Monday, July 6, 2015
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

WCN Site Search


Lost & Found

Have you seen Bear? Reward! Black Manx cat (no tail), shy, short legs, 9 years old, needs shots, missing since October, Tower Lake area. 210-635-7560.

VideoLost: Cat in Floresville, end of Sutherland Springs Rd., wearing blue flea collar, grey and cream with tabby stripes, my little boy is worried about me. Call 210-216-9634 or 830-393-8496. 

VideoFound 2 year old female Basset Hound at the corner of 360 Shorthorn & 204 Longhorn Rd, Stockdale. Contact Paula at 210-827-9583.
More Lost & Found ads ›

Help Wanted

SS Water Supply Corp. is accepting applications for a full-time Administrative Assistant. Minimum qualifications: Five years in an office environment, proven organization and computing skills and above average communication ability required. The ideal candidate will have some financial management experience, ability to understand and interpret legal documents, become a notary, acquire skills to support the water utility industry and work independently on occasion. Person selected will be in an environment dealing with a variety of situations while serving the public. Starting pay depends on experience. Great benefits! Applications and resumes will be taken until position is filled! Apply in person at 10393 U.S. Hwy. 87 W., La Vernia, Texas, 830-779-2837.
Seeking individual to work in a local child-care center, paid holidays, etc., must be high school grad or GED. Apply in person at Cubs Country Childcare, 212 FM 1346 in La Vernia.
More Help Wanted ads ›

Featured Videos





Video Vault ›

Savvy Senior


Reverse mortgages are more affordable




E-Mail this Story to a Friend
Print this Story

Disclaimer:
Jim Miller is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
Jim Miller
April 5, 2011 | 1,862 views | Post a comment

Dear Savvy Senior,

What can you tell me about reverse mortgages? I was considering one a few years ago but decided against it because it was too expensive. But now I hear they are much more affordable. What can you tell me?

Looking for Cash



Dear Looking,

One of the biggest drawbacks of reverse mortgages over the years has been the high upfront costs. But now, thanks to some new federal rules and reduced lender fees, reverse mortgages are much cheaper for cash-strapped retirees to get into. Here’s what you should know.



The Basics

Let’s start with a quick review. A reverse mortgage is a unique loan that lets older homeowners convert part of the equity in their home into cash that doesn’t have to be paid back as long as they live there. To be eligible you must be age 62 or older, own your home -- or owe only a small balance -- and currently be living there. There’s no income qualification. You can receive the cash either as a lump sum, a line of credit, regular monthly checks or a combination of these. And with a reverse mortgage, you, not the bank, own the house, so you’re still responsible for property taxes, insurance and repairs.

Repayment is due when you or the last borrower dies, sells the place or lives elsewhere for 12 months. Then you or your heirs will have to pay off the loan -- which includes the money you borrowed plus accrued interest and fees -- either with the proceeds from selling the place, or if you want to keep the house, with money from another source.

Cheaper Loans

Most reverse mortgages on the market today are known as Home Equity Conversion Mortgage (HECM), which are backed by the Federal Housing Administration (FHA). The big complaint about HECMs has always been the high upfront fees, which include a 2 percent loan origination fee, 2 percent mortgage insurance, along with appraisal fee, closing costs and other miscellaneous expenses. All told, the cost of getting a HECM can run around 5 percent of the value of your home.

But starting last fall, the FHA introduced a new HECM “Saver” loan that offers a smaller loan amount that’s about 40 percent cheaper than a traditional HECM has been -- which is now known as the HECM “Standard”. The new Saver loan virtually eliminated the 2 percent upfront insurance premium to create the savings.

But with the Saver, the amount you can borrow is about 10 to 20 percent less than what you could get with the HECM Standard. So, for example, a 70-year-old with a home worth $300,000 could get a lump sum of about $149,000 with a Saver, versus around $187,000 with a Standard loan. To calculate how much you may be able to borrow visit www.rmaarp.com.



Lender Fee Cuts

You also need to know that as a way to drum up business, many lenders today -- like Generation Mortgage, MetLife Bank, Bank of America, Wells Fargo and others -- are waiving loan-origination fees and other upfront charges on some loans, which could also save you thousands of dollars. Most lenders, however, are offering these deals only to fixed-rate HECMs that require borrowers to take out a lump sum. The cuts are generally not available to adjustable-rate loans that can be taken as a line of credit or in monthly payments.



Required Counseling

Because reverse mortgages are very complicated, you’re required by the government to first meet with an independent counselor to make sure you completely understand how they work. Counseling can be done in person or over the phone and many counseling agencies today provide it for free or at a minimal fee. Some locations charge around $125. For more information on reverse mortgages, or to locate counseling agencies in your area, visit hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm or call 800-569-4287.

Jim Miller is a contributor to the NBC “Today” show and author of The Savvy Senior book. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit http://SavvySenior.org.
 
‹ Previous Blog Entry
 

Your Opinions and Comments


Be the first to comment on this story!


You must be logged in to post a comment.




Not a subscriber?
Subscriber, but no password?
Forgot password?

Savvy Senior Archives


Resource Links savvy senior
Savvy Senior blog bio side
Triple R DC ExpertsHeavenly Touch homeDrama KidsAllstate & McBride Realtyauto chooserVoncille Bielefeld home

  Copyright © 2007-2015 Wilson County News. All rights reserved. Web development by Drewa Designs.