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  • 74 year old from Houston, TX

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  • A HECM Saver is a reverse mortgage program with lower fees than standard HECM Reverse Mortgages. The main advantage of the HECM Saver is that it cuts the fees nearly in half relative to a standard Reverse Mortgage, bringing the fees much closer into line with those of other similar financial products. In exchange for this, the HECM Saver entails a reduction of between 10 and 20% of the available qualification amount.

    You can find out more about the HECM Saver at https://www.newretirement.com/Services/HECM_Saver_Reverse_Mortgage.aspx

  • Login to rate this answer:   Answered on 1/24/2011
  • NewRetirement User

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  • 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 )

  • Login to rate this answer:   Answered on 9/27/2011
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  • There's only one advantage - FHA's upfront insurance premium has been reduced significantly. So the fees to get into the loan are lower then the Standard program. However, the tradeoff is a reduced Principle Limit. That means the Saver program doesn't convert as much equity into cash, by approximately 20%

  • Login to rate this answer:   Answered on 10/16/2011
  • NewRetirement User

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  • No more mortgage payments,You can still pass home to heirs,No need to worry about foreclosures since your home can never be foreclosed,New income source,Income is tax free,Use the proceeds as you please.

  • Login to rate this answer:   Answered on 11/19/2011
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.