, and generally dont affect your Social Security or Medicare benefits. You retain the title to your home, and you dont have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence.
A reverse mortgage can provide money when you need it. Make the most of your retirement with a reverse mortgage, Feel free to call us at 800-630-0650 and we have the experienced and the expert Senior Advisor to help you spend a secure and comfortable retirement in the home youve grown to love. We've helped thousand of senior homeowners solve their financial limitations, it's time we help you.
Tim Jacobs
Golden Years Mortgage Solutions
Your MoneyWhen You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
[email protected]
Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 [email protected] Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. Weve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.
Source...