A Florida reverse mortgage is different because you do not have the standard monthly mortgage payment. A Florida reverse mortgage is payable as one lump sum or you can receive multiple payments. The obligation to make the payments is deferred until the homeowner dies.
Most Florida reverse mortgage lenders put a lien 300% above the current value of the amount funded in the transaction to protect against any other secondary liens that the homeowner might request at a later time.
Age is a big factor in the lender underwriting decision making process. The older the homeowner the more favorable the underwriting stance will be in obtaining the loan.
The requirements/proceeds to complete a Florida reverse mortgage have a few factors that a lender will take into account:
1. An appraisal is required to ensure the value of the home before any loan amount can be established.
2. The age of the applicant
3. The interest rate is tied to two indexes. ( US treasury 1YR T-Bill / 1YR Libor or CMT Index. You can read on indexes here.
4. Loan product selected. The terms and fees are different depending on if you want to take a lump sum or establish a credit line.
A certificate of counseling for the Florida reverse mortgage is a standard requirement by FHA/HUD. Each homeowner is required to complete counsel to ensure then borrower has a clear understanding of the loan product. The counselors will discuss the legal and financial terms of a reverse mortgage.
A Florida reverse mortgage is very costly. The normal fees associated with this type of financing do exceed the standard threshold of a conventional mortgage.
Mortgage insurance is required which is usually 2% of the appraised value. the origination fee is capped at 2% of the first 200k loan and 1% thereafter. Standard Florida closing costs are required via title insurance, taxes, lender fees, survey etc. The reason its typically a higher fee loan is the closing costs are based upon the value of the home and not the loan amount. The lender basis this calculation to protect their interest in case the loan exceeds the full value during the lifetime of the loan.
Core Mortgage Financial has a reverse mortgage expert standing by today!
We will take the time to slowly walk you through the process. A Florida reverse mortgage is not for everyone. Each borrower has a different need and financial situation. We will go through a analysis and decide if a Florida reverse mortgage is best for you. Let us answer any questions you might have by picking up the phone today !
Hopefully this Florida reverse mortgage blog has been beneficial to you !
Call us today and speak with a reverse specialits NOW at
855-554-CORE (2673)
No comments:
Post a Comment