Legacy Reverse Mortgage applauds the recent decision by the Department of Housing and Urban Development (HUD) giving older homeowners a new option to save money on a Home Equity Conversion Mortgage with the HECM Saver.
Online PR News – 19-October-2010 – – Legacy Reverse Mortgage applauds the recent decision by the Department of Housing and Urban Development (HUD) giving older homeowners a new option to save money on a Home Equity Conversion Mortgage with the HECM Saver.
Seniors can now opt for a reverse mortgage allowing them to borrow a smaller amount than previously permitted, but with lower closing costs including a greatly reduced mortgage insurance premium. While the HECM Standard requires an upfront mortgage insurance premium of two percent (2%) of the home’s value, the HECM Saver allows for just one hundredth of one percent (0.01%). For many loans, this means a savings of $5,000 to more than $12,000 in closing costs.
“The upfront mortgage insurance premium has traditionally been one of, if not the biggest deterrent for a senior considering a Reverse Mortgage. With the HECM Saver, HUD has solved this issue, giving seniors the choice to sacrifice some benefits in return for greatly reduced closing costs,” stated James Cory, president of Legacy Reverse Mortgage.
New HECM Saver Makes Reverse Mortgages Available to More Seniors
Many older homeowners who would benefit from a reverse mortgage have been unable to take advantage of the equity in their homes due to the higher costs with the traditional HECM. As of October 4th, the date HUD implements the new HECM Saver, they will get much better news if they look for a reverse mortgage quote. Legacy Reverse Mortgage advisors are happy to assist seniors and their website, http://www.legacyreversemortgage.com, includes a reverse mortgage calculator and offers an easy to use Reverse Mortgage Quote form.
A reverse mortgage is a financial tool to allow homeowners aged 62 or older to convert their home equity into cash. A reverse mortgage is the reverse of a standard mortgage – it amortizes in reverse, meaning the balance grows over time because monthly payments are not made. Homeowners still retain the title to their property, pay taxes and maintain home owner’s insurance. If the house is sold or the homeowner dies, the reverse mortgage is paid off along with interest and predetermined fees. Legacy’s agents can provide more details about the fees and how an inheritance might work out in different scenarios when they provide a reverse mortgage quote.
Legacy Reverse Mortgage is one of America’s fastest growing reverse mortgage providers. Legacy’s management team has more than 40 years of combined experience in reverse mortgages, making Legacy Reverse Mortgage one of the most knowledgeable reverse mortgage lenders in the country. Legacy was founded on the core principles of integrity, value and shared success and works to provide all customers with an honest and fair solution to their home financing needs. The company’s website, www.legacyreversemortgage.com, offers clear information about the financial products available and the regulatory guidelines for eligibility as well as a Reverse Mortgage Calculator.