FHA’s Mortgage Insurance Premium for the Reverse Mortgage…Why do I need it?
What is the purpose of FHA’s Mortgage Insurance Premium for the Reverse Mortgage?
The Mortgage insurance premium (MIP not PMI) is mandatory on Reverse Mortgages and it’s the main reason the closing costs are as high as they are. Below is why it is a “necessary evil” so to speak, and is a huge benefit to the Reverse Mortgage borrower and their heirs.
MIP:
This guarantees that no one can kick you out of your home, no one can ask you to make payments (until you turn 150 years old, ha ha ha, seriously), and your mortgage amount owed can never be more than your value. This means if there is a loss when you sell or when your heirs sell, FHAs insurance covers it. Hence the term, the balance can never be higher than the value.
If you want more info you can see the official links below. I also encourage you to contact me. I DO NOT PRESSURE MY CLIENTS. I INFORM AND PRESENT IDEAS AND OPTIONS WITH NO OBLIGATION. See my testimonials, which will help you see the type of work I do.
Below is some in-depth information coming directly from the FHA & HUD websites with reverse mortgage help. This is general information that will help you understand the process a bit better. After reading this, I can provide you with specific details as to how the program would work for you and the benefit (or loan amount) you qualify to receive.
FHA Reverse Mortgages (HECMs) for Consumers
This section explains the requirements, how it works, costs, and repayment.
http://www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm
Top Ten Things to Know if You're Interested in a Reverse Mortgage
I can elaborate on these questions
http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
Home Equity Conversion Mortgages for Seniors
This is the home page that you can go to and see all the links on HUD's related to the program.
http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm
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