HECM STANDARD:
PAYMENT MAY BE RECEIVED IN THE FOLLOWING MANNER-
FIXED RATE - ALL DISTRIBUTION MUST BE TAKEN AS LUMP SUM
ADJUSTABLE RATE - DISTRIBUTION MAY BE TAKEN AS (A) LINE OF CREDIT, (B) MONTHLY INCOME DISTRIBUTION OR (C) A COMBINATION OF BOTH AND (D) TERM OR PAYMENT FOR A SET NUMBER OF YEARS. THE RATE IS ADJUSTABLE MONTHLY.
THE HECM OR REVERSE MORTGAGE STANDARD LOAN PAYS APPROXIMATELY 50% AT AGE 62 AND APPROXIMATELY 75% AT AGE 85. THE RATE OF PAYMENT AMOUNT INCREASES BY THE YOUNGEST AGE OF THE ELIGIBLE BORROWERS.
ON HECM STANDARD LOANS A 2% UFMIP( UP FRONT MORTGAGE INSUARANCE PREMIUM) IS PAID. THE 2% IS BASED ON THE CERTIFIED APPRAISED VALUE OF THE PROPERTY. A EXAMPLE WOULD BE 2% OF A $200,000 OR $4000.00 FHA PREMIUM. THIS AMOUNT IS TAKEN OUT OF THE
ELIGIBLE BORROWING AMOUNT. OTHER EXPENSES INCLUDE: APPRAISAL COST, SURVEY COST,
TITLE INSURANCE, DOC STAMPS AND OTHER EXPENSES. THE EXPENSES PAID ARE APPROXIMATELY THE SAME AS SELLING A PROPERTY EXCLUDING REAL ESTATE COMMISSIONS.
HECM SAVER REVERSE MORTGAGE PRODUCT:
DISTRIBUTION OF THE PROCEEDS IS EXACTLY THE SAME AS THE HECM STANDARD PROGRAM.
THE HECM SAVER HAS LOWER PRINCIPAL LIMIT FACTORS THAN THE HECM STANDARD PROGRAM. THE BORROWER RECEIVES LESS MONEY HOWEVER THE EXPENSES ARE LESS. THE NEW HECM SAVER PROGRAM HAS A UP FRONT MORTGAGE INSURANCE PREMIUM OF .01% VERSUS 2%. THIS REPRESENTS A SUBSTANTIAL SAVINGS. BOTH PROGRAMS REQUIRE A MONTHLY RENEWAL PREMIUM OF 1.25% OF THE OUTSTANDING PRINCIPAL BALANCE. THE HECM SAVER PROGRAM WORKS WELL FOR SENIORS LOOKING FOR LESS UP FRONT COSTS AND LESS TOTAL PAYOUT. IF YOU WANT THE MAXIMUM PAYOUT, THE HECM STANDARD PROGRAM IS THE PROGRAM YOU SHOULD EXAMINE.
RON STARLING WILL BE GLAD TO QUOTE BOTH PROGRAMS AND LET YOU, THE INFORMED SENIOR,
DECIDE WHICH PROGRAM FITS YOUR NEEDS BEST. CALL ME AT 352-665-1300 FOR A COMPLETE QUOTE.
IF YOU HAVE A CURRENT MORTGAGE OR HOME OWNERS LINE OF CREDIT, THE HECM STANDARD FIXED RATE WILL PROBABLY FIT YOUR NEEDS BEST SINCE THE CURRENT MORTGAGE OR HELOC MUST BE PAID OFF. I WILL BE GLAD TO EXPLAIN BOTH PROGRAMS. WHEN YOU CALL PLEASE GIVE
ME BOTH YOU AND YOUR SPOUSE NAME AND DATES OF BIRTH, THE ADDRESS OF THE PROPERTY AND ANY MORTGAGE THAT ENCUMBERS THE PROPERTY.
I LOOK FOREWORD TO TALKING WITH YOU. MY GOAL IS TO HELP YOU ACHIEVE FINANCIAL INDEPENDENCE AND FINANCIAL PEACE OF MIND.
