Reverse Mortgages are available to anyone who is over 62 years of age, owns their home and uses it as their primary residence. It is a very good option if you need cash and want to stay in your home for as long as possible.
In a nutshell, Reverse Mortgages work by allowing borrowers to swap the equity in their homes for cash, while still owning and living in the house. Currently, the only place to secure this type of financing is through the Federal Housing Administration’s Home-Equity Conversion Mortgage program, or HECM. The HECM loan limit is currently $625,500, and there are many things that will determine how much a borrower will qualify for. Some of these things are the age of the borrower, current interest rates and the property’s value.
If you do qualify, you have several choices on how to receive your money. You can be paid a lump sum up front, opt for a monthly cash payment, or choose a combination of the two. The only downside to Reverse Mortgages are the fees. They are high, ranging from $7,000 to $20,000. You will also have to pay an origination fee and an insurance premium. On the upside, this insurance does guarantee that your total debt can never be more than the home’s value.
For more information and a list of brokers go to ReverseMortgage.org. 
Everything You Need To Know About Reverse Mortgages
March 21st, 2009 lheraty Posted in Consumer News, Loan Modification, Reverse Mortgage Comments Off
Reverse Mortgages are available to anyone who is over 62 years of age, owns their home and uses it as their primary residence. It is a very good option if you need cash and want to stay in your home for as long as possible.
In a nutshell, Reverse Mortgages work by allowing borrowers to swap the equity in their homes for cash, while still owning and living in the house. Currently, the only place to secure this type of financing is through the Federal Housing Administration’s Home-Equity Conversion Mortgage program, or HECM. The HECM loan limit is currently $625,500, and there are many things that will determine how much a borrower will qualify for. Some of these things are the age of the borrower, current interest rates and the property’s value.
If you do qualify, you have several choices on how to receive your money. You can be paid a lump sum up front, opt for a monthly cash payment, or choose a combination of the two. The only downside to Reverse Mortgages are the fees. They are high, ranging from $7,000 to $20,000. You will also have to pay an origination fee and an insurance premium. On the upside, this insurance does guarantee that your total debt can never be more than the home’s value.
For more information and a list of brokers go to ReverseMortgage.org. 
Be Aware That Freddie Mac Has Introduced New Fees And Has Increased Others
February 21st, 2009 specialed Posted in Consumer News, Financing Options, Freddie Mac, Loan Modification, Local Real Estate News, re-finance Comments Off
Since home prices have continued to fall, Freddie Mac has determined that they are at a heightened risk of many more mortgage defaults and claims. They report that there may be even more of a housing price decrease in 2009. In light of this news they have increased several fees and added new ones. One of their new fees is a 0.75% fee of the loan amount on certain condominium mortgages when the loan equals more than 75% of the estimated condominium value. Their increases include fees on the following types of mortgages:
- Loans that let borrowers pay interest in the primary years and defer principal payments
- Refinance loans that allow the borrower to cash out some of their home equity
- Loans with certain combinations of low credit scores and down payments
- Condominium mortgages
