Reverse Mortgage Calculator – Get More: $0 Fee Options!
August 23, 2017
Reverse Mortgage Calculator
Good Day Reverse is constantly creating a better reverse mortgage for homeowners, which is why we have created our “discount” reverse mortgage calculator. In addition to finding the right reverse mortgage program or rate we feel that our exclusive discounts and credits set us apart. Get more for less!
It is simple! Just enter your information in the reverse mortgage calculator below to see the discounts that will apply to your reverse mortgage program with Good Day Reverse!
Reverse Mortgage Discounts
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You qualify for the following exclusive discounts and credits with Good Day Reverse.
$0 Origination Fee
You qualify for our $0 origination fee option on both our fixed rate and adjustable rate programs.
$0 Finance Fees
You qualify for our $0 finance fee option which includes appraisal fees, title fees, escrow fees and many more we will credit at closing. Fixed and adjustable programs included.
$0 Servicing Fees
You qualify for our $0 servicing fees. Some lenders charge between $25-$35 a month to service your reverse mortgage, but we will waive these fees so you pay $0.
$0 Appraisal Fee
You qualify for our $0 appraisal fee. We make it easy! You will not have to pay for the appraisal out-of-pocket and we will credit the fee at closing, so it will not be added to your loan balance.
$0 Out-of-Pocket Appraisal Fee
You qualify for our $0 out-of-pocket appraisal fee. We make it easy! You will not have to pay for the appraisal out-of-pocket. We will cover the cost and include it in the financed fees at closing.
Additional Discounts and Credits
You qualify for additional discounts that will credit some, if not all, of the Initial Mortgage Insurance Premium. These extra savings will put thousands more in your pocket at funding.
Reverse Mortgage Calculator Discounts Explained
We understand that a lot of people reviewing their discounts above might be seeing these for the first time. Not many reverse mortgage companies openly disclose discounts and credits that can be offered to their clients. We do things a little different. This is why we created a reverse mortgage calculator that details your discounts.
Please take the time to review your potential reverse mortgage discounts below. If you have any questions about the reverse mortgage program or our discounts please do not hesitate to call one of our reverse mortgage advisors at toll-free 877-676-6542.
Reverse Mortgage Calculator – $0 Origination Fee
An origination fee is allowed by HUD to be charged by the lender or broker as part of the reverse mortgage fees. This fee is usually charged by the company to pay for the origination and processing of the reverse mortgage. This reverse mortgage fee is a payment that goes directly to the company originating a reverse mortgage and is paid through the loan at closing. Although the borrower does not pay the origination fee out of pocket, it does decrease the net amount of money that a borrower can receive with the reverse mortgage. When qualifying for a reverse mortgage every reverse mortgage fee that is applied to the loan is less money the borrower can receive as a lump sum, in a line of credit or as a monthly disbursement. This is why waiving the origination fee can be so important. It not only lowers the initial loan balance, but also offers our borrowers more money. Why get less when you can get more with Good Day Reverse!
The origination fee charged is allowed to be between $2,500 and $6,000 depending on the appraised value of the home. If our reverse mortgage calculator showed you qualify for our $0 Origination Fee option then you will be presented with at least one reverse mortgage program where we completely waive the origination fee down to $0! This will save you thousands and put thousands more in your pocket at funding.
Reverse Mortgage Calculator – $0 Finance Fees
Finance Fees, or other costs, are items that need to be ordered to complete the processing of the reverse mortgage loan. These finance fees include, but are not limited too: appraisal, title, escrow, notary, credit report, trust review and many more. These fees may not be paid out-of-pocket by the homeowner, but they are typically financed through the loan and added to the total balance at funding. These fees can be as high as $3,000+ depending on the situation. Regardless, if you used our reverse mortgage calculator and you qualify for our $0 Finance Fees then you will be offered at least one program that credits all finance fees associated with your reverse mortgage. This will save you thousands and put thousands more in your pocket at funding.
Important Disclaimer: We are not allowed to credit your reverse mortgage counseling fee at closing. HUD does not allow any company to pay for counseling for the homeowners, because it can be seen as steering. In addition, the finance fees credit does not include the Initial Mortgage Insurance Premium.
Reverse Mortgage Calculator – $0 Servicing Fees
A servicing fee can be included by a reverse mortgage company to pay for the ongoing servicing, or upkeep, of your reverse mortgage. The servicing company of the reverse mortgage is responsible for managing a borrowers available line of credit and issuing monthly disbursement payments. If there is a partial or life expectancy set-aside the servicing company will be responsible for making the homeowners insurance, property tax and any HOA payments on time. In addition, the servicing company will send monthly statements showing the current details and status of the borrowers reverse mortgage. This servicing fee can range from $25-$35 a month. Since this is a fee to be paid for the life of the loan the lender is required to create a “set-aside” at the beginning of the loan. This set-aside can be $3,000+ and will be subtracted from your available money with the reverse mortgage.
If you used our reverse mortgage calculator and qualify for $0 Servicing Fees then ALL of the programs will have that fee waived. The $0 servicing fees only apply to the government insured HECM reverse mortgage program and not the proprietary jumbo reverse mortgage program. This will save you thousands and put thousands more in your pocket at funding.
Reverse Mortgage Calculator – $0 Out-of-Pocket Appraisal Fee
All government insured reverse mortgage loans require a FHA approved appraiser to assess the value of the homeowners subject property. This appraisal fee can typically be between $475-$600. This is a fee that is included in the finance fees, which will be added to the loan balance at closing. If you used our reverse mortgage calculator and qualify for $0 Out-of-Pocket Appraisal Fee then we will cover the upfront cost, so you do not have to pay for the appraisal on all of our programs! This will not only save you money at closing, but we find that out clients love the service of not having to put the appraisal fee on a credit card or by writing a check.
Reverse Mortgage Calculator – $0 Appraisal Fee
If you used our reverse mortgage calculator and qualified for the $0 Appraisal Fee then you will not be charged an appraisal fee on any of the programs we offer. How does this work? Good Day Reverse will cover the cost of the appraisal, so that you do not have to pay out-of-pocket. In addition, we will credit the cost at closing, so that the appraisal fee will not be added to the loan balance at funding. That is a savings of up to $600+ depending on the location and value of the subject property.
Reverse Mortgage Calculator – Additional Discounts and Credits
If you used our reverse mortgage calculator and qualify for this discount then you would have already received the $0 Origination Fee, $0 Finance Fees and $0 Appraisal Fee. The only cost of the reverse mortgage left is the IMIP, or initial mortgage insurance premium. The word “initial” in the description confirms that this premium is charged at the start of the reverse mortgage loan once it has funded. It is also a premium that is only paid once during the life of the reverse mortgage loan. The Initial Mortgage Insurance Premium is not required to be paid by the borrowers out-of-pocket, but instead added as a closing cost to the starting loan balance.
The cost of the Initial Mortgage Insurance Premium depends on a couple key reverse mortgage loan factors. The first loan factor is the percentage of the principal limit or starting loan balance that you qualify to receive. If your initial loan balance with the reverse mortgage is less than 60% of the total available loan balance, or principal limit, then your Initial Mortgage Insurance Premium will be set at a rate of .5% of the appraised value. If your initial loan balance is set at over 60% of the principal limit then the Initial Mortgage Insurance Premium rate will be set at 2.5% of the appraised value. In the event that your property appraises for over the maximum claim amount of $636,150 then you will be charged either the .5% or 2.5% on just the $636,150.
Example: Your home is appraised for $350,000 and your starting approved principal limit is $180,000. Your current mortgage that we are paying off is $72,000, which is 40% of the principal imit. You would qualify for the .5% Initial Mortgage Insurance Premium rate, which would be a total premium closing cost of $1,750. If in this same scenario the current mortgage balance of $144,000 or 80% of the principal limit then you would qualify for an Initial Mortgage Insurance Premium rate of 2.5%. This rate of 2.5% would total a premium reverse mortgage cost of $8,750.
Our Additional Credits and Discounts will cover some, if not all, of the remaining costs for the IMIP. These additional credits can be as much as $18,000! This would save you an additional $18,000 and put that much more in your pocket at funding.
Reverse Mortgage Calculator – Disclaimer
These discounts are a result of the information that was submitted into the reverse mortgage discounts calculator. This is not a quote and discounts are subject to change at anytime. The program being used in association with this result is a 2.50% Annual LIBOR margin and a 4.99%(6.28%APR) Fixed Rate. However, Good Day Reverse offers multiple reverse mortgage rates and programs that could be of more benefit when requesting a special offer quote below.(44 votes, average: 4.98 out of 5)
Good Day Reverse, Inc is licensed or registered to engage in reverse mortgage loan origination activities in the following states: California.
Jason Heyl, is an experienced reverse mortgage advisor for Good Day Reverse, Inc. He is a reverse mortgage industry veteran with over a decade of experience. If you have any questions or comments on this article please let me know below. Thanks for reading. Have a Good Day!
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