A Call for the Return of the HECM Saver?
In October 2010, the HECM Saver was introduced giving borrowers considerably lower upfront FHA insurance premiums in exchange for lower lending ratios or principal limits. Three short years later the Saver was eliminated from the Home Equity Conversion Mortgage Program. Ironically, it was this now-eliminated program that spurred considerable interest in the HECM within financial planning circles. Today, some retirement experts are calling again for a low-cost reverse mortgage.
When HUD eliminated the HECM Saver it also increased the upfront or initial mortgage insurance premiums for those utilizing a high percentage of available funds. In their reengineering of the program they baked in disbursement options that offered lower premiums for…
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