Your City, Your State Reverse Mortgage Refinance
The HUD HECM Reverse Mortgage Refinance has many benefits. It allows you to use the equity in your home. You can refinance if you have an existing reverse mortgage, a conventional mortgage or own your home free and clear. When you refinance from a conventional mortgage to a reverse mortgage you can eliminate your monthly payment. A reverse mortgage allows you to use the equity in your home for any purpose you see fit.
The Reverse Mortgage Refinance can:
- Lower you interest rates
- Increase the amount of money you are currently receiving
- Eliminate a conventional mortgage payment
When looking for a reverse mortgage you want to choose the lender with the lowest Total Annual Loan Cost (TALC). This can all be an overwhelming task to undertake if you're not familiar with the industry and mortgage rates. Our network of mortgage professionals can help you take advantage of the best loan rates available, meeting your needs. Our primary interest is your goals and getting you the best loan rates available. We make the process simple just contact us today at 888-537-8928.
Research On Reverse Mortgage Refinance
A HUD HECM Reverse Mortgage allows you to convert the equity in your home into a lump-sum payment, monthly income or a line of credit. If interest rates have decreased, your property value has increased and/or the FHA Lending Limit has increased then a refinance may benefit you. If you are over the age of 62 a HUD HECM Reverse Mortgage may help you achieve your financial goals.
The reverse mortgage refinance can eliminate payments from a conventional mortgage. You can use the equity in your home to make retirement a little more financially comfortable. A reverse mortgage gives you options that you may not realize are available.
You need to do your research and shop for the best deal in Your City, Your State. There are several fees that are charged as a part of the refinance. Some of those fees include:
- Origination Fee: This fee pays for the operating expenses of the lender.
- Mortgage Insurance Premium: This insures that you will receive what the loan promises.
- Appraisal Fee: A certified appraiser will be assigned to determine the current market value of your home.
- Service Fee Set Aside: This is deducted from your loan upon closing, paying for your loan service.
If you have ever had a traditional mortgage you're familiar with a Good Faith Estimate, Truth In Lending statement and the Annual Percentage Rate. A Reverse Mortgage is different and has its own set of disclosures called the Total Annual Loan Cost or (TALC). Mortgage lenders are required to provide you with a TALC in addition to other disclosures. This is so you can compare one lender's reverse mortgage product with another's and find the best deal available.
With a traditional mortgage you know how much you are borrowing and the APR rate, but with a reverse mortgage the total amount you borrow depends on how you decide to take the money, what happens to interest rates and how long you end up keeping the loan.
TALC rates are calculated using three different scenarios and three different loan terms these include:
- Two Years
- The Youngest Borrowers Life Expectancy
- And 1.4 Times The Youngest Borrowers Life Expectancy
In Addition, the Total Annual Loan Cost statement calculations will show you how the costs can change over a certain period of time. If for some reason you keep your loan for only a few years, your up-front costs can be quite high. So, the total cost of borrowing with a Reverse Mortgage depends on factors you may not have control over.
In addition to the written projections that you will receive on the TALC, lenders must provide you with:
- A statement saying that you are not obligated to complete the Reverse Mortgage Refinance.
- A complete list with explanations of the loan charges. It must list the age of the youngest borrower and the appraised property value.
- An explanation of the TALC rates.
When shopping for a Reverse Mortgage Refinance you will need to get TALC's from several mortgage lenders in Your City, Your State. Review all the scenarios and determine which one likely applies to you. Then think about your time frame and how you are going to take the money. Choose the lender with the lowest Total Annual Loan Cost. This can all be an overwhelming task to undertake if you're not familiar with the industry and mortgage rates.