There have been some very beneficial developments in the reverse mortgage industry in the last 18 months or so.  In late 2010, the “Saver” program was introduced.  The Saver is so named due to eliminating, or “saving”, the borrower the upfront Mortgage Insurance Premium (MIP) fee paid to FHA.  The MIP is the largest component of the closing costs.

More recently, interest rates have come down as well as other closing costs; enabling a borrower to get a reverse mortgage with no origination fee and no upfront MIP.  This reduces the total cost to close a reverse mortgage dramatically.  Many seniors are using the low cost Saver line of credit option as an alternative to a traditional Home Equity Line from a Bank.  Unlike the Home Equity Line, senior reverse mortgage borrowers do not have to make monthly payments.

This low-cost Saver program has been well received by Alabama seniors and their financial advisors.

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Better Business Bureau - Accredited Business

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