HECM Reverse Mortage Loan [mortgageapply.blogspot.com]
www.winnipegsbestmortgage.com www.winnipegmortgageinfo.com For consumers considering 10 year mortgages, here are important facts and numbers to help you with your decision. Don't gamble with your money without the facts.
mortgageapply.blogspot.com 10 year mortgage rates in Canada.avi
The reverse mortgage loan uses the equity of the home. The greatest benefit of the reverse mortgage loanis, that there is no monthly back payments, but everything will be paid back, when the reverse mortgage loan will be closed.
1. HECM Allows The New Home Purchase.
This is principally true, but the terms are different from state to state. Generally speaking a borrower has the freedom to use the money as he will. However, it is wise to discuss with the counselor about the details.
2. HECM And The Interest Rate.
Typically the HECM uses a variable interest rate, which will follow the market price from month to month. Now there is a new product type, a fixed rate HECM. This helps a borrower in the financial planning and gives some peace of the mind, because it will not bring any surprises.
3. Better Terms With Libor.
Earlier the lenders used CMT index to measure the margins for the reverse mortgages, but changed into Libor, a London based index. The reason was to maximise the cash returns to the seniors.
4. More Weight On The Counseling.
The counseling is very useful for the seniors, because they can get useful guidance and because it can reveal the scams, which have appeared in the market. The main job is to guarantee, that the seniors honestly understand the details of these loans and know, what they will sign.
5. ARM HECM Option.
When a senior borrower will use this option, he has a lot of freedom, how the lender will pay to him. The alternatives are the lump sum, the monthly payments, a credit line or the combination of some or all of these.
The schedule depends on the financial needs of a senior.6. The Refinancing Possibility.
HECM is a great tool to refinance the mortgage package. If the interest rates are low, a senior can use the refinancing alternative to sign a reverse loan agreement with a fixed interest rate. This means lower interest rate and also the payment free months, which is a great help for the senior. If a senior is 62 or over and owns a home, where he has equity left, HECM is a great way to get some extra cash for the future use.
The loan amount depends on the age of the borrower, on the appraised value of the home and on the interest rate level. The lender will not ask the income information nor the credit score, because the home equity and the mortgage insurance will guarantee that the lender will get his money and that the borrower cannot lose other assets, than his home equity.
More HECM Reverse Mortage Loan TopicsQuestion by : what is the lowest interest rate for a mortage? My husband and I are looking at buying a new home because how low the mortage rates are currently. My husband has excellent credit a few points shy of 800. And I have read ads show interest at 4.75% which is get but is that the lowest you can get on a mortage loan or can you get lower. I most sound very naive. However I have never purchased a home before and I am unaware of the details. The home we live in my husband owned before we were married. Best answer for what is the lowest interest rate for a mortage?:
Answer by Steve D
You can get lower by paying points - but this really only works if you can afford to pay the points in cash (rolling them in increases the loan amount which means you end up paying about the same in interest). Realize, however, that mortgage rates fluctuate on a continual basis and even if you are quoted a rate of 4.5% today, that does not mean you will get the mortgage at that rate - you won't get that rate until you lock in, and lock ins are usually good for only 30 days. The application to approval process can take 45 to 60 days, so locking in today's rate would probably not get you to closing - meaning if rates started rising tomorrow, you would have to go with the new rates. Your best bet is to call around to mortgage officers at banks and credit unions in your area and see who has the lowest (they should all be around 4.5 to 5%
Answer by troy f
0% and it is possible with owner financing
Answer by Rebecca
15 year loans are at 4.17 in my neck of the woods.
Answer by bloomorningglory
That's a pretty good rate. They change by the hour/day so don't get too obsessed with it. If you want a lower rate, you can pay for it. It's not solid until you get preapproved and "lock" your rate in.
Answer by stan c
Any amount below 6% is a good rate.Make sure you get a fixed rate open end which means you can pay down the mortgage without being penalized. On the first half of any mortgage you pay 70% in interest. That's how most if not all banks make their money. Also require an amortization that will show you the break down between interest/principle.
