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|Florida Reverse Mortgage|
Costs Associated With a Reverse Mortgage!
A Florida reverse mortgage is a tool that allows seniors over the age of 62 to take equity out of their home in the form of cash. A senior may take cash at the closing, they may also establish a credit line at the closing, or get monthly payments depending on their equity position and the value of their home. The program they choose will also have bearing on their options as fixed rate programs are less forgiving than a variable rate program.
Seniors who apply for a Florida reverse mortgage need to be aware of a few things. Number one, there is an appraisal that is required on all homes. The home the senior lives in must be considered their primary residence and they must live there for more than 6 months out of the year. Living there for more than 6 months this would generally makes the home their primary residence. Both seniors who live in the home must be over the age of 62. This assumes a husband and wife scenario. However it does not have to be husband and wife it could be a boyfriend and girlfriend two men, two women or other non-related parties as long as they own the home and are on title together.
The second thing every senior should be aware of is the fact that they are required to get FHA counseling regarding the reverse mortgage program. This counseling usually takes place over the telephone and lasts approximately 45 minutes to 1 hour. There are costs associated with both the appraisal and counseling that the senior must absorb and are usually paid on a credit card.
The cost vary but are usually 100 and 125 US dollars for the counseling and the appraisal usually ranges between 500 and 600 US dollars.
At times the appraisals will require some changes to the home as an example a smoke detector which may not be currently installed in a bathroom. Since HUD creates the rules for the reverse mortgage market the appraisals are considered FHA appraisals which are slightly more stringent than those of a conventional mortgage.
Therefore, a senior should be prepared to pay approximately six to seven hundred dollars out of pocket to start this process. However, the balance of costs after that are absorbed by the equity and no further money usually comes out of the senior’s pocket.
In the event a deficiency is found on the appraisal such as something as simple as a smoke detector the senior will be forced to install a smoke detector in the home and the home will be inspected. There is usually an additional cost that is associated with this re-inspection somewhere in the neighborhood of 100 dollars.
To learn more about reverse mortgages, visit our site at www.sarasotareverse.com
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