HECM Loan Blog

2010 Hecm Loan News

2010-07-13T20:08:00.000-07:00

2010 HECM Loan Update

HUD has issued Mortgagee Letter 2010-07, Revisions to Model Home Equity Conversion Mortgage (HECM) Loan Agreement (Loan Agreement) and Fannie Mae Form 1009, Residential Application for Reverse Mortgages (Fannie Mae Form 1009).

This Mortgagee Letter informs lenders and HECM counselors of

•Revisions to the model HECM Loan Agreement (HECM Loan Agreement);
•Revisions to the model HECM Loan Agreement Exhibits; and
•Revisions to Fannie Mae Form 1009, Residential Loan Application for Reverse Mortgages (Fannie Mae Form 1009).

This Mortgagee Letter also provides policy guidance for the

•Prohibit use of Freddie Mac Form 65/Fannie Mae Form 1003, Uniform Residential Loan Application; and
•Reaffirm use of Form 92900-A, HUD/VA Addendum to Uniform Residential Loan Application. Details are below:

MORTGAGEE LETTER 2010-07

March 1, 2010

To: All FHA-Approved Mortgagees

All HECM Counseling Roster Agencies

Subject

Revisions to Model Home Equity Conversion Mortgage (HECM) Loan Agreement (Loan Agreement) and Fannie Mae Form 1009, Residential Application for Reverse Mortgages (Fannie Mae Form 1009)

Purpose

This Mortgagee Letter informs lenders and HECM counselors of

•Revisions to the model HECM Loan Agreement (HECM Loan Agreement);
•Revisions to the model HECM Loan Agreement Exhibits; and
•Revisions to Fannie Mae Form 1009, Residential Loan Application for Reverse Mortgages (Fannie Mae Form 1009).

This Mortgagee Letter also provides policy guidance for the

•Prohibit use of Freddie Mac Form 65/Fannie Mae Form 1003, Uniform Residential Loan Application; and
•Reaffirm use of Form 92900-A, HUD/VA Addendum to Uniform Residential Loan Application.

This guidance is effective August 1, 2010 for all HECM case numbers assigned on or after this date. However, lenders may use the revised forms immediately.

Revisions to Fannie Mae Form 1009, Residential Loan Application for Reverse Mortgages

Fannie Mae Form 1009 has been revised in the following manner:

A. Section I. Type of Mortgage and Terms includes data fields for

•HECM for Purchase
•Sales Contract Price
•Land Installment Contract Price
•Borrower's Investment
•Purpose of Loan
•Index Type
•Loan Origination Fee
B. Section II. Primary Residence Property Information includes data fields for:

•Irrevocable Trust
•Revocable Trust
C. Section VI. Liens Against the Property was updated by providing lien examples.

D. Section VI. Declarations was updated by adding items i. through k.

E. Section VIII. Information for Government Monitoring Purposes collects Loan Originator information.

The revised form can be downloaded from:
https://www.efanniemae.com/sf/formsdocs/forms/index.jsp

Revisions to 4235.1 REV-1, Appendix 7, Model HECM Loan Agreement

The model HECM Loan Agreement has been revised in the following manner:

Section 1.4 defines the maximum claim amount as the lesser of the

•Appraised value of the property;
•Sales price of the property; or
•National maximum loan limit established under Section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a 1-family residence.
Revisions to 4235.1 REV-1, Appendix 7, Model HECM Loan Agreement Exhibits

Exhibit 1 (Payment Plan) of the HECM Loan Agreement is amdended to:

A. Indicate

•payment plan selection of the borrower; and
B. Disclose the

•Expected average mortgage interest rate;
•Initial mortgage interest rate; and
•Margin used to originate the loan.

Exhibit 2 is revised to read: "Schedule of Liens/HECM for Purchase Disbursements to Seller. The heading "Schedule of Closing Costs" remains unchanged.

Important: Lenders must itemize each closing cost item and the amount charged under the "Schedule of Closing Costs" section of Exhibit 2.

Exhibit 3 (Repair Rider) of the HECM Loan Agreement remains unchanged. Lenders may attach an addendum to the Repair Rider to spell out the repairs in clear and complete terms.

The revised model HECM Loan Agreement and Exhibits are attached to this Mortgagee Letter.

Freddie Mac Form 65/Fannie Mae Form 1003, Uniform Residential Loan Application

FHA will no longer permit the use of Freddie Mac Form 65/Fannie Mae Form 1003, Uniform Residential Loan Application, for HECM loan transactions.

This policy guidance is effective August 1, 2010 for all HECM case numbers assigned on or after this date.

Form 92900-A, HUD/VA Addendum to Uniform Residential Loan Application

The completion of the HUD/VA Addendum to Uniform Residential Loan Application, Form 92900-A will continue to be required for every HECM loan transaction.

More 2010 HECM Loan News:

Although this is from 2009, we wanted to pass along the info, as we have not updated the HECM Loan blog in a while.

2010 HECM Loan Broker Volume Drops 25%

Origination volume of HECM Loan brokers fell 25.8% during May 2010 and marks the first time in 12 months that direct retail volume has surpassed broker business according to data from Reverse Market Insight.

“If nothing else it shows the continuing impact of smaller originators getting washed out by lower industry volumes and new licensing requirements,” said the company in its latest report.

New SAFE Act requirements are putting additional financial strain on brokers due to all of the classes and licensing costs associated with the process. Some states like Arizona and Florida are even requiring mortgage brokers undergo credit and criminal background checks. ”Increased compliance costs which include new federal, state, and bonding requirements make it very difficult for brokers to sustain,” said Jason Levy, CEO of Guardian First Funding Group.

During May, 54% of the industry volume came from direct retail lenders and financial institutions. Wells Fargo continued its dominant retail presence at number one, followed by Bank of America and MetLife. However, it’s worth noting that companies like MetLife and Bank of America both cater to brokers as well, with 77% and 53% of their respective total volume coming from wholesale. HECM Loan brokers face more challenges in 2010.

If brokers want to make the transition to banker they face increasing net worth requirements that are out of reach for most and allow “the large institutions to gain a considerable amount of new market share,” said Levy. ”Retail is the way of the future and the wholesale market will shrink over time as more smaller brokers will not be able to survive,” he said. ”The pro consumer movement is driving the boutique style operator out and large institutions will need to have a strong retail presence to be in the Ginnie Mae HMBS business.”

While the drastic drop in broker business is big, retail endorsements also saw a drop of 8.4% during May. But the source of overall business is clearly shifting to the direct retail lenders. This is a distict change for 2010 HECM Loan business.

“Retail is where companies create lasting franchise value,” said RMI. ”We’re all in favor of a healthy industry with both retail and wholesale channels, but the trends right now are increasingly showing strain in the broker/wholesale side of the industry.”

2010 HECM Loan Limits
October 30th, 2009, Congress passed the continuing resolution extending the HECM loan limit through the 2010 fiscal year. The continuing resolution is now headed for the President’s signature, which it is expected to receive. The continuing resolution means that the reverse mortgage loan limit will remain at $625,500. The change reduces uncertainty about the future of the loan limits for HECM reverse mortgages. As mentioned yesterday, the continuing resolution also includes jumbo conforming loans and conforming loans, two kinds of forward mortgages.

Merchant Loans

2009-06-09T16:02:00.000-07:00

Although this site is dedicate to HECM Reverse Mortgage Loans, we like to feature other prominent business and services which may be of interest. At Small Business Loans New Mexico you can learn about small business loans in New Mexico and the rest of the country. They specialize in the merchant cash advance, a very popular loan product. Visit them today for more details, or scroll down for more information on HECM Loans!

California HECM Loans

2009-02-10T14:28:00.000-08:00

The California HECM loan, a type of Reverse Mortgage, is a federally-insured home loan that lets a homeowner convert a portion of the home's equity into cash. The equity can be paid to you, the borrower, in one large lump sum, in monthly term or lifetime payments, or be retained in an interest bearing account until the funds are needed. With a California HECM loan, unlike a traditional home equity loan or second mortgage, NO REPAYMENT of the loan is necessary, so long as the borrower lives in the home. This makes it a good source for more retirement income. Additional information on the California HECM loan is listed below.

California HECM Loan Requirements:

>>California HECM Borrowers must be Age 62 years or older
>>Own their home and have enough equity in to qualify
>>Occupy the home as primary residence
>>Receive counseling by an approved HUD/FHA counselor
>>The home must be in reasonably good repair

California HECM Loan Payment Options

>> Lump sum disbursement
>> Monthly payments
>> Line of credit
>> A combination of the Above

California HECM Loan Amounts

The amount of a HECM reverse mortgage loan is based on several factors.

>> Age of the youngest borrower
>> Value of the home
>> How much is owed on the home (if any)
>> Current interest rate

The following licensed specialists can provide more information on the California HECM loan:

Gateway Funding
California HECM Loan Specialists
26250 Enterprise Suite 240
Lake Forest Ca 92630
Toll-free - 1-800-379-1328

James A. Nelson (Jim)
HECM Reverse Mortgage Specialist
Tel - 1-800-482-5790
5506 152nd Pl SE
Bellevue, Wa 98008

Monty Simons California HECM Specialist
20642 Ventura Blvd
Woodland Hills, CA 91364
Toll-free - 866.437.4285 | Cell - 818.825.6330
Website

Orange County HECM Specialists

2009-02-10T14:03:00.000-08:00

Ocassionaly we feature HECM loan specialists and other reverse mortgage providers in certain parts of the country. This month we are pleased to feature an Orange County, California HECM Specialist:

Gateway Funding

Gateway Funding specializes in Orange County HECM Loans and they welcome all your questions! In addition Orange County HECM loans and other California reverse mortgages, they offer residential, commercial and related loan products. The company is headquartered in Orange County, California, but they service the entire country for Reverse Mortgages and other loans.

Gateway Funding
Orange County HECM Reverse Mortgages
26250 Enterprise Suite 240
Lake Forest Ca 92630
Toll-free - 1-800-379-1328

National HECM Reverse Mortgage Specialists

2008-12-15T16:44:00.000-08:00

The HECM Loan Blog is pleased to feature a national HECM reverse mortgage specialists. as well as traditional Mortgage specialists. We like to feature HECM loan originators, brokers and lenders who we feel offer the best service, loan rates, as well as the latest information on HECM loan products. We recently came across a website offering just that. The national HECM reverse mortgage specialists at The HECM Reverse offer nationwide lending, superb service, and rapid loan closings. They are national HECM reverse mortgage specialists, offering loans in all 50 states. One of the best features we found on their site was a $400 rebate, towards the appraisal of your home. This appraisal is required to get a HECM loan, and the value they offer in the rebate is well worth investigating.

The HECM loan offers many benefits:

* The money you receive is tax free income
* No payments as long as you live in the home
* No credit or income requirements
* Reverse mortgages are supported by AARP
* Reverse mortgages are insured by the FHA

If you live anywhere in the USA, then you need a national HECM reverse mortgage specialist to process your loan. Ideally, you'll want someone who offers outstanding service, customer, support, and rapid closings. Visit our featured site for HECM Reverse Mortgages today. Thy offer many resources and information, as well as that $400 rebate that you'll need, come closing time!

Conversion Mortgage HECM, HECM Conversion Mortgages Explained

2008-12-05T18:05:00.000-08:00

About the Conversion Mortgage, or HECM Conversion Mortgage

We often get questions regarding the conversion mortgage hecm, or the hecm conversion mortgage. The HECM is the Home Equity Conversion Mortgage, a particular type of reverse mortgage. The conversion mortgage, or HECM, allows seniiors aged 62 or older to borrow from the equity in their home, similar to a home equity loan or hoe equity line of credit. The difference with the HECM conversion mortgage is that the loan does not have to be paid back in your lifetime, or for as long as you own the home. With the HECM conversion mortgage, the money you receive counted asis tax free income, no payments as are involved with the HECM conversion mortgage so long as you live in the home and there are no credit or income requirements. HECM conversion mortgages are supported by AARP, a proponent of reverse mortgages in general. Most importantly the conversion mortgage HECM is insured by the FHA. This insurance means that you will never owe more on the loan than your homes value.

HECM conversion mortgage rules:
*Borrowers must be Age 62 years or older
*Own their home and have enough equity in to qualify
*Occupy the home as primary residence
*The home must be in generally good condition
*Must meet with a certified HUD/FHA counselor

HECM conversion mortgage payments
*Lump sum disbursement
*Monthly payments
*Line of credit
*A combination of the Above

The HECM conversion mortgage is not right for every borrower. Ther are fees and interest to be paid. There are certain circumstances where you may not want to consider the HECM loan. The experts at Senior Reverse Mortgage Online can explain the HECM conversion mortgage in greater detail. They offer links to HECM lenders across the country, who will offer unbiased information regarding the conversion mortgage HECM. Contact them today, or respond to this blog post for additional HECM information.

Wisconsin Reverse Mortgages, The Wisconsin HECM Loan

2008-12-03T16:37:00.000-08:00

If you are not already familiar with it, the reverse mortgage is a unique breed of loan product. The most common reverse mortgage is the HECM, or Home Equity Conversion Mortgage. It's offered in all 50 states, in Puerto Rico, as well as in Canada and Australia. This blog post hits a little closer to home though. We are here to talk about Wisconsin reverse mortgages, in particular, the Wisconsin HECM loan.

Before we go any further, I want to mention a local expert on Wisconsin reverse mortgages. A reverse mortgage specialist with years of experience, Gary Zimmermann with First Choice Mortgage is ready to answer your questions regarding the Wisconsin HECM loan. He can also offer details and information about other Wisconsin reverse mortgage products. To contact Gary, see his info below:

Gary Zimmermann - First Choice Mortgage
W229 N1433 Westwood Drive, Suite 103
Waukesha, Wisconsin 53186
Tel - 877-326-5626

Now let's discuss the Wisconsin reverse mortgage in a little greater detail. Most of these facts pertain to other states as well. As mentioned a moment ago, the reverse mortgage is a unique type of loan product. Three things set Wisconsin HECM loans and other reverse mortgages apart from a normal mortgage. In the case of a traditional home mortgage, or forward mortgage, you borrow money to buy a home. This loan gets paid down as you pay the lender and the equity value of your home increases. In a Wisconsin HECM loan, or other reverse mortgage:

*Instead of you paying the lender, the lender pays you.
*Instead of reducing your debt as the loan term progresses, you increase it.
*Instead of turning your income into equity, you turn the home's equity into income.

If your confused at this point I apologize. Let me make it a little more clear. With a Wisconsin HECM loan, or other reverse mortgage, you borrow money from the equity in your home, as you would from a home equity loan. The great thing about the reverse mortgage is that this money does not have to be paid back, not in your lifetime anyway, or so long as you own your home. Some benefits to the Wisconsin HECM loan and other Wisconsin reverse mortgages are:

* The money you receive is tax free income
* No payments as long as you live in the home
* No credit or income requirements
* Reverse mortgages are supported by AARP
* Reverse mortgages are insured by the FHA

Payments on the Wisconsin reverse mortgage can be made to you in a variety of ways:

*Lump sum disbursement
*Monthly payments
*Line of credit
*A combination of the Above

Basic requirements for the Wisconsin reverse mortgages are:

*Borrowers must be Age 62 years or older
*Own their home and have enough equity in to qualify
*Occupy the home as primary residence
*The home must be in generally good condition
*Must meet with a certified HUD/FHA counselor

If you have additional questions on the Wisconsin HECM loan, or other types of Wisconsin reverse mortgages, please contact Gary at 877-326-5626. You may also contact Senior Reverse Mortgage Online for details on the reverse mortgage product, or for lenders in other states.

Robert Wagner Reverse Mortgage, Senior Lending and Robert Wagner

2008-11-27T23:08:00.000-08:00

At our HECM Blog and also at Senior Reverse Mortgage Online, we receive questions each month regarding the the Robert Wagner Reverse Mortgage, the Senior Lending Network, and spokesperson Robert Wagner. Although the Robert Wagner Reverse Mortgage is a misnomer, as Robert Wagner does not personally offer Reverse Mortgages, the names do go hand in hand. Through the Robert Wagner DVD, and the Robert Wagner commercial, The Senior Lending Network educates millions of baby boomers and seniors regarding the reverse mortgage product. The Robert Wagner reverse mortgage campaign has served them well, as most everyone now associates him with Reverse Mortgages. To find a Senior Lending Network reverse mortgage provider in your area, feel free to Contact Us online, or at 1-866-216-4636 to be referred to a senior lending loan originator. We also get requests for the Robert Wagner DVD. We work with reverse mortgage brokers and lenders in all 50 states. We have relationships with several Senior Lending Network reverse mortgage providers. The Senior Lending Network is among the top five lenders of reverse mortgages in the country. They have generated billions of dollars in reverse mortgage loans, and account for about 15% of loans generated. Reverse mortgages are a safe means for seniors to draw on the equity they have built up in their home, without paying the money back in their lifetime. It's a unique loan product which carries the support of the AARP and many financial planners. Whether you choose to place your loan with the Senior Lending Network, or another lender, the loan can be considered as an alternative way to fund your retirement. It's one of the many new Retirement Income Strategies. The senior reverse mortgage should not be viewed as your first choice, as the loan carries fees and interest, and my not be right for every individual. When you have all the facts, you can decide for yourself about a senior reverse mortgage decision. We are happy to help you locate a Senior Lending Network reverse mortgage provider or other loan provider in your area. Through our Reverse Mortgage Directory, we provide access to senior reverse brokers and lenders around the country.

Illinois HECM Loans

2008-11-22T17:11:00.000-08:00

The HECM Loan is gaining in popularity and is currently offered in all 50 states. Lending limits and riles vary by state, so it's important to find someone in your area to work with. This post features info on Illinois HECM Loans and related lenders and loan originators for Illinois HECM Loans. Rules for the Illinois HECM Loan are, for the most part, the same as for the other states. The borrower must:

Qualifications for Illinois HECM Loans
*Borrowers must be Age 62 years or older
*Own their home and have enough equity in to qualify
*Occupy the home as primary residence
*The home must be in generally good condition
*Must meet with a certified HUD/FHA counselor

Other variances do apply to Illinois HECM Loans, so we recommend finding a lender who specializes in Illinois HECM Loans. This blog post features a particular expert on the Illinois HECM Loan. Her name is Jeanine M. Weintz. She's a Reverse Mortgage Expert, and offices in the greater Chicago area. She is fully licensed and experienced in Illinois HECM Loans, as well as other reverse mortgage products. We feature her specifically for her industry experience and dedication. Her motto is "Reverse Mortgages, With A Personal Touch!" What this means is that she can walk you through the HECM Loan process step by step, answering your questions and making the process easy to understand. She'll never pressure you, but will offer sound advice on the Illinois HECM Loan, and any other reverse mortgage product you may qualify for. Feel free to contact her via the above link, or by calling 1-888-500-5024.

HECM Line of Credit, a Smarter Choice

2008-11-18T10:04:00.000-08:00

The hecm line of credit is the most prudent option for hecm payment disbursements. Since you are only charged interest on the amount of money you actually borrow the hecm lin of credit offers a safe haven for your funds. They even accumulate a fair amount of interest for you. The fear of many hecm loan borowers is that they will get a lump sum payment, pay off high intererest items like credit cards or other loans, spend a little, then have nothing left of the money. We do advise that you pay off high interest items. The beauty of the hecm line of credit is that it allows you to draw money as you need, when you need it. There is not the chance of squandering it that you have with a lump sum disburement. The hecm line of credit is available in all hecm loan transactions. Prior to loan closing you will be able to choose your payment method. You can choose a lump sum payment, monthly payments for life, or fer a set period of time, or you can choose the hecm line of credit. Some people even opt for all three, paying off credit cards with a portion of the funds, alloting a small amount to be paid to them monthly, and keeping the bulk of the money safe in a hecm line of credit.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Senior HECM Reverse Mortgages, Understanding the Senior HECM Loan

2008-11-18T09:10:00.000-08:00

As the economy slumps further into recession Senior Reverse Mortgage loans become ever more popular. The most common form of loan is the HECM loan, or Home Equity Conversion Mortgage. There is some confusion though, as to the nature of the reverse hecm loan. What is it, how does it work, etc. Here is a short list of key points to understanding senior hecm reverse mortgages:

1. Senior hecm loans are a unique way for retirement age seniors to cash in the equity from their primary residence. Reverse mortgage loans allow you to borrow equity from your home, without having to pay the mortgage, or even pay back the loan in your lifetime. You still retain ownership of your home with the senior reverse mortgage loan.

Senior HECM Loan Benefits
*The money you receive is tax free income
*No payments as long as you live in the home
*No credit or income requirements
*Reverse mortgages are supported by AARP
*Reverse mortgages are insured by the FHA

2. Senior reverse mortgage loans (most of them) are sponsored by and insured by insured by the US Government. This feature makes them safe, and sets them apart from similar loan products. Senior reverse loans carry the support of numerous senior organizations, and are touted by many financial planners as alternative way to fund retirement. They are not the best option for all seniors, but they are one option, in this tight economy.

Senior HECM Loan Qualifications
*Borrowers must be Age 62 years or older
*Own their home and have enough equity in to qualify
*Occupy the home as primary residence
*The home must be in generally good condition
*Must meet with a certified HUD/FHA counselor

3. Senior reverse mortgages, or senior hecm loans, now offer more equity to the borrower. Rates were recently raised so more equity can be drawn from the homes value, allowing for loans. This becomes especially important in high priced areas. Many seniors own a valuable home, with tremendous equity, yet live on a fixed income. Senior reverse mortgage loans allow them to tap into that equity and live more comfortably.

Senior HECM Loan Payments
*Lump sum disbursement
*Monthly payments
*Line of credit
*A combination of the Above

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Financial Freedom HECM

2008-11-17T19:55:00.000-08:00

Financial Freedom prides themselves on offering a wide range of products. They have offered the Financial Freedom HECM loan for some time and do not not bring bias by not promoting their jumbo loan product. Instead they offer borrowers the best reverse mortgage loan to meet their needs. After creating their proprietary reverse mortgage, the jumbo loan, Financial Freedom now offers another unique product, the Financial Freedom HECM with fixed interest. In regards to this new Financial Freedom HECM, Michelle Minier, CEO, states:

"We've worked extensively with industry leaders to clarify the rules governing fixed-rate HECMs in order to achieve a product that meets seniors' needs, and which we believe will lead to the development of a strong secondary market for the product," said Minier. "We expect that other lenders will embrace and replicate this closed end, fixed-rate HECM Product, making it the industry standard fixed-rate model."

"Our goal has always been to provide consumers with the most options to meet their needs," added Minier. "We expect variable-rate HECMs to remain the dominant option; however, for consumers who prefer the comfort of interest-rate certainty, they have a new option--HECM Fixed from the oldest and largest reverse-mortgage lender in the country."

This particular Financial Freedom HECM is the first government-insured, fixed-rate, closed-end reverse mortgage available by a company like Financial Freedom.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Proprietary Reverse Mortgages, Understanding the Proprietary Reverse Mortgage

2008-11-17T17:28:00.000-08:00

The proprietary reverse mortgage is a unique type of reverse mortgage loan offered by a private company or institution. Proprietary reverse mortgages offer the same benefits as traditional reverse mortgages, while allowing the borrower to draw significantly larger amounts of money. While the hecm loan allows a maximum of $417,000 to be borrowed, the proprietary reverse mortgage allows for much much. Financial Freedom is the best known and most recognized proprietary reverse mortgage lender. They make loans in excess of $500,000, and have processed loans on homes valued up to 18 million. Why would someone choose a proprietary reverse mortgage over the traditional government sponsored HECM loan? To get a larger loan, of course. You might imagine that someone owning a home worth several million dollars would not need the loan in the first place. They would typically have other assets they could draw upon instead of the reverse mortgage. Regardless of the reason, the loans are made available to accommodate people with very expensive homes. Earlier I stated that these proprietary reverse mortgages offered the same benefits as regular reverse mortgages. One of these benefits is insurance. The insurance is set in place so that the borrower will never owe more than the value of the home. This becomes even more important because of the higher home value. For more on proprietary reverse mortgages, please see the adjacent post on Financial Freedom reverse mortgages.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Free Reverse Mortgage Appraisals, Reduce Costs With a Free Reverse Mortgage Appraisal

2008-11-15T14:59:00.000-08:00

When shopping for a hecm loan or other reverse mortgage, it's possible to save in a few areas. One way is seeking a free reverse mortgage appraisal. Many brokers and loan originators are able to arrange for such an appraisal rebate. The folks at Senior Reverse Mortgage Online work with brokers and lenders across the country, and can help your secure a free reverse mortgage appraisal. More on that in a moment though. Other ways to reduce reverse mortgage costs is to negotiate the origination fee. The average is 2% of the homes value. That figure is pretty typical. Some lenders charge more, and you should try to avoid them. Some may charge less, and it goes without saying, those are the preferred lenders to do business with. Another area of potential savings is the monthly service fee. It is typically $35, but some lenders charge slightly less. Saving $5.00 a month may not sound like a big deal, but it's $5 per month over the life of the loan. In the end, it can amount to saving several hundred dollars, if you can reduce the monthly fee. Back to the appraisal topic, a typical reverse mortgage appraisal costs between $300 and $400. We know of several brokers who offer between a $350 and $450 appraisal rebate. These are mainstream, NLMA approved brokers, who operate n all 50 states. If you are serious about saving on a reverse mortgage, then a free reverse mortgage appraisal is the way to go. Contact Senior Reverse Mortgage Online today at 1-866-216-4636 and inquire about a free reverse mortgage appraisal. They will connect you with a broker or lender in your area who provides the rebate.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM Insurance

2008-11-14T10:40:00.000-08:00

We get a lot of questions regarding hecm insurance, how hecm insurance works, etc. Most reverse mortgage, in particular the hecm loan, is sponsored by the US Government. Created by HUD, the hecm loan is insured by the FHA. So additional hecm insurance is not necessary. The way the insurance for hecms works is this: The insurance states that you will never owe more on the loan that the value of the home itself. Let's say that the home is worth $185,000, but you final hecm loan balance to be paid (with interest and fees) is $196,000. The hecm insurance assures you that you will not have to pay the difference, nothing more than the value of the home. The hecm loan is also non-recourse, which means the lender can't "come after" you or your heirs for any remaining balance. The hecm loan was set up to be a safe option for retirement aged seniors in need of additional retirement income. It was created for that purpose and is being used by thousands of seniors. These hecm guidelines are designed to protect seniors. All this being said, there is a price tied to the hecm insurance, usually 2% of the home value. This cost, plus origination fees can be steep. The fees for the loan are high, but they are also very fare. When you consider that the loan DOES NOT have to be repaid in the borrowers lifetime, the value of that money becomes even more evident. Besides which, you have hecm insurance to cover the balance, should you owe more that the homes value.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Reverse Mortgage Cons - Cons of Reverse Mortgages

2008-11-08T18:47:00.000-08:00

With the popularity of hecm reverse mortgages in recent years, the question often arises, "what are the cons of reverse mortgages?" There are pros and cons alike, but this blog post will address reverse mortgage cons. One of the first cons of reverse mortgages is the fees and interest involved. They are steep, yes. Many say that they are too high to merit the income derived from the hecm loan itself. Well, keep in mind that all loans have some type of fee,in addition to interest. If you intend to sell your home soon after getting a reverse mortgage, then the loan might not be for you, because in that case the fees would be too high to merit the loan. Most people though, get the loan for the long haul. This is their chosen place to spend the golden years. With the fees spread over 10 years or so, they become negligible. Another of the hecm reverse mortgage cons is the fear that there will be nothing left after the loan is paid to leave as an inheritance. This is one of the cons of reverse mortgages, because it does occur. Not always though. Even withe the slowed economy, and the real estate slump, home values are always on the rise. As the old saying goes, "They are not making any more land." Many times, the homes appreciation is enough to offset fees an interest. Another of the perceived reverse mortgage cons is that the bank will own your home. This is not correct at all. You retain full ownership of your home, and your name appears on the tile as it does now. One of the real cons of reverse mortgages is that the money goes too quickly, before you get a chance to attend to the things you meant to, when you took out the loan. This is not so much a reverse mortgage con, but rather a matter of proper budgeting! Don't go wild with all that extra cash, and start spending money left and right. With the right reverse mortgage budget, your allotted loan will last a lifetime. This is why many people opt for the monthly payment allocation, or the equity line. When taking out a hecm loan, keep your priorities in order, make sure you intend to remain in your home for the long haul, and you will not need to worry about any negative consequences or any of these reverse mortgage cons.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM Rates, HECM Loan Rates

2008-11-08T06:10:00.000-08:00

HECM rates vary depending on which product is being discussed. The most popular reverse mortgage is the Home Equity Conversion Mortgage, or HECM Reverse Mortgage. HECM rates are based on the US Treasury Bill. You may need to shop around for lower rates because they can vary depending on margin charged. The T Bill rates, of course, are the same nationwide. Currently they are floating between 3-4%. Depending on which loan product you get, HECM reverse mortgage rates can change either monthly, or annually. There is also a cap on how high the hecm rate is allowed to go. This was implemented as a safeguard for the borrower. I am not able to update hecm rates each time they change, but John at Reverse Mortgage Daily posts hecm rates and related information regularly.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Reverse Mortgage Tax & HECM Loans

2008-11-08T05:50:00.000-08:00

Is there a reverse mortgage tax? What role does Uncle Sam play in regard to hecm loans and other reverse mortgages? We'll offer a quick answer. Reverse mortgage income is NOT taxable. There is not a reverse mortgage tax, as such. Since the money comes from equity in your primary residence, the IRS does not consider it taxable. This is a big reason so many people find the loan so appealing; all that reverse mortgage tax free money! The flip side is this: The interest you pay on the borrowed funds, unlike a "forward" mortgage, may NOT be deducted from your taxes. Still the reverse mortgage tax free income is a boon to many retirees, in need of extra money.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM 100, What is the HECM 100?

2008-11-08T00:19:00.000-08:00

It's important to shop around when it comes to reverse mortgage financing. The HECM 100 is becoming the loan of choice for many savvy seniors, looking for the best deal. The HECM 100 is a based on the US Treasury Rate plus a margin of 100 basis points. The HECM 100 only allows for a 1.00% margin. Of course this lower margin increases the principal loan amount. In the past, the margin for these loans was set at 150 basis points (1.5%). The HECM 100 means lower fees and interest, which means more money for the borrower.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM Counselors, Reverse Mortgage Counselors

2008-11-07T23:42:00.000-08:00

We get a lot of questions each month regarding hecm counselors, with people trying to find hecm counselors in different states around the country. Meeting with a reverse mortgage counselor is a prerequisite for getting a hecm loan. This process is in place to make sure the recipient of the hecm reverse mortgage has all the facts needed to make an unbiased decision regarding the loan. With this in mind, finding a list of hecm counselors is beneficial. A comprehensive list of HUD approved hecm counselors and reverse mortgage counselors listed by state, can be found at, HecmResources.Org.

For more information on HECM loans, hecm counselors, to get a free HECM loan quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM Guidelines

2008-11-07T17:28:00.001-08:00

The HECM Loan is fast becoming one of the best Retirement Income Strategies. We get a lot of questions regarding HECM Loan guidelines, how does one qualify, etc. Below are some basic HECM guidelines:

HECM Guidelines to Qualify
Borrowers must be Age 62 years or older
Own your home and have enough
Occupy the home as primary residence
Must meet with a certified HECM counselor

HECM Guidelines for Payment
Lump sum disbursement
Monthly payments
Line of credit
A combination of the Above

Please note that the HECM guidelines do not specify any credit requirements. Credit is a non issue when it comes to the HECM loan. Only the condition of the home & borrowers age are used to determine eligibility in the HECM guidelines.

For more information on HECM loans, HECM guidelines, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HUD HECM or FHA HECM?

2008-11-03T16:49:00.000-08:00

There are a large number of people searching the term hud hecm each month on the internet, with about an equal number of people searching the term fha hecm. These terms are really referring to the same product, which is the HECM Loan, otherwise known as a reverse mortgage. This reverse mortgage blog post aims to clear up any confusion in the terms. The term HECM is an acronym which stands for Home Equity Conversion Mortgage. The term hud hecm refers to the fact that HUD (US Dept. of Housing and Urban Development) administers the hecm loan. FHA hecm refers to the fact the the FHA (Federal Housing Administration)insures the hecm loan. This being the case, the hecm reverse mortgage is a safe mortgage product for retirement age seniors. Whether you're looking for information on the hud hecm, or the fha hecm, you may visit the HUD Reverse Mortgage page. There you will find official answers to your questions. You may also vist our siter site on Reverse Mortgages for additional HECM information, to find HECM lenders, or to get a free quote.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

What is the Minimum HECM Reverse Mortgage Age?

2008-11-01T23:42:00.000-07:00

We are often asked the question "What is the minimum reverse mortgage age?" Whether HECM loan or otherwise, the minimum reverse mortgage age is 62. HECMs are intended for retirement aged seniors. The following are the general hecm requirements. Notice the minimum reverse mortgage age listed below. As a side note, the amount of proceeds from a hecm are also based upon age.

Genreal HECM Loan Qualifications

* Borrowers must be Age 62 years or older
* Own the home and have enough equity to qualify
* Occupy the home as primary residence
* The home must be in generally good condition
* Must meet with a HECM counselor

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

HECM Loans & Other Reverse Mortgages Upon Death

2008-10-31T16:02:00.000-07:00

Many questions have come through regarding reverse mortgages as they relate to the death of the borrower, what happens upon death, how long will heirs have to sell the home, etc. This reverse mortgage blog post aims to answer some of the related questions. The terms of HECM loans, as well as most other reverse mortgages, allow for a 12 month period to sell the home and repay the HECM loan upon death. In the event of your death, the sale of the home is the responsibility of the heirs, more precisely, the Executor of your Will. Once the property is sold, the loan and any interest owed must be repaid to the lender. The equity balance, if any, is then distributed to heirs, or as instructed in the Will. Depending on available funds, the family may choose to keep the home and repay the loan.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

Children and Reverse Mortgages

2008-10-31T13:34:00.000-07:00

How will a hecm loan or other reverse mortgage affect the children? A common concern with hecm reverse mortgages is that there may be nothing left to leave as an inheritance for the children or other heirs. This may happen, after hecm fees and interest are accounted for. More often though, the homes appreciation covers the interest. Since the maximum you can borrow is 80%, there is often some equity available once the loan is paid in full. This means your children may very well have something left after loan repayment. Another important point is that most often, children support parents getting a reverse mortgage, whether hecm loan or other reverse mortgage. They would rather have parents living comfortably instead of struggling from month to month. Seniors should always discuss major financial decisions with their children, especially a major decision like the hecm loan, or reverse mortgage.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636

New HECM Loan Limits

2008-10-26T08:56:00.000-07:00

The FHA recently announced new HECM loan limits to go into effect November 1st (the target date). The legislation established new HECM limits of $417,000 across the country. There was concern among HUD officials regarding the new HECM loan limit, with many feeling that a $625,500 limit was more appropriate in some higher priced areas. Still, most in Senior Reverse Mortgage industry agree that the $417,000 HECM limit is fair. It allows seniors to draw significantly more equity than existing HECM loan limits of $200,162 (for most counties.) With the recent economic crunch, this new limit will be especially beneficial. Many seniors who secure HECM loans feel that they are a financial "life saver." Now with new HECM loan limits in place, this may be even more true.

For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636