reverse mortgage costs: It's Easy To Get Frustrated Helping People With Reverse Mortgages - 06/16/10 08:30 AM
I thought this would be a lot easier. I know how much Reverse Mortgages help people. I have saved dozens of people from certain foreclosure. I have helped people who could not put food on their table, I have helped people help their children and I have helped people sleep at night, just by knowing that if an emergency comes up, they will have the money to pay for it.
No matter how much I help people and no matter how much I know and believe that I am doing the right thing, I still get frustrated every time I hear the … (6 comments)

reverse mortgage costs: Great Piece in SmartMoney Today about the Reverse Mortgage Tax Implications - 05/27/10 10:38 AM
Bill Bischoff wrote stoday in SmartMoney that the tax benefits of a Reverse Mortgage for the heirs of the borrower may be much greater than the costs of the loan. 
His summary of what a Reverse Mortgage is and how it works is very well-written and he wrote that a Reverse Mortgage can possibly cause the stepped-up tax basis to eliminate or reduce the capital gains tax that they may have to pay.
Here's a link to this short and excellent article: 
http://www.smartmoney.com/Personal-Finance/Taxes/would-a-reverse-mortgage-affect-my-taxes/
 
 
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reverse mortgage costs: Wow! Bank of America is starting to cover the biggest Reverse Mortgage closing cost on certain loans - 05/07/10 08:02 AM
It's no secret that fixed-rate Reverse Mortgages have been getting a much better execution in the secondary market. This means that the lenders are getting much more money when they sell the loans after they close.
Most lenders have been passing this on to the originators like me. Some have been covering some of the closing costs like the servicing fee or origination fee. The biggest closing cost is almost always the Mortgage Insurance Premium or MIP that is 2% of the appraised value (up to $625,500). The MIP is usually more than half of the closing cost total.
At first … (0 comments)

reverse mortgage costs: Great article in The Los Angeles Times - 02/09/09 04:58 AM
I wish every article was as great as this one.
http://www.latimes.com/news/columnists/la-fi-perfin1-2009feb01,0,2127142.column
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reverse mortgage costs: HUD finally releases a Mortgagee Letter, just not the one we were waiting for - 10/30/08 02:37 AM
HUD released a mortgagee letter explaining how their Home Equity Conversion Mortgage (HECM) will work for purchases. They will start insuring them after January 1st. 
We are still waiting for the letter about the new limits (which are unfortuately only going up to $417,000) and about Co-ops.
I am closing my first two loans today with the new limits. The origination fees are cappped at $6,000, but since the fee to HUD went up, the closing costs are the same as they were before.
I am still holding off a bunch of co-op clients who wnat to know when they can close.
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reverse mortgage costs: Most Reverse Lenders are taking the new $417,000 limit - 10/17/08 02:31 AM
Although I am still terribly dissapointed with the new limit only going to $417,000 nationally, the good news is that most lenders are already allowing applications for Reverse Mortgages with the new limit, as long as the loans close after the mortgagee letter comes out and allows for it.
Hopefully, there will be enough of an outcry and political pressure to get an increase in the near future.
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reverse mortgage costs: I still encounter people who have such a bad perception of Reverse Mortgages - 09/26/08 03:22 AM
I still encounter people who have such a bad perception of Reverse Mortgages that they won't consider them, even when they are exactly what they need.
Two examples:
Yesterday I spoke to a gentleman who owned a three hundred thousand dollar co-op free and clear. He asked me about getting aHome Equity Line of Credit because he was having trouble paying his bills. His income was very low and his credit was poor. When I told him that he could only get a Reverse Mortgage line of credit, he would not listen to me at all.
Several months ago, I was speaking to … (12 comments)

reverse mortgage costs: It's looking like October 1 may not be the day - 09/25/08 02:24 AM
I was on a training call yesterday with Liberty Reverse and they said that we may not get the mortgagee letter (that finally explains how the new laws will affect Reverse Mortgages specifically) from HUD until JANUARY! That would be a disaster. I 'm still hoping for the begining of October.
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reverse mortgage costs: It is now the 15th of September and we still don't know what the new limits will be - 09/15/08 05:49 AM
I thought we would know by the end of August. We are still waiting on HUD to tell us what the new Reverse Mortgage limits will be throughout the country, when they will take effect, and when the product will be available for purchases and co-ops. 
On another note, the bankruptcy of Lehman and the takeover of Merrill are having a big effect on rates throughout the mortgage insustry. rates have gotten much better as the uncertainty and panic have caused people to buy Treasuries and Fannie and Freddie bonds which are now just as good as treasuries after the government took … (5 comments)

reverse mortgage costs: Another Lender stopped offering the Jumbo Reverse Product - 08/29/08 02:18 AM
Add "Gold Reverse" to the list of many other lenders that stopped offering their Jumbo Reverse Mortgage product. There are only three left and hopefully at least two of them will stick around.
Thenew housing law (whenever we figure out exactly what it means) will eliminate much of the demand for the Jumbo product by increasing the lHECM limits and allowing it for puchases and Co-ops, BUT, there is still a need for teh lasrger loans (over $625,000 or whatever the new limit will be) and for those who want a product that has lower closing costs.
Only time will tell if … (2 comments)

reverse mortgage costs: An upsetting piece on Reverse Mortgages in US News & World Report - 08/25/08 02:18 AM
Emily Brandon wrote a piece on Reverse Mortgages in the online US. News & World report on August 18th. As media pieces go it is pretty good. No errors or specifically negative remarks about the product. 
However, the article is generally negatively slanted towards Reverse Mortgages and under the headline, there are the words "Most seniors should be cautious" What's that about? I'm guessing plenty of people reading the article didn't even get past that line. Take a look at the article yourself.
http://www.usnews.com/articles/business/retirement/2008/08/18/how-the-housing-law-affects-reverse-mortgages.html?PageNr=2
 
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reverse mortgage costs: Reverse Mortgage margins (rates) ARE going up - 08/14/08 12:05 AM
I posted yesterday that Financial Fredom was eliminating it's lower margin products and that other lenders may follow. Three other lenders followed suit yesterday, JB Nutter, Senior Lending Network and Liberty Reverse all announced the elimination of their lower margin products.
What amazes me about this is that for many years, until about a year and a half ago, there was only one margin (1.5%) for all HECM products and BNY (used to be a division of Bank of New York, now known as EverBank Reverse, recently bought by Metlife) announced a 1% margin product that turned the whole industry on … (10 comments)

reverse mortgage costs: Reverse Mortgages are getting more expensive - 08/13/08 01:15 AM
I posted last week about how closing costs will rise for many Reverse Mortgage borrowers when the new housing bill gets figured out by HUD and put into place. Specifically, this was for borrowers who didn't need the additional funds they will be allowed to get, but will pay more for their 2% fee to HUD than they will save on the reduced origination fee.
Now it is looking like the credit crunch is costing the major players a lot in the secondary market and the margins used to calculate Reverse Mortgage rates look like they will be going up. Financial Freedom eliminated its … (2 comments)

reverse mortgage costs: I am now convinced that for many, it is better to take a Reverse Mortgage now than wait until later - 08/08/08 12:05 AM
The math is simple, if your home is in a high-cost area and it is worth more than $450,000, and you are thinking about taking a HECM (an FHA insured Reverse Mortgage), you will pay more in closing costs after the new law goes into effect. Unless, you are looking for more cash than the current HECM can get you, you should not wait.
The new law is capping the origination fee at $6,000, BUT the limits are going as high as $625,000 in some areas. SO, even though you will save about $1,200 in origination, the 2% fee to HUD is … (8 comments)

reverse mortgage costs: Maybe the Reverse Mortgage Market should NOT be on hold - 08/07/08 12:51 AM
If my calculations yesterday were correct, then MANY Reverse Mortgage loans will have higher closing costs (because of the higher limits) after the new laws go into effect. Remember, only the origination fee is getting capped, the 2% fee to HUD is based on the HUD limit for that area. If the limit goes up by $200,000, you are paying an extra $4,000 to them, even if yor origination fee will be $1,000 less than it would have.
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reverse mortgage costs: The Reverse Mortgage Market is basically on hold - 08/05/08 05:01 AM
Until HUD figures out the new bill that was signed into law last week, it is in most borrowers best interests to wait to see if they will get more funds and/or pay less in fees when the changes take effect.
This is speculation because we don't know what HUD will announce in the coming weeks BUT 
The fees might actually go up. The limits are going up and even if the origination fee will be capped lower, if the limits are much higher, the fee to FHA may be much higher.
here's an expample. The limits may go as high as $625,000 in … (4 comments)

reverse mortgage costs: How Reverse Mortgage Rates & Limits Are Determiined - 08/01/08 01:35 AM
The rates and limits for Reverse mortgages are a little complicated. it took me a while to figure them out. Most of you won't really care about how they are calculated, just what they are. In the interest of full disclosure, I will explain how they are determined.
Short rates are used to determine the rates for the actual rate on the loans and long rates are used to determine their limits. Here are some examples:
The one month CMT rate (about 1.8%) plus a margin (between .125 and 2.00 percent) is used to determine the standard monthly Treasury Home Equity Conversion Mortgage (HECM)
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reverse mortgage costs: What will the new legislative changes mean to the Reverse Mortgage World? - 07/28/08 12:22 AM
The new bill (assuming it stays pretty much as is) will make tremendous changes to the Reverse Mortgage World, all of them positive.
For Borrowers, it will mean that the FHA product will now be available for larger loan amounts, purchases, Co-ops (this is a big deal for me in NY, but probably doesn't mean much to most of the country,) that the origination fees they pay will be capped at $6,000 and that no thief will ever sell them an annuity as part of a "package."
For Originators like me, it means that we now have a much larger group of people … (0 comments)

reverse mortgage costs: It looks like the Government is finally getting it together - 07/25/08 12:27 AM
The Housing/Foreclosure bill passed the house yesterday and will probably pass the Senate today. it will then go to the Whote House for approval. It contains many good changes for Reverse Mortgages. I am not sure how the final bill will look but at the very least the follwing things should be included:
A larger limit, probably $417,000 with it possibly going a shigh as $625,000 9maybe limited to certain areas)
Reverse Mortgages for Purchases and for Co-ops
Limits on origination fees and the cross-selling of financial products
These are all great things that will help the industry in many ways. Hopefully, the lat … (4 comments)

reverse mortgage costs: Links to my "Back to the Basics" Series - 07/11/08 05:08 AM
Someone suggested that I post links to the series. Here they are:
How do you qualify? http://activerain.com/blogsview/577088/Back-to-Reverse-Mortgage
How does the bank make money? http://activerain.com/blogsview/575673/Back-to-Reverse-Mortgage-0
How do you pay it back? http://activerain.com/blogsview/575673/Back-to-Reverse-Mortgage
How do you get the money? http://activerain.com/blogsview/575673/Back-to-Reverse-Mortgage
How much can you get? http://activerain.com/blogsview/567789/Back-to-Reverse-Mortgage
The loan Process http://activerain.com/blogsview/565624/Back-to-Reverse-Mortgage
The many positives http://activerain.com/blogsview/564154/Back-to-Reverse-Mortgage
The two negatives http://activerain.com/blogsview/558916/Back-to-Reverse-Mortgage
Who should and who shouldn't get one? http://activerain.com/blogsview/557603/Back-to-Reverse-Mortgage
Reverse Mortgage Products http://activerain.com/blogsview/557603/Back-to-Reverse-Mortgage
 
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Michael Pinter (First Meridian Mortgage)

Michael Pinter

Brooklyn, NY

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