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Post by jaitley143 on Oct 31, 2011 4:56:16 GMT -5
October 2010 also marked the introduction of the HECM Saver. This loan product was designed to be a more affordable option for borrowers who need less money from their loan. With the HECM Saver, borrowers are allowed to borrow 10 to 18 percent less than with the HECM Standard. The major benefit is that borrowers will not have to pay large upfront mortgage insurance premiums (MIPs). They will, however, be subjected to higher interest rates and fees.
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Post by stomach143 on Oct 31, 2011 5:09:44 GMT -5
Of the available reverse mortgage information, experts are especially interested in the reasons consumers have for taking these loans. A 2007 survey conducted for a well-known advocate group for retirees found that 19% of borrowers were primarily interested in using this financial product to pay off their traditional mortgage loan. Eighteen percent hoped to improve their quality of life, 14% needed money for home repairs, and 13% needed the cash to cover an unexpected expense.
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