HighTechLending, Inc.
NMLS #7147
Reverse Mortgage Interest Rates Under the FHA HECM program, the Federal Reserve Board requires that the lender disclose reverse mortgage rates to the prospective borrower in the form of a Total Annual Loan Cost, or “TALC” disclosure. This displays the total transaction costs over the projected life of the loan, including the interest due once the borrower leaves the property […]
Yes, there are different types of reverse mortgages. These can be categorized into the HECM and the Proprietary Reverse Mortgage. HECM is the commonly used acronym for a Home Equity Conversion Mortgage, a reverse mortgage created by and regulated by the U.S. Department of Housing and Urban Development. An HECM is not a government loan. It is a loan issued […]
The fixed rate reverse mortgage requires that you take all the proceeds at closing. With the adjustable rate reverse mortgage, you can receive your money as a lump sum (all at once), monthly payments or a line of credit which can be accessed as often as needed for you future needs. Many people choose a combination of these options. Read […]
Typically, there are three categories of reverse mortgage closing costs: FHA Insurance (also called the Mortgage Insurance Premium, or MIP), Origination fees, and Other closing costs, including title insurance, escrow fees, appraisal, notary fees. These costs are typically funded by the loan and are not “out of pocket” expenses. A good advisor will explain all the reverse mortgage costs […]
There are no restrictions on how you may use the money you receive from a reverse mortgage. Once any mandatory obligations (like previous mortgages or liens on the property) are paid off, the rest of the loan may be used as you see fit.
Unlike a traditional mortgage, there are no monthly mortgage payments to make. The reverse mortgage becomes due when you or the last borrower 1) dies, 2) sells the house or moves to a new residence, or 3) does not live in the home for 12 consecutive months. In the case where there are multiple co-borrowers, and one person dies, changes […]
When the mortgage becomes due, the borrower(s) will need to pay the amount borrowed plus interest charges, FHA Insurance and service fees. Payment can be made by selling the home, refinancing, or using other assets if available. If you sell the home, any proceeds beyond what is due on the loan would belong to you. If the house is sold […]
The borrower and the borrower’s family should be made fully aware of the costs incurred in obtaining a reverse mortgage. Under the FHA HECM program, the Federal Reserve Board requires that the lender disclose to the prospective borrower a Total Annual Loan Cost, or “TALC” disclosure. It displays the total transaction costs over the projected life of the loan. See […]
