Reverse Mortgage News:
HECM saver option is unrolled: this is an excellent option for anyone that desired a reverse mortgage and wanted to reduce the upfront cost. The HECM Saver is available only as an adjustable rate. It reduces the upfront Mortgage Insurance Premium or Government Insurance necessary for a reverse mortgage to .01% of the value of the home versus the standard 2% of the value of a home. Example $200 for the Saver Vs. $2000.00 for the standard HECM. The HECM Saver substantialy reduces the proceeds for a reverse mortgage, but in many cases borrowers are looking to limit the amount of funds they want to draw.
Changes in October: October 4th the monthly MIP for reverse mortgages will increase from a half percent to one and a quarter percent. This more than doubles the current accruing mortgage insurance which will affect all loans with case numbers generated after October 4th, 2010. This will not affect your proceeds but will affect your equity.
October 2010 the expected principle reduction is estimated to be 3 to 7% and will affect the proceeds of all reverse mortgages with case numbers generated after the expected date of October 1, 2010. This will affect older seniors proceeds available more than younger seniors. The good news is that these changes are ensuring that the reverse program is not going anywhere.
Get your counseling completed and generate your FHA case number so that you are locked into the current loan limits and the lower mortgage insurance monthly premium. Your case number will be good for one full year so that you can decide about a reverse mortgage later on.
The current jumbo products on the market vary drastically. Please get multiple quotes when looking into a jumbo mortgage product. Generation has a high rate fixed program. Bank of America's adjustable jumbo option should not be overlooked.
There are major expected changes to the HECM reverse mortgage industry coming in October 2010. If you are interested in a reverse mortgage, get your HECM Counseling and have a reputable lender generate your case number.
The private reverse mortgage sector is coming back strong in 2010 with expected Jumbo products and Co-Ops. Lenders are even considering a Hybrid for those that are short to qualify to hold a smaller second lein that borrowers will make payments on to pay off.
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