ANNOUNCING! HECM Saver Reverse Mortgage program with lower closing costs!

The HECM Saver, a great alternative to higher closing costs! Now senior homeowners can consider a Reverse Mortgage and have lower closing costs, an attractive alternative to the Standard HECM (Home Equity Conversion Mortgage). A low cost Reverse Mortgage . . . what a great idea!

Putting Money in Your Pocket With a Reverse Mortgage Just Got Easier and Much More Attractive! HUD released the HECM Saver program October 4, 2010. For years borrowers did not like the high up front costs of a Reverse Mortgage mainly due to the 2% up front Mortgage Insurance fee (2% of the appraised value.) For example, if a home appraised for $600,000 that tabulated to a mortgage insurance premium up front of $12,000 at closing, an amount that would be financed as part of the loan but high nonethless. It was extremely distasteful to borrowers as well as loan officers.

With the new HECM Saver program borrowers will receive less money, however, the up front mortgage insurance premium is only .1%. This tabulates to only $60.00 on $600,000! Of course the yearly mortgage insurance has increased, so with the new program the continuing yearly mortgage insurance premium is calculated by multiplying 1.25% times the entire mortgage balance. But it's spaced out over time and the best part is that the floor rate has been reduced so proceeds are that much more!

For years the cost to secure a Reverse Mortgage was anywhere between $15,000 to $22,000 depending on appraised value. With HECM Saver this has been drastically reduced. The HECM Saver is available as a fixed or adjustable program. If you are looking for higher proceeds you can still choose the HECM Standard fixed or adjustable. Be sure to ask for a comparison of products so you can see the amortization chart for the HECM Saver as well as a Good Faith Estimate so you can compare it to the HECM Standard. Loan officers are only too happy to provide them.

How many Reverse Mortgages? There were 114,692 Reverse Mortgages issued in 2009 and $50,758 in 2010 (through March) which shows the growing popularity of the HECM program. We expect the program to continue to be very popular. FHA HECM production chart 1990-2010 Click here.

• Free Reverse Mortgage information, call 1-888-843-9797