Posted on: 20th Oct, 2008 12:38 pm
Regarding Reverse Mortgages, is it necessary to pay upfront the entire Mortgage Insurance Premium f...I was looking into a Reverse Mortgage with Bank of America HECM Reverse Mortgage. They estimate my Closing costs to include $8400 for upfront Mortgage Insurance Premium (MIP) for the life of the loan. If I sell the house early they will not refund the unearned upfront MIP. Is this common practice.
Also, can I just pay the MIP annually and not upfront!!
Also, can I just pay the MIP annually and not upfront!!
Hi jthomastexas!
Welcome to forums!
Policies of the mortgage lenders varies from one another. You can also consult with other lenders and check if they can offer you better facilities and terms and conditions. Paying MIP annually and not upfront will also depend upon your lender. You can speak to the lender and check if he/she agrees to it.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Policies of the mortgage lenders varies from one another. You can also consult with other lenders and check if they can offer you better facilities and terms and conditions. Paying MIP annually and not upfront will also depend upon your lender. You can speak to the lender and check if he/she agrees to it.
Feel free to ask if you have further queries.
Sussane
Hi jthomastexas!
I agree with Sussane that the policies of the lender may vary. It is always better if you could consult more than one lender before you make a deal. Different lenders have different offers. So you can chose the best and the affordable one.
Thanks.
I agree with Sussane that the policies of the lender may vary. It is always better if you could consult more than one lender before you make a deal. Different lenders have different offers. So you can chose the best and the affordable one.
Thanks.
Hi jthomastexas,
Since you're taking out an HECM, you'll have to pay an upfront private mortgage insurance premium equal to 2% of the maximum claim amount as well as an annual fee of 0.5 % of your loan balance. You can also add the upfront insurance premium into your loan balance.
Good luck
Since you're taking out an HECM, you'll have to pay an upfront private mortgage insurance premium equal to 2% of the maximum claim amount as well as an annual fee of 0.5 % of your loan balance. You can also add the upfront insurance premium into your loan balance.
Good luck
All lenders with a HECM loan will be identical. RM are government loans. The fee secures the loan it is a non recourse loan. If you go to a broker and he says he can lower, run for the hills. Only deal with a direct lender
With a HECM, the FHA-insured reverse mortgage, the mortgage insurance premium paid at close is equal to 2% of the maximum claim amount. 0.5% is added to the interest rate to continue to insure the loan over the life of the loan. Do your shopping and check with both lenders and brokers. In fact, many of our brokers beat what we (the lender) are selling ourselves. So, I'm not sure where the "only deal with a direct lender" comment comes from ... SherryVegas must work for a lender.
Many aspects of the FHA HECM will be identical regardless of who you speak with, including the MIP charge to the FHA, this is non-negotiable. There are a few charges in this loan program that we can manipulate (origination fee, monthly service fee, and the margin) to compete with and many times beat what a big bank or lender will offer folks.
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