What are the differences in the payoffs? | In NewRetirement's Questions & Answers Forum

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QUESTION:
What are the differences in the payoffs?
Using the calculator, the "simple" provides a positive amount. The others provide negative amounts. Do the negative amounts have to be paid prior to obtaining the RM if either is chosen? What is the difference between the three types?
	asked by Sheba, 3/30/2008
Categories: Spouses, Grandchildren, Reverse Mortgage Calculators, Reverse Mortgages, Pre Retirement, Relationships

ANSWERS:
	Answered by: Tamera, 03/31/08 Overall Rating: Be the first to rate it.
Hi Sheba- Im assuming the "Simple" youre referring to is the FHA HECM (Home Equity Conversion Mortgage) plan. It is the most popular Reverse Mortgage, often giving borrowers the most amount of money from their homes. The others you are looking at are probably the FNMA Homekeeper Plan and perhaps Financial Freedom's Cash Advantage. If you give me the link you used to run the calculation, Id be happy to confirm that for you. The HECM Plan is probably showing the only positive figure. The others run short from paying off your existing mortgage, which means that you would have to come up with money from your own resources in which to pay that figure off to use those programs. Honestly though, the HECM has the better interest rate/ margin combination. So even if the other two were a positive number, it would probably still be in your best interest to chose the HECM. I am a Reverse Mortgage Specialist employed by Financial Freedom, one of New Retirements preferred lenders. I would be happy to run an actual estimate for you, provide you with some real numbers and answer any other questions you might have. Please feel free to email me at tfield @ financialfreedom.com or call me at 877-632-7890 Tamera Field Reverse Mortgage Specialist Financial Freedom Login to rate this answer:
	Answered by: Tamera, 03/31/08 Overall Rating: Be the first to rate it.
Hi Sheba- Im assuming the "Simple" youre referring to is the FHA HECM (Home Equity Conversion Mortgage) plan. It is the most popular Reverse Mortgage, often giving borrowers the most amount of money from their homes. The others you are looking at are probably the FNMA Homekeeper Plan and perhaps Financial Freedom's Cash Advantage. If you give me the link you used to run the calculation, Id be happy to confirm that for you. The HECM Plan is probably showing the only positive figure. The others run short from paying off your existing mortgage, which means that you would have to come up with money from your own resources in which to pay that figure off to use those programs. Honestly though, the HECM has the better interest rate/ margin combination. So even if the other two were a positive number, it would probably still be in your best interest to chose the HECM. I am a Reverse Mortgage Specialist employed by Financial Freedom, one of New Retirements preferred lenders. I would be happy to run an actual estimate for you, provide you with some real numbers and answer any other questions you might have. Please feel free to email me at tfield @ financialfreedom.com or call me at 877-632-7890 Tamera Field Reverse Mortgage Specialist Financial Freedom Login to rate this answer: