User Profile: Chris Kreane

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User Name: Chris Kreane (member since 5/1/2011) | Posts: 0 Questions and 18 Answers

Recent Answers: (Show all)

hecm purchase now exists you could use this to buy your next home - you will need to come up with th... (Show entire answer)

hecm purchase now exists you could use this to buy your next home - you will need to come up with the down payment - interest rates are low so this is a great option for seniors - ( down payments are around 30-50% )

yes the negative numbers have to be paid - while the positive numbers is what you will receive we ca... (Show entire answer)

yes the negative numbers have to be paid - while the positive numbers is what you will receive we can explain to you the entire process including how much you will receive or have to pay in order to make the loan possible

factors that will determine how much you will be able to borrow against the home how much you curren... (Show entire answer)

factors that will determine how much you will be able to borrow against the home how much you currently owe on the mortgage ? how much you believe the home can appraise for ? you age or the youngest borrower age? the more equity you have and the older you are then the more equity you will be able to tap into

all of our clients receive a GFE upfront - this shows all the costs involved with the loan and the ... (Show entire answer)

all of our clients receive a GFE upfront - this shows all the costs involved with the loan and the terms you can expect on your reverse mortgage

rates are currently @ 4.5% sept 2011 this is the lowest they have been in a long time

yes - this is a common strategy for those who want to take more equity out since your 72 you will be... (Show entire answer)

yes - this is a common strategy for those who want to take more equity out since your 72 you will be able to take out a larger % of the home value

take a small credit line for that amount - how much is the home worth - rates are incredibly low so ... (Show entire answer)

take a small credit line for that amount - how much is the home worth - rates are incredibly low so there is no way you will put your heirs in a bad situation with such a small amount - even if you were to live for the next 20+ years the reverse mortgage was designed to allow seniors to tap equity as needed with the hecm saver rates are at 2% and hecm mip is only .01% percent

why pay origination fee ? this is negotiable and we currently lend at low rates with no origination ... (Show entire answer)

why pay origination fee ? this is negotiable and we currently lend at low rates with no origination fees involved

reverse mortgage proceeds are not taxed period

most expensive cost in retirement is housing if you own your home you could look into a reverse mort... (Show entire answer)

most expensive cost in retirement is housing if you own your home you could look into a reverse mortgage - which would cut out any mortgages if existing - this should provide decent saving - if you dont have an existing mortgage then you can take equity out without having to worry about paying a monthly income with that money you can save, invest, and pay off any debt that may be a burden on you right now

there are forward mortgages - either to buy or refinance - here you might take out a portion of the ... (Show entire answer)

there are forward mortgages - either to buy or refinance - here you might take out a portion of the equity and pay the mortgage each month there are reverse mortgages - if you are are in or near retirement then you take out some equity (50-70%) and not have mortgage payments if you can provide more info we can let you know which programs will apply to you

I would like to have a reverse mortgage for economic security only just in case we run low on reserv... (Show entire answer)

I would like to have a reverse mortgage for economic security only just in case we run low on reserves ( this is a smart plan - also the reverse mortgage can act as a hedge against falling home prices - we have many clients who take out the reverse mortgage saver credit line option - so they can tap into the equity as they need it and are charged on the outstanding loan ) can the origination amount be paid so as not to accrue interest until such time as actually needed? yes you can pay towards the mortgage so there wont be any interest accruing on the back end this is also a smart idea also to offset the reverse mortgage is home appreciation - so for the net 5-10 years with a fixed HECM this shouldn't be a concern

hecm reverse mortgage upfront costs you will pay 2% mortgage insurance premium if you decide to take... (Show entire answer)

hecm reverse mortgage upfront costs you will pay 2% mortgage insurance premium if you decide to take the hecm lump sum fixed rate you will pay a .01% for the hecm saver - but every year you will pay 1.25% mortgage insurance ( cheaper upfront but expensive long term) depending on bank/lender/broker there might be origination fees - somewhere between 1-2% upfront standard closing costs Third Party Fees Reverse FHA Appraisal $450 Credit Report $20 Flood Certification $16.50 Courier Fee* $25 Escrow, Settlement, or Closing $250 Abstract or Title Search $100 Title Exam $100 Document Preparation $100 Title Insurance $475 Endorsements – Recording Fees $92 County/Mortgage Registration Tax $323 Plat Drawing $60 Name Search $30 Special Assessment Search $30 Counseling Fee $125 TOTAL THIRD PARTY FEES $2,196.50 this is just to give you an idea of some of the costs references

lower upfront mortgage insurance premium (.01% compared to 2% ) ( you will pay 1.25% annual mip thou... (Show entire answer)

lower upfront mortgage insurance premium (.01% compared to 2% ) ( you will pay 1.25% annual mip though) keep more of the home's equity ( you receive less and are charged less ) you have the option of taking the credit line ( which is a balance that you can tap into and pay interest as you use the funds - these funds are also growing so act like a bank cd ( rates are low) adjustable rates are low ( this can also be negative since rates can only go up from here )

you should have roughly 40% as a down payment to qualify for the reverse mortgage - in some instance... (Show entire answer)

you should have roughly 40% as a down payment to qualify for the reverse mortgage - in some instances you will need a larger down payment upwards to 60% ( depending on your age, location, credit history and the lender you are working with )

If your retirement investments are not generating more income than the interest rate from the mortga... (Show entire answer)

If your retirement investments are not generating more income than the interest rate from the mortgage loan , then you can use the money you have saved to pay of this debt So for example you owe $100,000 on the mortgage at 6% if you are able to generate with $100,000 a greater return than 6% - lets say you are able to invest and get a return or 9% - then ultimately you are okay with the mortgage because the money you have is working for you now if you have this money sat in the bank then you are loosing not only all the interest on the mortgage loan - but inflation and fees are eating at your hypothetical $100,000 in this example If you believe that a reverse mortgage would ease your life then consider one - they are safe - private - you keep the home - you have to pay property taxes and insurance but you receive tax free income/lump sum you can use your retirement fund to pay down the mortgage - then qualify for one - changes coming this October so consider one now also the reverse mortgage is a good hedge against prices dropping - what if home values keep dropping? how will this affect your portfolio- will you be able to pay mortgage if rates go up or if there is less equity do you have enough money to pay it down well then you got a reverse loan - banks are now paying you so you are fine- you cannot go into foreclosure - then values go back up you have more options again to sell, move, or get another reverse this can be a good strategy for you - also put some more money in your pocket ( lifetime monthly income)

I would say only a very small amount of applicants drop, because by the time they contact a lender/b... (Show entire answer)

I would say only a very small amount of applicants drop, because by the time they contact a lender/bank this insution will review the loan and determine wether they should be considering this option or wether they have better options. Most seniors who go through the mandatory counseling have already decided to go ahead with the reverse mortgage, and now that counseling is not free this number will only decrease ( number who don't go through with program) So to recap - there is a high number of seniors that within the first initial call decided to not to continue, but those who have spoken to their lenders will most likely continue with the counseling and eventually get a reverse mortgage

Amount you can borrow is mainly driven by your age and also the lender who you choose to work with. ... (Show entire answer)

Amount you can borrow is mainly driven by your age and also the lender who you choose to work with. Every lenders has a different ratio that they can lend depending on your age mainly. Other factors include value of home state Even though credit scores arent required they do become a part of the banks lending process/analysis of your individual loan Simply choosing a monthly income vs a lump sum will provide you more income ( but depends on how long you receive income so becomes tricky to generalize this) always compare reverse mortgages

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