- Third Party Independent Counseling: Borrowers must meet with an independent reverse mortgage counselor, either in person or by telephone, who will review the transaction and answer any questions the borrower may have.
- No Maturity Date: A reverse mortgage cannot become due during the homeowner's lifetime. It is a permanent program. The fact that there are no required payments and there is a lifetime right to occupy the home provides great protection against unexpected future circumstances, making reverse mortgages much safer than other loan alternatives.
- Limitation on Fees Charged: Fees are limited by HUD regulations and may be financed, enabling a borrower to incur very little out-of-pocket expense to get a reverse mortgage.
- Advance Disclosure of Costs: The Total Annual Loan Cost disclosure displays the total transaction costs over the projected life of the loan. This way, a borrower is made fully aware of the costs incurred in obtaining the reverse mortgage.
- Standard & Capped Interest Rates: The interest rate is the same no matter which lender a borrower chooses. Interest rates are adjusted either monthly or annually (the borrower chooses) and have lifetime caps.
- No Prepayment Penalty: Although the loan is not due and payable until the borrower permanently moves out of the home, it can be paid-off at any point prior with no additional fees or costs.
- Three Day Rescission Right: Even after the loan closes, a senior has up to three days to cancel the transaction for any reason whatsoever.
- Asset Protection: The amount due can never exceed the value of the home and title to the home always remains with the borrower. When the loan becomes due, the lender is repaid the sum of funds borrowed plus the accrued interest, but never more than the value of the house. Any remaining value belongs to the homeowner or the estate.
Western Pacific Home Loans- Reverse Mortgages
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