Sentences with phrase «rate reverse mortgages»

Thus, a «forward» mortgage only originator that enters the reverse mortgage market should not look to those closed - end credit rules in crafting TILA advertising disclosures for variable - rate reverse mortgages.

Due to these details, fixed rate reverse mortgages are usually best for borrowers who plan to use their reverse mortgage funds all at once, such as to pay off an existing mortgage or other debt, or to make major home repairs or modifications.

There are pros and cons to variable rate reverse mortgages:

Typically the interest rate for fixed rate reverse mortgages is initially higher than the variable rate because these loans are more risky for the lender.

Interest rates for variable rate reverse mortgages are comprised of an index rate plus the lender's margin.

If the rates go down in the future, the fixed rate will not change with those changes either, but the adjustables have a ceiling, or cap on the rate of 10 % above the initial rate so the interest that accrues on the adjustable rate reverse mortgages could go up dramatically if the rates rise in the future.

While the interest rates are low, many don't think about it but if the rates were ever to increase sharply on the adjustable rate reverse mortgages, then equity would be eroded much more quickly as well.A good example of this is to check the difference between the HUD Home Equity Conversion Mortgage (HECM or «Heck - um») and a propriety jumbo reverse mortgage with an interest rate nearly 4 % higher and see how much more quickly the balance rises on the higher rate mortgage.

All - Time Low Fixed Rate Reverse Mortgages By Mike Branson — Add me to your circles PS — We also welcome and respond to comments below...

Fixed - rate reverse mortgages give borrowers a one - time, «lump - sum» payment at closing of all of their loan proceeds, after the payoff of any mortgages or liens on their property.

Typically the interest rate for fixed rate reverse mortgages is initially higher than the variable rate because these loans are more risky for the lender.

A benefit of adjustable - rate reverse mortgages is more disbursement options to fit different lifestyles.

California residents may qualify for either fixed rate or adjustable rate reverse mortgages, which can allow you to use the equity in your home.

Due to these details, fixed rate reverse mortgages are usually best for borrowers who plan to use their reverse mortgage funds all at once, such as to pay off an existing mortgage or other debt, or to make major home repairs or modifications.

There are pros and cons to variable rate reverse mortgages:

However, recent increases to the LIBOR Rate (London Interbank Offered Rate), which is the rate for which all Adjustable Rate Reverse Mortgages are based on have taken these loans expected rates as of today 12/20/10 over the 5.00 % floor rate for all margins currently being offered.

Since fixed rate reverse mortgages eliminate the risk that the interest rate will increase, they're an extremely popular choice among borrowers, but in some cases limit the amount of proceeds you can receive.

As of today, the average margin on an Adjustable Rate Reverse Mortgage is approximately 2.00 — 2.25 % with some as low as 1.75 % and as high as 3.00 % depending on what the individual company has available to offer.

In the case of an adjustable rate reverse mortgage, the rate is typically tied to benchmark like the 30 - day LIBOR rate plus a margin, say, two to four percentage points.

The fixed rate reverse mortgage option has only one way you can take your funds and that is all in a lump sum at the very beginning.

This means an Expected Rate range of 5.29 % to as high as 6.54 % if you were to apply for an Adjustable Rate Reverse Mortgage today.The LIBOR Index is updated on a weekly basis for the Reverse Mortgage Calculator.

However, an adjustable rate reverse mortgage has the benefit of allowing the borrower more control over how and when to access the loan proceeds.

The disadvantage to a fixed - rate reverse mortgage is that it only offers a lump sum as a disbursement option.

A fixed rate reverse mortgage may make sense for borrowers who anticipate using all or most of the loan proceeds right away.

Scenario 1: Fixed Let's say that a lender is offering you a fixed rate reverse mortgage at a rate of 4.2 %.

Borrowers who choose a fixed rate reverse mortgage must take their funds as a lump sum, as opposed to other disbursement options offered at a variable rate.

Lump Sum With a fixed - rate reverse mortgage, you can take your funds in a lump sum.

A variable rate reverse mortgage is more flexible with its payment terms.

If the borrower needs a lump sum payment of the loan proceeds a fixed rate reverse mortgage is recommended.

Nonetheless, if a fixed rate reverse mortgage sounds good to you, then there is no time like the present to take a hard look at this opportunity with the rates being down

A fixed rate reverse mortgage offers a single lump sum disbursement, and a consistent, fixed interest rate over the life of the loan.

The Fixed Rate Reverse Mortgage for April 2012 is down to 4.00 % (this is the Initial Interest Rate and the Effective Rate on the fixed program since there are no indices or margins to consider).

For Example, a 66 year old homeowner with a $ 500,000 home currently qualifies for $ 321,000 in available funds on the Fixed Rate Reverse Mortgage product based on today's parameters.

If you have an inquiry about the fixed rate reverse mortgage give us a call Toll Free [phone] or request a quote clicking here»

Under the adjustable rate reverse mortgage, homeowners can choose to receive home equity in monthly payments, term or tenure payments (a term payment being for a set term established by the borrower and a tenure payment being a payment for life), in a line of credit that you can access when you want, or a combination of any of these choices (i.e. a small lump sum to make repairs now, a portion in a line of credit to be able to access for later needs and the remainder in monthly payments for life).

Many senior borrowers who start looking into reverse mortgages are not aware of it, but there is a NEW Lower fixed rate reverse mortgage (HECM) available.

A third option would be to take the adjustable rate reverse mortgage, which will allow you to take a cash advance of $ 200,00 at closing, while still having access to the remaining funds should you need them in the future.

An adjustable rate reverse mortgage has an interest rate based on the one - month LIBOR index.

The other consideration with a fixed rate reverse mortgage loan is payment options.

With a fixed - rate reverse mortgage, you need to take your loan proceeds as a lump sum.

With a variable - rate reverse mortgage, you get the option of taking your proceeds as a monthly payment, line of credit, or lump sum.

Homeowners who obtain a fixed - rate reverse mortgage get the entire amount of the loan at settlement, with no restrictions on its use.

Depending on how you take your loan amount, you can opt for either a fixed rate Reverse Mortgage or a variable rate Reverse Mortgage.

If you own your home free and clear, you may be leaving a lot of your home equity untapped when you could access it via an adjustable rate reverse mortgage.

If you have an inquiry about the fixed rate reverse mortgage or unusable funds give us a call Toll Free [phone] or request a quote.

A variable rate reverse mortgage is more flexible with its payment terms.

Borrowers who choose a fixed rate reverse mortgage must take their funds as a lump sum, as opposed to other disbursement options offered at a variable rate.

And perhaps the most significant difference is this: If you obtain an adjustable - rate reverse mortgage, the unused amount grows each and every month, so that the balance you can tap into gets larger month after month.

A fixed rate reverse mortgage offers a single lump sum disbursement, and a consistent, fixed interest rate over the life of the loan.

However, an adjustable rate reverse mortgage has the benefit of allowing the borrower more control over how and when to access the loan proceeds.

A fixed rate reverse mortgage may make sense for borrowers who anticipate using all or most of the loan proceeds right away.