Great articles, great website. I am sure seniors everywhere are benefiting from your vast array of knowledge on any given topic.

What have seniors disliked most about the Reverse Mortgage known as a HECM? The high closing costs! It's been a well understood and understandable objection. Unfortunately, many seniors who needed this program the most were reticent about getting a Reverse Mortgage due to closing costs.

Hud, however, has listened. You may have heard, but HUD announced a new HECM program called the HECM Saver which took effect October 4th. The proceeds are less to the borrower than the standard HECM which has higher costs. However, because the up front mortgage insurance premium required by FHA is less at closing (0.01%) and spaced out over time year by year (1.25 percent of the outstanding loan balance), this causes the program to be more attractive to senior homeowners. The closing cost objection is now gone.

For persons who are satisfied with smaller proceeds, the HECM Saver is a great alternative. For senior borrowers looking for maximum borrowing power, the HECM Standard would be the better option.

The HECM saver option opens the door to many who have thus far closed the door on this life changing program. To me it offers hope.

Thanks for continuing to feature Reverse Mortgages as they are a wonderful tool for the right person!

Kind regards,
Kathie Adler

Thanks! We're beginning to look into this concept for the future. I'm interested in your readers' thoughts on retirement planning software. Any guidance?

My question now: With the exiting of Met Life {and Hancock?} from the industry what effect will that have on the availabilty of reverse mortgages?

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