Sunday, March 23, 2008
When speaking to Realtors, and even other mortgage brokers/lenders, etc., those that frown upon Reverse Mortgages often list their costs as way to high as one of their reasons they steer their clients away from them. As a Certified Mortgage Notary Signing Agent, I see all kinds of loans, and while I have always said that I felt their costs were in line with regular mortgages (IF you could take out the required Mortgage Insurance) I never actually sat down and computed the difference. Until now!
I do not remember how to calculate all the statistics as far as probability, and +/- differences, but here are the hard facts from about 5% of my loans. Most figures did not surprise me, some did, so here they are:
Average Reverse Mortgage Loan Amount - $205,462
Average Loan Origination Amount $4,059 - 2.0% (Highest 2%, lowest 1.8%)
Average Mortgage Insurance Amount $4,088 - 2.0%
Average other closing Amount $4,739 - 2.3%
Total closing costs $12,886 - 6.3% >>(without Mortgage Insurance $8,798 - 4.3%)<<
Average Regular Mortgage Loan Amount - $171,067
Average Loan Origination Amount $4,390 - 2.6% (Highest 4.9%, lowest fee 0.3% -
one was 0%!)
Average Mortgage Insurance $124 - .1% Average VA Fund $24 - 0.01%
Average Amount to bring to 1st of the month $165 - .1%
Average other closing Amount $2,190 - 1.3%
Total Closing costs $6,894 - 4.0%
I noticed the loan origination fees were always the 2% maximum allowed on the Reverse Mortgages except one which was less. On the forward mortgages, they average 2.6%, and two actually impressed me and had very little origination fees - including one that had none. I wonder about that one, as maybe there was a YSP, or something just not listed anywhere, but that was how it was listed anyway! 60% exceeded 2%, so the other 40% were less than the 2% charged. Prior to doing the actual computations, I thought forward mortgages averaged a much higher rate, so that actually surprised me that it was only .6% higher than average Reverse Mortgage origination fees. Another thing that caught my attention was how the other closing costs were a bit higher on Reverse Mortgages than forward mortgages. Although, in the end, like I have been saying all along, IF you could back out the required Mortgage Insurance, the closing costs ARE right in line with all other mortgages 4.3% RM to 4.0% Regular. As I said in the beginning, without doing all the actual statistics, in my opinion, to differentiate in closing costs by only 0.3% is pretty much very close!
In my mind, I always said that the closing costs were close (without the MIP) and these statistics back up what I felt all along. Some surprises, but not too many! Of course, the MIP is required for a very good reason, and certainly with it, it does boost the final costs, but always knowing both you and your heirs will never be burdened with a loan that exceeds the value of your home is not only a requirement for a good reason, but certainly a great piece of mind!
Title companies & mortgage brokers, help your borrowers- arrange to have their loan signed and notarized in their home, at their convenience by a Certified Notary Signing Agent (CNSA)
Southwest Florida Notaries is open for your mortgage closing 24/7 at your location (Based in Murdock, FL, near Port Charlotte FL, but covering all of Southwest Florida)
Sunday, September 23, 2007
Beautiful home for sale in the historic Bucks County area, Warrington Village. Check it out!
For those of you that do not know the area, it is a rich historic area this is a terrific place to raise a family. The school district, Central Bucks, is one of the finest in Pennsylvania. This area is rich in history! Bucks County is famous nationwide for its historic sites, including the Mercer Museum, Washington Crossing Historic Park, Pennsbury Manor, and Pearl S. Buck House. From Peddlers Village quaint shopping, to the big malls of Montgomeryville, Willow Grove & Franklin Mills malls. It is close to Doylestown, Abington, Willow Grove, New Hope & Buckingham. Check out information about the area at: http://www.city-data.com/township/Warrington-Bucks-PA.html
This home specifically, is in the in desirable Warrington Village community! Serenely tucked away on a quiet cul-de-sac! Well-maintained and upgraded throughout, this fine home has much to offer! Newer renovated eat-in kitchen with gorgeous solid cherry cabinets, newer appliances (refrigerator also included), large pantry, great under cabinet lighting; spacious living room with cozy brick wood-burning fireplace; formal dining room; large 1st floor laundry room with ample storage space; four very spacious bedrooms; hall floored attic w/pull-down stairs for extra storage; French doors off kitchen lead out to a large patio and FANTASTIC professionally landscaped backyard. Maintenance-free exterior -- newer siding, windows and roof! Flexible settlement date!
Motivated seller will consider all serious offers!!
For more information, check out these sites http://centrerealtors1.pennsylvania.remax.com/Listings/AllPictures_r4.aspx?ETID=100&PID=33760461
Title companies & mortgage brokers, help your borrowers - arrange to have their loan signed and notarized in their home, at their convenience
Browse The Rain for a qualified Notary Signing Agent in your area.
Southwest Florida Notaries is open for your mortgage closing 24/7 at your location
Saturday, September 22, 2007
Monday, September 3, 2007
We are open for your mortgage closing 24/7 at your location.