January 30th, 2013 5:55 PM by Juan Luis Rodriguez-Kohly
FHA has finally announced the suspension of the Fixed Rate "Standard" Plan in the HECM Reverse Mortgage Program effective April 1st, 2013.
What does this mean? Today, there are 2 Fixed Rate Plans. 1) The Fixed Rate "Standard" Plan which has a higher payoff, but it also has a higher Closing Cost. 2) The Fixed Rate "Saver" Plan, with a lower payoff but also lower Closing Cost.
After April 1st, no new Fixed Rate "Standard" Plan will be accepted
After April 1st, the Fixed Rate "Saver" Plan will continue to be available.
The good news is that there are 2 Adjustable Rate Plans which will continue to be available without change at this time. The Adjustable Rate "Standard" Plan which has a payoff and costs similar to the Fixed Rate "Standard" Plan. 2) The Adjustable Rate "Saver" Plan, with a lower payoff but also lower Closing Cost.
This will not affect any application which receives a FHA Case # before April 1st. You must have been Counseled to be able to obtain FHA Case #
This will NOT affect any Mortgage that has been closed before April 1st.
If you have been postponing doing a Reverse Mortgage, do not delay any more. Call me at 786-262-6496 today
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