Digital News Report – Current mortgage and refinance rates are at historical lows and Fannie Mae is forecasting rates to move upward. According to a recent report by the Mortgage Bankers Association, new purchase mortgages are declining so banks are vying for the refinance and reverse mortgage markets.
Bank of America is offering reverse mortgages for seniors age 62 and older. They claim the application process is relatively easy. “Approval could be easier than you think”, the lender says. There will be an appraisal needed and applicants will need to use the home as their primary residence.
The money could be used for anything, including paying off “existing” mortgages or other debts. Borrowers still maintain ownership of their property.
It is difficult to compare reverse mortgage rates without going through a qualification process. We found a rate of 4.99 percent on a reverse mortgage with a $25 monthly servicing fee.
Homeowners will still need to make their tax payments and pay insurance if necessary. Well’s Fargo says homeowners can make the most of their retirement with their reverse mortgages. The bank says they have “reduced fees on FHA-backed reverse mortgages.”
By: Tina Brown