http://www.bestreversemortgage.com/reverse-mortgage/will-the-stimulus-plan-leave-hecm-borrowers-behind/ The Unofficial Guide to Reverse Mortgages Sun, 07 Sep 2008 14:59:15 +0000 http://wordpress.org/?v=2.6 http://www.bestreversemortgage.com/reverse-mortgage/will-the-stimulus-plan-leave-hecm-borrowers-behind/#comment-2475 Mr. Reverse Mortgage Fri, 08 Feb 2008 20:50:32 +0000 http://www.bestreversemortgage.com/reverse-mortgage/will-the-stimulus-plan-leave-hecm-borrowers-behind/#comment-2475 The highest cost in a reverse mortgage is the mortgage insurnce premium(MIP) that initially is 2% of the principal limit then is set at 0.5% per year of the outstanding loan balance. It appears that nobody is talking about lowering this cost, which seems to be siphoned off to support other government functions. I also thought I saw a statistic where only about 7% of the total collected for MIP is used to reimburse lenders where the proceeds from the sale of homes when the reverse mortgage became payble was less than the ending loan balance. I believe any insurer would be very satisfied if they only had to pay out 7% of the premiums they collect. The highest cost in a reverse mortgage is the mortgage insurnce premium(MIP) that initially is 2% of the principal limit then is set at 0.5% per year of the outstanding loan balance. It appears that nobody is talking about lowering this cost, which seems to be siphoned off to support other government functions. I also thought I saw a statistic where only about 7% of the total collected for MIP is used to reimburse lenders where the proceeds from the sale of homes when the reverse mortgage became payble was less than the ending loan balance. I believe any insurer would be very satisfied if they only had to pay out 7% of the premiums they collect.

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