Reverse Mortgage Interest Rates
ฝัง
- เผยแพร่เมื่อ 1 ต.ค. 2024
- Reverse Mortgage interest rates and interest are a critical part of the loan. It is so important to understand how each of these pieces work when considering a reverse mortgage as an option for yourself. So, follow along as I break down these aspects of the loan and give some tidbits of advice on how to save yourself interest, if you ever choose to get a reverse mortgage.
Video links mentioned in video:
Are Most Reverse Mortgages Fixed or Adjustable Rate?
• Are Most Reverse Mortg...
Most Powerful Reverse Mortgage Feature
• Most Powerful Reverse ...
Like my video, if you find it helpful and subscribe to my channel for the most up to date and in depth information about reverse mortgages.
If you or someone you know has questions about a reverse mortgage, give me a call. I'm always happy to educate you about your options and help you determine if a reverse mortgage is a good fit.
We are currently licensed in Arizona, California, and Colorado.
Taryn Proctor
(888) 982-0475
rheadvisors.com
info@rheadvisors.com
NMLS: 1457445 | DRE: 02116203
Branch NMLS: 2134579
Good evening, you have given me a great deal of information about this product, but I think I need to call to see if you think this will be a great product and opportunity for my spouse and I. Thanks
Roosevelt Pee
My pleasure Roosevelt. 😊
Really appreciating all these videos. My husband passed away October 2022. Because of my financial situation now, I am considering a reverse mortgage. My parents got one on their home years ago and it has enabled my mom to stay in the house I grew up in after Daddy passed.
I'm so sorry to hear about your husband. But am glad you are finding the videos helpful!
Thanks so much for sharing your knowledge about how a HECM works. I look forward to hearing more from you in the future .
My pleasure! So glad you are enjoying them.
Hey- thanx for teaching me. Can i pay just the monthly interest on the loan ? & not the loan itself ? To keep my final payment down ? Im single. Own my home. No children. Semi-retired.
Need windows & garage upgrade- bad.
Thanx, sharing these videos w/ a friend.
My pleasure!😊 And yes, you can absolutely pay interest only if you wanted. You can pay any amount you choose at any time.
Is the loan amortized interest or simple interest?
Reverse mortgages have compounding interest.
As always, great information. One thing I’m curious about is, as I recall from prior videos I have watched , the unused portion of the credit line will also accrue at the imputed interest rate and thus the amount you could draw in the future will also grow should you need it. Was I incorrect in my understanding of this feature, or did I just miss it in this video somewhere (I admit, I tend to turn up the playback speed as I trying to research quite a bit of info from different sites on various subjects). Thanks again for all the great information!
Hi there! I’m glad you are finding the videos helpful. And you are correct. The line of credit grows at the same rate the balance is charged for interest & mortgage insurance. I just didn’t include that feature in this video as I just wanted to keep it solely about how the loan incurs interest. Hope that helps!
Thanks for the clarification and confirmation. I thought I’d missed something. I spent the last 26 years of my career as a financial advisor with Morgan and UBS. I can really see the case for approaching financial advisors and presenting the option to them from an advisor’s planning and investment portfolio preservation perspective.
My wife has 30 yrs experience in the forward business, but we have been evaluating a possible move for her to the reverse side of the house and evaluating the best options available to her. We’d probably do one ourselves, however we just moved into our current home here in Seattle a couple of years ago and don’t have enough equity yet to make it work. However, my wife is a lifetime Seattle resident and tons of her friends are long time owners and have been in their homes for decades. Many of whom will choose to age in place.
My pleasure! And absolutely, there are many FAs now catching onto the fact that this loan can be used strategically to better manage a retirement portfolio. And that is awesome your wife is considering switching to reverse. 😊 If either of you ever have any questions, always feel free to reach out.
I was told the interest "cap" would be 12.5%. Why would it be different than the 10% you stated?
Hi there! The interest rate cap is not the same for every loan. It is simply 5% on top of whatever your initial interest rate starts out at. The rates mentioned in the video were meant as examples to help you understand how it works. Not give definitive numbers on what your cap would be. Hope that helps!
Thank you for breaking it down in layman’s language.
My pleasure! Happy it was helpful.😊
What determines if you can borrow 40% up to 60% of the homes equity. Is it my age? If I am 62, does that mean 40% 🤔
Hi John. The amount you qualify for is determined by 2 pieces of criteria. Your age and current long term interest rates. With age, the younger you are, the less you qualify for. And with long term rates, the higher they are, the less everyone qualifies for. So, being as though you are 62, unfortunately, you wouldn't qualify for as much as someone who was 80. But, that percent is not set in stone and can actually change on a weekly basis depending on long term rates. I hope that helps. But, when you are ready, I would recommend either giving us a call to determine where your loan amount lies, during that time, or if we are not licensed in the state you reside, you can always reach out to another reverse mortgage loan officer to give you an accurate estimate of the amount you qualify for.
I realize you have other videos on line of credit growth feature but I think it should always be emphasized when addressing this topic of loan balance. Not only is your loan balance increasing by the given interest rate but you also have the monthly mortgage insurance premium accruing. With the line of credit the original principal limit and the current available line of credit are also increasing by the given interest rate plus .5% (mortgage insurance premium). If I understand this correctly the MIP is not compounding as it affects the loan balance but is compounding as it affects the growth of the credit line. Is this correct?
Hi! Very much appreciate the feedback and think you have a good point about always emphasizing the line of credit growth when discussing the interest accruing on the loan balance. And to answer your question, the .5% mip is compounding on the balance as well as on the line of credit growth.
Hi Great video I wish you were in Ohio so I could talk to you. You make the most sense Thank you for all the Info.
Thank you! Glad you enjoyed it. And you can still feel free to call me anytime to chat, even if I’m not licensed in Ohio. There are certain things we won’t be able to discuss because I’m not licensed in your state, but many things we still can.😊
So if you apply the same logic to the hecm line of credit. Example 100k line of credit at 7% it will grow monthly by $583.33(100kx7%=7000÷12=$583.33
This is how you let the today's high interest rates be your friend.
It boggles me that more don't take advantage of this
This is another great video thank you for all the great content you keep putting out.
Absolutely. Definitely one major benefit of higher interest rates. Thanks for the feedback! And happy you enjoy the videos!😊
@@reversemortgageeducation But it's a dual edged sword because I'd qualify for less up front due to the high interest environment right now, if I'm correct. Any time frame of when you'll be servicing Florida? Thanks, your videos are very clear and informative.
Yes, certainly pros and cons to it. You are correct. Higher rates also mean you qualify for less. And my pleasure! We are working on Florida licensing now and I would hope to have it completed within the next month or two. 😊
Please - the compounding interest is done only once a month and NOT on a daily basis like a HELOC does?
Hi George! Great question. The interest is compounded daily, however, it gets added to the balance monthly.
@@reversemortgageeducation - THANK YOU - HELOC's have two time periods to them - for a period of time the borrower can borrow/pay off the indebtedness (usually with a variable interest rate) when the period ends, there is an extended period of time to pay off the amount owed. ALSO, the interest rate during that extended time can continue to rise & fall. Does the HECM have a fixed period of time to borrow/pay back and then AFTER those months, the rest of the time there is no ability to borrow, even though the borrower has not borrowed the full amount? 🤠
This is sounding similar to a loan and a Heloc.
Hi Brenda! It is certainly similar in some areas.
👍
Do you broker for Texas RM?
Hi! We are currently working on our licensing in Texas. Should be ready to originate there shortly.
Thank you for this info! Other videos on this topic was like drinking from a fire hydrant! I couldn't keep up with the details. Thanks again for sharing your knowledge on reverse mortgages!
My pleasure! So happy it was helpful.😊
Thanks, great video, very informative. Do appreciate your time and efforts.
Hey there! So glad you are enjoying the videos. 😊 Thank you for the feedback!
Thank you for sharing!
My pleasure!
Great presentation ! Thanks
My pleasure! Thank you for the feedback.
Awesome info. Thanks.
Glad it was helpful! Thanks Nolan.😊
Fantastic! 🙌 👏
Thank you.😊
Thank you for this video, very helpful.
My pleasure! Glad is was helpful.😊