Comments on: Are Reverse Mortgages A Sign Of Bad Times? http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/ The Unofficial Guide to Reverse Mortgages Thu, 20 Nov 2008 11:48:45 +0000 http://wordpress.org/?v=2.6 By: When Is An “Origination Fee” Not An “Origination Fee?” | Reverse Mortgage Guide http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1932 When Is An “Origination Fee” Not An “Origination Fee?” | Reverse Mortgage Guide Mon, 07 Jan 2008 20:35:08 +0000 http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1932 [...] “The fees most people find objectionable are the upfront costs to get the loan done,” says Joe. “On a convention HECM product, this is consumed primarily by 2 components; 1) Mortgage Insurance which is 2% of the loan amount and 2) Orginiation Fees which are federally capped at 2% of the home value. Net, the fees to get the loan running when you add in all the additional costs of appraisal and title fees, etc. can push up toward 5% of the home value. These are usually what people have a hard time with. In most cases these costs are financed into the mortgage. We can certainly discuss whether these fees are “worth it” or not. The MIP protects the homeowner as well as the lender. The origination fee is how the mortgage specialists get paid since there is little use of yield spread premiums on this side of the mortgage business (although this is creeping it’s way in…). Hope this helps a little. I am sure many others have a POV on this.” [...] [...] “The fees most people find objectionable are the upfront costs to get the loan done,” says Joe. “On a convention HECM product, this is consumed primarily by 2 components; 1) Mortgage Insurance which is 2% of the loan amount and 2) Orginiation Fees which are federally capped at 2% of the home value. Net, the fees to get the loan running when you add in all the additional costs of appraisal and title fees, etc. can push up toward 5% of the home value. These are usually what people have a hard time with. In most cases these costs are financed into the mortgage. We can certainly discuss whether these fees are “worth it” or not. The MIP protects the homeowner as well as the lender. The origination fee is how the mortgage specialists get paid since there is little use of yield spread premiums on this side of the mortgage business (although this is creeping it’s way in…). Hope this helps a little. I am sure many others have a POV on this.” [...]

]]> By: John P. http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1872 John P. Fri, 04 Jan 2008 16:55:36 +0000 http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1872 When it comes to deciding whether a Reverse Mortgage is a good investment or not, many senior homeowners don't really understand their options. For some, a reverse mortgage is a way out of debt, or a way to pay for a child's education. Others see a Reverse Mortgage as just another way for the bank to make money. The truth of the matter is, deciding whether a Reverse Mortgage is a good investment or not depends on the borrowers unique situation. This was definitely true for my aging parents, but it turns out, they made a good decision. My siblings and I had no interest in "inheriting" my parent's house and so it made sense for them to get a reverse mortgage. Once my parents pass on, the bank will get the house and all is well. In the meantime, the bank is paying them a nice monthly income which helps them pay bills and also to take a few vacations per year. When it comes to deciding whether a Reverse Mortgage is a good investment or not, many senior homeowners don’t really understand their options. For some, a reverse mortgage is a way out of debt, or a way to pay for a child’s education. Others see a Reverse Mortgage as just another way for the bank to make money. The truth of the matter is, deciding whether a Reverse Mortgage is a good investment or not depends on the borrowers unique situation. This was definitely true for my aging parents, but it turns out, they made a good decision. My siblings and I had no interest in “inheriting” my parent’s house and so it made sense for them to get a reverse mortgage. Once my parents pass on, the bank will get the house and all is well. In the meantime, the bank is paying them a nice monthly income which helps them pay bills and also to take a few vacations per year.

]]> By: Dennis http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1871 Dennis Fri, 04 Jan 2008 16:31:41 +0000 http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1871 I think that the FHA MIP is to high and the service set aside is too much. FHA could lower the MIP more in line with what they have to pay off on reverse mortgages and the sevice set aside is set up for many more years that the average borrower keeps the loan. I think that the FHA MIP is to high and the service set aside is too much. FHA could lower the MIP more in line with what they have to pay off on reverse mortgages and the sevice set aside is set up for many more years that the average borrower keeps the loan.

]]> By: Joe Miramonti http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1870 Joe Miramonti Fri, 04 Jan 2008 15:15:55 +0000 http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1870 Phillip, The fees most people find objectionable are the upfront costs to get the loan done. On a convention HECM product, this is consumed primarily by 2 components; 1) Mortgage Insurance which is 2% of the loan amount and 2) Orginiation Fees which are federally capped at 2% of the home value. Net, the fees to get the loan running when you add in all the additional costs of appraisal and title fees, etc. can push up toward 5% of the home value. These are usually what people have a hard time with. In most cases these costs are financed into the mortgage. We can certainly discuss whether these fees are "worth it" or not. The MIP protects the homeowner as well as the lender. The origination fee is how the mortgage specialists get paid since there is little use of yield spread premiums on this side of the mortgage business (although this is creeping it's way in...). Hope this helps a little. I am sure many others have a POV on this. Phillip,

The fees most people find objectionable are the upfront costs to get the loan done. On a convention HECM product, this is consumed primarily by 2 components; 1) Mortgage Insurance which is 2% of the loan amount and 2) Orginiation Fees which are federally capped at 2% of the home value. Net, the fees to get the loan running when you add in all the additional costs of appraisal and title fees, etc. can push up toward 5% of the home value. These are usually what people have a hard time with. In most cases these costs are financed into the mortgage. We can certainly discuss whether these fees are “worth it” or not. The MIP protects the homeowner as well as the lender. The origination fee is how the mortgage specialists get paid since there is little use of yield spread premiums on this side of the mortgage business (although this is creeping it’s way in…). Hope this helps a little. I am sure many others have a POV on this.

]]> By: philip vernot http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1863 philip vernot Fri, 04 Jan 2008 05:50:07 +0000 http://www.bestreversemortgage.com/reverse-mortgage/are-reverse-mortgages-a-sign-of-bad-times/#comment-1863 Specifically, what fees are too high? I have heard this over and over again but no one ever mentions what fees are too high. Please explain. Specifically, what fees are too high? I have heard this over and over again but no one ever mentions what fees are too high. Please explain.

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