Legacy Reverse Mortgage, one of Americaâ€™s fastest growing reverse mortgage lenders, is reporting their HECM Saver Reverse Mortgage program is gaining impressive traction since its launch just 5 months ago on October 4th, 2010.
Online PR News – 25-February-2011 – – San Diego, CA â€“ Legacy Reverse Mortgage, one of Americaâ€™s fastest growing reverse mortgage lenders, is reporting their HECM Saver Reverse Mortgage program is gaining impressive traction since its launch just 5 months ago on October 4th, 2010. The new loan terms incorporated in the program are intended to reduce the overall cost of reverse mortgages to borrowers.
The release of the program coincides with revisions the Department of Housing and Urban Development made to their fee structure charged as an upfront cost to prospective reverse mortgage borrowers. Prior to the amendment, the upfront Mortgage Insurance Premium (MIP) charged to borrowerâ€™s totaled as much of 2% of the total loan amount.
Those upfront costs were the source of a particularly unanimous concern among regulators, lenders, and borrowers alike that stipulated the upfront cost of reverse mortgages overburdened borrowerâ€™s whom may not have the financial capacity to cover the fees.
The HECM Saver Reverse Mortgage offered by Legacy reduces the initial MIP fee to just .001% of the total loan. In using an example the company offered, that means for a reverse mortgage borrower who owns a home worth $500,000, the upfront MIP will total just $50. The MIP can also be financed by the loan itself.
The program also introduces more flexible options borrowerâ€™s can take advantage of when receiving the proceeds of their loan, including a line-of-credit system that is similar in structure to a Home Equity Line Of Credit or â€śHELOC.â€ť With the new program, borrowers realize greater financial and equity protection when entering retirement because the overall cost of loan is lower. According to Jim Cory, Legacyâ€™s President, â€śthe HECM Saver serves a large niche of customers who want the flexibility of a HELOC with the benefits of a reverse mortgage, but without the upfront costs of the traditional reverse mortgage.â€ť
A reverse mortgage is a popular transaction that allows seniors aged 62 years and older to borrow supplementary cash, secured by equity, while continuing ownership and occupancy of the home. Because the loan doesnâ€™t take into account a borrowerâ€™s income or credit, demand for reverse mortgages has jumped in recent years among retiring homeowners.
About Legacy Reverse Mortgage: Legacy Reverse Mortgage is one of the fastest growing reverse mortgage providers in the country. The companyâ€™s management team has over 20 years of combined experience specifically in reverse mortgages, including President Jim Cory, who in 12 years has held posts from management at Fannie Mae to serving as the Vice Chairman on the Ethics Committee and on the Board of Directors of the National Reverse Mortgage Lending Association (â€śNRMLAâ€ť).
Legacy was founded on the core principles of integrity, value, and shared success. The companyâ€™s goal is to provide every customer with an honest and fair solution to their home financing needs. Legacy believes in educating customers, developing relationships, and never straying from a committed price. You can learn more about Legacy Reverse Mortgage by calling (800) 991-4613 or by visiting http://www.legacyreversemortgage.com.
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