reverse mortgage: Can I Pay Off My HECM Reverse Mortgage Early?
- 11/20/16 11:14 AM
Let’s say you get lucky and win the lottery or get a big inheritance someday. Are you allowed to pay off the HECM reverse mortgage in full? Absolutely! There is no prepayment penalty or limitation on paying off your reverse mortgage balance in full at any time. Now, having said that, it may be a good idea to keep a small balance on the reverse mortgage and not pay it off in full. This is particularly the case if you have one of the LIBOR programs that come with the option to take proceeds in the form of a line of credit. … (0 comments)
Can I refinance a reverse mortgage with a new reverse mortgage? The answer is sometimes. And it depends upon the current equity in the property.
Home values have risen quite a bit over the last two years, in some communities here in Southern California as much as 20% per year! In a situation like this I have found that some of my prior clients have built up enough equity due to appreciation that they can refinance their existing reverse into a new reverse and tap into a bigger line of credit, higher monthly payouts or even more cash … (0 comments)
reverse mortgage: What kind of solutions can a Reverse Mortgage provide?
- 02/17/14 05:25 AM
It seems as if everyone is talking about Reverse Mortgages. Are they bad? Are they good? What are the pitfalls? What kind of problems can they solve? Today I'll answer the last question above. What kind of problems can a reverse mortgage solve? In this short video you will hear about some of my personal reverse mortgage clients and the solutions they have put in place with their reverse mortgages. Some of the solutions provided are: Eliminate a mortgage payment (Increases cash flow) Purchase an investment property (rental income with near 100% cash flow) Establish a rainy day fund in a … (0 comments)
reverse mortgage: Values Are Up~Riverside Couple Now Qualifies for Reverse Mortgage
- 05/02/13 05:27 AM
Riverside Zillow Home Value Index Riverside real estate info I got a phone call yesterday from John C. who wondered if home values had risen enough for him to now qualify for a reverse mortgage (was short to close when he first inquired in 2010). The answer is MAYBE! And recently the answer was yes for a couple right here in Riverside. Two years ago, I met with a couple in Riverside who were looking to get a reverse mortgage in order to payoff their current mortgage. Unfortunately, based on their home value and age, a reverse mortgage wasn't able … (1 comments)
Like any financial product or loan, a reverse mortgage isn’t for everyone, but when it’s used for the right reasons it can dramatically improve a homeowners financial position, lifestyle and well being. Basically, a reverse mortgage is borrowing against one of your assets, your home. I think the danger to a homeowner comes from two basic places. 1. They don’t do their homework and get educated about the product, comparing and contrasting providers, costs and options. 2. They don’t take a clear look down the road and have plans for when they are truly elderly, possibly frail and in need … (1 comments)
reverse mortgage: Temecula Reverse Mortgage Question - How Much Will I Qualify For?
- 07/02/12 03:49 PM
Temecula Reverse Mortgage Question - "How much will I qualify for?" or "What is the loan to value on a reverse mortgage?" are both questions I receive multiple times each week. Thanks for asking, this is a question I get all the time and I'm happy to explain it to you in my own way. Unlike traditional or "forward" mortgages which have Loan to Value amounts of 80% or 90%, or in the case of FHA loans up to 96.5%. What you have to remember is that on a "normal" mortgage you will be making monthly payments - most likely these … (0 comments)
reverse mortgage: FHA Approval for Lakeside Condos in Sun Lakes Country Club
- 11/04/10 06:13 AM
With the help of the Lakeside Community Association Board of Directors and the property managers at PCM and my team here at work, I was able to assist in securing FHA approval for your Condos. We are still working on Lakeside II and Fairway Villas. The FHA status improves not only your mortgage options, but also your home's marketability. Here are some key features of FHA loans.
No income or credit for senior homeowners at least 62 ears of age who are obtaining a reverse mortgage.* Low fixed and adjustable interest rates Down-payments as low as 3.5% Gift for down[payment and closing costs allowed FHA-regulated closing … (0 comments)
reverse mortgage: Corona Reverse Mortgage Question - What happens to the reverse mortgage when I die?
- 11/04/10 05:38 AM
Corona Reverse Mortgage Question - What happens to the reverse mortgage when I die? Does the bank get the house? A reverse mortgage is just that, a mortgage. When the last borrower passes away, the loan becomes due and payable 6 months from the date of death of the last borrower. The home itself becomes the property of the “estate”*. Heirs will have 6 months to decide how they want to repay the loan. Some will refinance the home, most will sell the home, and others will pay off the loan with available cash. If the heirs choose to sell … (1 comments)
reverse mortgage: Riverside Reverse Mortgage Question - What happens to the reverse mortgage when I die?
- 11/04/10 05:37 AM
Reverse Mortgage Question from Riverside, CA - What happens to the reverse mortgage when I die?Will the bank just take over the house? A lot of people are under the assumption that when the last homeowner dies, the house just reverts to the bank. That is absolutely wrong! A reverse mortgage is just a mortgage, a lien on the property and as such the lender will follow the terms set out in the deed of trust and loan agreement. Basically here's what happens - When the last borrower passes away, the loan becomes due and payable 6 months from the date of death of … (5 comments)
reverse mortgage: New Reverse Mortgage
- 10/06/10 03:33 PM
A lower cost option for homeowners 62 or better who may be considering a reverse mortgage: The HECM Saver FHA designed HECM Saver as a second initial mortgage insurance premium (MIP) option for the purpose of lowering upfront loan closing costs, for mortgagors who want to borrow a smaller amount than what would be available with a HECM Standard. Based upon a $200,000 home value the Upfront MIP on the HECM Saver would be only $20 versus the HECM Standard's Upfront MIP cost of $4000.00, a considerable difference. The HECM Saver and the HECM Standard both will have ongoing MIP Premiums at 1.25% … (3 comments)
reverse mortgage: Moreno Valley Reverse Mortgages to change, effective 10/4/2010
- 08/30/10 05:31 PM
Reverse Mortgages in Moreno Valley, CA and the rest of the country will be changing in a few short weeks on October 4, 2010 An informative and relative post at Reverse Mortgage Daily, yesterday: Here's the gist of it: On October 4, 2010 (yep, next month) there will be some changes to all new HECM loans with case numbers assigned after that date. We've know n about these upcoming changes for some time now and here they come. The MIP will increase from a .5% annual premium to 1.25%. This amount is added monthly to the loan balance. The principal limits (sort … (0 comments)
Another Reverse Mortgage for Purchase closing today here in Corona! My senior borrowers purchased an approved short sale home and closed within 45 days. Now, granted, they looked for awhile and made offers on several homes before this one popped. But, I am thrilled to see how sellers and bank owned REO's are becoming more educated and receptive about this method of financing for homeowners over 62 years old. The transaction went very smoothly with good communication between all parties (isn't that really the key?) If you have any questions about how it works check out Reverse for … (5 comments)
reverse mortgage: Buying a Retirement Home with FHA Reverse Mortgage
- 06/15/10 04:16 PM
I am so excited to have a couple of deals in escrow right now where the buyers are financing their home purchase with an FHA HECM Reverse Mortgage! It's a relatively new product (2009) and not every agent, broker or buyer is aware of it. In one instance, a young 70 year old is putting down $130K on a $318K property in a gated 55+ golf community! He still works and plans on making payments to his Adjustable Rate Reverse Mortgage and build up a line of credit. That way he will still be able to take advantage of the tax write … (7 comments)
reverse mortgage: Considering a Reverse Mortgage? Some sensible advice from the FDIC.
- 05/26/10 05:14 PM
Here is sensible advice for seniors looking into reverse mortgages. FHA is your best bet when it comes to reverse mortgages. HECM is the acronym for the FHA Reverse Mortgage. It stands for Home Equity Conversion Mortgage. HUD Approved counseling must be obtained by seniors prior to applying for a reverse mortgage. Family members and trusted advisor are encouraged to attend the counseling session as well. As far as the costs go, there is some good news at this particular time for seniors - many lenders are waiving the origination fee and servicing fees on the fixed rate reverse, some are even waiving … (4 comments)
reverse mortgage: FHA's Home Equity Conversion Mortgage (HECM) aka "Reverse Mortgage"
- 05/24/10 03:45 PM
Summary: The Home Equity Conversion Mortgage (HECM) program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit. In addition, the HECM mortgage can be used to purchase a primary home when the borrower is 62 years of age or older and is able to use cash in hand to pay the difference between the reverse mortgage and the sales price plus closing costs for the property. Purpose: To be eligible for a HECM mortgage, current … (0 comments)
reverse mortgage: Reverse Mortgage: Helping Young Families, Newlyweds & First Time Homebuyers.
- 05/20/10 05:28 PM
Working exclusively with senior homeowners is such a rewarding and varied experience! I took a reverse mortgage loan application from a young senior couple (only in their 70's) who are raising their 9 year old grandchild. Parenting a 3rd grader on a fixed income of just Social Security isn't easy! But they wouldn't have it any other way. "It keeps us young!" Today, another "unexpected" expense! The car broke down and had to be taken to the mechanic. They told me that just knowing their reverse mortgage is in process, made dealing with the car repairs easy. They are so excited to have … (5 comments)
I've been pleased for my clients that most of the big lenders, my employer included, have reduced or eliminated the lender fees for clients in obtaining reverse mortgages. With interest rates low, now may be the best time. Skip Frenzel (www.AgapeLongTermCare.com) from Agape Long Term Care, forwarded this to me, Please take a look at this article from the WSJ Article Link: http://bit.ly/9qjVC2 Two of my clients this week saved over $10,000 in upfront costs and life of loan expenses! And one client who is purchasing with a reverse will be able to buy for less cash up front. Nice!
… (4 comments)
reverse mortgage: Using a Reverse Mortgage to Plan For the Future
- 04/03/10 06:33 AM
Hi All, Another story about a great couple using a reverse mortgage to improve their golden years. Although they were high school sweethearts, this couple has only been married just a few years. The home they live in is 30 years old and in great shape. A single story it is a perfect place to stay for the long haul. And that is just what they want to do. With a very small mortgage on the property now, and the blessing of all the adult children, they will use the reverse mortgae will payoff the existing loan. That will increase their monthly cash flow … (0 comments)
reverse mortgage: How Does Reverse Mortgage Counseling Work?
- 04/02/10 02:03 PM
Hi All, I found this video to be very good and recommend it to seniors considering a reverse mortgage. The video clearly explains what homeowners can expect from the required reverse mortgage counseling. The video is only 4 minutes long so will even inform those of who like to surf with the remote. Check it out! … (1 comments)
What You Want To Know & Need To Know About Reverse Mortgages -
“The postings, statements and opinions on this site are my own and do not necessarily represent the opinions and positions of my employer, and/or it's affiliates."
Let’s say you get lucky and win the lottery or get a big inheritance someday. Are you allowed to pay off the HECM reverse mortgage in full? Absolutely! There is no prepayment penalty or limitation on paying off your reverse mortgage balance in full at any time.
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