Consumption and Real Estate
Can you get a Reverse Mortgage with a fixed rate and what is the maximum borrowing amount for a 73 year old?
Question : Can you get a Reverse Mortgage with a fixed rate and what is the maximum borrowing amount for a 73 year old?
Property value 280,000 100% owned no morgage currently carried.
reverse mortgage rates
Best answer:
Answer by Kathryn
Look at the site linked below. It includes a calculator where you put in your home’s value, your birthdate, and your zip code, and it will tell you how much you qualify for. It will also probably answer any other questions you may have.
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#2 written by Loren W 1 year ago
Yes, you can have a RM with a fixed rate. The rate will be determinded on what interest rates are on the day of your closing.
For your age and your home value, you would get approximately $ 175,000. This of course depends on what state you live in and what the loan originators costs are for processing the loan. - Comment Feed for this Post
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_mortgages/reverse_mortgage_programs.htm
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