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July 12, 2008

Comments

Taylor - Reverse Mortgage Information

During these days of unprecidented upheaval in the financial markets, your comment above that advises folks not to act too quickly, is a great recommendation.

The other point that I would like to emphasize is that the current market turmoil really brings home the fact that the FHA insurance premium that reverse mortgage borrowers must pay, is worth every penny.

So often, the big negative surrounding a reverse mortgage is that they cost too much. The FHA insurance premium is one of those fees that seems expensive when you puruse the list of closing costs.

If the lender that holds your reverse mortgage becomes insolvent, FHA is the entity that steps in and makes sure that you continue to receive your loan benefits, (that is, if your loan is an FHA/HECM reverse mortgage.)

I would venture to say that anyone that has been receiving their HECM reverse mortgage loan benefits through the servicing department of IndyMac/Financial Freedom, is breathing a sigh of relief right about now.

I would also venture to say that those same folks today, do not consider the cost of the FHA insurance premium to have been too expensive.

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