Temecula Reverse Mortgage Story - Taking control of her life.

This relatively young senior used her reverse mortgage to payoff her 1st & 2nd Mortgages, reduce her interest rate AND to plan for a bright future. She loves her home in the wine country, but knows that the time will soon come when she will want to move closer to her children and to a smaller more manageable property. Her second mortgage had a balloon payment coming due and though she still works, qualifying for a new equity line was out of the question with todays underwriting standards. She was starting to feel panicky, wondering if her credit was going to be damaged and her home foreclosed on, or forced to sell before she was ready.

Enter the HECM Saver! This pint sized reverse mortgage comes in two flavors, a fixed rate, closed end loan and an adjustable rate open ended loan. I met with this client and showed her the reverse mortgage options available to her. She then took that information and bounced it off of a few of her trusted sounding boards; aka,her kids and her financial advisor. After carefully scrutinizing both loans, the pros and cons and weighing her plans to move in the next few years, this client wisely chose the HECM Saver Adjustable.

She plans to continue to make payments on her reverse mortgage enjoying her lower rate, reducing her principal balance and then is planning to sell in a few years. In the meantime she has lowered the carrying costs of her mortgage (interest rate) and has done away with the stress of that fast approaching balloon payment. She also has the security of knowing that there are additional funds available in a growing line of credit should there be an emergency.

By taking advantage of the HECM Saver she also saved over $10000 in upfront costs vs a Traditional HECM. That’s right! A traditional HECM would have cost her over $10,000 in FHA-Mortgage Insurance Premium alone, but the SAVER’s Upfront MIP was only .01% of the home’s value, or $50.00. A whopping $9,950.00 difference!

Thinking outside the box and taking advantage of this unique loan product, this saavy senior was able to reduce her stress level, achieve financial peace of mind and keep her options open for the future. A bright one!

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