Posted by A S Johnson on 6/4/10 6:18pm
Msg #339841

reverse mortgage re-fi

1st time I have had this come up.
I accepted an assignment to do a RM application.
After meeting the Br he asked me why he had to pay for a new appraisal as they had the one from his current RM thru Financial Freedom.
He had the solicitation letter which said he could, possibly, get more the equity by doing a new RM. Any comments?

Sid Johnson
Weatherford Tx

Reply by Teresa/FL on 6/4/10 6:46pm
Msg #339845

How long ago was the current loan done?

Yes, he will need a new appraisal, however there will probably be a partial credit for the MI on the refi. I have done a few of these, but it has been a while...

Reply by MW/VA on 6/4/10 9:41pm
Msg #339878

It's no different that any other refi--new loan & new appraisal, etc. I've done a couple of RM refi's, because the equity had increased & they had more money available.

Reply by taxpro on 6/5/10 5:52pm
Msg #339952

This is the type of question I would defer to the LO. Same as when the Borrower asks why are the fees so high, etc.

Last week, I had one ask me "Why is my interest rate 5.25%? I just heard on the news this morning that mortgage rates were down to 4.75%!"

I could have said, "Maybe it's because your credit stinks" or "Rates vary from lender to lender, and in different parts of the country" or "Perhaps you were already locked in at 5.25%" or "You probably could have gotten that rate if you had paid points" or "I think your lender is a jerk", etc, etc. What I wanted to say was "Why on earth would you ask me that?"

But I just said, "That's the type of question you'll have to ask your LO. I can explain the terms and tell you what the rate is, but I can't tell you why you got that rate. We can call him now if you like."

Reply by jba/fl on 6/6/10 4:54am
Msg #339983

Perhaps it is because of more stimulus money

http://www.reversehelpline.us/index-d2np.php?pid=Facebook&camp=USA&ag=1

Limits now being raised - but is the house worth it esp. in this economy?