newjerseynewsroom.com

Share this Twitter Myspace Digg Del.icio.us Reddit Slashdot Furl Yahoo Technorati Newsvine Facebook Export PDF Print E-mail

Carol Abaya's comments simply reflect her ignorance, and should therefore not be considered offensive by those whom are better educated with respect to the program. HUD now offers UFMIP @ 0.01% of the max. claim amount, which has significantly reduced the closing costs. Further, most originators do not charge an origination fee since HUD allows only a portion of that fee to be financed, and seniors are understandably loathe to bring funds to closing. There is sufficient liquidity in the secondary market for originators to offer these products at very reasonable closing costs, just as with any normal loan. As far as owing more than you borrowed is concerned, this is simply a function of interest. Last time I checked, this is the same with any other loan also. Payments on a regular 30 year fixed mortgage of $250,000 * 4.750% * 30 years = $469,482.60. Is that not MORE than was borrowed ? Yes, of course. And that is even considering that regular payments are made monthly ! Carol Abaya states that Seniors should refinance or take an equity loan instead. She is obviously clueless regarding current mortgage lending environment, and how difficult it is for seniors on a fixed income to qualify. Reverse mortages do not require income or credit qualification. They are a very viable product and are helping Seniors manage their debts, not have to make any payments, and enjoy their older years as opposed to being stressed about finances. The loan can be paid at any time with no penalty, and they can even make regular monthly payments if they choose (same as with any other loan). Those that are seriously considering a Reverse Mortgage should educate themselves fully instead of simply believing the garbage spewing from the likes of Carol Abaya whom obviously has not done her homework.