Hud Saves Seniors Money With A New Product: The Hecm Saver
For many seniors, the daunting task of making their small Social Security or pension checks last to the end of each month is nerve wracking enough without the thought of having to do without medication or being unable to take advantage of what is supposed to be their golden years. Their medical bills and the rising cost of their medication, as well as the rising cost of food and heating, may make them desperate for a different solution. Some of them may think that their only resort is leaving their home, selling everything they own and going to live in a small apartment or moving in with a family member. However, there is an option that allows the senior not only to stay in their own home but to do so while enjoying life.
The reverse mortgage is a program that is meant to allow seniors more options. There are some considerations to keep in mind with the program, however.
The Reverse Mortgage, like other financial products, has a number of rules and restrictions before you even qualify. And like other financial services, there is the issue of upfront costs to be considered. For most loans, you have a number of fees and closing costs to pay for; however, in the reverse mortgage, those fees are rolled into the body of the loan leaving the senior to only pay for an appraisal. The Home Equity Conversion Mortgage (HECM) Saver goes one step farther to help the seniors out by reducing the amount of the upfront fees that are included in the home.
The HECM Saver is meant to be for people who want smaller loan amounts than those that are typically sought with HECM Standard. For the standard version of the loan the upfront mortgage insurance premium is 2% while the annual mortgage insurance premium or MIP is 1.25%. While the annual MIP remains the same with the HECM Saver, the upfront mortgage premium is greatly reduced at 0.01%. This has the potential to save the reverse mortgage borrower thousands of dollars in up front closing costs.
Not all seniors are interested in getting a loan that is equal to the full equity value that they have built up in their home, no matter what their reasons might be. So it is important that the secondary type of (HECM) be offered to those who are not interested in the higher loan amount.
Regardless of the type of reverse mortgage, the senior will be counseled thoroughly to make sure that they both understand the process of the loan and how the money will be dispersed to them. Seniors who are interested in finding out whether they are qualified for a reverse mortgage can have a look at the Reverse Mortgage Calculator (www.legacyreversemortgage.com/calculator ) so that they can find out not only that they are eligible but how much money they might be eligible for as well. There is no limit to how the money from the reverse mortgage can be used and it only needs to be repaid when the homeowner sells, moves, or dies.
The reverse mortgage is a program that is meant to allow seniors more options. There are some considerations to keep in mind with the program, however.
The Reverse Mortgage, like other financial products, has a number of rules and restrictions before you even qualify. And like other financial services, there is the issue of upfront costs to be considered. For most loans, you have a number of fees and closing costs to pay for; however, in the reverse mortgage, those fees are rolled into the body of the loan leaving the senior to only pay for an appraisal. The Home Equity Conversion Mortgage (HECM) Saver goes one step farther to help the seniors out by reducing the amount of the upfront fees that are included in the home.
The HECM Saver is meant to be for people who want smaller loan amounts than those that are typically sought with HECM Standard. For the standard version of the loan the upfront mortgage insurance premium is 2% while the annual mortgage insurance premium or MIP is 1.25%. While the annual MIP remains the same with the HECM Saver, the upfront mortgage premium is greatly reduced at 0.01%. This has the potential to save the reverse mortgage borrower thousands of dollars in up front closing costs.
Not all seniors are interested in getting a loan that is equal to the full equity value that they have built up in their home, no matter what their reasons might be. So it is important that the secondary type of (HECM) be offered to those who are not interested in the higher loan amount.
Regardless of the type of reverse mortgage, the senior will be counseled thoroughly to make sure that they both understand the process of the loan and how the money will be dispersed to them. Seniors who are interested in finding out whether they are qualified for a reverse mortgage can have a look at the Reverse Mortgage Calculator (www.legacyreversemortgage.com/calculator ) so that they can find out not only that they are eligible but how much money they might be eligible for as well. There is no limit to how the money from the reverse mortgage can be used and it only needs to be repaid when the homeowner sells, moves, or dies.