You may qualify for a
Reverse Mortgage.

Improve your

retirement

With a

reverse mortgage

Costs Associated with a Reverse Mortgage

Costs for a reverse mortgage under the Home Equity Conversion Mortgage "HECM" are capped. These costs may be financed into the mortgage. Federal regulations mandate that your home be structurally sound, and comply with all home safety codes, in order to qualify for a reverse mortgage.

Origination Fee

Covers a lender's operating expenses include: marketing, overhead, and processing. Federal guidelines for the origination fee are 2% of the first $200,000 or the lesser of the home value or county lending limit and 1% on the remaining balance. To which will not exceed a cap of $6,000.

Mortgage Insurance Premium "MIP"

Borrowers are charged a MIP equal to 2 percent of the maximum claim amount or home value. Whichever is less. And a annual premium equal to 0.5% of the loan balance. This insurance Guarantees... If the company managing your account commonly called the loan servicer goes out of business, the government will step in and make sure you have continued access to your loan funds. You or your heirs will never owe more than the value of your home when the HECM is repaid.

Appraisal Fee

Generally range between $300-$400 and is performed by a certified appraiser. Designed to assess a responsible current market value of your home.

An appraiser will also check for major structural defects, such as a bad foundation, leaky roof, or termite damage. All property defects, you must be completed by a contractor. A second inspection usually $50-$75 must be made by the same appraiser to insure the repairs have been completed properly. The cost of the repairs may be financed in the loan. The repairs may be completed after the reverse mortgage is obtained.

Closing Costs

Other closing costs commonly included are:

  • $20 - Credit report fee to verifies tax liens or other judgments
  • $20 - Flood certification fee. Determines whether the property is located on a federally designated flood plane.
  • $150-$450 - Escrow fee. Includes a title search and various other required closing services.
  • $75-$150 - Document preparation fee. To prepare the final closing documents, including the mortgage note and other recorded items.
  • $50-$100 - Recording fee. Records the mortgage lien with the County Recorder's Office.
  • $50 - Courier fee. Mailing of documents between the lender and the title company or loan investor.
  • % of Loan - Title insurance. Protects the lender or the buyer against any loss arising from disputes over ownership. .
  • $100 - Pest Inspection. Inspection for wood-destroying organisms, such as termites.
  • $250 - Survey. Site boundaries of the property are verified to ensure any adjoining property has not encroached on the reverse mortgage property.

Service Fee Set-Aside

The service fee set-aside is an amount of money deducted from the available loan proceeds at closing to cover the projected costs of servicing your account. Federal regulations allow the loan servicer to charge a monthly fee of $30 to $35. Typically the set-aside can amount to several thousand dollars.

TO MAKE IT SIMPLE THE BEST WAY TO IMPROVE YOUR RETIREMENT IS TO
UTILIZE A REVERSE MORTGAGE. THE REASONS ARE SIMPLE AND ARE AS FOLLOWS.

  • Stop Paying Your Monthly Mortgage Payment
  • No Medical Requirements
  • No Income Requirements
  • No Credit Requirements to Qualify
  • Stop Worrying About Mortgage Payment and Increase your Cash Flow
  • Title Remains in Your Name as Long as You Live in the Home
  • The Lender Pays the Homeowner TAX Free Payments "REVERSE MORTGAGE"
California Real Estate

Improve Retirement (949) 732-0342

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