News Flash:

HUD/FHA has increased the maximum Reverse Mortgage Limit to $625,500.00 through 12/31/2009.

We don't know if the limit increase will be extended beyond that date. If you have been told you owe to much to qualify for a reverse in the past you should request a new benefit analysis immediately.

The Reverse Mortgage Program is available to any Senior Citizen Homeowner 62 and older. There are no "Means Tests". Credit history, income, assets etc are not factors in qualifying.  As long as a Senior is 62 and owns qualifying property their application will be approved. Single Family Homes, Condo's, P.U.D.'s, Townhouses and some Manufactured Homes qualify.  If you are in doubt about your property call me (800-686-0238) and we can discuss it.  If repairs are needed to make the property qualify they may be paid for out of the proceeds of the Reverse Mortgage.

Manufactured Homes in Condo Manufactured Home Communities are not currently approved nor are co-op's. We are working with HUD to have them included as acceptable property types. The site will be updated when we are successful.

There are no restrictions on the use of funds obtained with a Reverse Mortgage. 

Disbursement options include but are not limited too:

1. Monthly income for life.

2. A 100% liquid Line of Credit which works like a savings account.

3. All or part cash at closing.

4. A monthly income in an amount of your choosing.

Tell us what you want and we will make it happen with the limits of your eligibility.

Reverse Mortgage Fees:

The cost of getting a Reverse Mortgage is High, primarily because of the HUD/FHA Mortgage Insurance Premium. The government gets a 2.00% upfront Mortgage Insurance Premium based on either the appraised value of your home or $625,500.00, whichever is less. Call or write your Congressman to complain but I doubt it will do much good.  Other fees are negotiable within reason. If you request a quote from us you'll get our best deal upfront. Compare costs and save money. See if you can find any other lender that will beat or match our fee structure.  We want your business.

Available Programs:

Fixed rate Reverse Mortgages:

For those who prefer a fixed rate HUD now offers that option.

As of 04/2009 the best fixed rates available are 5.50%. The benefit available under the fixed plan is very similar to the amounts available using one of the adjustable rate plans. The disadvantage of the fixed rate plan is the requirement that all funds available be disbursed at closing.

The H.U.D. Monthly is by far the most popular.  In this case monthly refers to the timing of  interest rate adjustments on your Reverse Mortgage.  The H.U.D. Monthly Reverse Mortgage floats above the 1 year Treasury Bill Index. If the index goes up your rate will also rise. If it falls your interest rate will fall.  In the last 12 months interest rates on the HUD monthly Reverse Mortgage have ranged from 2.89% to 4.97%.

LIBOR (London Interbank Offering Rate)  indexed Monthly Reverse Mortgages are also available.

The second type of Reverse Mortgage H.U.D. insures is called the H.U.D. Annual Reverse Mortgage. Annual refers to the interest rate adjustment interval. The H.U.D. Annual Reverse Mortgage floats 4.50% over the 1 year treasury index which make this option less attractive.

The lower interest rate on the monthly H.U.D. Reverse Mortgage means that a higher benefit is almost always available using the H.U.D. Monthly Reverse Mortgage versus the H.U.D. Annual.

The H.U.D. Annual has an interest rate change maximum of 1.00% up or down annually.

A benefit analysis is available by e-mail or regular mail. Anonymous inquires are accepted.

If you have a specific question call Ken Terrill at 800-686-0238

 or send an e-mail to:

ken@ampy.com

Evenings or weekends call: 800-811-2738 - ask for Ken

Thank you!

Ken Terrill

Reverse Mortgages since 1994

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