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Vanessa Said:

Is it the time to get reverse mortgage with the interest rates low?

We Answered:

As of April 1, 2009, all reverse mortgages went to "live pricing," meaning interest rates and margins will be fixed daily, not weekly. Thus, when seniors are shopping for reverse mortgages, they must be sure to compare apples to apples because originators (salespeople) may try to hoodwink even the sophisticated potential borrowers by backdating their Good Faith Estimates and quoting products that are not even available on the market any longer. Make sure to do your homework and read up on what is current, as real estate loans of any kind are changing rapidly with the times.

Chris Said:

For mortgage rates - How can APR be less than Interest rate ?

We Answered:

the APR is found on the truth in lending form. what it is, is the ACTUAL cost of the loan expressed as a percentage. because it includes closing costs and fees this means the APR will be higher than your interest rate.
I believe the only way for the APR to be less than your interest rate is if you pay off a good chunk of your principle balance. it seems that companies like wells Fargo are making assumptions that you will be coming to the table with money and paying off principle. this is somewhat misleading as most people do not do that.
if you'd like to get a no bs quote i'd be happy to give you one

Willie Said:

Is now the best time to obtain a reverse mortgage due to lower interest rates?

We Answered:

As of April 1, 2009, all reverse mortgages went to "live pricing," meaning interest rates and margins will be fixed daily, not weekly. Thus, when seniors are shopping for reverse mortgages, they must be sure to compare apples to apples because originators (salespeople) may try to hoodwink even the sophisticated potential borrowers by backdating their Good Faith Estimates and quoting products that are not even available on the market any longer. Make sure to do your homework and read up on what is current, as real estate loans of any kind are changing rapidly with the times.

Tamara Said:

Roughly What is the Interest Rate on a Reverse Mortgage?

We Answered:

You can know the rates from different sites here
http://homeloans.atspace.com

Kristen Said:

Can you get a Reverse Mortgage with a fixed rate and what is the maximum borrowing amount for a 73 year old?

We Answered:

There are three main reverse mortgage programs - the government insured HECM, the government sponsored Fannie Mae Home Keeper, and the Cash Account. All three of these programs offer only a variable rate at this time.

Check out: http://www.mtgmortgages.com/reverse_mort…

HUD, has been looking into a fixed rate HECM, but so far none is offered. The problem with a fixed rate reverse mortgage, is how to price that rate.

On traditional mortgages, a 15 year rate is lower than a 30 year rate, which as lower than a 40 year rate, etc., as the maximum time of the loan is shorter. On a reverse mortgage, a 62 year old may have that loan for 40 or more years. Thus, a fixed rate reverse mortgage would be very high as it would need to have a rate priced as 40 or 50 year loan.

There is a lender advertising a fixed rate HECM, but this is a bait and switch tactic to get you to call them. First, there isn't government insured fixed rate HECM loan, this is the company's own loan program, but they call it a HECM to confuse you. Second, you can only get the money on their product as all lump sum payment. No monthly payment or credit line.

As this not what most reverse mortgage borrowers are looking for, they then offer you the true HECM loan product, which is a variable rate instead. They bait you and then switched you.

There is not enough information to give figures on how much you can borrow. You also need list your zip code.

If you would like, email me you zip code and birth date and what you are looking for - monthly payment, credit line, etc., and I will email you back your figures.

norman@mtgmortgages.com

Maria Said:

Is it a good time to obtain a reverse mortgage with the interest rates low?

We Answered:

Decisions about reverse mortgages are made based on the entire financial picture of the senior homeowner. Interest rates are a small piece of the puzzle.

I would advise seniors to consult with family and a professional advisor (not in the mortgage business) to get the best advice. It is an important decision.

Good luck.