Silverboat - Reverse Mortgage Loans

Creating your own account allows you to store data, create a “crew list” to email data to others and if desired, to arrange a “crew meeting” over the internet and phone.

Loan servicing is the task of performing administrative for a loan after closing. This will include sending out monthly statements and transferring insurance to FHA. A servicing "set aside" is a set dollar amount that is held from your loan funds. After each month, the monthly servicing fee is deducted from your servicing set aside.

A point is equal to one (1%) of the loan amount.

Required government (HUD) mortgage insurance to protect lenders in case of loan defaults. The upfront cost is two percent (2%) of the loan amount, deducted from loan proceeds, and Â½ of one percent added to the interest rate.

Servicing is the name of the function for the accounting of loan payments and balances due; distributing money; preparing monthly statements; and managing mortgage loan accounts. A "Loan Servicer" is the name of the entity that provides this service. A Loan Servicing fee is charged by Loan Servicers on a monthly basis.

	What’s a Reverse Mortgage?
	Who’s Eligibile?
	Uses of Reverse Mortgage Loans
	Top Reverse Mortgage Concerns
	Saying No to a Reverse Mortgage
	Adult Children Involvement
	Loan Approval Process
	Annualized Growth Rate
	Rates, Margins, Adjustments & Caps
	Loan Payout Options
	Types of Reverse Mortgages
	Comparisons
	Loan Closing Costs
	FAQ
	How Much Can You Borrow?

Education

Loan Closing Costs

Excluding loan interest, there are four basic types of closing costs:

LOAN ORIGINATION FEE: Fees charged by the lender. The maximum fees (points) are capped for all lenders.

THIRD-PARTY CLOSING COSTS: Costs of third party vendors such as appraisers, closing agents, title insurers, and local jurisdictional fees. (Refer to "How Much Can I Borrower Calculations" for example of loan closing costs).

MORTGAGE INSURANCE PREMIUMS OR MIP: Insurance charged on HECM loans guaranteeing that (1). you will never owe more than your house worth, (2). you won't be affected by a lender going out of business and (3). you will always receive your monthly payments. The maximum fee payable at closing is two (2%) percent of the loan proceeds. Additionally, 1/2% is added to the interest rate. These costs are the same for all HECM lenders. MONTHLY SERVICING FEE: An amount of money that is 'set aside', or held in reserve to cover the cost of loan servicing. Usually the amount is $25 to $35 per month, with the total amount based on a specific formula.

Vital Concept 3

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