This can either be a pro or a con to a Reverse Mortgage, depending on your personal needs…
As of April 1, all reverse mortgages went to “live pricing,” meaning interest rates and margins will be fixed daily, not weekly.
Thus, when seniors are shopping for reverse mortgages, they must be sure to compare apples to apples because originators (salespeople) may try to hoodwink even the sophisticated potential borrowers by backdating their good-faith estimates and quoting products that are not even available on the market any longer. That is why your old application will not work.
When signing applications, there is no longer any kind of “lock” on the interest rate, et cetera, until the lender is ready to close the loan. Thus, neither the lender, the originator or the elder person will know what the final amount available for a loan will be until the loan is “cleared to close” when the originator locks the interest and margin at whatever the market offers at that time.
Find out your current interest rate by calling 1-888-9REVERSE (1-888-973-8377)
Also visit My Reverse for lender, brokers, and bankers information. Click here
Make sure when you are exploring a Reverse Mortgage loan that you understand all the fees and costs of the loan. The fees are higher but these are built in for protection features. If you would like a full breakdown of fees and costs please call 1-888-973-8377 and ask for Troy Shellhammer, he is a specialist and will disclose all information with you.
Beware of the Costs
But reverse mortgages are not cheap. Origination fees, the costs related to preparing and processing your loan paperwork, can take a bite. With an HECM, fees can cost up to $2,500 for a home worth less than $125,000. If the house has a value beyond $125,000, the fee is capped at 2% of the first $200,000 of your home’s worth plus 1% of any amount beyond $200,000. The most origination fees will cost is $6,000. Third-party closing costs could be anywhere from $2,000 to $3,000. There are also appraisal costs to consider. There’s also an insurance premium, which can be tacked onto the loan. Total non-interest costs could easily tens of thousands of dollars. A good tip: Don’t take on more credit than you need. Just because the bank approves you for a certain amount of money, don’t assume you’ll need it. Consider borrowing less.
Also visit Reverse Mortgage Coupons for money saving tips and coupons!
This is not a con or disadvantage to a reverse mortgage, this is a big plus and can even be great for those who already have a reverse mortgage.
As part of the Economic Stimulus Package, the Lending Limit for Reverse Mortgages has just been increased to $625,500. If you currently have a Reverse Mortgage, you now may be eligible to get more money.
You can refinance your existing reverse mortgage.
You can tap into more of the equity in your home!
Call us today at 1-888-973-8377 to see how much more money you can receive and how to apply!
As always be prepared, and make sure to avoid REVERSE MORTGAGE SCAMS!
