San Diego, CA (PressExposure) February 17, 2011 -- The program is intended to reduce the overall costs of the reverse mortgage over the life of the loan for borrowers.
For immediate release
Legacy Reverse Mortgage is announcing the launch of the Fixed Plus Reverse Mortgage, a new program that is aimed at reducing the cost of a traditional reverse mortgage over the life of the loan. Legacy Reverse Mortgage says they will be introducing the loan to qualifying properties and clients.
Due to favorable conditions in the secondary market, Legacy Reverse Mortgage's Fixed Plus Reverse Mortgage is able to pay up to one half of the 2% upfront FHA Mortgage Insurance Premium (or MIP) that is charged by the US Department of HUD. The amount varies depending on several factors, however the effect is the same: the customer saves money which in turn means more reverse mortgage proceeds for the customer. The Fixed Plus Reverse Mortgage also allows borrowers to lock in a low, fixed rate for the life of the loan, an important factor considering that many believe we'll see higher rates in the near future. .
Taking an example of a home that is worth $500,000, the company explained, means that the Fixed Plus Reverse Mortgage program could save the borrower as much as $5,000 in upfront costs. Additionally, the remaining 1% MIP of just $5,000 can be financed right into the principal balance upon the loan's closing.
Those savings equate to reverse mortgage borrowers who qualify for Legacy's new Fixed Plus program pocketing as much an additional $6,250 in proceeds from the loan. The company expects the growing popularity of reverse mortgage loans in the U.S. to continue their current trends with the introduction of the Fixed Plus plan and reduced fees.
A Reverse Mortgage is a financial transaction that allows homeowners age 62 years and older the ability to convert the equity from their homes into cash through a loan facility. The proceeds can be used by the borrower for any purpose, a feature that is helping to supplement the millions of seniors who are estimated to be entering retirement under-funded within the next ten years.
About Legacy Reverse Mortgage: Legacy Reverse Mortgage is one of the fastest growing reverse mortgage providers in the country. The company's management team has over 20 years of combined experience specifically in reverse mortgages, including President Jim Cory, who in 12 years has held posts from management at Fannie Mae to serving as the Vice Chairman on the Ethics Committee and on the Board of Directors of the National Reverse Mortgage Lending Association ("NRMLA").
Legacy was founded on the core principles of integrity, value, and shared success. The company's goal is to provide every customer with an honest and fair solution to their home financing needs. Legacy believes in educating customers, developing relationships, and never straying from a committed price. You can learn more about Legacy Reverse Mortgage by calling (800) 991-4613 or by visiting http://www.legacyreversemortgage.com.