In the last post dated July 30th, we talked about considerations to “sell” home or apply for a reverse mortgage in Texas. Most likely you will come to one of two conclusions:

• Find another housing option that is a lot more attractive than you thought
• Conclude that where you live now is the best place for you to be

After much consideration, you will have a much better idea of the overall costs, benefits. and decide whether to stay or move. You will gain a better sense of what is most important to you, that’s the key. That key holds the decision “how” to evaluate the costs and benefits of a reverse mortgage.

Other things to consider:

If you want to make a home repair or improvement or need help paying your property taxes, you may want to find out if you qualify for any low-cost single-purpose loans that may be available in your area. Area Agencies on Aging (AAAs) generally know about these programs. To find the nearest agency, visit www.eldercare.gov or call toll-free, 1-800-677-1116. Ask the AAA for information about available “loan programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs.

If you are interested in a federally-insured HECM, know that all HECM lenders must follow HUD rules, and that many of the loan costs including the interest rate will be the same no matter which lender you select. Still, some costs including the origination fee, other closing costs, and servicing fees may vary among lenders.

If you live in a higher-valued home, you may be able to borrow more from a proprietary reverse mortgage. But it generally will cost more. The best way to see key differences between a HECM and a proprietary loan is with a detailed side-by-side comparison of future costs and benefits. Many HECM counselors and lenders can provide you with this important information.

No matter which type of reverse mortgage you are considering, be certain you understand all the conditions that could make the loan due and payable. Ask a counselor or lender to explain the Total Annual Loan Cost (TALC) rates, which show the projected annual average cost of a reverse mortgage, including all itemized costs. Read full story.

If you want to talk with someone about whether to sell or apply for a reverse loan, please call me, Bob Heckler at  (512) 328-2225. Check out Reverse Loan Guide.

Seriously Consider Selling – Good information on Reverse Mortgages.. go to AARp.org. If you want to talk with someone about whether to sell or apply for a reverse loan, please call me, Bob Heckler at  (512) 328-2225. Check out Reverse Loan Guide.

With the rising costs of the economy, senior homeowners are more interested in reverse mortgages so they can stay in their own homes. It difficult for seniors and elders in Texas to sell and move elsewhere. Most of them do not find it an appealing thing to do.

One good piece of advice is to evaluate a reverse loan is to compare it to what may be your only real option – which might seem selling your home and using the proceeds to buy or rent a new home. Other things to consider:

• What it would cost you to buy (and maintain) or rent a new home?
• How much cash you could get by selling your home?
• How much money you could safely earn on any money left over after you buy a new home?
• Have you recently looked into buying a less costly home, renting an apartment, or moving into assisted living or other alternative housing?

Until you have seen and considered other options, how do you know that another housing choice wouldn’t be better for you than a reverse mortgage loan? Check all your options, if you need help doing that, give me a call – Bob Heckler at Reverse Loan Guide (512) 328-2225. I can help you explore all your options before making a decision.

Reverse Loan Guide or call Bob Heckler at (512) 328-2225.

If you decide a reverse mortgage is right for you, you have still more decisions to make, including what loan program to use. The U.S. Department of Housing and Urban Development’s home-equity conversion mortgage (HECM) is the only reverse mortgage insured by the federal government, but loan values are capped based on typical home prices in your area.

When you shop, you have one thing going for you: You have to meet with a counselor before you can apply. That person will spell out the pros and cons, as well as the alternatives. You can ask me, Bob Heckler by sending me an email to bheckler@reverseloanguide.com. Or call me at (512) 328-2225.

To find a counselor and learn more about these loans, contact the AARP Foundation’s Reverse Mortgage Education Project (800-209-8085; aarp.org/revmort). When choosing a lender, stick with specialists affiliated with the National Reverse Mortgage Lenders Association (reversemortgage.org).

Counseling means that closing on your reverse mortgage could take up to three months, but considering that this loan could provide financial security for a lifetime, it’s worth the wait.

For more information go to Reverse Loan Guide or call Bob Heckler at (512) 328-2225.

If you are thinking about selling your home and downsizing in a couple of years or will need to move to an assisted living facility, a reverse mortgage probably isn’t your best option for cash. Texas Reverse Mortgage loans have sizable up front costs. The timeframe of your planning is critical - consider a cash out refinancing or home equity loan to tide you over until you sell.

Your reverse home loan mortgage has to be paid off, either in cash or when the house is sold. Although mortgage insurance ensures that you won’t owe more than your house is worth, it’s entirely possible to drain your home’s equity, leaving your children with little or nothing.

One reason is that when the loan comes due, the bill is for what you borrowed plus fees and interest, and rates on reverse mortgages are not fixed. The annual rate, recently 8.3%, is the rate on a one year Treasury bill plus 3.1 percentage points and 0.5 points for insurance. Over the life of the loan, your rate can’t rise more than five points. At today’s rate, a homeowner who borrows $100,000 would owe $222,000 in interest and principal in 10 years.

If leaving your home or money to the next generation is important, think twice. Talk to your children before applying for a reverse mortgage. Consider this option.. sell the house to your children and rent it back.

If you already have a mortgage on your home, you can still get a reverse loan in Texas. Go to ReverseLoanguide.com or call Bob Heckler at (512) 328-2225.

Why Do I Need to Get Counseling?

Counseling is one of the most important consumer protections built into the program. It requires an independent third-party to make sure you understand the program, and review alternative options, before you apply for a reverse mortgage.

You can seek counseling from a local HUD-approved counseling agency, or a national counseling agency, such as AARP (800-209-8085), National Foundation for Credit Counseling (866-698-6322), and Money Management International (877-908-2227). Counseling is required for all reverse mortgages and may be conducted face-to-face or by telephone.

By law, a counselor must review:

• options, other than a reverse mortgage, that are available to the prospective borrower, including housing, social services, health and financial alternatives;
• other home equity conversion options that are or may become available to the prospective borrower, such as property tax deferral programs; 
• the financial implications of entering into a reverse mortgage; and, 
• the tax consequences affecting the prospective borrower’s eligibility under state or federal programs and the impact on the estate or his or her heirs.

When Do I Pay Back My Loan?

No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when you cease to occupy your home as a principal residence, whether you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out. The amount owed can never exceed the value of your home. Furthermore, if the home is sold and the sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to you or your estate.

Need more information on Reverse Loans? Go to ReverseLoanGuide.com.

Reverse Loan Guide has worked with many seniors in Texas, helping them borrow from the existing value of a home. Call Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.

How Much Money Will I Qualify For With A Reverse Mortgage?

We visited http://www.aarp.org/money/revmort/ for the following explanation:
HECM (Home Equity Conversion Mortgage) loans generally provide the largest loan advances of any reverse mortgage.  The HECM is the only reverse mortgage insured by the federal government.  The HECM program limits your loan costs, and the Federal Housing Administration guarantees that lenders will meet their obligations.

The amount of cash you can get depends on your age, current interest rates, and your home’s value.  The older you are the more cash you can get.  The lower the interest rate, the greater your loan amount will be.

In general, the greater your home’s appraised value, the more money you can get.  But the value is subject to limits that vary by county.  The loan amount is determined by the lower of the county limit or the appraised value of your home.  The county limits range from $200,160 in most non-metro areas to $362,790 in many urban areas.   These limits are subject to change every January, and some may also change at other times.

The FHA Modernization Act currently awaiting passage by Congress may do away with the county by county limit and create a nationwide limit of $550,000.  This would allow people with higher valued homes to receive more money from a reverse mortgage. 

If you would like to run a scenario to see how much money you would qualify for with a reverse mortgage, then follow this link: http://www.rmaarp.com/
Need help understanding what a Reverse loan is for Texas Seniors?  Go to www.ReverseLoanGuide.com for help.  If you need immediate help call Bob Heckler at (512) 328-2225.
Expertise in any career doesn’t happen overnight. Bob Heckler, Vice President and Branch Manager for Cornerstone Mortgage Company, has invested a lifetime accumulating know-how and experience. His 30-year career in residential Real Estate includes building, appraising, selling and financing homes.  In addition, Bob currently oversees Cornerstone’s reverse loan division.

Reverse Loan Guide has worked with many seniors in Texas, helping them borrow from the existing value of a home. Call Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.

When one of my clients found they were struggling to make their $800 monthly mortgage payments and all of the rest the bills using monthly pensions and Social Security – they considered selling their three bedroom home in Houston. 

Mary, one of the co-owners, said it very well, ”We’ve lived in the house for 31 years, and it’s perfect for us, the right size, location, and amenities.” So instead of selling and moving out of their dream home, they applied and was approved for $275,000 reverse mortgage, using $140,000 to pay off their existing mortgage and $15,000 to pay off their credit cards. They’ll keep the remaining $120,000 as a line of credit.

Let’s look at why you don’t want to put your home mortgage in reverse:

The price of the reverse loan. Charges could be as high as $10,000 for a $200,000 reverse mortgage after covering a 2% lender’s origination fee, 2% mandatory mortgage insurance and costs such as title insurance, an appraisal and even repairs. You’ll also owe 0.5% of the loan balance in mortgage insurance premiums every year.

Another client learned that they’d have to pay $8,000 for a $50,000 reverse mortgage on his home, he decided against it. He had plans to travel more and fix up his home but decided not to.

These fees are a small price to pay for the ability to hold on to your home and preserve your standard of living. If you decide to sell your home, remember the 5% to 6% brokerage commission you’d have to pay if you do. So, weight all the options. I can help you do that so you get a clear picture of costs you pay for the money you get.

Call Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.

Reverse Loan Guide has worked with many seniors in Texas, helping them borrow from existing value of home. We had one client, a married couple, both in their 70’s and co-owners of a $200,000 house. They were able to take out $113,000 at today’s rates or opt for a $700 monthly payment for life. They did not  need good credit, a high income or savings to qualify. Call me, Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.

How much you can borrow comes down to these four factors:

• Value of your house
• Where you live
• Current interest rates
• Your age

For an estimate of what size loan you could qualify for, go to ReverseLoanGuide.com.

Texas Seniors keep these three goals in mind when seeking information on Reverse Mortgages.

Monthly Income – A reverse mortgage means a regular check to supplement your pension, investments or Social Security. A small one for life or a bigger one for just a few years.

A Credit Line - The most popular and potentially least expensive way to take out a reverse mortgage is through a line of credit. You pay interest only on the money you withdraw, and the amount you can tap in the future keeps growing as you age.

Debt Management - If you bought a home late in life or had to dip into home equity to fund big expenses like college tuition, you could very well find yourself still paying off a mortgage deep into retirement. Refinancing into a reverse mortgage can erase that monthly payment.

If you want more information, please call Bob Heckler at (512) 328-2225 and visit our website at Reverse Loan Guide.

If you have a question on Reverse loans for Seniors, visit our website www.ReverseLoanGuide.com for help.  Or call Bob Heckler at (512) 328-2225.

Required Third Party Counseling (Part 5 of 5)

Part of the process of getting a reverse mortgage is the required third party counseling. 

We visited http://www.hecmresources.org/requests.cfm for the following explanation:

Requesting HECM Counseling by Calling a HUD National HECM Network Counselor

Homeowners aged 62 and over can request counseling for Home Equity Conversion Mortgages (HECMs) by calling a member of the national HECM counseling network approved by the U. S. Department of Housing and Urban Development.

You can find HUD National HECM Network Counselors at  http://www.hecmresources.org/states/reque_state_index.cfm or at http://www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm or call: (800) 569-4287

But before calling any counselor, please read this important information:

1. Who Should Request Counseling A homeowner who wants counseling should call to set up a counseling appointment. Alternately, a homeowner’s authorized legal representative can request counseling. This person must be the owner’s guardian, conservator, or must hold a durable power of attorney to act on the owner’s behalf in this matter. No one else should call to request counseling “on behalf” of a homeowner. In particular, HUD Mortgagee Letter 2004-25 says that “the lender may not contact a counselor or counseling agency to refer a client.”  
2. HUD National HECM Network Counselors are the only HECM counselors who have achieved the qualifying score on the HECM counselor exam and been approved by HUD to provide telephone counseling nationwide. They are employed by local housing counseling agencies that may also employ other counselors who have not met those standards. 
3. Asking for a Network Counselor In many cases, the telephone numbers listed on this site for HUD National HECM Network Counselors are the numbers of the local agencies that employ them rather than the direct numbers of the counselors themselves. So to obtain counseling with a network counselor in these cases, say “I have been referred by the AARP Foundation, and would like to request a reverse mortgage counseling appointment with __________________.” (fill in the blank by saying the name of the HUD Network Counselor)
4. By Phone or In Office If you live near a network counselor, you may prefer to go to the agency’s office to be counseled in person on a face- to-face basis. But you may also request to be counseled by telephone (unless you live in NC, where this counseling must be face-to-face).
5. Ask for Printouts In Advance  Your counselor will provide you with     
           computer printouts showing how a reverse mortgage on your home would  
           work for you. Ask your counselor to send you these printouts before you
           discuss them with the counselor if you want to review them in advance. This
           would let you note any questions you have  

 

 

 (To Be Continued…)

Need help understanding what a Reverse loan is for Texas Seniors?  Go to Reverse Loan Guide for help.  If you need immediate help call Bob Heckler at (512) 328-2225.

Expertise in any career doesn’t happen overnight. Bob Heckler, Vice President and Branch Manager for Cornerstone Mortgage Company, has invested a lifetime accumulating know-how and experience. His 30-year career in residential Real Estate includes building, appraising, selling and financing homes.  In addition, Bob currently oversees Cornerstone’s reverse loan division.

If you have a question on Reverse loans or Reverse Mortgages for Texas Seniors, visit our website www.ReverseLoanGuide.com for help.  Or call Bob Heckler at (512) 328-2225.

Required Third Party Counseling (Part 4 of 5)

Part of the process of getting a reverse mortgage is the required third party counseling. 

We visited http://www.hecmresources.org/requests.cfm for the following explanation:

Requesting HECM Counseling by Calling a HUD National HECM Network Counselor

Homeowners aged 62 and over can request counseling for Home Equity Conversion Mortgages (HECMs) by calling a member of the national HECM counseling network approved by the U. S. Department of Housing and Urban Development.

You can find HUD National HECM Network Counselors at  http://www.hecmresources.org/states/reque_state_index.cfm or at http://www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm or call: (800) 569-4287

But before calling any counselor, please read this important information:

1. Who Should Request Counseling A homeowner who wants counseling should call to set up a counseling appointment. Alternately, a homeowner’s authorized legal representative can request counseling. This person must be the owner’s guardian, conservator, or must hold a durable power of attorney to act on the owner’s behalf in this matter. No one else should call to request counseling “on behalf” of a homeowner. In particular, HUD Mortgagee Letter 2004-25 says that “the lender may not contact a counselor or counseling agency to refer a client.”  
2. HUD National HECM Network Counselors are the only HECM counselors who have achieved the qualifying score on the HECM counselor exam and been approved by HUD to provide telephone counseling nationwide. They are employed by local housing counseling agencies that may also employ other counselors who have not met those standards. 
3. Asking for a Network Counselor In many cases, the telephone numbers listed on this site for HUD National HECM Network Counselors are the numbers of the local agencies that employ them rather than the direct numbers of the counselors themselves. So to obtain counseling with a network counselor in these cases, say “I have been referred by the AARP Foundation, and would like to request a reverse mortgage counseling appointment with __________________.” (fill in the blank by saying the name of the HUD Network Counselor)
4. By Phone or In Office If you live near a network counselor, you may prefer to go to the agency’s office to be counseled in person on a face- to-face basis. But you may also request to be counseled by telephone (unless you live in NC, where this counseling must be face-to-face).

 

 

 

 

 (To Be Continued…)

Need help understanding what a Reverse loan is for Texas Seniors?  Go to Reverse Loan Guide for help.  If you need immediate help call Bob Heckler at (512) 328-2225.

Expertise in any career doesn’t happen overnight. Bob Heckler, Vice President and Branch Manager for Cornerstone Mortgage Company, has invested a lifetime accumulating know-how and experience. His 30-year career in residential Real Estate includes building, appraising, selling and financing homes.  In addition, Bob currently oversees Cornerstone’s reverse loan division.