John Ulrich writes: Why didn’t the February 2009 article, The jury is still split on reverse mortgages for income by Jim Connolly, address the absolutely outrageous fees charged to do a reverse mortgage?
I am a mortgage loan officer and recently tried to help my 88-year-old father get a reverse mortgage. With me making “zero,” it still would have cost my father $12,000 to $14,000 to get a 50% LTV (loan-to-value), $150,000 line of credit reverse mortgage.
Why does the Federal Housing Authority need 2 points on a 50% LTV loan for the UFMIP (upfront mortgage insurance premium)? Is this how our Federal Government is helping our seniors? Does President Obama know this is what’s really going on?
The loan officer at the lender I was speaking with told me that reverse mortgages are really for people in trouble with no other options. What a tragedy and a scam.
We found a HELOC (home equity line of credit) available at a bank for the same $150K line of credit, with no fees.
Synergy Financial Group
Insurance & Mortgage Services