Ask a Reverse Mortgage Professional

(120 characters remaining)

• Ask your Reverse Mortgage questions FREE
• Receive a FREE answer from an experienced professional

HECM Saver Option Benefits Those Seeking Reverse Mortgage

Published on 10/09/2010

The new Home Equity Conversion Mortgage (HECM) Saver loan will practically eliminate the biggest upfront fees of reverse mortgage.

These reduced fees will make reverse mortgages more attractive to a much larger demographic.

“In the past, with the sizable upfront fees, it was only appropriate for people who wanted to stay in their home for the rest of their lives. But now that advice no longer applies to Saver loans,” said National Council on Aging vice president for home equity initiatives Barbara Stucki.

Borrowers were most often in their 70s in the past, but more borrowers in their 60s are turning to reverse mortgage to convert their home equity into a loan that can be used for nearly anything.

Now even more seniors in their 60s will turn to reverse mortgage because of the poor economy and because the Saver loan option will essentially remove the upfront mortgage insurance premium.

This insurance premium has been reduced from 2 percent to .01 percent of the home value. Now this option will serve those in need of less money in an incredibly affordable package.

If you have any questions about how the new Saver reverse mortgage loan will benefit you, simply ask a question above and have it answered for FREE by an AAG reverse mortgage specialist.

More News