Thousands of dollars are now available at a lower cost for reverse mortgage borrowers. This new pricing option will allow seniors to get more money—it will remove the servicing and origination fee, making the new amount of money available between $3,500-$10,000.
With this option, the homeowners 62 or older can unlock even more of their equity and draw the proceeds of the loan in an up-front lump sum. This can be beneficial when it comes to paying off a mortgage, supplement retirements and medical bills.
Individual cases will, of course, differ, but most senior borrowers will receive more money with the new rule. There will be other costs involved, which can include the FHA mortgage insurance premium, mortgage taxes, recording fee, appraisals, etc
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Hi Paul,
ReplyDeleteIt's really great to note that henceforth seniors who want to take out a reverse mortgage will not have to pay the servicing and origination fee. Thus, the senior homeowners will now be able to get more money while they apply for a reverse mortgage. I agree with you that it would help the seniors to pay for their medical bills, credit card debt, etc.
Take care,
Sara