| Among the most popular reverse mortgage loans are | | | | standard mortgage marketplace for a reverse |
| the FHA insured HECM, home equity conversion | | | | mortgage of FHA. The interest rate is either an |
| mortgages, which have the following costs. 1. The | | | | adjustable or fixed one. |
| mortgage insurance is 2 % of the appraised value. 2. | | | | 3. The Fixed Interest Rates Are The Newest Ones. |
| The origination fee, the cap is 2 % of the first $ | | | | The reverse market has many lenders, who offer |
| 200.000 and after that 1 %, with overall cap of $ 6000. | | | | FHA HECM loans with fixed interest rates. Some of |
| 3. The insurance of the title. 4. The title, county | | | | these rates are similar to the FHA VA rate added with |
| recording and attorney fees. 5. The real estate | | | | the premium of the mandatory mortgage insurance. |
| appraisal $ 300 - $ 500. 6. The survey, in some cases, | | | | The cash proceeds of some of the fixed rate reverse |
| $ 300-$ 500 and 6. The monthly service fee, between | | | | mortgages are limited to half of that, what the |
| $ 25 and $ 35. | | | | adjustable rate reverse loans use. |
| 1. All Costs Can Be Financed With The Proceeds Of | | | | 4. The Reverse Mortgage Loans For Special |
| The Reverse Mortgage Loans. | | | | Purposes. |
| Because the biggest benefit of the reverse mortgage | | | | There is also a special market for the low cost |
| loans is, that they have no monthly fees, all the fees | | | | reverse loans offered to seniors. The lenders are the |
| and costs will be rolled directly into the balance of the | | | | public sector ones, like some states and governments, |
| reverse loan. They are not paid every month by the | | | | and these loans are meant for a special purpose, like |
| borrower and this fact leaves more disposable money | | | | home repair or property taxes. These programs are |
| for him. | | | | usually very restrictive as to the qualification and the |
| To take the reverse loan does not require cash | | | | location, but offer lower interest rates and fewer or no |
| money, nor cash monthly payments. This is why | | | | fees. |
| seniors with limited cash available can get these loans. | | | | As you see from the above cost list, there are several |
| We have to understand that all costs will increase the | | | | costs, fees and interest rates, which depends on the |
| loan capital and consequently all the costs and fees will | | | | offer you get. This is the reason, why it is very |
| accrue the interest. So the compound interest accrued | | | | important to take several offers from many lenders, to |
| and all fees will be added to the loan principal. | | | | talk with the people, who has the reverse loan, to get |
| 2.The Reverse Mortgage Loans Interest Rates. | | | | information from the net and to prepare yourself |
| When a senior takes the reverse loan, the interest rate | | | | properly for the meeting with the counselor. To take |
| will be determined. Because the HUD backs these | | | | the reverse loan is a long term decision and will |
| loans and because the loans are secured by the home | | | | influence on your life during a very long period. |
| itself, the interest rates should always be under the | | | | |