Robert Jackme Blog

Some advocates and lenders have warned of a coming foreclosure crisis in Puerto Rico, but one top lender on the island says reverse mortgage borrowers rode out the recent storm much more easily than their forward counterparts. Puerto Ricans are still cleaning up in the wake of Hurricane Maria, which made landfall on the U.S. territory as a Category 4 storm last fall. In response to the devastation, the Department of Housing and Urban Development instituted a moratorium on foreclosures through March 19 for all forward and reverse loans — and as the deadline approaches, some have sounded the alarm about the potential impact on homeowners. “When I speak with my family in Puerto Rico, I hear the desperation in their voices,” New Jersey resident Maribel Soto told NJ.com last week. ”They don’t know when they will find employment again and when they will have stability in their lives. It’s unjust that companies are taking advantage of people at such a moment.” While forward mortgage borrow...

If you’re considering a reverse mortgage, shop around. Decide which type of reverse mortgage might be right for you. That might depend on what you want to do with the money. Compare the options, terms, and fees from various lenders. Learn as much as you can about reverse mortgages before you talk to a counselor or lender . And ask lots of questions to make sure a reverse mortgage could work for you – and that you’re getting the right kind for you. Here are some things to consider: Do you want a reverse mortgage to pay for home repairs or property taxes? If so, find out if you qualify for any low-cost single purpose loans in your area. Staff at your local Area Agency on Aging may know about the programs in your area. Find the nearest agency on aging at eldercare.gov, or call 1-800-677-1116. Ask about “loan or grant programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs, and how to apply. Do you live in a higher-valued home?...

You probably want reverse mortgages explained in a clear straightforward way.  The loans can seem incredibly confusing and many retirees have had slightly negative views about them. However, popular opinion is swinging and reverse mortgages may turn out to be the red wine of financial products — something once considered bad that is now thought to be very beneficial. Not too long ago, people thought that drinking wine was an unhealthy habit. Research now shows that red wine, consumed in moderation, can have huge health benefits for many — though not all — people. Reverse mortgages are similar. They were once considered to be a bad deal for borrowers, but recent updates to regulations have made reverse mortgages a really compelling way to help retirees pay for retirement and safeguard retirement assets. A reverse mortgage is a loan that lets the borrower access home equity to spend in any way they want.  While it is a loan, there are no monthly payments, so it can dra...

A reverse mortgage application procedure typically takes about 30-45 days from begin to end and it contains 5 main steps. But, the longest a part of the  reverse mortgage loan process  is the decision-making method that leads on the application.The average reverse mortgage applicant starts considering thinking about a reverse mortgage six months earlier than completing an application. The average reverse mortgage applicant starts considering thinking about a reverse mortgage six months earlier than completing an application.The home owner usually researches reverse mortgages with this site for a several months. They request facts from a local reverse mortgage professional. The house owner might also invest one to two months meeting with the professional in individual and reviewing the best faith estimate and different loan documents. “Calculate Your Eligibility” STEP 1: INITIAL APPLICATION The application legally authorizes the lender to start the application proc...

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 ...