One thing is for sure when it comes to the FHA Reverse Mortgage aka HECM is things seem to change a lot...We normally hear the change is designed to help the consumers or end user. In this case the end users are people over the age of 62 with equity in their primary residence. The bottom line is the changes are GREAT for seniors.
Here is a quick review of the changes to the Home Equity Conversion Mortgage (HECM):
Before I break this down..It is important to understand a few things about the changes. The more equity you have in your home and the less mortgage obligations you have as liens... The better position you will be in to save money on fees and benefit from the new changes. That is not to say you cannot benefit if you owe money on your home. However, the bottom line is the more equity you have the more you benefit.
1. They have simplified it to one single product. There used to be multiple products and it was confusing. Now the program is based on pure mathematics. It is a function of your age, the value of your home and how much you owe on it.
2. The changes also creates long term viability for this very helpful product for Seniors. The FHA reverse mortgage should change less from here on out.. GOOD NEWS!
3. Here is some good news for the heirs and the homeowners as well. The new changes will help preserve equity in the home. This is a good thing all the way around.
I will be updating my blog to go more in depth about the FHA Reverse Mortgage changes but the good news is most of the stuff that was good is still the same and the parts that were not so good have been eliminated.
Please visit my website to learn more and find out how much you qualify for on my calculator.
www.truthaboutfhareversemortgages.com
Cheers,
Noah S. Burford
FHA reverse Mortgage expert
noahburford@icloud.com
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