Posted by janCA on 4/30/07 10:06pm
Msg #188173

Reverse Refinance

Okay, I've done many reverse mortgage signings in the past three years but in the past month, I've done three (3) reverse refinances? I really don't get it. Brenda, Paul, I need enlightenment??

Reply by BrendaTx on 4/30/07 10:21pm
Msg #188175

Re: Reverse Refinance - Hi Jan. I don't have a clue.

I will be interested in what some of the others have to say.

Reply by Lee/AR on 4/30/07 10:26pm
Msg #188177

A fancy way to say Reverse Mortgage???

Maybe it means they're paying off some small mortgage AND taking some cash out? I don't remember when Reverse Mortgages also became known as a (fancy) Home Equity Conversion Mortgage. A rose by any other name.... that's it. I'm going to bed now.

Reply by Becca_FL on 4/30/07 10:40pm
Msg #188179

Re: A fancy way to say Reverse Mortgage???

The most interesting RM I have done is the HECLO or Home Equity Credit Line Option. The appraised value of the property was 1.4M, the credit line request was $600K and the principal limit was 1.3M. This was a true HELOC in the HECM world. It was a bit of a surprise and the only one of its kind I have ever done. The EO said they are few and far between.

There you go...one more acronym for your on going list.

Reply by Susan Fischer on 4/30/07 11:00pm
Msg #188189

Similar #s, same RM, about 10 pgs. Three here on the Coast.

Yes, very few, and I sure like 'em - they sweeten the day!

Cheers,
Susie

Reply by Becca_FL on 4/30/07 10:32pm
Msg #188178

Reverse mortgages are being advertised like crazy in my area. HECM business has definitely increased for me in the past four months. I think the brokers that used to make their jack on the sub-prime market have had to reevaluate their business models since the sub-prime/alt-A markets went into the toilet. The Baby Boomers are aging; they have equity in there homes and like to live well. Plus the government backs this loan...that makes people feel safe. It's a great niche market.

If you haven't downloaded the ebook that Brenda/TX has available, you might want to. Being prepared for the next big thing is half the battle.

Reply by kmo on 4/30/07 10:43pm
Msg #188181

Good evening Becca and Brenda. Which book are you referring to, you have several and would be glad to buy an ebook from you. I am always and ever searching for more knowledge of our business. Please let me know, and thank you, Maureen.

Reply by Becca_FL on 4/30/07 10:50pm
Msg #188184

Maureen,

The rules of this forum do not allow for advertising so I can't post the info., I'm sure you understand. If you click on Brenda's profile you will see her web address. If I can help, just let me know. You will find my email addy on my profile.

Here in Florida, we are in a PRIME market for HECMs.

Reply by kmo on 4/30/07 10:51pm
Msg #188185

Gotcha, thanks Becca.

Reply by cntrlcalntry on 5/1/07 12:05am
Msg #188199

When the lending limits go up you can refinance a reverse to get more equity out.
Hope that helps.

Reply by Gary_CA on 5/1/07 12:45am
Msg #188203

Let me know when you do a Reverse Purchase Loan...

You know, where you buy a home with no money and the bank sends you a check every month on the equity...

I'll take a dozen.

I've never heard it called that, but all Reverse Mortgages, by their nature, are re-fi's ...

I know y'all knew that, the new lingo is kinda funny... nothing new under the sun.

Reply by janCA on 5/1/07 11:53am
Msg #188270

But what about those high fees?

I did the reverse for this couple about a year and a half ago. They were pulling out $25 K this time around but the fees associated with these loans for the first couple of years can be quite high and housing has gone down probably 20% around here. So I guess I don't understand how the principal limit can be raised. I need to do some research just out of curiosity sake. thanks all for the responses.