Robert Jackme Blog

Closing Costs Some of the most significant loan closing costs are typically the Federal Housing Administration (FHA) initial Mortgage Insurance Premium (MIP), loan origination fee, and title insurance. Typically, all closing costs can be financed as part of the loan. Generally, when you close the loan the only out of pocket fee is the Housing and Urban Development (HUD) required independent counseling. Although it cannot be paid by the reverse mortgage lender, often times the counseling fees can be financed into the loan and sometimes counseling fees can be waived by the counseling agency. Mortgage Insurance HECM fees include the Initial FHA Mortgage Insurance Premium paid at closing, which is 2% of the home value not to exceed $13,583, as well as an annual MIP of .5% of the outstanding mortgage balance.  The mortgage insurance provides the following guarantees: The HECM is a “non-recourse” loan. If you sell the home to repay the loan, you or your heirs will never owe ...

A reverse mortgage works like a home equity loan, but the homeowner doesn’t need to pay off the mortgage in monthly bases.  It allows house owners to remain stay in their home however taking the equity out of their house without making any payment to the lender.  Most of the time, they can both take out a lump sum or the lender will make payments to them every month.  As long as the homeowner continues to apply their home as their main residence and they meet all requirements of a reverse mortgage , they don't need to pay the lender returned. How does a reverse loan work for the house owner?  Read the given example. Mike is a 75 years old male. He's the only owner and resident of a house that was recently appraised for $300,000 in Vienna, Virginia. He owns the house outright; because of this he does no longer currently have a mortgage or line of credit of any kind.  According to this information, Mike can get a lump sum price of $172,674 con...

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge clients, in particular senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, additionally called home equity conversion mortgages (HECM), have expanded more than 1,300% among 1999 and 2008, creating huge possibilities for fraud perpetrators. Reverse mortgage scams are engineered by using unscrupulous specialists in a mess of real estate, financial services, and related agencies to steal the equity from the property of unsuspecting senior citizens or to apply these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property. In some of the mentioned scams, victim seniors are provided free homes, investment opportunities, and foreclosure or refinance help. They're extensively utilized as straw shoppers in property flipping scams. Seniors are often centered via local churches and investment seminars, in addition ...

Who is a good candidate for a reverse mortgage? If you have your own home and don’t have enough savings for your daily based expenses or expenses for your life style, a reverse mortgage has a few advantages. 1/3 of U.S.  http://www.beingarealtor.com Families don't have enough savings for retirement and the average amount saved among the remaining 2/3 was $73,200.  That would get you through some years of retirement; however it’s not enough to last through a long retirement. A reverse mortgage can ease the pressure on you of your monthly expenses. Most senior citizens live on fixed earnings; it can supplement Social Security and help handle with the inevitable mounting medical prices. Who isn't a good candidate for a Reverse Mortgage? A reverse mortgage is a questionable proposition if you have sufficient income to pay your bills or are willing to sell your home to tap into the equity.  If that’s the case, it may make greater feel to simply sell it and d...

For some people, yes. They have asked pertinent questions like: Do I want to maximize what I can leave to my heirs? Am I going to live in my home deep into my retirement? How much extra income will I need to meet my needs? Can I pay the taxes, insurance and meet all the obligations that come with a reverse mortgage? Unlike all those people who’ve been foreclosed on, do I really know what I’m getting into? If the answers to those questions are sketchy, you should consider a safer financial route like a traditional home equity loan or line of credit. Whatever the decision, seek personalized advice from a financial counselor or debt-management agency. Tom Selleck might say reverse mortgages are not too good to be true. But Magnum P.I. showed that it always pays to investigate