Anaheim Hills Reverse Mortgage Quick Facts
- The most popular reverse mortgage loan is the FHA HECM (Home Equity Conversion Mortgage). The HECM comes in two flavors FIXED & ADJUSTABLE.
- They also come in two sizes: STANDARD & SAVER
- All borrowers must receive HECM Counseling prior to obtaining the loan.
- Reverse mortgages may be used to purchase a home.
- All borrowers must be at least 62 years old and on title to the home.
- The home must be the borrower's primary residence.
- There are no required monthly payments on a reverse mortgage.
- It is a negatively amortizing loan - meaning the balance rises over time.
- The loan to value (LTV) amounts are based upon a combination of age, home value and expected interest rates.
- There are no prepayment penalties.
- MIP is financed both as an upfront cost and at 1.25% per annum accrued monthly. (Just like traditional forward FHA loans).
There are many places to go to find out the facts on Reverse Mortgages. Websites sponsored by HUD, NRMLA and AARP all give plenty of information. I provide links to all of them on my blog.
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