The Reverse Mortgage program in Orange County will not be affected by the recently announced changes by FHA to the Up Front Mortgage Insurance Premium (MIP) from 1.75% to 2.25%.  On January 21, 2010, HUD issued Mortgagee Letter 2010-02, which announced the increase in MIP for purchase and refinance loans. But the increase will not affect the Home Equity Conversion Mortgage, also known as the FHA Reverse Mortgage.

What Does Mortgage Insurance Do?

The Up Front Mortgage Insurance Premium on an FHA Reverse Mortgage is 2% of the homes value. There also is a Monthly Mortgage Insurance of .5% of the loan Insurance guarantees that you will receive your expected loan advances and will not have to repay the loan for as long as you live in the home. Mortgage insurance is what makes a Reverse Mortgage possible.

There has been some talk to FHA is rethinking the Reverse Mortgage and may decrease to loan amount calculation, or worse, stop offering the program. With the recent announcement that there will not be a cost of living increase in 2010, more seniors than ever are looking for a way to supplement their income to cover living expenses. The FHA Reverse Mortgage is the best way to accomplish the task for many Orange County seniors. The first step is to find an Orange County Reverse Mortgage expert who can quickly prepare loan scenarios showing the benefits of a Reverse Mortgage.

Authored by Tim Storm, an Orange County, CA Reverse Mortgage Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA Reverse Mortgage.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County Reverse Mortgage:

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487